| The purchase money security interest provided for in Article 416 of the Civil Code establishes the rule of "priority for later registrants" in certain circumstances.The legislative purpose of the purchase money security interest is to protect the interests of financiers,block the "positional monopoly" of floating mortgagees,and promote financing.The establishment of a purchase money security interest needs to meet four requirements: the collateral must be a specific movable property,the principal creditor’s right is the price of the collateral,the subject matter needs to be delivered,and the subject matter needs to be registered within ten days after delivery.The persons who can establish a security right in the purchase price include the seller providing financing,the lender,the seller in a retention of title sale,and the lessor in a financial leasing transaction.The purchase money security interest can counter the earlier established floating mortgage of movable property and the earlier established fixed mortgage of movable property.After the collateral of the purchase money security interest is disposed of by the buyer,regardless of whether the disposition occurs before or after the establishment of the purchase money security interest,the purchase money security interest has recourse effect against the transferee.Even if it belongs to a normal buyer,it does not have recourse effect against the lessee who leased the collateral before the establishment of the purchase money security interest.At the same time,the purchase money security interest can exclude judicial enforcement.In order to make the purchase money security interest system more suitable for practical needs,it is advisable to classify movable property into four types: equipment,inventory,agricultural products,and consumer goods,and set different applicable rules for them.If the collateral is inventory,the guarantor shall fulfill the obligation of notification,otherwise it will bear corresponding responsibilities.The agreement between the parties not to create a purchase money security interest,whether registered or not,does not have any effect on the establishment of the purchase money security interest.When there is a direct or indirect control relationship between the guarantor and the financier,the purchase money security interest is not established. |
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