Research On Purchase Money Security Interest

Purchase Money Security Interest is the product of Functionalism legislation,which will lead to unclear interpretation and problems in the application of law in China’s current chattel security system.At present,the provisions of the Civil Code and the judicial interpretation of the security system on the mortgage of movable property price are not comprehensive enough,and further interpretation is still needed to optimize and improve.The legitimacy and institutional value of the super priority right of movable property price mortgage lie in breaking the monopoly of the previously registered movable property floating mortgage holder,incorporating atypical guarantees into the movable property guarantee system,ensuring the transaction safety of third parties,and reducing the regulatory costs of the rights holder.In the financial market transaction,there are various subjects with different identities who set up mortgage rights for movable property prices.Based on the different subjects of rights setting,it can be divided into the seller’s movable property price mortgage right and the lender’s movable property price mortgage right.Purchase Money Security Interest has special conditions for its establishment.The creditor’s right guaranteed by it shall be the price creditor’s right,the collateral shall be tangible movable property and shall be registered within the grace period.Regarding this,the provisions of the Civil Code are not clear enough.In order to better apply,it is necessary to analyze from the perspective of interpretive theory.Firstly,determine the scope of the guaranteed price debt.Determine the connotation and scope of price claims based on the relationship between collateral and chattel price claims.By expanding the interpretation,it is determined that the price of movable property includes principal and interest,as well as the necessary expenses for realizing the creditor’s rights.Secondly,it is necessary to provide a limited interpretation of the scope of collateral for the mortgage of movable property prices,limiting it to tangible movable property.Finally,registration is required within the grace period.In addition,the registration time shall be the starting time of the grace period.In addition,the mortgagee of the purchase money security interest has priority over other security rights holders in receiving compensation.This is the special aspect of its effectiveness,namely the super priority.Due to its strong ranking interests,the interpretation of "other security interests" should be clarified.According to the legal context,it effect should not only be limited to the scope of floating charges,but still prevail when it competes with fixed security interests.Movable property floating charges,fixed security interests,and even atypical guarantees all fall within the scope of other security interests.As an exception,the right to mortgage the price of movable property shall not have priority over the right to lien.When the chattel price mortgage and registered ownership retention sale,financial lease within the grace period,and multiple chattel price mortgages compete,multiple chattel price mortgages have equal status and follow the principle of registration priority to interpret the ranking rules.The purchase money security interet has a retroactive effect and will not be affected by the transfer of collateral.However,normal business buyer rules may exclude this right.In this regard,the rights of the mortgagee of the purchase money security interet can be guaranteed through early repayment and deposit.As contracts with security functions,ownership retention and financial leasing can also enjoy super priority effect if they have been registered within the grace period.However,in order to ensure fairness,the right of retrieval and super priority cannot be applied simultaneously.The right to retrieve and negotiate should be exercised first.