Comparative Analysis On Maximum Amount Mortgage System And Floating Charge System

Since the foundation of Maximum Amount Mortgage System and FloatingCharge System, scholars have never stopped researching and analyzing on thesefactors. As a preservative and financing method, Maximum Amount Mortgage Systemcan simplify the procedure, provide convenience to clients and promote capitalfinancing, which other common mortgage don’t possess. It has a positive stimulationon promoting trade development and improving social economic circulation, therefore,Maximum Amount Mortgage System is widely utilized in social trade activities,especial in banking. Compared with Maximum Amount Mortgage System, atraditional mortgage form, Floating Charge System is a kind of special guaranteesystem. Floating Charge System expresses the value or benefits of the floatingguaranty in the way of currency through banking credit. During the whole process,creditor is the bank, so its characteristic is to express the value or benefits in the wayof currency and to form a system with the bank a creditor. The introduction ofFloating Charge System further expands the scope of guaranty in our country. Thiskind of new system breaks the limitation of traditional guarantee system due to itsflexibility of financing. But until now, the application rate of Floating Charge Systemis still very low, which leads to ignorance and confusion, and can’t protect the rightsof owner.The thesis is divided into four parts according to this condition. First part is thegeneral introduction of Maximum Amount Mortgage System, which mainly discussedthe concept and its effect of Maximum Amount Mortgage System. Second illustratesthe concept and real meaning of Floating Charge System. In the third part of the thesis,the author analyzed the inner logic of Maximum Amount Mortgage System andFloating Charge System by listing the classic cases in banking transactions andconcluded the same points and different points of two systems in the process ofnarrating these classic cases. Furthermore, the author proclaimed the suggestion andmagnificence of applying Floating Charge System from the angle of legislation and regulations at the final part. The author hopes to provide a little help on expanding thescope of banking credit business through the analysis in this thesis, promotemulti-category of mortgage business through the cooperation with internationalorganizations, and realize social efficiency of the rights in certain organizations.