Study On System Of Legal Problems Of Floating Charge In China

Floating charge system originate from the UK case law. It does not transfer possession of the property. It allows the future property as a pledge, and it also allows the mortgagor disposes their property within the normal operating range.So it is known as the most inclusive and most conveniently pledge.These advantages make it develop rapidly in many countries in the world.Meanwhile, these countries combine the floating charge system with the specific condition of their own country to make distinctive requirements. In our country, specific definitions have been given to the floating charge in Article 181,189 and 196 in our state Property Law, which is a breakthrough on China's current system of mortgage.This paper elaborates on the interests of the mortgagee through the interpretation of existing legislation.And we should pay attention to the problems during the application of the floating charge.This paper consists of four parts.Part I:Overview of floating charge.Firstly, we describe the concept of floating charge from a historical perspective, and then we define the concept of the floating charge according to the provisions of Property Law.Secondly,we introduce the four characteristics of the floating charge:the freedom to dispose of collateral; the floating of the mortgaged property;The conversion of the nature of mortgage; the unique way of the implementation; Thirdly,we introduce the floating charge of German mortgage, real estate security of the United States, and Japan's corporate guarantees.Part II:We discuss the establishment of a floating charge.Firstly,we simply introduce the legislation of other countries, then we give a minute description on the floating charge and the scope of floating charge of our country. We also discuss the specific content of the subject of floating charge; Then we introduce the scope of the object of the floating charge.and the way of the establishment of floating charge,combined with the analysis of the requirements of other countries.Finally, registration of floating charges are introduced including an overview of registration, the authority of registration and the locations of registration, the application of registration, registration review and the effection of registration.Part III:We discuss the effect of floating charge.We introduce the effect of floating charge both internal and external.The internal effect mainly include:the freedom to dispose of collateral by the mortgagor and mortgagee entitled to dispose of the rights, and a variety of right of the mortgagor.The external effect mainly include:the restrictive provisions of the floating charge and the way of disposal when competing with other property.We also give a minute description on the related issues.PartⅣ:We discuss the implementation of the floating charge.In this section we describes the cause of the crystallization of floating charge, the effect of the crystallization,the release of crystallization and recrystallization.Then we introduce the way of the implementation of the floating charge after crystallization.Finally,we give a minute description on the appointment of the cause of crystallization and the way of the implementation of the floating charge.