Measures for Chattel Mortgage Registration
 
Promulgation date: 10-17-2007 Department: State Administration for Industry and Commerce
Effective date: 10-17-2007 Subject: Civil Law,  Enterprises

Measures for Chattel Mortgage Registration
(Order No.30 of the State Administration for Industry and Commerce)

Article 1 For the purpose of financing and commodity circulation and guaranteeing the realization of creditor’s rights, these Measures are formulated in accordance with the Real Right Law of the People’s Republic of China and the Guarantee Law of the People’s Republic of China.

Article 2 Where an enterprise, individual industrial and commercial household, or agricultural production operator mortgages its/his existing or future production facilities, raw materials, semi-finished products or products, it/he shall handle the mortgage registration formalities at the county-level industry and commerce administrative department (hereinafter referred to as the chattel mortgage registration authority) of the locality of the mortgagor. Without the registration, the right to mortgage shall not challenge any bone fide third party.

The chattel mortgage registration may be handled at the chattel mortgage registration authority by both parties to the mortgage or their agents.

Article 3 When handling the chattel mortgage registration, the following documents shall be submitted to the chattel mortgage registration authority:
1. the Chattel Mortgage Registration Certificate affixed with the signatures or seals of both parties to the mortgage contract; and
2. certificates on the subject qualification or natural person identity of both parties to the mortgage contract.

If any agent is authorized to handle the registration, the identity certificate of the agent and the power of attorney shall also be submitted.

Article 4 The Chattel Mortgage Registration Certificate shall bear the following contents:
1. name and domicile of the mortgagor and the mortgagee;
2. name of their agents;
3. category and amount of the secured creditor’s right;
4. scope of guarantee;
5. time limit for the debtor to fulfill the obligation;
6. name, quantity, quality, status and location of the mortgaged property, as well as who has the ownership or the right to use it; and
7. signatures or seals of the mortgagor and the mortgagee.

Article 5 After receiving the application materials for chattel mortgage registration, the chattel mortgage registration authority shall affix the special seal for chattel mortgage registration on the Chattel Mortgage Registration Certificate on the spot and indicate the date when the seal is affixed.

Article 6 Where the chattel mortgage contract or the Chattel Mortgage Registration Certificate changes, both parties to the mortgage contract or their agents may handle the registration of change at the original chattel mortgage registration authority, and the following documents shall be submitted to the authority:
1. the original Chattel Mortgage Registration Certificate;
2. the Certificate on the Change of Chattel Mortgage Registration affixed with the signatures or seals of both parties to the mortgage contract; and
3. certificates on the subject qualification or natural person identity of both parties to the mortgage contract.

If any agent is authorized to handle the registration of change, the identity certificate of the agent and the power of attorney shall also be submitted.

Article 7 After accepting the application materials for changing the chattel mortgage registration, the chattel mortgage registration organ shall affix the special seal for chattel mortgage registration on the Certificate on the Change of Chattel Mortgage Registration on the spot and indicate the date when the special seal is affixed.

Article 8 If the principal creditor’s right is eliminated, the security interest is realized or the creditor gives up the security interest, both parties to the mortgage contract or their agents may handle the deregistration formalities at the original chattel mortgage registration authority. When handling the deregistration formalities, the following documents shall be submitted:
1. the original Chattel Mortgage Registration Certificate;
2. the Certificate on the Change of Chattel Mortgage Registration;
3. the Chattel Mortgage Deregistration Certificate affixed with the signatures or seals of both parties to the mortgage contract; and
4. certificates on the subject qualification or natural person identity of both parties to the mortgage contract.

If any agent is authorized to handle the deregistration formalities, the identity certificate of the agent and the power of attorney shall also be submitted.

Article 9 After accepting the application materials for chattel mortgage deregistration, the chattel mortgage registration authority shall affix the special seal for chattel mortgage registration on the Chattel Mortgage Deregistration Certificate on the spot and indicate the date when the special seal is affixed.

Article 10 The chattel mortgage registration authority may set up a Chattel Mortgage Registration Book for the general public to consult according to the Chattel Mortgage Registration Certificates, the Certificates on the Change of Chattel Mortgage Registration and the Chattel Mortgage Deregistration Certificates which are affixed with the special seal for chattel mortgage registration.

The Chattel Mortgage Registration Certificate, the Certificate on the Change of Chattel Mortgage Registration and the Chattel Mortgage Deregistration Certificate shall, each, be in quadruplicate, two for both parties to the mortgage contract, the other two shall be kept by the chattel mortgage registration authority, which shall put one in the archives of chattel mortgage registration and one in the Chattel Mortgage Registration Book.

Article 11 Related entities and individuals may, upon the strength of the legal identity certificate, consult, extract or copy chattel mortgage registration documents at the chattel mortgage registration authorities.

Article 12 These Measures apply to counter guarantees and mortgages at maximum amount.

Article 13 The power to interpret these Measures shall remain with the State Administration for Industry and Commerce.

Article 14 These Measures shall come into force as of the date of promulgation.

The Administrative Measures for the Registration of Enterprise Chattels under Mortgage (Order No.35 of the State Administration for Industry and Commerce) shall be abolished since the day when these Measures come into force.

Annexes:
1. Notice for Handling Chattel Mortgage Registration
2. Chattel Mortgage Registration Certificate (kept by the registration authority in the archives) (omitted)
3. Chattel Mortgage Registration Certificate (kept by the mortgagee) (omitted)
4. Chattel Mortgage Registration Certificate (kept by the mortgagor) (omitted)
5. Chattel Mortgage Registration Certificate (put in the Chattel Mortgage Registration Book) (omitted)
6. Certificate on the Change of Chattel Mortgage Registration (kept by the registration authority in the archives) (omitted)
7. Certificate on the Change of Chattel Mortgage Registration (kept by the mortgagee) (omitted)
8. Certificate on the Change of Chattel Mortgage Registration (kept by the mortgagor) (omitted)
9. Certificate on the Change of Chattel Mortgage Registration (put in the Chattel Mortgage Registration Book) (omitted)
10. Chattel Mortgage Deregistration Certificate (kept by the registration authority in the archives) (omitted)
11. Chattel Mortgage Deregistration Certificate (kept by the mortgagee) (omitted)
12. Chattel Mortgage Deregistration Certificate (kept by the mortgagor) (omitted)
13. Chattel Mortgage Deregistration Certificate (put in the Chattel Mortgage Registration Book) (omitted)
14. Description of the Property under Mortgage (in the attached page) (omitted)

State Administration for Industry and Commerce
October 17th, 2007

Annex 1: Notice for Handling Chattel Mortgage Registration

To protect your legitimate rights and interests, please carefully read the following contents before filling in the registration certificate:

I. The applicant shall fill in the registration certificate with standard A4 paper and fountain pen or signature pen in black ink.

II. The applicant shall guarantee that all materials and information provided are authentic and valid. The information filled in the registration certificate shall be identical with the related contents of the mortgage contract and the principal contract.

III. As for any chattel mortgage as prescribed in Article 188 of the Real Right Law of the People’s Republic of China, the mortgage shall be established since the mortgage contract comes into force. Without being registered, the right to mortgage shall not challenge any bone fide third party.

IV. According to the provisions of Article 184 of the Real Right Law of the People’s Republic of China, none of the following chattels may be mortgaged:
1. educational, medical, healthy and other public welfare facilities of schools, kindergartens, hospitals and other institutions and social groups with the aim of benefiting the public;
2. properties whose ownership or use rights are unclear or controversial;
3. properties that are legally confiscated, seized or controlled; and
4. other properties that cannot be mortgaged according to any law or administrative regulation.

V. According to the provisions of Article 189 of the Real Right Law of the People’s Republic of China, in case an enterprise, individual industrial and commercial household or agricultural production operator mortgages any of the chattels prescribed in Article 181 of this Law, it shall file registration with the administrative department for industry and commerce of the locality of the mortgagor.

According to the provisions of Article 2 of the Measures for Chattel Mortgage Registration, where an enterprise, individual industrial and commercial household, or agricultural production operator mortgages its/his existing or future production facilities, raw materials, semi-finished products or products, it/he shall handle the mortgage registration formalities at the county-level industry and commerce administrative department of the locality of the mortgagor.

VI. According to the provisions of Article 3 of the Measures for Chattel Mortgage Registration, when applying for handling the chattel mortgage registration, the applicant shall submit the following documents to the chattel mortgage registration authority:
1. the Chattel Mortgage Registration Certificate affixed with the signatures or seals of both parties to the mortgage contract; and
2. certificates on the subject qualifications or natural person identities of both parties to the mortgage contract.

If any agent is authorized to handle the registration, the identity certificate of the agent and the power of attorney shall also be submitted.

VII. According to the provisions of Article 6 of the Measures for Chattel Mortgage Registration, where the chattel mortgage contract or the Chattel Mortgage Registration Certificate changes, both parties to the mortgage contract or their agents may handle the registration of change at the original chattel mortgage registration authority, and shall submit the following documents to the authority:
1. the original Chattel Mortgage Registration Certificate;
2. the Certificate on the Change of Chattel Mortgage Registration affixed with the signatures or seals of both parties to the mortgage contract; and
3. certificates on the subject qualification or natural person identity of both parties to the mortgage contract.

If any agent is authorized to handle the registration of change, the identity certificate of the agent and the power of attorney shall also be submitted.

VIII. According to the provisions of Article 8 of the Measures for Chattel Mortgage Registration, if the principal creditor’s right is eliminated, the security interest is realized or the creditor gives up the security interest, both parties to the mortgage contract or their agents may handle the deregistration formalities at the original chattel mortgage registration authority. When handling the deregistration formalities, the following documents shall be submitted:
1. the original Chattel Mortgage Registration Certificate;
2. the Certificate on the Change of Chattel Mortgage Registration;
3. the Chattel Mortgage Deregistration Certificate affixed with the signatures or seals of both parties to the mortgage contract; and
4. certificates on the subject qualification or natural person identity of both parties to the mortgage contract.

If any agent is authorized to handle the deregistration formalities, the identity certificate of the agent and the power of attorney shall also be submitted.

IX. According to the provisions of Article 11 of the Measures for Chattel Mortgage Registration, the related entities and individuals may, upon the strength of the legal identity certificate, consult, extract or copy chattel mortgage registration documents at the chattel mortgage registration authorities.

X. According to the provisions of Article 12 of the Measures for Chattel Mortgage Registration, these Measures apply to counter guarantees and mortgages at maximum amount.