Discuss On The Perfection Of The Floating Charge System In China

The floating mortgage is a kind of real guarantees set up by pledgers with all of or part of assets that they have or will have to realize the benefit of the guarantor, a equity from Rome to England and it is a special mortgage system developed by British Equity Law Court in judicial practice. In 1870, it was established in the form of legal precedent, then transplanted and referred by the countries all over the world.With the continuous development of economic globalization, transaction mode changes along with the increase of social demand. This system has been widely used in the area of economic development around the world. Compared with the traditional mortgage, floating charge system has been favored by more and more investors in the field of financing guarantee in many countries because of its advantages.With China joining the WTO on December 11,2001, credit business for infrastructure construction expands to overseas large syndications. The most common way of financing in international project is project financing and BOT, which adopt widely floating charge as their secured form for debt. China promulgated the Property Law of the People’s Republic of China(hereinafter referred to as the Property Law)On October 1, 2007, and incorporated floating charge system into the law in so as to meet the requirements of the world economy development pattern, which is a major breakthrough in the history of current floating charge system.However, our Property Law only makes a overall description of the system, not detailedly states the priority,realization condition and other detailed operations, which makes it difficult for the application of floating charge system.From the perspective of basic theoretical concept of floating charge system, including the system’s meaning, establishment and validity, this paper elaborates the legislative reference for this system in our country through the comparison of relevant provisions of British and French law countries and civil law countries. And it enumerates the problems in operating this system in our country by combining the practice, which are summarized as the following five problems, such as too wide scope of charge, too narrow charge guarantee scope, unreasonable recompensed rule for mortgage right, unestablished receiver system, the lack of completed credit supervision system and too single enforcement mechanism. With these problems, the author proposes the important measures to improve our floating charge system through generalization and summarization, as well as referring to practical cases in our country. Then, the author strives to further perfect the system through the comparative analysis of system design and actual condition of floating charge system in England, America and other countries, ultimately better servicing the economic construction of our country.