Research On UCC Secured Transaction System

U.S.A Uniform Commercial Code(Hereinafter referred to as UCC)is a Modellaw made by The National Conference of Commissioners on Uniform State Laws andAmerican Law Institute（ALI）.UCC article9rejects antiquated, vague and tediousclassification; instead, it introduces the functional approach to form a centralizedsecured transaction system. Its sound and efficient perfection system, clear priorityand the whole procedure arrangement according to importance of concepts, showcasethe integration of normative and practical character of law while realize thecombination of tradition inheritance and system innovation. Concise and efficientsecured transaction system contribute to widening financing channels and realizationof rapid economy development.2010edition of UCC Article9is coming into effect on1stJuly.2013. This edition commits to resolve critical issues in practice during recentdecades.Besides, this thesis gives brief introduction about Application of the UniformCommercial Code to Selected Issues Relating to Mortgage Notes (2011) andsummarizes four basic rules involving the content and realization of mortgage notes.Further, Limited Liability Partnerships under the Choice of Law Rules of Article9(2012), which is the newest official document of Article9, clarify how to apply thisarticle to limited liability partnerships.In Chinese socialist jurisprudence, there is no independent Secured TransactionLaw isolated from The General Civil Act, Property law and contract law. The specificarticles regulating relation of credits and conditional sale are distributed among TheGeneral Civil Act, Property law and Mortgage law and etc. Though China and U.S.Abelong to different law system and the development of Chinese Secured TransactionLaw is still in its initial stage, the advancing concepts of UCC secured transactionsystem and legislative technique are of great value for reference.China’s secured transaction legislation is still in its initial stage. To follow thepaces of the development of market economy and meet the needs of variousdevelopment modes, establishing and perfecting secured transaction legislation is anurgent issue. There are several bases to support the viewpoint that China can not adoptthe secured transaction model of Germany. First of all, present China security lawfounded on the basis of secured interests without possession and transfer while Germany model mainly adopts ownership reservation. Secondly, Germany modelrelies on judicial explanations while China need mature statute law. Last but not least,as the Germany authority said, Germany model itself has inherent defect. The mostoutstanding problem is secured interests without publication, which leads to conflictof priorities.Compared to other secured transaction legislation modes, UCC mode is of highefficiency and clarifies interests’ priorities, which meets the requirements of presentChina. To establish Chinese secured transaction system, legislators may considerdrafting independent secured transaction law. In developed seaside areas, especiallyeconomic special zone, flexible execution according to specific situation could beallowed. Following key questions must be solved:1.Establish nationwide standardand efficient secured interests’ registration system2. Reasonably expand the scope ofsecured transaction, set up new secured interest modes and admit existing reasonablesecured transaction modes3. Pay attention to develop private remedy4.Simplificatequalification of conclusion of guarantee contract and reasonable set the statingelement of procedure of registration.In conclusion, bringing in UCC mode and relevant system provides new andfeasible ideas for reform of China secured transaction legislation.