Measures for Moveable Property Mortgage Registration

The Release of the Procedures for the Mortgaging of Moveable Property by the State Administration for Industry and Commerce

Order of the State Administration for Industry and Commerce [2007] No. 30

October 17, 2007

Article 1 In order to improve the flow of goods and capital and ensure the realization of creditors' rights, these Procedures are formulated on the basis of the Real Rights Law of the People's Republic of China and the Security Law of the People's Republic of China.

Article 2 For the mortgage of products, half-finished products, raw materials, and production equipment owned or to be owned by enterprises, proprietorships, and agricultural producers, registration should be carried out with the commercial and industrial administration department at the country level (hereinafter the movable property mortgage registration agency) in the locality of the mortgagor. Where registration has not been completed, action may not be taken against any third party acting in good faith.
Movable property registration may be carried out by joint application of the parties to the mortgage contract to the movable property mortgage registration agency, or may be carried out by application of designated representatives thereof to the movable property mortgage registration agency.

Article 3 When applying for movable property mortgage registration, the concerned parties shall provide the following documents to the movable property mortgage registration agency:
1. A Moveable Property Mortgage Registration Letter signed or stamped by both parties to the mortgage contract; and
2.
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