A Study On The Law Structure Of The Purchase Money Security Interests System

With the vigorous development of the commercial society and the dynamism and innovation of commercial transactions,it is more and more common to purchase goods on credit or with loans and pledge the purchased goods to creditors.In order to adapt to the modern secured transaction market and improve the business environment,the Civil Code of China introduces a new special guarantee system,the purchase money security interests(PMSI),in order to promote financing in the commercial market and solve problems such as financing difficulties and high financing costs for enterprises.However,the provisions of Article 416 of the Civil Code on this system are extremely brief,which is obviously insufficient for judicial practice and needs to be further refined and clarified.In the current situation that our country lacks practical experience in the specific application of this new system,this paper intends to refer to the practical experience of this system in comparative law,combined with the current situation of our country’s theory and practice,from the legislative background,institutional significance,constituent elements,legal effects and relevant conflicts of application,the paper discusses the legitimacy of the application of the PMSI system in our country and the specific application points of the PMSI system,in order to provide help for future judicial application.First,the paper introduces the origin and significance of the PMSI system,the legitimacy of introducing the system in China and the existing problems in its application.This system plays an important role in promoting commercial credit financing.It is legitimate to introduce this system.However,in view of its concise provisions and the blank of judicial application,the specific application issues such as its constituent elements,scope of application,and legal effect still need to be discussed deeply in order to enable the system to fully play its role in China’s judicial application.Secondly,about constituent elements of the PMSI system,this paper mainly analyses the four constituent elements of the PMSI,such as the main creditor’s right secured must be the price of the mortgaged property,the mortgaged property must be the movable property of the transaction,the movable property of the transaction must be delivered,and the rights must be registered in ten days after the movable property is delivered.And referring to the relevant experience of the comparative law,this paper further elaborated the specific application points of the constituent elements of PMSI.As for the legal effect of the PMSI system,this paper mainly analyzes the super-priority effect of the PMSI,and further elaborates the justification that the PMSI can have priority over the floating mortgage right and the fixed mortgage right;It is more in line with the principle of equality and fairness for multiple PMSIs to be repaid in proportion to the price and creditor’s rights when they compete for deposit.At the same time,the super-priority effect of the PMSI cannot be opposed to the lien,the security interest already borne before the movable property transaction,and the normal business buyer.Finally,this paper briefly describes the difference of ownership retention and financial leasing transactions between the different legislative models in functionalist countries and in our country,which leads to the conflict brought by the fusion of formalism and functionalism.Although our country has solved the problem of the order of repayment when the retention of ownership and the PMSI compete with each other through judicial interpretation,it is still necessary to explore and improve the conflict and coordination between functionalism and formalism through the continuous accumulation and summary of practical experience in the future.The "Civil Code" of our country introduce the new system of the PMSI through the simplified provisions of Article 416,but the provision is too simple.Regarding the specific application of the PMSI system,in addition to the above-mentioned relevant application points,it is recommended to use commercial thinking to apply the system,and to continuously improve and develop the application of the system through repeated practice and summary.