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Scope of legal protection of lien
Legal subjectivity:

1. What are the ways to guarantee the lien?

Lien guarantee refers to the creditor's legal possession of the debtor's movable property due to the custody contract, transportation contract and processing contract. If the debtor fails to perform the debt within the time limit stipulated in the contract, the creditor has the right to lien the property according to law, and the lien property is preferentially discounted or paid off from the proceeds from auction or sale of the lien property.

Second, the conditions for the establishment of lien

According to the provisions of the Civil Code, the establishment of lien shall meet the following conditions:

1. The creditor occupies the debtor's movable property. Creditors must legally possess the debtor's movable property.

2. The creditor's rights have expired. Where the creditor's right has not been paid off and the obligation to deliver or return the subject matter in possession has expired, the lien cannot be exercised. However, unless the creditor can prove that the debtor is unable to pay.

3. The possession of movable property and creditor's rights belong to the same legal relationship. In addition, the lien between enterprises is not limited by the same legal relationship.

Effect of lien:

1. The scope of lien guarantee includes principal creditor's rights and interest, liquidated damages, damages, lien expenses and expenses for realizing lien.

2. The retained property is divisible, and the value of the retained property shall be equivalent to the amount of the debt.

3. If the debtor fails to perform the debt within the time limit, the lien holder may agree with the debtor to give a discount or give priority to compensation with the price of auction or sale of the retained property.

4. The lien holder has the right to collect the fruits of the retained property. The fruits collected shall first offset the cost of collecting fruits.

5. The lien holder has the obligation to keep the lien properly. If the retained property is damaged or lost due to improper storage, it shall be liable for compensation.

6. The debtor and the creditor shall stipulate in the contract that after the creditor has retained the property, the debtor shall perform the debt within a period of not less than two months. If there is no agreement between the creditor and the debtor in the contract, the creditor shall set a time limit of more than two months after retaining the debtor's property, and notify the debtor to perform the debt within this time limit.

7. If a mortgage or pledge has been set on the same movable property, and the movable property is retained, the lien holder shall have priority in compensation; When the legally registered mortgage and pledge of the same property coexist, the mortgagee has the priority to be compensated by the pledgee; When pledge and unregistered mortgage coexist, the pledgee has priority over the mortgagee.

Third, the positive factors of lien acquisition.

1. The creditor must possess the debtor's movable property.

The purpose of lien is to guarantee the performance of debt, so creditors should enjoy lien. As for the causes of creditor's rights, the creditor has a lien on the creditor's rights arising from the debtor's failure to perform the custody contract, transportation contract and processing contract. In order to obtain the lien, the creditor must legally possess the debtor's property, whether directly or indirectly. However, simple possession, such as employers doing housework, will use household appliances at work, which is possession rather than possession, so lien cannot be established. Where the debtor holds a lien on behalf of the creditor, the lien is not established. When the creditor legally occupies the movable property delivered by the debtor, he does not know that the debtor has no right to dispose of the movable property; Creditors can still enjoy liens according to law.

2. The creditor's rights have expired.

Although the creditor owns the debtor's movable property, there is no problem of debtor's breach of contract and no lien when the creditor's right has not expired. Only when the creditor's right has expired and the debtor still fails to perform the debt can the creditor retain the debtor's movable property.

Where the creditor's right has not expired and his obligation to deliver and possess the subject matter has expired, he cannot exercise the lien. However, unless the creditor can prove that the debtor is unable to pay.

3. The occurrence of creditor's rights is related to movable property.

The creditor's possession of the debtor's movable property must be related to the occurrence of his creditor's rights in order to produce lien. As far as China's judicial and legislative practice is concerned, the implicated relationship in lien is the possession relationship between creditor's rights and lien, that is, the acquisition of creditor's rights and the possession of subject matter are based on the same contractual relationship. The occurrence of creditor's rights and the acquisition of the subject matter are due to the same contractual relationship. When the debtor fails to perform the debt, the creditor has a lien. For example, the custodian has a lien on the claim for compensation for the damage caused by the defect of the deposit. Another example is that the contractor's claim for the contract fee has a lien on the subject matter of the contract. Compared with the legislation of other countries, this practice in China has strict restrictions on the occurrence of lien. In order to further meet the needs of social development, it is necessary to appropriately expand the scope of lien. If the return of the creditor's rights and the subject matter is based on the same life relationship, I should also be considered as implicated. For example, after meeting, two people take each other's umbrellas by mistake, so one party's right of return and the other party's right of return are based on the same life relationship, so both parties have liens on each other's umbrellas. There are three ways to realize lien, including discount, auction and sale.

Legal objectivity:

Article 447 of the General Principles of the Civil Law of People's Republic of China (PRC) * * * If the debtor fails to perform the due debt, the creditor may retain the chattel that the debtor has legally possessed and enjoy the priority of compensation for the chattel. The creditor specified in the preceding paragraph is the lien holder, and the movable property it occupies is the lien property. Article 448 of the Civil Code of People's Republic of China (PRC), chattels retained by creditors shall belong to the same legal relationship with creditor's rights, except those retained between enterprises. Article 449 of the Civil Code of People's Republic of China (PRC) * * * A chattel that cannot be retained unless stipulated by law or agreed by the parties shall not be retained.