Implementation Study Of Pledge Right Of Accounts Receivable

The Pledge Right of Accounts Receivable has been explicitly defined by Property Law for several years. Although as one of the Real rights for security has been uncontested, but there are many theoretical and realistic obstacles during the process of implementation in practical application. As the guarantee right, the realization of the pledge right of accounts receivable is the most concern for the pledgee, and whose advantages and disadvantages are decided by the level of convenience, efficiency and cost. While all of above are affected by it on what kind of conditions can be realized, in what way to be realized and how to realize when special situation appealed, which even impacts whether the pledge right can be achieved or not. At present, because of our relevant laws and rules are simple and general, inadequate, and the academic research is not sufficient, it’s difficult to solve all the issues during the actual application on the realization of the pledge right of accounts receivable, and hindered the value of Pledge right of account receivable system.This article includes four parts, the first part narrates from the basic concept of Pledge right of account receivable system. By comparison, it straightened out the legal concept and scope of Accounts receivable. And then it illustrated the definition of Pledge of accounts receivable and how the pledge of accounts receivable was established as a legal rights, which made a foundation to understand and discuss the implementation of pledge of accounts receivable.The second part combs the approaches for implementation of pledge of accounts receivable. It neither blindly deny the role of traditional implementation way such as agreement, discount, auction, etc. applied in the implementation of pledge of accounts receivable, nor stick to the conservative ideas in traditional implementation methods. Firstly, it presented the overview of if the implementation of pledge of accounts receivable allow private relief; analyzed of why the traditional approach in general on realization of real rights for security are still applicable in implementation of pledge right of accounts receivable; and further put forward the advantage of pledgee directly collecting the accounts receivable, through researching the relevant stipulations of outside of auxiliary proved the importance and feasibility of its existence, and by analyzing its compatible with the clause "no liquid", to eliminate the legal obstacles of its becoming legal approach to implementing pledge right of accounts receivable. In addition, it comparatively analyzed the advantages and disadvantages of various ways, and also expounded which way should be used in preference and under what kind of circumstances.The third part discusses the supposed conditions on implementation of pledge right of accounts receivable. In addition to general state of the existence conditions and duration explicitly defined by law, it also put the notifying the third debtor as a security condition of pledge to realize. Notifying the third debtor is neither considered as the necessary condition of the foundation of pledge right of accounts receivable, nor as the public condition against the third party. But during the implementation of pledge, if not notifying third debtor for effectively, the pledgee can’t realize his pledge through any way, which embodies the safeguard function of notifying the third debtor on the implementation of pledge. And then, it explained the questions like the necessity, importance and the effectiveness of the notice, the subject of notice, and so on.The fourth part lists several special circumstances may appear during the actual operation on the implementation of pledge right of accounts receivable, which would might always be the barriers to implementation of accounts receivable. Discussing whether the pledge of accounts receivable can be realized and how to realize in the presence of these obstacles. What’s more, putting forward the solutions and countermeasures to eliminate the risk of implementation in the future.In the conclusion, this paper called attention to the implementation of the pledge right of accounts receivable in the process of revising Property Law or judicial interpretation in the future, exhaustively regulated the aspects on the implementation of pledge right of accounts receivable. It advocated attaching great importance to the social value of the pledge of accounts receivable, and comprehensively explored on the issues of implementation, improving the real application of system by promoting system design, and accelerating social development.