Supreme People's Court, Provisions on Several Issues in the Handling of Property Preservation Cases by People's Courts
最高人民法院关于人民法院办理财产保全案件若干问题的规定
February 25, 2017 | BY
Susan MokCost of property preservation significantly lowered.
Promulgated: November 7 2016
Effective: December 1 2016
Main contents: Where a people's court orders a preservation applicant to provide property preservation security in accordance with Article 100 of the Civil Procedure Law, the amount of such security shall not exceed 30% of the requested preservation amount. If the property for which the application for preservation is made is the subject matter of the dispute, the amount of the security shall not exceed 30% of the value of the subject matter of the dispute.
If a materially interested party applies for pre-trial property preservation, it shall provide security equivalent to the preservation amount it is requesting. In special circumstances, the people's court may handle such matter in view of the circumstances (Article 5).
If a preservation applicant or third party provides property security for property preservation, it shall present an instrument of security to the people's court (Article 6).
If an insurer provides security for property preservation by means of executing a property preservation liability insurance contract with the preservation applicant, it shall present an instrument of security to the people's court (Article 7).
If a financial institution established with the approval of the financial regulator proposes to provide security for property preservation by means of an independent guarantee, the people's court shall permit the same in accordance with the law (Article 8).
If the respondent has multiple pieces of property available for preservation, the people's court shall select the property that would have the smallest impact on its production and operating activities for preservation, provided that the same can realize the preservation objective.
If a people's court preserves production and operational property such as plant buildings, machinery and equipment, and places the same in the respondent's custody, it shall permit the respondent to continue using the same (Article 13).
If the people's court permits the respondent to dispose of the preserved property itself, it shall notify the preservation applicant thereof. If the preservation applicant does not agree thereto, it may file an objection in accordance with Article 225 of the Civil Procedure Law (Article 20).
If, in a property dispute case, the respondent or a third party provides sufficient and valid security and requests lifting of the preservation, the people's court shall render a ruling permitting the same. If the respondent requests lifting of the preservation of property that is the subject matter of the dispute, the consent of the preservation applicant shall be required (Article 22).
Related legislation: PRC Civil Procedure Law (2nd Revision) and Interpretation on the Application of the <PRC Civil Procedure Law>
clp reference:1450/16.11.07 promulgated:2016-11-07 effective:2016-12-01This premium content is reserved for
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