The State Administration for Market Regulation ("SAMR") has recently issued the Measures for the Registration of Mortgages on Movable Property (Revised Version) (the "Revised Version") to seek public opinions by March 8, 2019.
The Revised Version provides that where enterprises, privately-owned businesses, and agricultural producers and operators create mortgages on the movable property set out in the fourth item under Paragraph 1 of Article 180 and Article 181 of the Real Right Law, they shall register the mortgages with the county-level market regulators at the place where the mortgagors are domiciled. The right to the mortgaged movable property is formally created at the time when the mortgage contract enters into force; the mortgage, if not registered, shall not be used against a bona fide third party. Meanwhile, the Revised Version clearly states that, the parties concerned may handle the registration of mortgages on movable property, and the alteration to or the cancellation of such registration, in the National Market Regulation Business System for the Registration of Mortgages on Movable Property, while the general public may inspect in such system information on the registered mortgages on relevant movable property. Work rules for this business system for the registration of mortgages on movable property will be separately formulated by the SAMR by reference to these Measures.