A Study On The Pledge Of Accounts Receivable

The legislative purpose of the enactment of pledge of accounts receivable is to set up a perfect movable property guarantee system to satisfy needs of more SME financing, which makes it essential to adjust the object, set-up and realization of the pledge of accounts receivable, to widen its range, to make its registration system efficient and unified, to make convenient and rapid implementation programs of pledge right, and to make clear the priority principles. But for these, more risks of pledge financing come to the pledgee. So it is necessary to investigate the legal precaution and control of the risks. Besides, it needs further discussion on the correspondence of pledge system of accounts receivable, which originates from Anglo-American Legal System, with Chinese legal system using Continental Legal System for reference.Besides the Introduction, the thesis consists of four chapters.The First Chapter analyses both advantages and disadvantages of the pledge of accounts receivable with its legislative purpose and current implementation. This chapter especially points out the imperfection of correlative regulations which should be improved to control the risks. In The Regulation of Registration of Pledge of Accounts Receivable, the extension of accounts receivable is shrunk, future accounts receivable is undefined, real estate charge right becomes the primary pledge type in despite of disputes over it. The controversy between registration of antagonism and registration of effectiveness is caused by the incoordination of registration of effectiveness and form examination. The lack of right of direct collection affects the rapidity and convenience of the realization of pledge right.The Second Chapter compares the connections and differences of the pledge of accounts receivable in Mainland China, Anglo-American Legal System, and Continental Legal System. The pledge of accounts receivable in Mainland China is the product of mixture of the latter two legal systems though it mainly imitates the movable property guarantee system in Anglo-American Legal System.The Third Chapter gives suggestion to improve the pledge of accounts receivable in China. The legislation of accounts receivable should be enhanced and its definition should be thorough to avoid its extension being shrunk; it is reasonable to get real estate charge right assigned to it; the future accounts receivable should be restricted to the signed contract which is to be paid when meeting certain conditions in the future. The thesis supports registration of antagonism and suggests non-informed pledge not taking effect with the sub-debtor so as to make the registration effectiveness mode more concerted and lessen the legal risks.The Fourth Chapter discusses some issues of risk precaution.