The Floating Charge

As an important way of financing guarantee in international economic market, the floating mortgage system has been widely popular since its creation.It was when the industrial revolution in the UK rapidly developed and, the existing traditional guarantee system could not meet the growing demands from the SMEs that the lawyers in the UK finally created it and made it recognized by the judiciary.then it spread to the whole world. The floating mortgage system has respective characteristic due to differences in historical background, cultural heritage, national habits exist in different countries,which is decided by their actual circumstances. China has also quoted the floating mortgage system in the "people’s Republic of China Property Law" which was promulgated in 2007. However, due to the introduction of the system in our country is too simple and lack of practical application,it cannot completely play his unique role.Thus,we didn’t achieve the expected social effect. In this paper,the author will comprehensively elaborate something related to the floating mortgage and put forward several amendments so as to make a contribution on improving the floating charge system in China.In the first chapter the author talks about the establishment and development of floating mortgage system,trying to have a knowledge of the background as to floating mortgage system, know its exposition and the process of development as well as improvement.Some suggestions are mentioned about the established subject that was widely set;Then comes the second chapter,in which we will see the elaboration and reference about the core of the floating charge system, that is, the floating charge crystallization and receiver system.Consequently, the author will mention some constructive advice as to the lack of receiver system; With the help of the elaboration about the developments of States’ different floating mortgage system,the author hopes to find practical reference so as to improve ours in the third chapter. The last chapter sees some constructive suggestions about setting subject, designing the range of the mortgage, bringing the receiver system and so forth. All the author wants is to improve our guarantee system and to create a good atmosphere for the development of floating mortgage system in our country. Then it can play its role effectively in many aspects,such as coordinating the interests between the floating charge subjects,strengthening the SMEs financing ability, strengthening enterprise’s ability to resist risks, continuing the vitality of enterprises,making the best use of the mortgaged property, optimizing the allocation of resources and reducing resistance of the economic development.All the author wants is to do a little favor and make circulation of the social and economic development benignly,Therefore,the system can benefit the whole society and its people.