Legal Research On Pledge Of Assets Income Right

Asset income rights are one of the greatest innovations in the financial market of China,and the practices have developed a lot of financing transactions based on them.There are many various categories of asset income rights in practice,such as the income rights arising from infrastructure,the management right over rural land,the stock,the bond and general bank loans and so on,and they cover many kinds of underlying assets,and thus facilitate the transfer and secured transaction based on them.However,part of the asset income rights and the secured transaction constructed by them have violated the rules of private law and the financial regulation,and thus laid down some legal uncertainty for its effectiveness.The asset income rights essentially are monetary obligations or claims,independent of its underlying assets,to the holder of the underlying assets;they are not a power of the ownership with respect to the underlying assets,nor a Usufruct right,rather than a future account receivables.The highly technical and commercial character of account receivables respond well to the very nature and practical need of asset income right.And it also helps to equilibrate the tension between financial innovation and the secured transaction based on asset income right.Provided its very nature of asset income rights as account receivables,the asset income right shall be recorded in the recording system operated by the central bank,according to the provisions of real property law and the related regulations;once it was recorded,the security interests attached to them.The recording by the Recording Center for the Transfer of Credit Rights of the Banking Institutions is not a recording for the establishment of a pledge over the asset income rights,and thus it cannot effectively create a pledge over them.