PBC Publishes the Revised Measures for the Registration of Pledge of Accounts Receivables

The People's Bank of China ("PBC") has recently issued the Measures for the Registration of Pledge of Accounts Receivables (the "Measures"), effective from January 1, 2020.

The Measures are revised in terms of scope of application, registration agreement, registration period, responsibilities and obligations, and incorporate principal changes as below. First, an article stipulating that transactions secured by other movable property and rights may be registered by reference to this legislation is added to the section "Supplementary Provisions", to satisfy market players' needs for voluntary registration of transactions secured by movable property and provide better positive guidance to various types of registration. Second, a previous requirement of uploading the registration agreement is removed to improve registration efficiency. Third, the time frame for initial registration and for extension is adjusted downward to be one month at the minimum. Fourth, the articles regarding liability and obligations of each financing party involved in a legal dispute are added, clearly stating that the registrant shall bear liability for ensuring the truthfulness of relevant information. Fifth, other articles in respect of the names of creditors and pledgees, the time limit for deregistration, cancellation of registration, and the right to interpretations, are revised or newly added, making the wording more standardized and clearer.



(Source: http://www.pbc.gov.cn/tiaofasi/144941/144957/3930640/index.html)

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