Ministry of Justice, Registration of Mortgages by Notaries Public Measures

Promulgated: February 20 2002
Effective: as of date of promulgation
Interpreting authority: Ministry of Justice
Applicability: The Measures apply to notaries legally established in conformity to Article 43, Paragraph Two of the PRC, Security Law (Article 2). The Measures shall apply to mortgages of property specified in Article 43 of the PRC, Security Law and where the county or higher level people's government has stipulated that the mortgage of such property must be registered, or where the mortgage contract as stipulated by law becomes effective on the day of mortgage registration (Article 4). Registration of material rights security including contractual rights, receivables or future rights by notaries may be carried out with reference to the Measures (Article 18).

Main contents: The term "other property" as used in Article 43 of the PRC, Security Law includes machinery, livestock and other means of production belonging to an individual, a work unit, a social agency or any other type of non-corporate entity and all other possessions excluding those stipulated in Article 37 and Article 42 of the PRC, Security Law (Article 3). If the property specified in Article 3 of the Measures is mortgaged, the mortgagee shall obtain the right to oppose a third party upon issue of the Mortgage Registration Certificate (Article 5). Application for mortgage registration must be made jointly by both parties to the contract by completing a mortgage registration application form (Article 6). Notaries shall accept applications that conform to the stipulations of Articles 3 and 4; fall within the jurisdiction of the respective notary; and are accompanied by all required supplementary documents. The notary shall approve or disapprove the application within five days (Article 9). Notaries shall promptly exchange registration data with other notary agencies at the same government level (Article 13). When parties to the mortgage contract request an amendment to the contract, the notary shall process the change if it conforms to mortgage registration regulations (Article 14). The notary shall undertake cancellation of the mortgage registration when the debt obligation has been fulfilled or cancelled and the parties to the contract request cancellation of the mortgage registration (Article 15). Mortgage registration fees will be borne by both parties unless otherwise agreed (Article 16).
Related legislation: PRC, Security Law, Jun 30 1995, CLP 1995 No.6 p21 and PRC, Notarization Tentative Regulations