Legal analysis: 1. From a practical point of view, the primary requirement of chattel mortgage for banks or financial institutions is to be quite familiar with the industry where the collateral is located and to be able to determine the real value of the collateral. But in reality, at present, domestic banks often lack experience in operation. 2. The key to inventory mortgage is to have good custody institutions and regulatory measures. Banks cannot manage movable property with strong liquidity. The most important movable property of an enterprise is often inventory and goods expected to be delivered. At present, China can only entrust intermediary agencies to manage inventory and contract goods, which not only increases the cost of banks, but also increases the risks of banks. Because the management level and credit of domestic intermediaries are not high at present. Moreover, at present, the management level and credit of domestic warehousing companies are often not high, so it is impossible to effectively manage and supervise the whereabouts of mortgaged goods, and even the true ownership of goods is often indistinguishable. 3. The main problems in chattel mortgage are that there is more than one thing and the mortgaged items are false. Guarantee companies should play an important role in this link, but at present, the domestic guarantee industry is not standardized enough, and many guarantee companies themselves have credit problems. 4. The risk of falling prices. As the two major targets of chattel mortgage loans-steel and chemical products, the decline in prices has made domestic major banks more cautious about chattel mortgage loans.
Legal basis: Article 354 of the Civil Code of People's Republic of China (PRC). Where the right to use construction land is transferred, exchanged, contributed, donated or mortgaged, the parties concerned shall conclude a corresponding contract in writing. The term of use shall be agreed by the parties, but it shall not exceed the remaining term of the right to use the construction land.