Abstract

The rechargeable mortgage created by French security law reform in 2006 and perfected in several following security law reforms, and the maximum mortgage contained in Chines Civil Code are both relatively new type of security interests for related parties. Both of them are reusable for parties to secure debt other than the debt designated in the constitution contract. These new types of security interests maintain the safety value of the traditional general mortgage systems on the one hand, and strengthens the superiority of mortgage system on the other hand, by simplifying the procedures of constitution and realization, remarkably reduce the costs of time and money of usage. From the point of view of economic analysis, these new types of security interests not only conform to the economic criterion of Karldor-Hicks efficiency, but also play an important role for improving the guarantee ability and financing ability of domestic enterprises from either domestic financial market or international market, and further affect the evaluation of performance of the countries in the frame of Doing Business of the World Bank.

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