New Rules on Registering Mortgages and Other Security Interests

Freshfields Bruckhaus Deringer

In February, the Ministry of Justice issued the Registration of Mortgages by Notaries Public Procedures (the Procedures), which instruct public notary offices across China on the registration of security interests (primarily mortgages) pursuant to the PRC, Security Law (the Security Law). Lenders and borrowers have long looked to public notary offices to register mortgages over a variety of security interests not handled by other agencies. The Procedures add another much-needed piece to the legal framework of creating, perfecting and enforcing security interests in China.