Suspension Of Security Right In Bankruptcy Law

The procedural restrictions on security rights in insolvency proceedings are a common practice in national insolvency systems.China's bankruptcy law draws on advanced foreign systems and introduces a "Automatic Stay" system,which stipulates that in Article 75 of the Enterprise Bankruptcy Law,the rules for the suspension of the exercise of security rights in the reorganization procedure are established.However,the description of the legal provisions is vague:the ambiguity of the type of security right that is suspended,the stricter protection of the rights of the security right holder,and the absence of reference to the applicable rules in the settlement and liquidation procedures,thus triggering the law.Based on the legislative purpose of China's bankruptcy law,this paper points out that the scope of the moratorium on the security right should be limited and explained,and only provide the system support for the suspension of the security right that does not transfer the possession;Suspension of exercise is the right to realise the security of the secured property.In principle,it does not include the right of repayment of the collateral after the realization of the collateral;The legal loss suffered by the security right holder due to suspension of exercise should be properly compensated by the US "Automatic Stay"system.Restricting the use of the suspension exercise system to damage the lawful rights and interests of the security right holder;In the bankruptcy settlement procedure,the exercise of the security right does not apply to the suspension of the exercise system;In the bankruptcy liquidation procedure,the property value of the bankrupt enterprise is allowed to be maximized.However,the exercise of the security right is restricted within a certain period of time,but it is necessary to suppleruent the loopholes in addition to the provisions in the reorganization and improve the protection system for the security right holder.