The Research On Legal Problem Of Floating Charge In International Project Financing

Breaking traditional principle of theories of real right at first, England established floating charge over 100 years ago to meet the needs of economic development and enterprise financing. Under the system, the mortgagor can hypothecate all or part of its properties, which even include things obtained in future. The total value of charged property is changing with freely dealing before the crystallization. Compared with the traditional financing methods, project financing is faced with a greater risk because of its unique financial structure and management model. So it is necessary to use various means of guarantee to effectively prevent the risk for a successful project financing. Because of its advantages mentioned above, floating charge become the most dazzling means of guarantee in project financing.Nowadays, it's widely adapted in many countries not only in the Common Law System such as America and the primary British Colonies, but also in countries in the Civil Law System. However, in China, along with the increasing demand of economic construction for financing and the continuous expansion of international economic transaction, many new means of financing such as project financing have been used. There is not lack of practices of floating charge. But confined to traditional theories of real right, definite provisions didn't exist in our legal system before 2007. On March 16th, 2007, Property Law of the People's Republic of China was issued. In it, floating charge is established.In the general background of project financing, the system of floating charge has special characteristics and value. Meanwhile, in the micro level, through the contrastive study of floating charge legal system in Britain, America and Japan, we can define the connotation of floating charge further. In order to transfer the floating charge to our legal system successfully, we should improve our floating charge system on subject, scope, publication, rights and obligations of parties, receivers and order of priority of floating charge.