On The Mortgage Rights

The system of sequence of mortgages aims to arrange multiple mortgages with certain standards, i.e. to prioritise different mortgages on one property or chattel. The fundamental purpose of this system is to solve the possible conflicts between the limitation of exchange value and the infinite financing value of the guaranties. Take the mortgage of property as an example, laws have stipulated that the registration time is the establishment time of the rights, and thus have instructed the participants of economic activities to solve the conflicts above. However, practically, rules could have complicated the conflicts of rights. That is, due to different reasons, legislators have authorised different rights with dissimilar effects. Then, when more than one right occurs on the guaranties, the rules appear to have certain flaws and the relationship between different rules needs to be further explained.Civil law system of PRC consists of separate laws instead of a unitary law. Because of this, it is difficult to have a complete perspective to stipulate rights and eliminate conflicts among these rights. Whereas, with the completion of separate laws and the legislation process of the Civil Code has been initiated, the conflicts in the legal system should be cleared, to enable participants to arrange their economic activities in a clear legal environment. Therefore, it starts with the sequence of mortgages from the perspectives of properties and chattels respectively, considering the conflicts between mortgages and other rights. Besides, this analysis is based on the basic principle of sequence of mortgages, i.e. the public credibility principle, so as to establish a clarified standard of sequences. Hence, these priorities can be incorporated into a non-conflict legal system. Due to the long history of legislations, with the discussion of above issues, assessments may be made to cognitions of legislators at that time. After that, based on the current need of the society, appropriate explanations will be made to existing legal system with practical decisions, to achieve a unitary system without conflicts.