The Realization Of Floating Charge

A hundred years ago, the British created the floating charge. The subject of the floating charge can freely flow. So it has the flexible and practical features.It can not only meet the needs of the secured creditors, but also to achieve the company's financing needs, so many countries introduced it around the world.In order to meet the diverse needs of the guarantee system in practice, "Property Law" also provided the floating charge in 2007.But it has just three simple provisions about it, and no clear detailed implementation rules, thus making it difficult to perform floating mortgage operations in practice. Floating charge can not play the advantages of flexibility and significant role in international finance,as well as the interests of creditors. Therefore, this paper choose the way to achieve a floating charge for research, combined with our current judicial practice. This text include three parts:The first part introduces two floating mortgage cases, the first one is weather it can set up a floating charge, the second case: there is a dispute on the priority order of floating mortgage between the parties. Currently, it is still an emerging legal system in China, "Property Law" does not make its detailed provisions and relevant supporting regulations, so it often generate controversy in the judicial practice on the use of floating charge, the priority order is the most controversial issues when it competing with other mortgages.The second part analyzes the problems and causes of floating mortgage system in existence. There are many problems in this system currently, this paper do a major study on the priority order for the case two, but the author notes that the registration system is an important affecting factor, so this article also analyze the problems about the current registration system of floating charge. The main cause of these problems is that the law is imperfect.The third part mainly to afford the improvement measures proposed by the second part,these measures are based on the floating charge characteristics and China's national conditions. It put forward the corresponding improvement suggestions from four parts: identify the priority order, improve the registration system, building the property takeover procedures.