What Is a Pledge Fund?

Pledge is the transfer of possession of a property from a debtor or a third person to a creditor, and the latter holds the property as a guarantee for the former to perform some payment or performance obligation. When this responsibility is fulfilled, the pledged property must be returned. When the debtor fails to perform his obligations, the creditor has the right to discount or auction the pledged goods according to law, and to receive priority payment for the proceeds. The most common pledges are transactions between the parties and the pawnshop. According to China's guarantee law, pledges are divided into movable property pledges and rights pledges. The rights that can be pledged are: bills of exchange, checks, promissory notes, bonds, certificates of deposit, warehouse receipts, bills of lading; shares and stocks that can be transferred according to law; exclusive rights to trademarks, patents and copyrights that can be transferred according to law; Other rights of pledge. ^[1]

The pledge is

The pledged property is called the pledge, and the person who provided the property is called

Generally pledges are made by pawners

1. Have everything

The difference between pledge and mortgage

1. Pledge is a guarantee

Pledge and pledge are two different concepts. Pledge refers to the legal act of setting pledge, and pledge refers to the rights of the pledge holder; pledge is the cause of pledge, and pledge is the legal consequence of pledge. The act of the debtor or a third party giving his movable property to the creditor for possession and actual control is called pledge. The right acquired by the pledgee as a result of the pledge is the pledge, and the pledge is a type of security right. As the pledge of security real right, it has the characteristics of attributes, inseparability, subrogation and priority compensation.

1. Dependent property of pledge. The subordinate nature of the pledge right means that the pledge right belongs to the creditor's right guaranteed by it. Because the pledge right is achieved by securing the creditor's right, the pledge is subordinate to the secured claim. The parties can set up a pledge for future claims, and can also set a pledge when setting up a claim, but the existence of a main claim must exist when the pledge is realized. Pledge

Types of rights that can be pledged

1.

The first is to consider the creditworthiness of both parties of the accounts receivable, especially whether there are bad repayment records in financial institutions. Combined with the essentials of non-financial analysis of enterprises in the five-category classification of loans, the business prospects of the enterprises were predicted. The original of the sales contract of the enterprise, the invoice of the seller's enterprise, the receipt of the buyer's enterprise, and the certificate of acceptance and storage of the goods must be retained to verify the authenticity of the transaction.

The second is to carefully review the financial statements of the enterprise. In addition to basic indicators such as the company's asset-liability ratio, focus on five indicators. Looking at the proportion of accounts receivable in corporate assets, this proportion reflects the management of corporate receivables. The proportion is too high. It is necessary to analyze the management of corporate receivables. Second, look at the accounts receivable turnover rate. It reflects the liquidity of corporate accounts receivable. Third, look at the average recovery period of accounts receivable. This indicator can influence our decision on the term of the loan. The due date of accounts receivable is earlier than the repayment date stipulated in the contract. The fourth is to see if the component ratio of accounts receivable is concentrated on one customer. This ratio reflects the risk of corporate loan recovery. Fifth, see if the payment unit is an affiliate of the loan applicant and whether there is a related party transaction.

The third is to require the payer to provide a letter of commitment to confirm the specific amount of the account receivable, and promise to pay the seller only in the designated account of the loan bank. At the same time, it must be stipulated in writing that the payer signs the commitment letter to confirm the liability for breach of contract due and non-payment, and if the pledgee is not informed, the payment is made without authorization, and the bank shall be liable for the losses caused thereby. Wait.

The fourth is to handle pledge registration. Article 228 of the Property Right Law clearly states that "when pledged by receivables, the parties shall enter into a written contract. Pledges are established when credit pledge agencies handle pledge registration." After the registration of the pledge, the effect against the third party in good faith becomes effective. After the account receivable is pledged, it can no longer be transferred, but if the pledgor and the pledgee negotiate and agree, the pledgor shall pay the debt to the pledgee in advance using the price obtained from the transfer of the receivables. Recover loan principal and interest in advance.

The fifth is to determine a reasonable pledge ratio. According to the actual situation of the enterprise, it is determined that the pledge rate is controlled at about 50% -70%.

Sixth, do a good job of managing the loan during and after the loan. Strengthen the risk early warning mechanism for loans. If there is a major change in the payment unit; the receivables are due, the payment unit fails to pay on time, the sales enterprise is not exercising its due power, and the loan is not used according to its purpose. The loan officer shall do a good job of verifying the balance of accounts receivable with the accounts receivable enterprise on a regular or irregular basis.