The Transformation Of The Function Of Hypothec

Mortgage, the king of guarantee, is the core contents of guarantee system. It assumes an important role in safeguarding the realization of creditor's rights and the implement of obligation, preventing or diminishing business risks. The implementation of and provides a capacious space for the development of mortgage. But with the development of socialist market economy, mortgage should be perfect in theory and legislation. Traditional civil law insists on the character of dependence of mortgage, emphasizing it's value of ensuring creditor's rights while disregarding it's negotiability and investment functions. With the development of economy, the function of mortgage has changed because an increasing demand for financing. Investment mortgage, which based on independence theory and functions of financing and investment, become an orientation of modern mortgage system. So admitting the independence and negotiability of mortgage and endue it with investment function is an upward trend in many countries' legislation. This thesis which bases itself on the circumstances of china and refer to the foreign (system of civil law) lawmaking experience, using comparative and analytic methods to discuss the historical development and actuality of mortgage and the transformation of mortgage. And then give specific suggestions on how to adjust legislation preference and how to perfect mortgage system of china, trying to be good for our countries' mortgage legislation and practice in some sense.