A pledge is when the debtor or a third party transfers the possession of a certain property to the creditor, and the latter takes possession of the property as a guarantee for the former to perform certain payment of money or performance obligations. When such liability is discharged, the pledged property must be returned. When the debtor fails to perform its obligations, the creditor has the right to discount or auction the pledged property in accordance with the law, and has priority in receiving payment of the proceeds. The most common pledge is a transaction between the parties and a pawn shop. China's Guarantee Law stipulates that pledges are divided into two types: movable property pledges and rights pledges. The rights that can be used as pledge include: bills of exchange, checks, promissory notes, bonds, deposit receipts, warehouse receipts, and bills of lading; shares and stocks that can be transferred in accordance with the law; property rights in trademarks, patents, and copyrights that can be transferred in accordance with the law; Other rights of pledge. Basic introduction Chinese name: pledge Foreign name: pledge Terminology classification: Legal terminology Subject classification: Legal application fields: construction projects, corporate finance companies, other classifications: chattel pledge; rights pledge pledge classification, market analysis, pledge characteristics, mortgage pledge, pledge Pledge, chattel pledge, rights pledge, preventive measures, pledge classification. The pledged property is called the pledge, the person who provides the property is called the pledger, and the person who enjoys the pledge right is called the pledgee. A pledge guarantee should be signed in a written contract, and the pledge contract will take effect upon its establishment (different from the previous view that the pledge contract is a practical contract, the new view is that the pledge contract should also be a promise contract), and the content of the pledge contract is basically the same as that of the mortgage contract. same. Pledge is divided into two types: movable property pledge and rights pledge. Chattel pledge refers to the pledge of things that are movable and therefore does not impair its utility; rights pledge refers to the pledge of transferable rights as the subject matter. If the pledgee of a pledged comic movable property causes the loss or damage of the pledged property due to improper custody of the pledged property, he shall bear civil liability. When the loss or damage to the pledged property may result, the pledger may require the pledgee to deposit the pledged property or pay off the pledged property in advance. The pledgee can require the pledger to provide corresponding guarantees if the pledged debt is owed, and the pledgee can require the pledger to provide corresponding guarantees. If the pledgor fails to provide it, the pledgee can auction or sell the pledged objects for priority payment or otherwise agree with the pledgor. Third party withdrawal. If the pledgee's various invoices specifying the redemption date or delivery date of the right pledge are earlier than the debt performance period, he may cash in or take delivery of the goods before the expiration of the debt performance period and agree with the pledger on the price to be cashed or the withdrawal date. The goods are used to pay off the debt in advance or to be deposited by a third party as agreed with the pledgor. If stocks or property rights in trademarks, patents, or copyrights that are transferable in accordance with the law are pledged, the pledger and the pledger shall register the pledge with the securities registration agency or its management department after signing a written contract, and the pledge contract shall be made automatically. Effective from the date of registration. Since there is no specific law indicating where it comes from, I will give a rough explanation. In law, the duration refers to the validity period of a contract or right, which is the period within which the contract or right is legally valid or agreed to be valid. The uninformed third party is relative to the informed third party. For example, an informed third party refers to knowingly purchasing an item or right that is legally defective and will harm the rights and interests of the relevant person. An uninformed third party has performed the same legal act without knowing it at all. The so-called ignorant person is not to blame. In law, an uninformed third party will not be punished, while an informed third party will not be punished. The party will be jointly and severally liable for compensation, etc. Market Analysis Generally, pledges are made in the form of a pawn by the pawnbroker to the pawnbroker. In recent years, many guarantee companies have also been involved in the pledge industry. Finding a formal and well-known guarantee company is not only fast (you can receive payment within 24 hours at the fastest), but also safer. Pledge characteristics 1. It has the same characteristics as all security rights - subordination, indivisibility and physical subrogation. 2． The sign of pledge is movable property and transferable rights, while immovable property cannot have a pledge. Pledge rights are therefore divided into movable property pledge rights and rights pledge rights. Money can also be pledged after it has been specified: the debtor or a third party has specified its money in the form of a special account, seal money, deposit, etc., and then hands it over to the creditor for possession as a guarantee for the creditor's rights. When the debtor fails to perform the debt, the creditor can use the money Priority for payment. 3. A pledge is a security right that transfers the possession of the pledged property, and the possession of the subject matter is an essential condition for the establishment of the pledge. Mortgage and Pledge The difference between pledge and mortgage 1. Pledge is a kind of security interest.

The biggest difference between a mortgage and a pledge is that a mortgage does not transfer the collateral, while a pledge must transfer possession of the pledge, otherwise it is not a pledge but a mortgage. The second big difference is that a pledge cannot pledge real estate (such as real estate), because the transfer of real estate is not possession, but registration. 2. Mortgage and pledge are two common guarantee methods in economic activities. However, in practice, people often confuse the two. For example, it is originally a pledge, but it is written as a mortgage in the contract. You should know that mortgage and pledge are two different security methods, and their legal consequences are different. So, what is the difference between the two? A mortgage means that the debtor or a third party does not transfer possession of its specific property and uses the property as a guarantee for the creditor's rights. When the debtor fails to perform the debt, the creditor has the right to discount or discount the property in accordance with the law. Property rights that have priority in receiving payment based on auction or sale prices. The property is called mortgage, the debtor or third party is called mortgagor, and the creditor is called mortgagee. There are two types of mortgage rights: statutory and contractual. Legal matters must be in accordance with the regulations regardless of whether they are agreed upon; if the law allows the parties to agree, they can be resolved through negotiation. The mortgage must be transferable property owned by the mortgagor. Anything that is prohibited from circulation by law or is not enjoyed by the parties concerned shall not be used as collateral. A written contract must be signed for mortgage guarantee. The content of the contract also includes the type and amount of the main debt guaranteed, the time limit for the debtor to perform the debt, the name, quantity, location, ownership, scope of mortgage, etc. of the mortgage. According to the law, mortgage registration must be carried out for mortgage guarantee. The mortgage deed shall take effect from the date of registration. The mortgage registration acceptance agency shall be the management agency of the property. For example, the mortgage registration of land use rights shall be the mortgage registration of land management agencies, ships and vehicles. The agency is the registration department of the means of transport, etc. The debtor or a third party transfers its specific property to the creditor for possession as a guarantee for the creditor's rights. When the debtor fails to perform the debt, the creditor has the right to receive priority payment based on the price of the property's discount, auction, or sale in accordance with the law. The pledge contract takes effect when the contract is signed, and the contents of the pledge contract are basically the same as those of the mortgage contract. The pledge takes effect when the subject matter is delivered or registered. Pledge rights Pledge rights and pledges are two different concepts. Pledge refers to the legal act of setting up pledge rights, and pledge rights refers to the rights of the pledgee. Pledge is the reason for the creation of pledge rights, and pledge rights are the legal actions caused by pledge. as a result of. The act of a debtor or a third party handing over his movable property to the creditor for possession and actual control is called a pledge. The rights obtained by the pledgee due to the pledge are pledge rights, which are a type of security rights. As a security right, the pledge has the characteristics of subordination, inseparability, physical subrogation and priority in payment. 1. Subordination of pledge rights. The subordination of the pledge means that the pledge is subordinate to the creditor's rights it guarantees. Because the purpose of the pledge is to guarantee the creditor's rights, the pledge is subordinate to the guaranteed creditor's rights. The parties can set up a pledge for future claims, or they can set up a pledge when setting up the claim, but the principal claim must exist when realizing the pledge. The pledge transfers with the transfer of the principal creditor's rights and cannot be separated from the principal creditor's rights and transferred separately. The pledge rights are extinguished when the principal creditor's rights are extinguished. 2． The indivisibility of the pledge. The indivisibility of the pledge means that the pledge is as indivisible as the mortgage, that is, the entire value of the pledge guarantees all the creditor's rights. The effectiveness of the pledge extends to the entire subject matter of the pledge, and will not be affected even if part of the creditor's rights is paid off. In other words, even if the debtor has paid off most of its debts and only a small part of the debts have not been paid off, the pledgee must still resist the unpaid creditor's rights and exercise the right to pledge all the pledged objects. If part of the pledged property is lost, the unlost part still guarantees all claims, but the scope of pledge security cannot be reduced accordingly. 3. The physical subrogation of pledge rights. The physical subrogation of the pledge right means that the effectiveness of the pledge right extends to the subrogation of the subject matter of the pledge right. For example, Article 73 of the "Security Law" stipulates: "The right to pledge is extinguished due to the loss of the pledged thing. The compensation obtained due to the loss shall be regarded as the pledged property." The right to pledge disappears due to the loss of the pledged thing. The compensation obtained due to the loss shall be regarded as the pledged property.

The object of the pledge is the pledged thing. When the pledged thing is lost, the pledged right also loses the object it points to. If the pledged thing is completely lost, all the pledge rights arising from the pledged thing will be extinguished; if part of the pledged thing is lost, the pledge rights arising from the lost part of the pledged thing will be extinguished, and the movable pledge will still exist in the remainder of the pledged thing. part.

If the pledged thing is lost due to the pledgee's negligence in keeping it properly, the pledgee shall bear civil liability to the pledger; if the loss of the pledged thing cannot be attributed to the pledgee but is due to the loss of the pledged thing If the property itself has inherent defects and cannot be discovered and effectively prevented by the pledgee as a good custodian, the pledger shall pay a certain amount of compensation to the pledgee; if the loss of the pledged property is attributed to a third party If the infringement is an infringement, the infringer shall pay compensation to the pledgee.

The compensation received by the pledgee due to the loss of the pledged property shall be regarded as the pledged property. Since the compensation received by the pledgee for the loss of the pledged thing is also regarded as a form of the pledged thing, the pledgee still enjoys the movable pledge rights in respect of such compensation. This is the physical subrogation of chattel pledge. 4. Priority for payment of pledge rights. The priority of repayment of a pledge means that when the debtor fails to perform its debts, the pledgee has priority in repaying the creditor's rights guaranteed by the pledge based on the value of the subject matter of the pledge. Chattel Pledge Establishment of Chattel Pledge (1) Establishment Written Contract (2) Delivery of the Subject Matter 1. Delivery is a prerequisite for the establishment of a pledge. If the pledge does not deliver the subject matter, the pledge will not be established, but the pledgor shall bear fault liability. If the debtor or a third party fails to hand over the pledged property within the time specified in the pledge contract, thereby causing losses to the pledgee, the pledger shall be liable for compensation based on his fault. 2． Delivery includes actual delivery, instructed delivery and simple delivery, but does not include possession. If the pledger takes possession of the pledged property on behalf of the pledgee, the pledge contract will not be effective; after the pledgee returns the pledged property to the pledgor, he shall use his pledge rights The People's Court will not support any action against a third party. 3. If the subject matter delivered is inconsistent with the contract, the delivered subject matter shall prevail. 3. Effect of the pledge of chattels (1) If the guaranteed creditor's rights are agreed upon, the agreement shall be followed. If there is no agreement, the scope of the pledge guarantee shall include the principal creditor's rights, interest and liquidated damages. , damages, storage costs of the pledged property and costs of realizing the pledge. (2) Effect on the subject matter 1. The effectiveness of the accessory right. The validity of the pledge extends to the accessory item. However, if the accessory item is not delivered, it will be ineffective against the accessory item. 2． As for the interest, the pledgee has the right to collect the interest, and use the interest to repay the expenses for collecting the interest, interest and the principal claim. (3) Effectiveness against the pledgee 1. Rights of the pledgee: The pledgee has the right to possess the pledged property before the creditor's rights are paid off. During the duration of the pledge, if a pledgee, with the consent of the pledgor, creates a pledge for a third party with the pledged property in his possession in order to guarantee his own debt, it shall be within the scope of the creditor's rights guaranteed by the original pledge. The excess amount will not have priority for compensation. The effect of the transfer pledge right is better than the original pledge right. During the existence of the pledge, if the pledgee, without the consent of the pledgor, sets a pledge for a third party on the pledged property in his possession in order to guarantee his own debt, it shall be invalid. The pledgee shall be liable for damages incurred due to the transfer of pledge. The right to request the pledgor to pay the costs of keeping the subject matter. If the pledgee has rights, the pledgee may require the pledger to provide corresponding guarantee. If the pledger fails to provide it, the pledgee may auction or sell the pledged property, and agree with the pledgor to use the proceeds from the auction or sale to pay off the guaranteed creditor's rights in advance or to deposit it with a third party agreed with the pledgor. . 2． Obligations of the pledgee Subject matter. Effectiveness of the Pledgor—Rights of the Pledgor 1. The pledger has the right to require the pledgee to bear civil liability when the pledgee damages or loses the pledged property due to poor custody. 2． If the pledgee fails to properly keep the pledged property, which may result in its loss or damage, the pledger may require the pledgee to deposit the pledged property, or require the debtor's rights to be paid off in advance and the pledged property be returned. If the pledged property is deposited, the fees for depositing the pledged property shall be borne by the pledgee; if the pledger pays off the creditor's rights in advance, the interest on the undue portion shall be deducted. 3. When the debt performance period expires and the debtor performs the debt, or the pledger pays off the guaranteed creditor's rights in advance, the pledger has the right to require the pledgee to return the pledged property. Rights pledge Types of rights that can be pledged 1. Money orders, cashier's checks, checks, bonds, deposit receipts, warehouse receipts, bills of lading. 2． Shares and stocks that are transferable according to law. 3. The exclusive rights of trademarks, patent rights, and property rights in copyrights that can be transferred according to law. 4. Claims that are transferable according to law. 5. Income from real estate such as road bridges, road tunnels or road ferries.

Requirements for rights pledge 1. Bills and companies: Delivery of creditor's rights is a requirement for establishment, and endorsement is a requirement for confrontation. If the pledgor and pledgee do not endorse the word "pledge" in their endorsements, and pledge the bill against a bona fide third party, the People's Court will not support it. When corporate bonds are pledged, the pledger and the pledgee do not endorse the word "pledge" in their endorsements. If the bonds are pledged against the company or a third party, the People's Court will not support it. 2． Registration as a requirement for establishment The Guarantee Law stipulates as follows: If the shares of a listed company are pledged, the pledge contract shall take effect from the date when the shares are pledged and registered with the securities registration agency. The pledge contract shall take effect from the date when the shares are pledged and recorded in the shareholder register. The pledgee shall enter into a written contract and register the pledge with its management department. The pledge deed shall take effect from the date of registration. The Property Law stipulates as follows: If a fund share or equity registered with a securities registration and clearing agency is pledged, the pledge right shall be established when the securities registration and clearing agency handles the pledge registration; if other equity is pledged, the pledge right shall be handled by the industrial and commercial administration department Established at the time of pledge registration. According to the principle of application of the new law over the old law, the Property Law has priority over the Security Law. In the event of inconsistency between legal provisions, the provisions of the Property Law should be applied first to ensure the correctness and uniformity of legal application. 3. Special provisions on the pledge of rights: If the warehouse receipt or bill of lading is pledged, any transfer or pledge by the pledgee will be invalid. If a warehouse receipt or bill of lading is pledged, and the date of its redemption or delivery is later than the debt performance period, the pledgee can only redeem the money or withdraw the goods when the date of redemption or delivery expires. If the pledger transfers or permits others to use the pledged rights without the consent of the pledgee, it shall be deemed invalid. If losses are caused to the pledgee or a third party, the pledger shall bear civil liability. Preventive measures: First, consider the creditworthiness of both parties to the accounts receivable, especially whether there are bad repayment records in financial institutions. Combined with the essentials of non-financial analysis of enterprises in the five-level loan classification, the business prospects of enterprises are predicted. It is necessary to retain the original copy of the enterprise's sales contract, the seller's company's delivery note, the buyer's company's receipt, and the certificate of goods acceptance and storage to verify the authenticity of the transaction. The second is to carefully review the company's financial statements. In addition to basic indicators such as corporate asset-liability ratios, we focus on five indicators. Take a look at the proportion of accounts receivable in the company's assets. This ratio reflects the management status of the company's accounts receivable. The proportion is too high, so we need to analyze the management status of the company's accounts receivable. Second, look at the accounts receivable turnover rate. Reflects the liquidity of corporate accounts receivable. Third, look at the average recovery period of accounts receivable. This indicator can influence our decision on the term of the loan. The due date of accounts receivable is earlier than the repayment date specified in the contract. Fourth, look at the proportion of accounts receivable and whether it is concentrated in one customer. This ratio reflects the risk of corporate loan recovery. 5. Check whether the paying unit is an affiliated enterprise of the loan application enterprise and whether there are related party transactions. The third is to require the payer to provide a letter of commitment to confirm the specific amount of accounts receivable and promise to pay only to the seller's designated account in the lending bank. At the same time, it must be stipulated in writing that the payer shall sign the commitment letter to confirm its liability for breach of contract if it fails to pay when due, and that if it pays without authorization without notifying the pledgee, it shall bear liability for compensation for the losses caused to the bank. wait. The fourth is to handle pledge registration. Article 228 of the Property Law clearly stipulates that "if accounts receivable are pledged, the parties shall enter into a written contract. The right to pledge is established when the credit reporting agency handles the pledge registration." After the pledge registration is completed, the effect against bona fide third parties becomes effective. After the accounts receivable are pledged, they cannot be transferred. However, if the pledger and the pledgee agree through negotiation, the pledger shall use the price obtained from the transfer of the accounts receivable to pay off the debt to the pledgee in advance, and the bank shall Collect loan principal and interest in advance. The fifth is to determine a reasonable pledge ratio. According to the actual situation of the enterprise, the pledge rate is controlled at around 50%-70%. The sixth is to do a good job in loan management and post-loan management. Strengthen the early warning mechanism for loan risks. Early warnings include situations such as major changes occurring to the paying unit; accounts receivable due, the paying unit failing to pay on time, the sales company failing to exercise its due rights, or the loan not being used according to purpose. Loan officers should do a good job of verifying the balance of accounts receivable with enterprises that owe accounts receivable regularly or irregularly.