(1) buildings and other land attachments;
(2) the right to use land for construction;
(3) the right to contract for the operation of land, such as wasteland, which is acquired by means of bidding, auction, or public negotiation;
(4) production equipment, raw materials, semi-finished products and products;
(v) buildings, ships and aircraft under construction;
(vi) means of transportation;
(vii) other properties not prohibited from being mortgaged by laws and administrative regulations.
The mortgagor may mortgage the properties listed in the preceding paragraph together.
This article is about the scope of mortgaged property. According to this article, the property mortgage must meet two conditions: first, the debtor or a third person has the right to dispose of the mortgaged property; second, it is the property that can be mortgaged under this article.
The debtor or the third person has the right of disposition over the mortgaged property includes:
(1) The debtor or the third person is the owner of the mortgaged property.
(2) The debtor or the third party has a usufruct right to the mortgaged property, and the law provides that the usufruct right can be mortgaged. For example, article 31 of the urban real estate management law provides that when real estate is transferred and mortgaged, the land use right within the occupation of the house is transferred and mortgaged at the same time. Article 47 stipulates that the ownership of a house acquired in accordance with the law, together with the land use right within the area occupied by the house, may be subject to a mortgage. The land use right acquired by way of grant may be subject to mortgage.
(3) A debtor or a third party may mortgage property in its possession or use in accordance with the provisions of law or administrative law, or with the approval of the competent government department. For example, Article 15 of the Regulations on the Conversion of the Operating Mechanism of Industrial Enterprises under National Ownership stipulates that state-owned enterprises, in accordance with the needs of production and operation, may decide on their own to lease out, offset against A or transfer them for a fee. For key equipment, complete sets of equipment or important buildings, with the approval of the competent government departments, can also be mortgaged and transferred for a fee.
Property that can be mortgaged under the Property Law includes:
1. Buildings and other land attachments. Buildings include residences, gymnasiums, etc. Other land attachments refer to real estate attached to the land other than houses, including bridges, tunnels, dams, roads and other structures, as well as forests, crops and so on.
2. Construction land use right. The right to use land for construction is the right of the subject of the right to possess, use and benefit from the land owned by the state in accordance with the law.
3. The right to contract and manage land such as barren land acquired through bidding, auction and public negotiation. Contracted wasteland through bidding, auction, public negotiation, regardless of whether the contractor is a member of the collective economic organization or a unit or individual outside the collective economic organization, may mortgage the contracted management right of the wasteland in accordance with the law.
4. Production equipment, raw materials, semi-finished products and products. Production equipment includes: all kinds of machine tools, computers, chemical laboratory equipment, instrumentation equipment, communication equipment in industrial enterprises, loading and unloading machinery in seaports, wharves and stations, and agricultural machinery such as tractors, harvesters and threshing machines. Raw materials refer to the raw materials and materials used to manufacture products, such as iron ore used for steel making, pulp used for paper making, wood used for furniture production, wheat used for flour making, bricks, tiles, sand and stones used for construction works. Semi-finished goods refer to products that have not yet been fully produced, such as automobiles that have not yet been assembled, garments that have not yet had their buttons sewn on, crops that have not yet ripened, and so on. Products refer to things that are produced. For example, vehicles such as automobiles and ships
, production equipment such as meters, instruments and machine tools, and household goods such as televisions, refrigerators, rice and white flour.
5. Buildings, ships and aircraft under construction. The security law does not specify the construction of buildings, ships, aircraft can be mortgaged. In practice, construction projects often have a long cycle and a large funding gap, the buildings, ships and aircraft under construction as a guarantee for the solution of the financing difficulties of the builders, to ensure the smooth completion of the project under construction has an important role.
6. Transportation tools. Means of transportation include: airplanes, ships, trains, all kinds of motor vehicles and so on.
7. Other properties not prohibited by laws and administrative regulations. This is an underpinning provision to adapt to the changing needs of economic life.
This provision shows that the previous six provisions other than property mortgages, must have two conditions: (1) is not the law, administrative regulations prohibit the mortgage of property, (2) the debtor or a third party has the right to dispose of the property.
Enterprises can pledge the movable and immovable property of the enterprise and some of its rights as a whole, for example, plant, machinery and equipment, inventory of finished goods, industrial property rights and other property as total assets to the bank for mortgage loans. However, when an enterprise mortgages property together, the quantity, quality, condition and value of each property should be clear.