The Research Of Accounts Receivable Pledge System In China

As a new financing way of security and new type of pledge of right in "Property Law", because of itexpansion of financing channels, pledge of accounts receivable ease the financing difficulties of SMEs andhighlight the very an important role in the economic society. However, in the legislative process of the"Property Law", practitioners and theorists intensely debating on the development of the system, therequirement of Pledge of accounts receivable is made too brief by the final legal, which led to operationaldifficulties in the event. The concept, the scope, the legal nature, the establishment, the effectiveness, theimplementation, the risk control and a range of issues of Accounts receivable, from the beginning of thelegislation have been controversial. Even after more than four years of practice, although the pledge ofaccounts receivable obtain good results, some theoretical issues remain controversial, and relevant laws andregulations remain missing, which are plaguing our secured financing practices. And thus it has veryimportant theoretical and practical significance to continue to conduct in-depth research and studycorresponding accounts receivable pledge.Firstly, this passage sort out and introduce the basic theory of accounts receivable, analysis the conceptof accounts receivable from multi-disciplinary, point out that the accounts receivable refers to the rightholders quest the payment of monetary claims according to providing goods, services or facilities to theobligor, including the right to receive any fee or charge based on the law or administrative license and theexisting and future monetary claims. However, the claim does not include the payment of notes or othervaluable securities. Our country has listed some ways of the scope of the provisions of our accountsreceivable, including accounts receivable and the right to the some of the charges. The scope of thesubscription rights provisions in trade receivables, that is made expedient in order to fulfill needs in ourcurrent environment. On the nature of accounts receivable, there are transfer of rights and right of pledge.Although there are many similarities between the pledge of accounts receivable and the transfer of rights,fundamentally the pledge of accounts is also the pledge of rights. According to analysis the pledge ofaccounts receivable, factoring and receivables transfer, it is cited the necessity of the independence andthe separate existence of the pledge of accounts receivable. Our country’s regulation of accounts receivable set conditions include a written contract andregistration, the registration is both the setting us conditions of accounts receivable pledge and also the wayof the formula. It is different to the conditions of establishment of the pledge to the general claimscomparing with civil law. Mostly civil law countries is to notify the third person or delivery the debtcertificate as a formula approach. This article was analyzed and discussed whether these two can be addedto the establishment conditions of our accounts receivable and on the comparison pointed out theregistration publicity superiority. Although our formula is to learn from the Common Law of PublicRegistry, the different logical basis of law and mistaken draw lead to conflict in the application andloophole in the operating details. To solve these problems, this passage put forward a series ofsuggestions for improvement, modifying application for registration, giving the form review duties to theregistration authority, increasing the denial of registration requirements, and modifying the correspondingmethod to change the phenomenon of conflict of laws.About the effectiveness and implementation issues of pledge of accounts receivable, China’s "PropertyLaw" rarely involved, but that part to the pledge of accounts receivable system is very important. Theeffectiveness of the pledge of accounts receivable is the key that whether this right quality can be achieved.And the right realize is the the basis of the right to set up. The effectiveness of the pledge of accountsreceivable are the effect to three parties after setting us, namely the rights and obligations enjoyed by thethree parties. In order to realize pledge of receivables, States most take direct charge, namely when thedebtor failed to discharge the debt, the pledgee can directly be obtained from the garnishee of its debt indebt. For the period of settlement of the problem, this passage discussed the general accounts receivableand charges the right way, and distinguished according to the liquidation period and the repayment of thesecured claims of the ordinary receivables.For the toll collection rights, it will be realized through directcharge or the right to auction or selling their rights.Pledge of accounts receivable has greater risk than other guarantees, because of is realizationdepending on the performance of the debtor’s ability,having great uncertainty and itself belonging to requestcreditor rights of no securitization. In accepting the setting accounts, this requires the bank of the pledgeenot only to strengthen the prior review of the risk but also to strengthen the prevention and control of loanrisk. At the same time the prevention and control of risk need to continue to build our country’s credit system, and strengthen the provisions and perfect of law in order to support. For successful implementingpledge of accounts receivable system, risk control is a key factor. We must not only be perfect in laws andregulations, but also need the joint efforts of the related collateral management department and the pledgee,the pledger and the garnishee parties.