The Study Of The System Of Movable Property Floating Charge

The system of floating charge originated in equity in Britain is created to solve the problem of enterprises’ inventory and financing. More than 99% of the total number of enterprises account for the small and medium-sized enterprises (SMEs) in China, whose value accounts for more than 60% of gross domestic product. However, the SMEs encounter some financing bottleneck, including the narrow channel and high cost of financing, which become the main factor of restricting the development of the SMEs. Therefore, "The Property Law" promulgated in 2007 accepted the system of movable property floating charge to get rid of this dilemma and allow four kinds of chattel to be set up movable property floating charge, which the mortgagor have and will have. And the mortgagors contain individual industrial and commercial households and agricultural production operators as well as the enterprises. However, the movable property floating charge suffers a rare practice in China.In order to research the financing value of movable property floating charge and the reason of the dilemma of movable property floating charge, the historical study is used to explore the history of the system of floating charge. And then the comparative study is used to compare the floating charge system in the developed countries and regions with the only 3 articles of law which involving the movable property floating charge system directly in China. By investigating the present situation of the movable property floating charge from 2010, analysis the main factor of the practice dilemma is the mortgage credit loss of the mortgagor. Meanwhile, the defects of the movable property floating charge system include the narrow scope of the object, the loss of registration content rules, the undefined rules of crystallization, the loss of disposing action rules of the mortgagor, and the undefined rules of priority. Referred to the related provisions of the developed countries and regions, combined with China’s specific conditions, the suggestions of perfecting the movable property floating charge system are as follows:in perfecting the system of the movable property floating charge, the accounts receivable should be brought into the object scope of the movable property floating charge, and the negative pledge can be agreed in the movable property floating charge contract to moderate the interests of both parties, and the registered negative pledge can be used to be against a third party, and set specific criterion for the normal business activity of the mortgagor, and the notification and registration procedures are needed for the auto crystallization, and as for the conflict between the movable property floating charge and other security interests, depending on the type of the guarantee by first sort, according to whether the negative pledge exists and the order of registration by second sort to seek the priority. At the same time, perfect the supporting measures of the movable property floating charge:build the credit reporting mechanism of the mortgagor actively, and introduce the third-party guarantee and agricultural insurance, etc:...