Accounts Receivable Pledge Protection System Research

With reference to foreign practices, the Property Law of the People’s Republic of Chinaintroduces a new type of guarantee, namely the accounts receivable pledge, which not only makesbank credit guarantee more flexible, but also opens up a new world for corporate-finance andeffectively saves financing costs of enterprises especially the small and medium-sized. However,the established laws and regulations are too of principle or the lack of provisions for accountreceivable pledge, so it can not protect the accounts receivable pledge rights holders. Based onsome cases analysis, the author points out the development states of accounts receivable pledgebusiness in China and focuses on the study of problems from accounts receivable pledgeregistration system and realization, which is aimed to provide constructive references for theimprovement of e accounts receivable pledge protection system.In the first part, based on a financial loan contract dispute case between a bank and a company,the definition and properties of accounts receivable pledge are given by focus of controversythrough analysis. As well, questions about the bad influence on development of accountsreceivable pledge from the national established laws are provided through the comparisons on thestates and factors between China and other countries.Based on the legal validity of accounts receivable pledge, the second part raises somequestions through comparison of registration system and operating mode between China and someother countries, such as imperfect registration content, pledge unilateral registration, regulatorsform of censorship and so on. Finally, all the solutions are proposed for improvement andconstruction of accounts receivable pledge in China.The third part comes with research about related litigation problems from accountsreceivable. Problems about limitation of accounts receivable pledge actions are well explained byanalyzing the influences on pledge realization from the pledge right term problem and accountsreceivable based contract litigation. From definition and status of the accounts receivable debtorswith analysis on rights and obligations, the author illustrates the influence on pledge realizationfrom accounts receivable debtors. As a result, the author offers a proposal on protection term andlegal consequences of pledge realization from the pledge right, establishment of accounts receivable based contract litigation supervision mechanism, definition of accounts receivabledebtors’ litigation status and so on.