China's Floating Mortgage System

Floating Charge institution , which is initiated in England in the 1970s, is a unique system Compared with the fixed charge.It has spreads to many other countries in the 200 years after its birth, and have played a role in promoting financing.The mortgage keeps floating before the Crystallization occurs.The creditors of Floating Charge don't enjoy as much rights as that of Fixed Charge enjoy,and the obligor could deal with the pawn freely after Floating Charge are seted.Floating Charge has many unique characters and it has many advantages over Fixed Charge,the creditors also assume a greater risk,however.《Property Law》of our country introduces the Institution in firstly, and adapts the institution according to China's actual conditions.For example,the subject was enlarged, and has great Positive significance.But the institution also has many problems in the process of implementing, and Legislation imperfect is the uppermost one.By understanding foreign legislation and analyzing the domestic legislative loopholes and practical difficulties,I want to Propose my own opinions and Suggestions,and promote the development of the system in this way,This text include preface,text,attachment,and the text includes five chapters:Chapter one is the overview of the floating charge.In this chapter, the conception, main features and the historical evolution of the institution is introduced.Chapter two is about the scope of the object of floating charge.By understanding foreign legislation and Inspecting situation of China, I put forward my views and Suggestions.Chapter three is about the Automatic crystallization terms of Floating Charge.The validity of the automatic crystallization terms is admitted in our country, But the practice of abroad shows that automatic crystallization without restriction may hinder the system play their due role.By understanding foreign legislation and Inspecting situation of China, I put forward my views and Suggestions. Chapter three is about the preemption of the floating charge.When legal or conventional reasons occurs,the floating charge crystallize in fixed charge,and there are many ways to determine the sequence.I will compare various kinds of creditors and debtor in order to analysis to determine the sequence.Chapter five is about the restrictive clauses.Restrictive clauses has an important meaning in floating charge contract , but also has a lot of negative effects .I would analyses the significance, and discussed whether it should be brought into our law.