Getting Credit
The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit registries in China.
| Legal Rights Index |
| ●Can any business use movable assets as collateral while keeping possession of the assets; and any financial institution accept such assets as collateral ? |
| ●Does the law allow businesses to grant a non possessory security right in a single category of revolving movable assets, without requiring a specific description of the secured assets ? |
| ●Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of the secured assets ? |
| ●May a security right extend to future or after-acquired assets, and may it extend automatically to the products, proceeds or replacements of the original assets ? |
| ●Is a general description of debts and obligations permitted in collateral agreements, so that all types of obligations and debts can be secured by stating a maximum amount rather than a specific amount between the parties ? |
| ●Is a collateral registry in operation, that is unified geographically and by asset type, as well as indexed by the grantor's name of a security right ? |
| ●Do secured creditors have absolute priority to their collateral outside bankruptcy procedures? |
| ●Do secured creditors have absolute priority to their collateral in bankruptcy procedures? |
| ●During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement? |
| ●Does the law authorize parties to agree on out of court enforcement? |