In order to regulate the unified registration of movable assets and rights security, and protect the legitimate rights and interests of the secured parties and interested parties, the Unified Registration Solutions for Movable Assets and Rights Security has been considered and published, which will come into force from February 1st, 2022.
The types of security covered by the unified registration of movable assets and rights security include:
(a) production equipment, raw materials, semi-finished products and product mortgages;
(b) pledges of accounts receivable;
(c) certificates of deposit, warehouse receipts, bills of lading pledges;
(d) financial leasing;
(f) retention of title;
(g) other movable assets and rights security that can be registered, except for motor vehicle mortgage, ship mortgage, aircraft mortgage, bond pledge, fund share pledge, equity pledge and pledge of property rights in intellectual property.
The Credit Reference Center of the People's Bank of China is the registration authority for movable assets and rights security, which specifically undertakes registration services and does not carry out pre-approval registration or substantive review of the registration content. The Credit Reference Center has established the Internet-based unified registration and public notice system for movable property financing to provide public registration and inquiry services for movable assets and rights security.
The registration contents include basic information about the secured owner and the secured person, a description of the secured property, and the duration of the registration.
The secured owner or the secured person is a legal person or unincorporated organization, should fill in the legal registered name and domicile of the legal person or unincorporated organization, the name of the legal representative or person in charge, the financial institution code, the unified social credit code, the global legal person identification code and other relevant information of the institution code or other relevant information.
The secured owner may agree with the secured person to include items such as the amount of the principal claim, the scope of the security, and the prohibited or restricted transfer of the secured property as the registration contents. The general description of the secured property should be able to reasonably identify to the secured property. The maximum amount of the security should be registered as the maximum claim amount.
After registered for movable asset financing, the secured owner, the secured person and other interested parties are unable to properly publicize the security right due to incorrectly filling out the name of the secured owner or the secured person, the description of the secured property does not reasonably identify the secured property and other circumstances, the legal consequences of which are borne by the parties themselves.
After cancellation, expiration or revocation of the registration, the Credit Reference Center will electronically store the registration records offline for a period of 15 years.
If you want to read the complete article, you can refer to the below link (in Chinese only): http://www.shanghaiinvest.com/cn/viewfile.php?id=17110
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Mr. Mike Chang (Partner)