Study On The Application Of The Purchase Money Security Interest

Based on the need to protect the interests of the subject matter creditors in practice and drawing on the experience of the extraterritorial acquisition financing guarantee system,Civil Code of the People’s Republic of China stipulates the purchase money security interest in Article 416,clarifying that the mortgage right enjoyed by the price creditor in the subject matter purchased by the debtor has the effect of super-priority over other security interests.The purchase money security interest is a reconstruction of conditional sales in United States law,the draft European Draft Common Frame of Reference restructures retention of title as an acquisition financing device,and the UNCITRAL Legislative Guide on Secured Transactions distinguishes between acquisition security rights under uniform and non-unitary law.The application of the purchase money security interest has the value significance of improving China’s movable property security system,optimizing the business environment for small and medium-sized enterprises,breaking the position monopoly of prior floating mortgage rights,and maintaining the balance of interests of all parties.Article 416 of the Civil Code only stipulates the special effective requirements for the purchase money security interest in one article,which is difficult to cover the complex situations in practice,and the expression is more principled and there are difficulties in understanding and application.There are differences in the scope of collateral,the concept of price claims,the starting point of the grace period,and the method of delivery,and there are disputes over the expansion and limitation of the scope of application,and the system coordination rules of the system are also relatively vague.Due to the lack of clear rules for application,the purchase money security interest is more controversial and less frequent in its application.While adhering to the concept of formal guarantee,the Civil Code introduces the content of the concept of substantive guarantee.The purchase money security interest arises from the concept of substantive security,which broadens the types of movable property security,and it is necessary to conduct a legal analysis of the application of the purchase money security interest from the perspective of substantive security.The application of the purchase money security interest shall follow the principles of fairness,equity of interests and the statutory principle of property rights with expanded connotation.The normative requirements for the purchase money security interest shall include: the subject of the right must be the creditor of the price,the collateral should be all tangible movable property that can be purchased,and the secured claim should be a claim for the purchase price of movable property,and the mortgage registration should be completed within 10 days after delivery.On the basis of China’s legislative and judicial practice and theoretical achievements,and drawing on the more mature applicable rules outside the territory,the applicable rules of the purchase money security interest in China are constructed.First of all,in the refinement of the applicable conditions,it is proposed to distinguish the type of movable property of the subject matter,apply different publicity and notification systems according to the type of movable property,set different grace periods according to the type of movable property,and explain the starting point of the grace period.The scope of application is clarified,the priority effect of the purchase money security interest extends to prior floating mortgages and general movable property mortgages that are first publicized during the grace period,and the extension applies to retention of title and financial leases.Subsequently,the system coordination rules of the purchase money security interest are clarified,including the competition between the purchase money security interest and the intended security interest,the statutory security right and the atypical security interest,and how to deal with the collateral when it is bought or sold or leased,so that the system can be coordinated with other systems in China to achieve better application results.