Research On The Mortgage Of The Right Of Land Contracted-Management

Nowadays, the rural financial problem has become one of the core issues of the rural development with the difficulties of rural loan financing occupying a prominent position.For farmers, land contract management is a very important part of their property and plays a significant role in rural finance. However, for the sake of the social security function of land, the current legislation explicitly prohibits contracted land of management in our country. Along with the process of urbanization, the rural economic structure and social basis have changed a lot, which provides an objective condition for the land contract management. As a result, practices of the land contract management spring up and focuses of researchers on it have turned from the question of legality and rationality to the feasibility of the mortgage. Different from the traditional logic reasoning of law, the author of this paper focuses on the actual operation of the contracted land of management from the perspective of legal sociology, aiming to discuss about the constraints to the land contract management and put forward with relevant proposals by referring to the foreign experiences.In the author's opinion, it is the financial institutions' willingness of the current financial system instead of the law which places the land contract management in a difficult position. In China, exchange of the land contract management between small famers and financial institutions has disadvantages of high costs, asymmetric information and difficulties from mortgage to cash because of the limited disposition right of land and the low value of the right as collateral, which hinders financial institutions from loaning to the land contract management mortgage and confines the mortgage financial to the rural areas. The foreign land mortgage system can provide some references for the land contract management in China :the mortgage and the construction of the basic level land mortgage organization are allowed by the legislations. To develop the internal finance and to carryout the mortgage financing inside villages, it is suggested, first of all, to organize famers and it is necessary and feasible to establish the mutual-cooperative financial organizations for the land contract management.