Floating Mortgage In Priority Research

Companies depend upon loan finance as one of their major sources of capital.However,banks and other financial institutions involved in the business of lending money to companies generally ensure that their exposure to the risk of non-repayment is minimized by taking security over the debtor company's property.One particularly important type of security which is available when money is lent to a company is the floating charge. Floating charge was accepted by the courts of Great British in the nineteenth century and since then has become increasing common. Comparing to fixed charge,floating charge can exert the value not only of guaranteeing the creditors' right but also of the function of financing.So floating charge is a kind of advanced security.This dissertation chooses the question of priority of floating charge as studying point.Because the priority is the key point of the floating charge, during the research of the priority,we can grasp the soul of the floating charge's function.In order to research the issue of the priority,I divided the phrase into two parts:one is the phase before the crystallization of floating charge,the other one is the phase after the crystallization.Apart from a brief conclusion,this dissertation is divided into four parts.The first chapter is the exordium.In this chapter discusses the definition and characteristics of the floating charge,and the research aim of the priority of floating charge.The second chapter discusses the phase before crystallization.This chapter includes the theory of priority and the confliction of preferential ranks between the floating chargees and the other creditors.The third chapter refers to the phase after crystallization.After the crystallization the priority of the floating charge should be realized.In this chapter talks about the administrative receivership and the influence of the going into effect.The last chapter discusses the legislative situation in China.Because of the promulgation of Property Law,the floating charge is established in China,but there still are many defects of our legislation.This chapter brings some suggestions in order to perfect the system of Chinese floating charge on the basis of the experience of England.