The Research On The Barriers And Breakthroughs Of The Forestry Right Mortgage In China

The reform of collective forestry right system, known as “The Third LandRevolution”, mainly aims at quickening the development of forestry, which cannot gowithout the support of capital. Therefore, forest right mortgage has become animportant part of the forestry institution reform naturally. Although forest rightmortgage has been put into practice all around China, there are still a lot of issues tobe solved whether in the aspect of theory or practice.Theoretically, the connotation of forest right mortgage is not clear enough. Firstly,looking from the perspective of the subject, the mortgager of forest right mortgagershould include not only the common foresters or proprietors of forest industry, butalso the collective economic organizations who own the forest land; the hold of forestright mortgage is not confined to financial institution, such as a bank, but also refersto other common creditors. Secondly, seeing from the perspective of the object, not allforest property can be the object of forest right mortgage. The object of forest rightmortgage should only include the forestland usufruct and the ownership of forests.Finally, looking from the perspective of the characteristics, forest right mortgage hassome distinctive features different from the traditional mortgage. One is that forestright mortgage is much dependent on policy. Besides, the value of the object of fore stright mortgage is uncertain. Moreover, the content of the object of forest property iscompound.Legally, there are a lot of legal barriers met by forest right mortgage. First, if theforest or the forest property is mortgaged, the forestland usufruct has to be mortgagedat the same time. However the legislation in China always holds a negative attitudetowards forestland usufruct mortgage achieved by the w ay of household-basedcontract. Thus the forestland contracted by household can not be used as a mortgagealone. Therefore the feasible extent of forest right mortgage is greatly limited. In thesecond place, forest right mortgage has to be carried out greatly depending on theharvest of forest trees, which is hard to realize under an extremely strict system ofdeforestation. Now, the collateral scope is so narrow and the cutting system is so stri ctthat currently forest right mortgage can only prop up by policy. To have forest rightmortgage freed from the swaddle of policy and survive in the market ultimately, somerelated legal barriers have to be break down. Practically, there are lots of difficulties in forest right mortgage, such as high costof forest right mortgage, short term of financial product, low assets mort gage rates offorest resources, and financial institutions not being willing to have a forest rightmortgage. On the one hand, the emergence of these difficulties is decided by theparticularity of the forest industry itself; on the other hand, it is also caused by theimperfect system of forest property assessment and circulati on market and forestinsurance. To help forest right mortgage out of the dilemma, the government shouldstrengthen its support. Then, it also should regulate the assessment of forest rightmortgage and form a standard and regulated circulation market. Furthermore, it canimprove the current situation of forest insurance and try the best to meet the insuranceneed of forest right mortgage. Moreover, the financial department should improve theability of operating forest right mortgage business and increase its financial support toforest industry.