On The Pledge Of Accounts Receivable

These years the financing difficulties of medium and small enterprises have become a problem which attracted widely attentions from the society.The Pledge of Account Receivables is a new style of financing by the means that the creditor sets a pledge on the account receivables which came into being by his selling goods, providing service or equipments.Comparing to traditional financing methods,with enlarging the scope of objects applicable for setting pledge and exerting the availability of property,pledge of account receivables offered the developing medium and small enterprises a convenient means of financing,which is in favor of resolving the financing troubles.In the purpose of regulating and promoting the financing of enterprises,Property Law of PRC made some principles about Pledge of Account Receivables.However,the system of account receivables pledge in Property Law is imperfection,with a great deal of shortages and in dire need of improvement.With the lack of theoretical study especially on the aspect of legal issues on pledge of account receivables,the development of this kind of pledge was badly stunted.In this article,the writer reviewed the system of account receivables pledge on theory level,especially put great efforts on the creation,announcement and registration of pledge on account receivables in theory and practice,analyzed the status quo of operation and made some suggestions,with the expectation to provide certain assistance to the theory and practice study.In the first Chapter of the article,the definition and characteristic of pledge of account receivables are expounded.It laid emphases on the composing of account receivables,the characteristic of Right Pledge and the specialty of floating charge.It is concluded that the pledge of account receivables should involve the right of toll as a pledge object and it is a Pledge of Obligation in substance with a feature of floating charge.Beginning with the explanation on the status of account receivables pledge in Right Pledge system,the article discussed the argumentation of account receivables pledge in the procession of Property Right Law legislation.For better understanding of the characteristic of account receivables pledge,a comparison between the pledge of account receivables and factoring also with the "pledge on account" is provided. This defined the feature of pledge on account receivables practically and affirmed that the enactment in Property Law of PRC is a choice of advantages. From the prospect of legal relationship of account receivable pledge,the third part of this article set forth the legal relationship detailed by analyzing the object of the pledge,the contract of setting pledge,registration requirement,the effectiveness of account receivables pledge and the potential conflicts.In this part the author constructed the basic frame of pledge of account receivables,reviewed the regulations in both substantial and procedural level and laid the foundation of setting and explaining the system about the protection of pawnee.As a new method of financing,risks of loan based on accounts receivables pledge are obvious especially for commercial banks.It's very important to prevent risks,ensuring the security effective and guarantying the safety of claims.In the fourth chapter of the article,the risks of account receivables pledge are analyzed briefly and some suggestions on risk prevention under present legal background are provided.The Property Law has chosen the Credit information agency as the registration institution of account receivable Pledge with the feasible of formulation.Accompany with the implement of Property Law People's Bank of China has also constructed the uniform registration system of account receivable pledge.By the effective operation and continuous amendment,the insufficiency of account receivable pledge on commercial risks could be well remedied.In the end,the execution statistics of account receivables pledge and the model effect which the pledge lays in secured transactions are reviewed.Recently the traditional security interest theory has changed a lot and the renovation of personal property(includes right) has become a mainstream.With the in-depth research and the generalization of account receivables pledge,its promotion effects on secured transactions will be remarkable.