A Study on the Legal Status of Collective Goods Transfer Security in China

Transfer security, as an atypical form of security interest, has always been a focal point of academic attention. Despite the implementation of China's Civil Code and the Interpretations of the Guarantee System, there is still debate over whether transfer security should be considered an atypical security interest, and its value and status remain controversial. This paper aims to start from a hermeneutic perspective, deeply analyze the theoretical foundations of transfer security, and in conjunction with the progress of the Civil Code, the Interpretations of the Guarantee System, and relevant judicial interpretations, advocates that transfer security as an atypical security model should be recognized by the Civil Code. Regarding the issue of transfer security for collectives, this paper deeply explores the legal nature of collectives and the rules of subrogation, and in conjunction with the relevant provisions of the Civil Code and the Interpretations of the Guarantee System, proposes that the publicity effect of transfer security for collectives should be enhanced and its subrogation should be confirmed. Such measures will provide effective protection for the realization of creditors' rights, especially beneficial in protecting the interests of creditors and enhancing the safety of transactions when the security is substituted. Furthermore, the article also proposes solutions for the problem of excessive security for collectives. It is recommended that before establishing security, a reasonable evaluation of the collectives should be carried out, and proper negotiations should be conducted by both parties to prevent risks and contradictions. In cases of excessive security for collectives, the principle of "one object, one right" should be followed to confirm the separation of the collectives when changing the price, thereby clarifying the assumption of guarantee liability. This not only helps to balance the interests of all parties but also promotes the healthy development of financial transactions.