Types of instruments for the security of the payment of debts when the debtor pledges his (its) instruments

According to the Chinese laws, a debtor or third party may, for the security of the payment of debts, pledge his (its) movable properties to the creditor for possession, and when the debtor fails to pay due debts or any circumstance for realizing the right of pledge as stipulated by the parties concerned occurs, the creditor shall be entitled to the priority in having his claim paid with the pledged movables.

The following rights that a debtor or a third party is entitled to dispose of may be pledged: bills of exchange, checks, promissory notes; bonds, certificates of deposit; warehouse receipts, bills of lading; portions of funds or certificates of stocks which are transferable; property rights consisted in the intellectual property rights, such as the right to the exclusive use of registered trademarks, the patents and copyrights, which are transferable; accounts receivable; and other property rights which may be pledged as provided for by laws and administrative regulations.