The Study Of Building Chinese Sub-pledge System And Realization Paths

As the global financial market produced complicated derivative deals, modern legal system around security promoted economic development. This article is to sub-pledge system in security.The first part is overview about sub-pledge. Sub-pledge is for your own or others financial claim that pledgee set a new pledge for another creditor.The second part is the survey of Chinese current sub-pledge system. Although our country has admitted it, however, the legal system is not perfect. Provisions under article94in the judicial interpretation of security law were always criticized by scholars. They convinced that the provisions are inconsistent with conventional theory in terms of the restriction about debt range. Even more important, repledge with agreement is a way to make use of pledge aging, not inclined to protect the pledgor. There is only one provision about sub-pledge in property law. The previous provisions don’t delegalize after implementation of the Property Law. Whereas, inconsistent rules are no longer valid, how to apply those provisions is difficult. Although our current legal system provides different paths, it’s hard to archive its goal.The third part is about different path of sub-pledge. Repledge with agreement is independent; however, repledge with responsibility is bond to the original pledge. As a matter of fact, pledgor has no advantages in repledge with agreement and has no disadvantages in repledge with responsibility.The forth part is discussed about feasibility of two different paths of sub-pledge. Both paths are necessary in reality. The serious problem is how to publicity. But in the real right system of China, it could be solved by registration. Another problem is the range of repledge. Negotiable instruments should been included in system, yet repledge on property rights should depends on specific situation.The last part is suggestions of perfecting our country’s legal system of sub-pledge. It’s practicable to repeal provisions under the judicial interpretation Security law, and improve on the basis of property law.