Purchase Money Security Interest In Draft Civil Code

The Purchase Money Priority first appeared in the draft Civil Code of PRC(September 5,2018)article of real rights law item 207.after a series of amendments,the latest version is the draft People's Republic of China Civil Code(December 28,2019")hereinafter referred to as the "consolidated draft" item 416: "If the goods secures a purchase money obligation incurred as price of the collateral if the security interest is registered within ten days after delivery,the mortgagee have priority over the other security interest holder of the same mortgage,except the lienholder."This article consists of three parts,the first part is the legal effect analysis of the purchase money priority,mainly to solve the problem of how to understand the "consolidated draft" item 416 "the mortgagee have priority over the other security interest holders.In my opinion the "other security interests" should be limited interpretation,"other security interest holder" Refers only to the floating mortgagee and does not include the mortgagee register before purchase money priority during the grace period.The second part mainly analyzes the requirement of achieve purchase money priority.In my opinion,achieve the priority needs to meet the following requirement:(1)the collateral secure purchase money obligation.I think it is necessary to expand the explanation of the purchase money obligation,both seller and lender of purchase money can achieve the priority.(2)Registration during the grace period.the mortgage which registered after the expiration of the grace period can't have the priority.(3)The registration is valid.I think the mortgagee shall disclose that the mortgage secured purchase money obligation.The third part is other issues related to the purchase money priority,including(a)When the collateral fix with the debtor's real estate,how to remedy the rights of the mortgagee.(b)If the mortgagor is under affirmative obligation to the mortgagee that floating mortgage will not secure any purchase money obligation,Whether the subsequent purchase money claimant who knows the affirmative obligation can get purchase money priority or not.(c)The draft civil code both stipulate condition sale and purchase money priority,what's the difference and how to choose.