Measures for the Registration of Pledge Receivables
 
Promulgation date: 09-30-2007 Department: People's Bank of China
Effective date: 10-01-2007 Subject: Banking&Finance

Order of the People’s Bank of China
(No.4 [2007])

In accordance with the Real Right Law of the People’s Republic of China, the People’s Bank of China formulated the Measures for the Registration of Pledge Receivables, which were adopted at the 21st governor’s meeting on September 26th, 2007, are hereby promulgated and shall come into force as of October 1st, 2007.

Governor: Zhou Xiaochuan

September 30th, 2007

Measures for the Registration of Pledge Receivables

Chapter I General Provisions

Article 1 For the purpose of regulating the registration of pledge receivables and protecting the legitimate rights and interests of pledge parties and interested parties, these Measures are formulated in accordance with the Real Right Law of the People’s Republic of China.

Article 2 The Credit Information Center of the People’s Bank of China (hereinafter referred to as Credit Information Center) is the registration authority of pledge receivables.

The Credit Information Center shall establish a system for publicizing the registration of pledge receivables (hereinafter referred to as registration publicity system) to handle the registration of pledge receivables and provide inquiry services for the general public.

Article 3 The People’s Bank of China shall regulate the activities conducted by the Credit Information Center for the registration of pledge receivables.

Article 4 The term “receivables” as mentioned in these Measures refers to the right to ask the debtor to make payments which is obtained by the creditor for offering goods, services or facilities, including existing and potential money claim and the proceeds thereof, but not including the right to claim a payment incurred from bills or other negotiable securities.

The “receivables” as mentioned in these Measures includes the following rights:
1. creditor’s rights from sale, including the sale of goods, the supply of water, power, gas and heat, and the licensed use of intellectual property;
2. creditor’s rights from lease, including the lease of movable and immovable property;
3. creditor’s rights from rendering services;
4. right to charge fees for such immovables as highway, bridge, tunnel and ferry, etc.; and
5. creditor’s rights from granting loans or other credit.

Article 5 If one receivable involves more than one pledges, the pledgees shall exercise the rights of pledge according to the sequence of registration.

Chapter II Registration and Inquiry

Article 6 The registration of pledge receivables shall be handled through the registration publicity system.

Article 7 The registration of a pledge receivable shall be handled by the pledgee.

The pledgee may authorize other people to do so, in which case, the provisions of these Measures on handling registration by pledgees shall apply.

Article 8 Before handling the registration of pledge, the pledgee shall conclude an agreement with the pledger, and the agreement shall contain the following contents:
1. that a contract of pledge has been concluded between the pledgee and the pledger; and
2. that the pledgee shall be responsible for handling the registration of pledge.

Article 9 When handling the registration of a pledge receivable, the pledgee shall register as a user of the registration publicity system.

Article 10 The contents to be registered shall include the basic information about the pledger and the pledgee, a description of the receivable and the valid period of the registration. The pledgee shall enter the agreement as prescribed in Article 8 of these Measures into the registration publicity system as an appendix.

If the pledger or the pledgee is an entity, its registered name and address, name of its legal representative or chief person, the organization code or financial code, and the industrial and commercial registration code shall be filled in.

If the pledger or the pledgee is an individual, he shall fill in his ID number and the address as indicated in his ID.

The pledgee may put the amount of the principal creditor’s right or any other item on registration upon the consent of the pledger.

Article 11 The pledgee shall submit the registration information filled in to the registration publicity system, which will record the time and allocate a registration number. Then an initial registration certificate and the password for alteration will be generated and provided to the pledgee.

Article 12 The pledgee shall determine the valid period of registration, which shall be counted on a yearly basis and be 5 years for the longest. The registration shall become invalid once the valid period of registration expires.

Article 13 The pledgee may apply for renewing the valid period of registration within 90 days before the expiration of the period.

The period may be renewed for many times, but each renewal shall not be longer than 5 years.

Article 14 If there is any omission, mistake or change in the registration information, the pledgee shall handle the formalities for the registration of alteration.

If a new pledge receivable is added to the registration, the added part shall be deemed as an independent pledge registration, and its registration time shall be the time when the pledgee fills in the information about the new pledge receivable and submit the information to the registration publicity system.

Article 15 Where the registered name or ID number of the pledger which was put down by the pledgee on registration changes, the pledgee shall handle the formalities for registration of alteration within four months since the date of change, otherwise, the registration will become valid.

Article 16 When applying for renewal or handling the formalities for registration of alteration, the pledgee shall submit the agreement on renewal or alteration reached with the pledger.

Article 17 Under any of the following circumstances, the pledgee shall handle the formalities for deregistration within 10 workdays since the date when such circumstance occurs:
1. the principal creditor’s right is eliminated;
2. the rights of pledge are realized;
3. the pledgee gives up all rights of pledge to the receivable registered; or
4. other circumstances lead to the elimination of the registered rights of pledge.

Article 18 The pledgee shall handle the formalities for renewal, registration of alteration and deregistration with the password for alteration.

Article 19 If the pledger or any other interested party believes that there is anything wrong in the information registered, he/it may ask the pledgee to handle the formalities for registration of alteration or deregistration. If the pledgee disagrees with such request, the pledger or the interested party may handle the formalities for demurrer registration.

The pledger or the interested party may deregister the demurrer at his/its own will.

Article 20 The pledger or the interested party shall, after finishing the formalities for demurrer registration, promptly notify the pledgee of the demurrer registration.

Article 21 If the pledger or the interested party fails to bring a lawsuit within 15 days since the demurrer is registered, the Credit Information Center shall deregister the demurrer.

Article 22 The Credit Information Center shall, in light of the request of the pledger, any other interested party or the pledgee, deregister the pledge receivable or demurrer according to the effective court judgment or decision.

Article 23 After the pledgee handles the formalities for registration of alteration or deregistration, or after the pledger or any other interested party handles the formalities for demurrer registration, the registration publicity system will record the registration time, allocate the registration number and generate a relevant certificate thereon.

Article 24 The pledger, the pledgee and any other interested party shall fill in items required by the registration publicity system according to the facts.

If the pledgee or the pledger provides false materials in handling the registration formalities, which causes damage to other people, he/it shall assume corresponding legal liability.

Article 25 Any entity or individual may inquire about the registration information of pledge receivables after registering as a user of the registration publicity system.

Article 26 If the pledger is an entity, the inquirer shall inquire by taking the complete and accurate name of registration of the pledger as the keyword.

If the pledger is an individual, the inquirer shall inquire according to the ID number of the pledger.

Article 27 The Credit Information Center shall produce an inquiry permit to the inquirer according to the latter’s application.

Article 28 The pledgee, the pledger, any other interested party or an inquirer may authenticate the registration certificate or the inquiry permit according to the number of such certificate or permit.

Chapter III Duties of the Credit Information Center

Article 29 The Credit Information Center shall take necessary measures to maintain the safe and normal operation of the registration publicity system.

The Credit Information Center shall not bear legal liability for its failure to handle the registration or provide inquiry services because of force majeure.

Article 30 The Credit Information Center shall formulate the pledge registration operating rules and the internal management system, and report them to the People’s Bank of China for archival purpose.

Article 31 After a pledge is deregistered or its valid period of registration expires, the Credit Information Center shall keep the registration record for 15 years.

Chapter IV Supplementary Provisions

Article 32 These Measures shall come into force as of October 1st, 2007.