On The Necessity Of Applying Liquidity In Business Quality

This business model of pawns originated from the Northern and Southern Dynasties.After hundreds of years of development,it has already had its own unique business habits.After the founding of the People’s Republic of China,the pawnshop once disappeared as a representative of the feudal remnants.However,after the reform and opening up,people’s ideas changed,and they realized that pawn shops can provide ordinary people and enterprises with short-term and convenient financing,solve the problem of bank loan financing difficulties,and supplement the bank’s financing function.Against this background,pawn shops have gradually been revived and developed.As a financing method,pawn shops guarantee the realization of pledges by establishing pledges of business pledges to ensure that pledgers of business pledges will repay on time,in the event that the pawners do not redeem the pawns or renew them on time.This is essentially a special security right,similar to the pledge,but not exactly the same as the pledge,and it is a commercial right relationship.As a country that adheres to the civil-commercial integration legislative model,the relevant provisions of the Civil Code on security rights to be promulgated in the future should also apply to business pledges.However,due to the characteristics of business pledge rights and the customary law formed by the pawn industry over a long period of time,liquidity contracts can be applied to achieve business pledges,and China’s current "Property Law" and "Guarantee Law" clearly stipulate that liquidity contracts are prohibited.At the same time,the current "Pawn Management Measures" to regulate the business behavior of the pawn industry is only a departmental regulation promulgated by the two ministries and commissions of the State Council in 2005.It has lower effectiveness than laws such as the Property Law and the Guarantee Law.Although the “Pawn Management Measures” stipulates that liquidity can be applied to pawns valued at less than 30,000 yuan,but because it violates the legal provisions with higher effectiveness and should be invalid,pawn shops should apply liquidity when realizing business pledges in daily operations.Contracts are illegal.This has become a contradiction between the development of pawn shops and the legal recognition of pledge of business.This article first raises questions.After discussing the relationship between the current pawn industry and business pledge rights,it is pointed out from the jurisprudence of judiciary and judicial practice that the contradiction between the applicable liquidity of business quality and the prohibition of liquidity by law is inconsistent with the legislative model of the integration of business and people.After analyzing the problem,we consider from two aspects.One is to consider whether the use of liquidity can be prohibited from the aspect of business quality,and draw the conclusion that liquidity has an important effect on business quality.On the other hand,consider whether it can be negated from the perspective of legislation.The prohibition of liquidity contracts concludes that the prohibition of liquidity is no longer necessary,allowing liquidity does not cause great damage to fairness,and there are other ways to protect the interests of debtors.It can be concluded from two aspects that the prohibition of liquidity on business quality should be lifted.Finally solve the problem,how to explain in the case of the law’s negative attitude towards liquidity,so that business quality can be applied to liquidity.First of all,the scope of application of the law’s negative attitude to liquidity is narrowed,and it only applies to ordinary pledges and mortgages.The interests of the debtor can then be protected according to the theory of apparent unfairness.Finally,in order to better regulate the operation of the pawn industry,so that the operation of the pawnshop can be legislated as soon as possible,determine the rights and obligations of the pawnshop when operating,and allow the pawnshop to apply the liquidity contract when realizing the pledge of the business,Protecting the interests of pawn shops and pawners,expanding private financing channels,promoting the development of the pawn industry,and forming a useful supplement to the bank’s loan financing function.