On The The Floating Mortgage System In China Perfection

Floating Charge Regulation produced officially in England, who is belong to Common Law. Scotland and America adopted the regulation after then. Now the countries which belong to Continental Law combined their national conditions with the regulation, creating characteristic Floating Charge in their mortgage regulations. Under Floating Charge Regulation, the enterprise can hypothecate all or part of its properties, which can even include the properties in the future, and has the right to dispose its properties freely or limitedly in the normal business before the crystallization. The crystallization happened because of some certain reasons. After the crystallization, the mortgagee has the priority to be paid with the mortgaged properties, which is fixed now. The flexible mortgaged properties and changeable quality make Floating Charge different from other mortgages. But the key feature is that the mortgagor can dispose the mortgaged properties freely after setting Floating Charge, he can go on producing with the enterprise's properties, making full use of the properties. Floating Charge, as one of the most delicate creation in Common Law, combined the value of efficiency, freedom with safety. It is loved by banks because it is convenient for the debtor to finance and use the mortgaged properties. The real law introduces the system, thus having a significant meaningfulness to the development of our country's economy.However, we only use a few simple articles to describe the regulation. It can't compare with the countries that have a perfect Floating Charge Regulation either in the number or in the quality of the articles. Floating Charge Regulation conflicts with the traditional principles of the real law in the Continental Law System. The key problems of the regulation are rarely or even not mentioned in our country, such as the registration, the order of the priority and the means of realization. What is more, many articles do not comply with the conditions of our country, for example, it expands the scope of the mortgagees and so on. The risks of the regulation also bring difficulties to put it into practice. Therefore, the superiority of the regulation can't appear in our country. In my opinion, only we perfect the substantive and procedural regulation, can Floating Charge play a real role in our country.