Research On The Application Of My Country's Super Priority System

The introduction of super priority system breaks the existing priority order of security right in China,which indicates that the special rule of“second in time,first in right” should be applied in special cases.The predecessor of super priority is the ownership of the purchase money collateral,and the existence of super priority is conducive to encouraging financing,breaking through the effect of the property acquired later in the floating mortgage.Therefore,the introduction of this system is justified.However,the current legislation is too rough for the provisions of the system.Therefore,it is necessary to explain the establishment,existence and effectiveness rules of super priority.In terms of the establishment of super priority,firstly,the Super Priority system of our country does not clearly stipulate the objects that can establish super priority.However,based on the internal relationship between the super priority system and the floating guarantee system,combined with articles 395 and 396 of the Civil Code and by comparing with the relevant provisions of extraterritorial laws,it can be seen that the object of the super priority system in China is basically the same as that of the American super priority system and the inventory in the American includes the objects such as the means of production and raw materials mentioned in the floating mortgage system of our country.Therefore,the provisions on the object of super priority system in our country may refer to the advanced legislative experience abroad,and divide the collateral into inventory and non-inventory,and then apply different registration rules.Specifically,due to the large value and strong turnover of inventory,the conditions for setting super priority on such collateral should be more stringent.The creditor must register before the debtor takes possession of the chattel and the provisions of grace period are not applicable.The creditor also needs to perform the obligation of notice before the establishment.The setting of super priority on non-inventory only requires registration within the grace period and does not require the fulfillment of statutory attached obligations such as notice.Special provisions can be made for exemption from registration of consumer goods to protect the advantages of simple and rapid market transactions.Secondly,article 416 of the "delivery of the subject matter" should be clearly defined as delivery in the sense of ownership to solve the problems that may arise when the super priority system may be applied in the situation of simple delivery and concept delivery,such as first rent,then purchase or trial sale.In terms of the existence of super priority,first of all,whether additional security and additional secured debt affect the existence of super priority is not clearly stipulated in the Civil Code.The common feature in both cases is that the super priority is not a "pure" super priority.Whether the super priority of the creditor will be affected by the additional debt or the additional security,the key lies in how to identify the relationship between the purchase money collateral and purchase money obligation.In the absence of explicit provisions on the existence of super priority in China's enactment law,it is necessary to construct the "Dual Status" rule by referring to the foreign legislative experience,and determine that add-on collateral and add-on secured debt will not affect the existence of super priority.In terms of the effectiveness of super priority,when multiple super priorities coexist,all acquisition financing transactions should be treated equally and apply the same rules.When the super priority is in competition with other collaterals,the super priority effectiveness is manifested in two aspects: on the one hand,the super priority has priority over other intentional security right,including mortgage and pledge.On the other hand,no matter the order in which the lien is formed,the super priority cannot take precedence over the lien.And the Civil Code provides that financial leases and retention of title are subject to the provisions of the title code for other contracts with security functions,so when super priority and the right of the seller in retention of title or the rights of the lessor in a financial lease coexist,the general rules for the competitive existence of security rights in movable property can be followed.And when the super priority and the construction project priority compete,the super priority above the construction material should be given priority over the project price claim.And the Super Priority and floating mortgage both are not registered,the order of receipt depends on the time of establishment of a fixed security right.And the Civil Code extends the application of the rule of normal business buyer to all chattel mortgages,so the buyer in normal business activities can counter all the former super priorities.