The Research On The Effectiveness Of Chattel Mortgage Without Registration

As a statutory type of secured property rights,the chattel mortgage has been created to meet the financing needs of small and medium-sized enterprises.However,there are many discussion on whether the chattel mortgages shall adopt the registration confrontation principleAccording to Article 188 of the PRC Property Law,a chattel mortgage shall be established at the time when the related chattel mortgage contract becomes effective and shall not confront bona fide third parties without registration.The unregistered chattel mortgage is undoubtedly a so-called "incomplete property right" inserted in the classification system of personal rights and property rights.Therefore,this thesis mainly focuses on the position and function of the unregistered chattel mortgages in the secured property rights system,attempting to provide a relatively clear connotation and denotation for the unregistered chattel rights,as well as reference for the theoretical research and application of judicial practiceThe whole thesis is developed based on the effectiveness of the unregistered chattel mortgage.At the very beginning,through reviewing the related provisions of current domestic laws and regulations and the American Uniform Commercial Code,it figures out that there exists a misunderstand on the registration confrontation of chattel mortgage during the law transplantation process.Then it discusses the limited functions of registration in chattel mortgage system,which are to warn the third parties and to decide the priority reimbursement order.Such discussion can help to clarify the property right nature of unregistered chattel mortgage from a theoretical perspectiveThe following chapters mainly focus on the effectiveness of unregistered chattel mortgage in specific applicable scenarios.In the scene of legal relationship of still property right,the unregistered chattel mortgage can generally be against the infringers and ordinary creditors.But exceptionally if the debtor is in bankruptcy,the aforementioned chattel mortgage cannot get the priority order when competes with the ordinary creditors of the debtor.In the legal relationship of a dynamic property right scene,the effectiveness of unregistered chattel mortgage cannot reach to the collateral if the collateral buyers can meet the premises of good faith according to provisions stipulated in the Article 106 of PRC Property Law.As a result,such buyers may obtain a mortgage-free ownership.Besides,when compete with other types of security interests,the unregistered chattel mortgages generally cannot get the priority order,no matter such person who possesses the security interests is in good faith or in bad faith.