There exists under Anglo-American Jaw the system of the so-called foreclosure," where in some cases the mortgagee may, upon default of the mortgagor. file a bill calling on the mortgagor in a court of equity to redeem his estate presently, o upon failure there, to be forever: Barred from any right of redemption, while in other eases the mortgagee [may obtain a decree for sale of the Jand under the direction of an officer of the court. In Germany and Switzerland, the realization of secur!- ties on land is carried out according to the laws governing compulsory execution. Tt is clear that, though the methods of enforcing satisfaction out of mortgaged real estate fu the above-mentioned countries differ materially. the Anglo-American and the continental laws coincide in the respect that the mortgagee may enforce satisfaction without the necessity of seeking a final judgment in The Civil Code of China, Article 673, states that: "When the debt is not paid at its maturity, the mortgagee may apply to the court for the sale of the mortgaged property by auction and obtain satisfaction out of the proceeds of sale." The said article permitting the mortgagee to apply to court for sale by auiction of the property, clearly implies necessity on the part of the mort= gage to obtain a final judgment. Tt {safe to assert that the real legislative intent of such a provision is closely in line with the practice in Germany and Switzerland. Such intent fails, however, owing to the Interpretation of the Judicial Yus (Ref. "Yuan" 493) that mortgaged properties shall not be sold by auc-
Paramount necessity is to lift Shanghai out of the slough of despond into whick the business world has been thrown, otherwise the present crisis will be found to be merely the interlude to a cataclysm.
The procedure ruling until very Security of Consular Title Deeds. With the money so. lent have been built the Chinese factories, businesses and banks that now abound and did not exist two decades ago. A British Consular lot, with its immediate transferability from one registered owner repislered and also be registered as'are so prolonged that with interest, recent times with regard to the Con-that of the vendee or assignee and accumulating the proceeds of sale {sular Title Deed should be left note of the same shall be lodged by are seldom sufficient to cover the, [altogether untouched and the pro-the Consul with the Munteipat amount by then due upon the Joan' cedure in the Chinese Courts should [Council." While that regulation was: followed, all that was required was ""Trece' remarks have been pened! be altered to permit of prompt, realization upon security tendered for that the transferee and the transferor in no spirit of carping criticism. The' financing effected. tion except where it is based a final judgment. The Judicial Yuan's reason for making such on Interpretation, according to a Supreme Court Ruling (Ref. "Kan" 772), 18 because the law governing sale' by auction and that governing registra~ tion have not yet been codified and enforced, and it is for the purpose of ensuring safety in practice that the Judicial Yuan requires a final judgment to be. obtained before sale by auction can, effected. The purpose of the above Interpretation "of the Judicial Yuan chauid not be criticized in that it aims to give better protection to debtors. However, the result in most cases must be to encourage a delinquent debtor to resort to. the existing legal procedure of going through the courts of three instances, by way of bulting off the fulfilment of his obligations, even when he may be fully aware that he has to face failure eventually in the final judgment. In fact, the more the delay, the heavier becomes the burden of interest, acting detrimentally to debtors' and creditors. alike. Those with sufficient capital to dispose of, when they sce the insufficient pro-lection afforded to mortgagees by the Jaw, naturally hesitate to extend loans through mortgages, a frame of mind becoming more' and more common in financial circles. "One cannot imagine where our' social economy will stand, if real estate in Shanghai can no longer be used in securing credit, Tt cannot be denied that real estate constitutes the greater part of the wealth of Shang hal. In view of the increasing tightness of credit, no effort should be spared to promote real estate mortgage transactions and to restore the confidence accompanying it in former days; otherwise, the declining prosperity of this financial centre cannot be restored.
Text read from the printed page and cleaned; old type leaves the occasional error.