constructed buildings can be disposed of together with the disposal of the aforesaid right to use construction land so as to realize the mortgage right, however, the mortgagee has no right to seek preferred payments from the money generated from the disposal of these newly-constructed buildings.

Article 201 As regards the mortgage of the right to the contracted management of land as provided for in Item (3) of Paragraph 1 of Article 180 of the present Law or the right to use construction land occupied by the plant or any other building of a township or village enterprise as prescribed in Article 183 of the present Law, after such mortgage right is realized, without completing the statutory procedures, the nature of land ownership or land use may not be altered.

Article 202 A mortgagee shall, within the limitation of action for the principal obligee's rights, exercise the mortgage right, otherwise, such mortgage right will not be protected by the people's court.

Section 2 Mortgage Right at Maximum Amount

Article 203 For ensuring the payment of debts, an obligor or third party may provide mortgage security to the obligee for the obligee's rights that will continuously happen within a certain term, and when the obligor fails to pay its/his due debts or any circumstance as stipulated by the parties concerned for realizing the mortgage right happens, the mortgagee has the right to seek preferred payments from the security properties within the maximum amount of obligee's rights.

The obligee's rights existing prior to the establishment of the mortgage right at maximum amount may, upon the consent of the parties concerned, be incorporated into the scope of obligee's rights under the mortgage security at maximum amount.

Article 204 Unless it is otherwise stipulated by the parties concerned, in case part of obligee's rights are transferred prior to the determination of the mortgage security at maximum amount, the mortgage right at maximum amount may not be transferred.

Article 205 Prior to the determination of the obligee's rights under the mortgage security at maximum amount, the mortgagee and the mortgagor may, upon agreement, alter the term for the determination of the obligee's rights, the scope of obligee's rights or the maximum amount of obligee's rights, however, such alteration may not cause any unfavorable influence to any other mortgagee.

Article 206 The mortgagee's obligee's rights shall be determined, if any of the following circumstances occurs:

(1) The stipulated term for the determination of the obligee's rights expires;

(2) In case there is no stipulation on such term or the related stipulations are not explicit, and where the mortgagee or the mortgagor requires to determine the obligee's rights after two years as of the date for the establishment of the mortgage right at maximum amount;

(3) No new obligee's right may happen;

(4) The mortgaged property is sealed up or seized;

(5) The obligor or the mortgagor is declared bankrupt or is revoked; or

(6) Any other circumstance as prescribed by any law for determining the obligee's rights arises.

Article 207 The mortgage right at maximum amount shall be governed by, in addition to the provisions in this Section, the provisions on general mortgage right as provided for in Section 1 of this Chapter.