On Purchase Money Security Interest

Article 416 of The Civil Code of China provides for the first time the purchase price security right system,which originates from "Purchase-money Security Interest(PMSI)" in the Common law system.As a new system,purchase price security right has many unclear provisions.This will inevitably lead to problems in the application of laws,so it is necessary to analyze the purchase price security right system by comparing the provisions of PMSI abroad and combining the introduction of purchase price security right system in China,so as to provide suggestions for the application and improvement of purchase price security right system.The first part analyzes the basic problems of purchase price security right.The purchase price security right has the particularity of establishment,effectiveness and subject.The super priority effect of purchase price security right is the result of legislators’ consideration based on special value and has legitimacy.Purchase price security right can limit the monopoly position of floating mortgagee and encourage and promote financing.It can enhance the solvency of the debtor and reduce the supervision cost of the prior guarantor,and its establishment will not have adverse effects on all parties.The second part mainly discusses the establishment of purchase price security right.Different types of chattel transaction habits and characteristics are different,from the point of view of reducing risks,we should classify the collateral of purchase price security right.The risk of financing on inventory and non-inventory is different,so China should stipulate the statutory collateral obligation of the creditor of the price on inventory to notify the prior guarantor.Price The creditor’s right shall be limited to the price of the mortgaged property and there must be a sufficiently close relationship between the two.Under the general rule of burden of proof,the creditor of the price shall prove that the price provided was actually used to purchase the collateral.The price obligation does not have to be provided before the purchase of the collateral,that is,the establishment of the purchase price security right should not require the conclusion of the purchase contract to be based on the loan contract.Registration is the purchase price guarantee right to obtain super priority effectiveness of the elements,not registered or not registered in the grace period,the establishment of ordinary chattel mortgage.China should set up special rules for the registration of purchase price security rights on consumer goods,otherwise it will not only lead to a heavy burden on the registration institutions,but also lead to an increase in financing costs on consumer goods.China’s purchase price security right system is similar to the American PMSI system,which should be retroactive after registration within a 10-day grace period.The third part analyzes the legal order of purchase price security right competition.The purchase price security right takes precedence over the floating mortgage and fixed mortgage,which is the embodiment of its super priority effect.Liens and purchase price security rights are also the products of legislators’ special value measurement and liens are more worthy of protection.When the purchase price security right of the same subject is competing for deposit,the earlier purchase price security right is more worthy of protection,because the later purchase price security right should know that there is purchase price security right on the purchase item when providing the loan,so it should accept the risk.The general rules of mortgage competition shall apply when different subjects compete for the security right of purchase price.The priority effect of the purchase price security right is not unlimited.The purchase price security right cannot oppose the mortgage established before the sale of movable property,and the corresponding mortgagor is different.The security right of purchase price should be subject to the protection of transaction security,and should be restricted by the buyer in normal business activities.The buyer can obtain the subject matter without the right to bear.The fourth part analyzes the existence and expansion of purchase price security right after establishment.In the case of cross-guarantee,China should adopt the double identity rule.The purchase price security right on the purchase can still be established when the purchase is simultaneously secured by the price claim and other ordinary claims.The transfer of price creditor’s right does not affect the survival of purchase price security right,which,as a subordinate right,only needs to be treated in accordance with the provisions of Article 407 of civil Code.In the case of old for new,from the perspective of fairness,the owner of the purchase price guarantee right of old equipment should enjoy double purchase price guarantee right,but it should be limited by the right he enjoys to the old equipment,and corresponding restrictions should be attached.In the connection of purchase price security right and ownership retention,finance lease,the parties should follow their own will and choose.