Economic Analysis of the Rechargeable Mortgage System
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The rechargeable mortgage system, created by French security law reform in 2006, maintains the value of safety of the traditional general mortgage system and strengthens further the superiority of mortgage system, by simplifying it’s procedures of the constitution and realization, reduces the cost of security and other measures. It not only conforms to the economic rules of Pareto efficiency and Karldor-Hicks principle, but also reflects the pursuit of French security law reform for the value of liberty, efficiency and balance of interests. Considered as one of the most significant and dazzling outcomes of the reform in 2006, it is thereafter admitted and enhanced in 2009 by the trust-guarantees (transfer-property guarantee) system.
Rechargeable mortgage, Initial mortgage, Recharged mortgage, Pareto improvement, Kaldor-hicks efficiency