Research On The Financial Leasing Registration Of Movable Property In China

Financial leasing is a new kind of financial model that combines financing and trading.One of the notable features is that the person who possesses the object is not the owner.The form of publicity of real right of movable property in China is possession.The appearance of the lessee possessing the object may result in the mistrust of the third party.When the lessee disposes the object without authorization,the third party,without his knowledge,based on the presumption of possession,can reasonably trust the lessee to own the property and can be deemed as bona fide.Therefore,he can rely on Article 106 of the Property Law of PRC to obtain ownership or other rights of the object,which will seriously harm the lessor.The Supreme Court of PRC introduced the latest judicial interpretation of the financial leasing contracts in2014 and provided special provisions on the issue of bona fide acquisition in Article 9.Due to the imperfection of the establishment of the registration system closely related to the bona fide acquisition,a large number of cases happen that the third party obtains the ownership of the leased property in good faith during the financial leasing transaction,which brings great deal of trouble to the lessor and impedes the development of the entire financial leasing industry.In practice,the lessee can set up the mortgage right for the lessor on the leased property through the authorization of the lessor.However,there are disputes with the Property Law of PRC in this practice.There are also two financial leasing registration systems in China currently.But bothof them lack corresponding laws to support them,so there are deficiencies in the legal validity of registration.Therefore,we should legislate to improve the financial leasing registration system to make up for the disadvantages of the possession.In addition,by introducing the obligation of the third party to inquire for registration,it is determined that the effectiveness of the registration will be given the priority only if the third party has the obligation to inquire.Besides,the obligation of the third party to check the financial leasing registration should be clarified.The Preface of this thesis introduces the background of the topic selected,summarizes the theses on related topics,points out the main research methods and analyzes the purpose and the existing innovations and deficiencies of it.Chapter 1 points out that both possession and registration have the effect of publicizing the real right of the movable property,and explains the reasons respectively.Two cases concerning the publicity method of movable property in financial leasing are analyzed,which leads to two main questions: Which of the publicity effectiveness of possession and registration is prevailed in financial leasing transaction of movable property? How to coordinate the conflicts between the two methods?Chapter 2 illustrates the safety issues in the financial leasing transaction of movable property and analyzes the reasons.The form of publicity of real right of movable property in China is possession.The appearance of the lessee possessing the object may result in the mistrust of the third party.When the lessee disposes the object without authorization,the third party,without his knowledge,based on the presumption of possession,can reasonably trust the lessee to own the property and can be deemed as bona fide.Therefore,he can rely on Article 106 of the Property Law of PRC to obtain ownership or other rights of the object,which will seriously harm the lessor.The main reasons for the above problems are the inadequacy of the publicity system of possession,the lack of legal support of the registration system and the pros and cons of the bona fide acquisition.Chapter 3 compares the modes of financial leasing registration at home and abroad.The domestic part mainly compares the two major financial leasingregistration systems organized by the Credit Reference Center of PBOC and the Ministry of Commerce,and analyzes the existing problems.Then analyzes the practice of the lessee setting up the mortgage right for the lessor on the leased property through the authorization of the lessor.However,there are disputes with the Property Law of PRC in this practice.The foreign part briefly introduces the registration methods of the financial leasing which constitutes the secured transactions in the United States and the requirements of the financial leasing registration in Quebec,Canada.And analyzes whether the registration methods of the two can be applied in our country.Chapter 4 puts forward some suggestion on the establishment of the financial leasing registration system of movable property from the contents,procedures and effectiveness of the registration.And by introducing the obligation of the third party to inquire for registration,it is determined that the effectiveness of the registration will be given the priority only if the third party has the obligation to inquire.Besides,the obligation of the third party to check the financial leasing registration should be clarified through the related elements,such as the provisions of the formal documents,the characteristics of the business activities of the parties and the relationship between the parties.The epilogue answers the questions raised in Chapter 1 and summarizes the full thesis,hoping the suggestion proposed in this thesis can improve the financial leasing registration system in China and prevent the ownership of lessor from harm.