Measures for Chattel Mortgage Registration

 2018-08-09  43


· Document Number:Order No. 88 of the State Administration for Industry and Commerce

· Area of Law: Civil Law Sole Proprietorships

· Level of Authority: Departmental Rules

· Date issued:07-05-2016

· Effective Date:09-01-2016

· Issuing Authority: State Administration for Industry & Commerce

· Status: Effective

 

Order of the State Administration for Industry and Commerce
(No. 88)
The Measures for Chattel Mortgage Registration, as revised and adopted at the executive meeting of the State Administration for Industry and Commerce of the People's Republic of China, are hereby issued and shall come into force on September 1, 2016.
Director: Zhang Mao
July 5, 2016
Measures for Chattel Mortgage Registration
(Issued by Order No. 30 of the State Administration for Industry and Commerce on October 17, 2007 and revised by Order No. 88 of the State Administration for Industry and Commerce on July 5, 2016)
Article 1 For purposes of regulating the work of chattel mortgage registration, guaranteeing transaction security, and promoting financing, these Measures are developed in accordance with the Guarantee Law of the People's Republic of China, the Property Law of the People's Republic of China, the Interim Regulation on Enterprise Information Disclosure, and other laws and administrative regulations.
Article 2 An enterprise, individual industrial and commercial household, or agricultural production operator that mortgages the chattel as prescribed in item 4, paragraph 1, Article 180 and Article 181 of the Property Law of the People's Republic of China shall handle the registration formalities at the county-level administrative department for industry and commerce (hereinafter referred to as the “registration authority”) at the locality of the mortgagor. The right to mortgage shall be established when a mortgage contract comes into force; and without registration, the right to mortgage shall not challenge any bone fide third party.
For the purpose of these Measures, “administrative departments for industry and commerce” include the market supervision and administration departments performing the functions of industrial and commercial administration.
Article 3 The establishment, modification and cancellation of chattel mortgage registration may be handled by a party to the mortgage contract as a representative with a registration authority and may also be handled by an agent jointly entrusted by both parties to the mortgage contract with a registration authority.
Parties shall guarantee that the materials submitted by them are authentic and accurate.
Article 4 A party that establishes the right to mortgage under the circumstances as prescribed by Article 2 of these Measures shall handle establishment of registration with the registration authority upon strength of the following documents:
(1) the Chattel Mortgage Registration Certificate affixed with the signatures or seals of the mortgagor and the mortgagee;
(2) the certificates on the subject qualification or natural person identity of the mortgagor and the mortgagee; and
(3) the identity certificate of the representative designated or the agent jointly entrusted by both parties to the mortgage contract.
Article 5 A Chattel Mortgage Registration Certificate shall specify the following contents:
(1) the names and domiciles of the mortgagor and the mortgagee;
(2) the name, quantity, quality, status and location of the mortgaged property, as well as who has the ownership or the right to use it;
(3) the category and amount of the secured claim;
(4) the scope of the mortgaged guarantee;
(5) the time limit for the debtor to repay debts;
(6) the name and contact way of the representative designated or the agent jointly entrusted by both parties to the mortgage contract;
(7) the signatures or seals of the mortgagor and the mortgagee; and
(8) other information on the right to mortgage that the mortgagor and the mortgagee deem it necessary to be registered.
Article 6 Where a mortgage contract is modified or the contents of a Chattel Mortgage Registration Certificate need to be modified, a party shall, upon strength of the following documents, handle formalities of modification registration with the original registration authority:
(1) the Chattel Mortgage Registration Modification Certificate affixed with the signatures or seals of the mortgagor and the mortgagee;
(2) the certificates on the subject qualification or natural person identity of the mortgagor and the mortgagee; and
(3) the identity certificate of the representative designated or the agent jointly entrusted by both parties to the mortgage contract.
Article 7 Where the principal claim is eliminated, the security interest is realized, the creditor gives up the security interest, or in the case of other circumstances that the security interest is eliminated as prescribed by the law, a party shall, upon strength of the following documents, handle formalities of cancellation of registration with the original registration authority:
(1) the Chattel Mortgage Registration Cancellation Certificate affixed with the signatures or seals of the mortgagor and the mortgagee;
(2) the certificates on the subject qualification or natural person identity of the mortgagor and the mortgagee; and
(3) the identity certificate of the representative designated or the agent jointly entrusted by both parties to the mortgage contract.
Article 8 Where a party handles establishment, modification, or cancellation of chattel mortgage registration and the materials submitted by it are complete and comply with the form requirements of these Measures, the registration authority shall handle it on site, affix special seals for chattel mortgage registration to the Chattel Mortgage Registration Certificate, the Chattel Mortgage Registration Modification Certificate, and the Chattel Mortgage Registration Cancellation Certificate, and indicate the date of affixing seals.
Where a party handles establishment, modification, and cancellation of chattel mortgage registration and the materials submitted by it do not comply with the provisions of these Measures, the registration authority shall not handle it and shall notify the party of the reasons.
Article 9 A registration authority shall, in accordance with the Chattel Mortgage Registration Certificate, the Chattel Mortgage Registration Modification Certificate, and the Chattel Mortgage Registration Cancellation Certificate to which special seals for chattel mortgage registration are affixed, create files of chattel mortgage registration, and shall, in accordance with the provisions of the Interim Regulation on Enterprise Information Disclosure, announce the information on chattel mortgage registration through the enterprise credit information publication system.
The Chattel Mortgage Registration Certificate, the Chattel Mortgage Registration Modification Certificate, and the Chattel Mortgage Registration Cancellation Certificate shall, each, be in triplicate, to be respectively held by the mortgagor and the mortgagee, and be retained by the registration authority.
Article 10 Relevant entities and individuals may log on the enterprise credit information publication system to inquire about relevant information on chattel mortgage registration, and may also consult and copy the records of chattel mortgage registration upon strength of the legal identity certificate.
Article 11 A party that has evidence showing the inconsistency between the information on chattel mortgage registration at a registration authority and the contents of the materials submitted by it shall have the right to request the registration authority to make corrections.
A registration authority that finds the inconsistency between the information on chattel mortgage registration and the contents of the materials submitted by a party shall make corrections for relevant information.
Article 12 Upon application of a party or an interested party, a registration authority may, according to an effective legal document of the people's court or the arbitration commission or an effective decision of the people's government, modify or cancel relevant chattel mortgage registration. After the modification or cancellation of the chattel mortgage registration, the registration authority shall notify the two parties to the original mortgage contract.
Article 13 The administrative departments for industry and commerce in all localities shall actively promote the work of information construction for chattel mortgage registration and provide the parties with convenience through establishing an Internet chattel mortgage registration system, creating electronic files of chattel mortgage registration, and other ways.
Article 14 The power to interpret these Measures shall remain with the State Administration for Industry and Commerce.
Article 15 These Measures shall come into force on September 1, 2016.