Research On Legal Issues Of Dynamic Pledge

Dynamic pledge is a new form of financing security arising in the context of the development of supply chain finance.In the transaction process of dynamic pledge,the pledgee can create a pledge right for the creditor with its own inventory and make shipments to replenish the goods according to the agreement of the pledge agreement,while introducing professional supervisors to supervise the pledges,so that the overall value of the pledges can be maintained above the minimum value control line.In terms of the effectiveness of dynamic pledge,dynamic pledge security is prevalent in practice,but no uniform rules of adjudication have been formed,and there is considerable controversy in academic circles and judicial practice regarding the validity of dynamic pledge,the establishment of publicity,and the competing rights of dynamic pledge.Dynamic pledges are legal and valid,and do not violate the principle of legal rights in rem;they still fall within the scope of movable pledges.The delivery methods of dynamic pledge include actual delivery and instructional delivery,and re-determination of possession is not a valid way to create dynamic pledge.In respect of the creation and publicity of a dynamic pledge,the standard of actual control of the pledge as stipulated in Article 55 of the Judicial Interpretation of the Security System of the Civil Code is,in essence,the effect of the transfer of possession by delivery when creating a dynamic pledge,and the completion of delivery is also the process of transferring possession,while the unified joint possession should be a valid way of publicity of a dynamic pledge.In practice,the pledge is usually confirmed by a relevant document such as the Pledge Inventory and the acceptance of the pledge,thereby establishing that the custodian has actual control over the pledge,a point in time that marks both the establishment of the pledge and the commencement of supervision.As the pledge is under the physical control of the pledgee after the dynamic pledge has been validly created,the post-establishment pledgee is unable to obtain delivery and possession of the pledge and therefore the postestablishment pledge cannot be established.When the dynamic pledge and the mortgage are in competition,the rule of subordination has undergone a change from the "absolute priority of the mortgage" to the "priority of publicity";for the priority of the dynamic pledge and the pledge of warehouse receipts,reference should be made to Article 59 of the Judicial Interpretation of the Security System of the Civil Code in order to The priority of satisfaction shall be based on the order of publicity,or,if this cannot be determined,on the proportion of the claim.