Movables Mortgage Registration Measures
To echo the enactment of the PRC Property Law, the State Administration of Industry and Commerce in October 2007 published the Movables Mortgage Registration Measures (“Measures”). The Measures, which have replaced the 1995 Enterprise Movables Mortgage Registration and Administration Measures, are aimed at reflect the Property Law’s intention to throw more movables into the pool of mortgage-able properties and to direct local bureaus of industry and commerce on the procedures of movable mortgage registrations. Detailing on the scope of movables subject to mortgages, the effect of mortgage registrations, the documents required to support registrations and the standard of document examination, the Measures are expected to clarify many of the confusions that have impeded the efficiency of the security registration system in China and to enhance availability of financing to small and mid-sized companies.
By Li Jinnan, Partner and Pan Ye, associate.
