The Differences Between the CPL and the ST Model Law on Secured Transactions
This article discusses the differences between the Chinese Property Law (CPL) and the UNCITRAL Model Law on Secured Transactions (ST Model Law) with regard to the creation and third-party effectiveness of security rights.
The CPL requires that all security rights be created by contract, while the ST Model Law distinguishes between creation and third-party effectiveness. This distinction allows for greater party autonomy and makes the law more clear, concise, and consistent.
The article also discusses the challenges of the current registry system for mortgages of movables in China and the benefits of a unified registration system for security rights in China.
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