UCC in Hong Kong

Does anyone know how to find out whether a client has a lien against him and how to file a lien in Hong Kong?

A lien, if I got it correct, is a low level of security over goods for unpaid services. For example, if one's camera is sent for repair and the repair shop is not paid the repair cost, the repair shop has a lien over the camera provided the camera is still in the shop's possession.


A lien is unlikely to cover a big liability. It just covers some minor fees or charges. Hence, I can't see why the need to have it registered. Anyway, I am not a lawyer in Hong Kong. So, I may have the whole concept of lien wrong altogether.

A lien is filed against goods, property (company or personal), etc. For example in a divorce case, the family home may have a lien (in Hong Kong it is called an encumbrance) against it to stop either party from selling it from under the other party. Or if a business owes creditors, a lien would be file against the business's assets, such as unsold goods.


I don't see how it is possible to file a lien against a person, only against their real property or chattels.


Is the person bankrupt (either declared or non-declared)?

http://www.hkclic.org/en/topics/bankruptcy_IndividualVoluntaryArrangement_Companies_Winding_up/bankruptcy/bankruptcy_generalInformation/q3.shtml

[quote]if a business owes creditors, a lien would be file against the business's assets, such as unsold good.[/quote]


How?

UCC stands for Uniform Commercial Code, which is a branch of law that has to do with debts owned by one party to another. Any time one person or company provides money to another person or company, the one providing funds understandably wants assurances he will be paid back. US law makes provision for this in the Uniform Commercial Code.


When the party who provides money to another seeks greater security of repayment, the providing party will complete a UCC-1 form and is referred to as the "Secured Party." The person or company receiving the funds is called the "Debtor" on the UCC-1 form. When this form is completed and registered with the Secretary of State, a lien is put in place which secures the collateral of the secured party. The collateral is whatever the secured party says it's on the form, which is authorized by the Debtor.


When this lien is filed, the information becomes a matter of public record. THink of it as a nationwide bulletin board, notifying everyone that the secured party has first rights to the collateral if there's ever a problem recovering the money.


So my question is, in Hong Kong, where can I find out if there's a lien against my client?

UCC as I understand is not a branch of law. It is just a set of codes which two party choose to adopt. A bona fide third party is not bound by it.


As I know it, under British type of legal system, the types of security are mortgage (for land and houses), charge (for movable properties), pledge (for physical delivery of possession to the creditor) and lien (also possession related, ie, the creditor should have possesion). If you are referring to a mortgage, you can do a title search. If you are referring to charge and the other party is a company, I believe the Registry of Companies is the place to start. If the other party is a private individual, I don't know, may not have a Registry for it. Any HK lawyer care to comment?