Research On Legal Problems Of Pledge Of Accounts Receivable Financing

Before the property law was promoted, a large quantity of receivables of small and medium enterprises wasn’t stipulated in the range of pledging guaranty system in property law explicitly.Such confusable situation leads to the dilemma of financial gaining bringing. In order to develop the account receivables financing capacity adequately,legislators stipulated in Real Right Law that account receivables can be pledged,which means getting cash flow by pledging account receivables is legal and feasible. However, after a decade of Real Right Law has been promulgated,account receivable doesn’t work as legislators expected with high efficiency. The failure situation may can attributes to the huger risk account receivables thereof compare to the real property.As a reasonable credit institute,it will be reluctant to accept this form of pledging guaranty,which leads to the dilemma of financial still existing.As stipulations of law departing from social reality and a great need being proposed to vitalize the pledge scheme of accounts receivables. The writer will throw much light on such issue in three branches to analyze pertaining systems about accounts receivables pledging, studying financial risk due to uncompleted system and approaching my own suggestions to take the risk under control shall be my routine map.The first part of this essay contains chapter I and II where discusses account receivables and financial bringing value thereof. The definition, ingredient, validity of conclusion such sort of contract under Chinese property law, resorting when breach, registry routine and path will be mainly observed. In addition, the status-quo and feature of account receivables pledging, the problem it faces and the necessity to notice would also be discussed in this part. Then I will focus on the validity of account receivables pledging from four angles or pledgee, pledger, debtor and third party. Finally, the discussion is about achieving the right quality of accounts receivable.Accounts receivable mainly discussed the conditions for the realization of the right quality, and the way to achieve its relationship with other systems and the like.The second part, including articles of Chapters III and IV, is the most important part of this article. First of this part is established pledged accounts receivable financing, analyzing theaccounts receivable pledge contract validity and breach of contract remedies and accounts receivable pledge registration process, status, characteristics and problems, noticing accounts necessity of the account debtor. Second of the part is discussing the effectiveness of the pledge receivables, mainly from the pledgee on pledgor, debtor receivables. Third parties for discussion.Finally, the discussion is to achieve the right quality of accounts receivable, accounts receivable mainly discussed the conditions for the realization of the right quality, and the way to achieve its relationship with other systems.The last chapter of the article constitutes the third part, the part main analyzes the risk of accounts receivable financing from analyzing the subject,object and legal system of accounts receivable financing legal relations. Also proposed the risk control measures in perspective of the legal system and the legal operations management.