The Study On Bank Floating Charge System

The bank floating charge is defined as a special loan mortgage run by bank credit mode,with bank as creditor,floating mortgaged property and its income represented in currency.The major characteristics of bank floating charge include the particularity of creditor,monetary expression of floating charge and etc.In practice,Chinese banks introduce floating charge system in order to facilitate the expansion of the scope of the mortgaged property and promote the development of credit business,in doing so,Chinese bank floating charge business would be in line with international standards to perform the social benefit of banks.Regarding the scope of bank floating charge,this paper refers to the experience of nations like Britain,U.S.Based on Real Right Law of the People's Republic of China and eight researches samples,three requirements that mortgaged property in floating charge should meet are proposed.In evaluating the mortgaged property,principles like single, equivalence and preferred should be adopted.In addition,provisions like debenture,forbid to re-guarantee should be included in bank floating charge contracts.Four obligations have been clarified when banks perform floating charge.The public summons of bank floating charges should give leading roles to administration for enterprise registration and administration for banks.Furthermore,public summons should be classified into four types:normal,delayed,blemish and un-registered.As far as the priority of bank floating charge,this paper holds the view that priority could be set when banks perform exemption right,dropping right, and counter right to take preventive measures about legal risks when conflicts in priority of floating charge occur.When bank floating charge turns into fixed charge,floating charge can be divided into legal immobilization,convention immobilization,measures like flexible refund modes,objection period,cautious selection could be used to protect the concerned party.The receivership of bank floating charge can be divided into bank assigning,bank mandating and court pointing,and the rights and duties of corresponding over-taker should be indicated. up to regulate the process of establishment,register,priority, immobilization and receivership in bank floating charge.