(Continued)

Chapter IX Special Provisions on Acquiring Ownership

Article 106 In case a person unauthorized to dispose of a realty or chattel alienates the realty or chattel to an assignee, the owner is entitled to recover the realty or chattel. The assignee shall obtain the ownership of the realty or chattel if meeting all of the following conditions, unless it is otherwise prescribed by law:

(1) To accept the realty or chattel in good faith;

(2) To purchase the realty or chattel at a reasonable price; and

(3) In case registration is required by law, the alienated realty or chattel shall have been registered, while in case registration is not required, the delivery thereof shall have been accomplished.

In case, according to the preceding paragraph, an assignee obtains the ownership of a realty or chattel, the original owner may require the person unauthorized to dispose of the realty or chattel to compensate for his losses.

In case a related party obtains any other form of real right in good faith, the preceding two paragraphs shall apply by reference.

Article 107 The owner or any other right holder has the right to recover a lost property. In case the lost property is possessed by any other person through alienation, the owner has the right to require the person unauthorized to dispose of the property to compensate for damages, or, ask the assignee to return the original property within two years as of the date when he knows who is the assignee. But in case the assignee purchases the lost property through auction or from a qualified operator, the right holder shall, when requiring the returning of the original property, pay the assignee the amount that the assignee has paid for purchasing the property. After paying the amount, the right holder has the right to recover the amount from the person unauthorized to dispose of the property.

Article 108 After a bona fide assignee obtains a chattel, the original rights on the chattel shall be terminated, unless the bona fide assignee has already been or ought to be aware of the right when the transfer is made.

Article 109 A lost-and-found object shall be returned to the right holder. The person finding such object shall inform the right holder to claim the object or hand it over to such related departments as the public security department in time.

Article 110 After receiving a lost-and-found object, the related department shall notify the right holder to claim the object in a timely manner in case it knows who is the right holder; it shall publish an announcement on the claiming of the lost property in a timely manner in case it does not know.

Article 111 The person who finds the object shall properly keep it before it is handed over to the related department, and the related department also shall do so before it is claimed by the right holder. Where the object is damaged or lost deliberately or for gross negligence, the personnel concerned shall assume the civil liabilities.

Article 112 The right holder of the object, when obtaining a lost-and-found object, shall pay the person who finds the object or the related department such necessary expenses as the cost for safekeeping the object.

Where a right holder promises to offer a reward for finding the object, he shall, when claiming the object, perform the obligation of granting the reward.

Where the person who finds the object misappropriates the lost object, he/she shall be deprived of the right to ask for paying the expenses he/she has paid for safekeeping the object or require the right holder to perform the obligation as promised.

Article 113 In case a lost-and-found object fails to be claimed within six months as of the date when the claiming announcement is published, it shall be owned by the state.

Article 114 As regards the finding of a drifter or the discovery of an object buried underground or a hidden property, the relevant provisions on the finding of a lost-and-found property shall apply by analogy. Where there is any other provision in such laws as the law concerning the protection of cultural relics, such provisions shall prevail.

Article 115 Unless it is otherwise stipulated by the parties concerned, the accessory res shall be alienated together with the alienation of the principal res.

Article 116 Natural fruits shall be enjoyed by the owner; it shall be obtained by the holder of usufructuary right where there are both owner and holder of usufructuary right. In case there are otherwise stipulations between the parties concerned, such stipulation shall apply.

Statutory fruits shall be obtained by the parties concerned in accordance with stipulations if any; in the case of no or unclear stipulations, it shall be obtained in light of the practices of trading.

Part III Usufructuary Right

Chapter X General Rules

Article 117 As regards the realty or chattel owned by someone else, a usufructuary right holder is entitled to possess, use and seek proceeds from it in accordance with law.

Article 118 As regards the natural resources that are owned by the state or that are owned by the state but used by the collective as well as those that are owned by the collective as prescribed by law, an entity or individual may possess, use and seek proceeds from them.

Article 119 Unless it is otherwise prescribed by any law, the state practices the system of paid use of natural resources.

Article 120 When exercising right, a usufructuary right holder shall comply with the provisions on protecting, reasonably exploring and utilizing resources as provided for in the laws. When the usufructuary right holder exercises rights, the owner may not intervene in.

Article 121 Where the usufructuary right is terminated or its exercise is affected for reasons of expropriation or requisition, the usufructuary right holder has the right to obtain corresponding compensations in accordance with Articles 42 and 44 of the present Law.

Article 122 The lawfully obtained right to use sea areas shall be under the protection of law.

Article 123 The mineral prospecting right, the mining right, the water intake right and the right to use water areas or tidal flats for breeding or fishery shall be under the protection of law.

Chapter XI Right to the Contracted Management of Land

Article 124 Such a dual operation system, under which centralized operation and decentralized operation are combined on the basis of household contracted management, shall be practiced by any rural economic organization.

As regards the cultivated land, wood land, grassland, and other land for agricultural uses that are owned by farmers' collectives as well as those that are owned by the state and used by farmers' collectives, the system of land contracted management shall be adopted.

Article 125 The holder of the right to the contracted management of land has the right to possess, utilize and seek proceeds from the cultivated land, wood land and grassland, etc. under the contracted management thereof, and is entitled to such agricultural production activities as the planting, forestry, stockbreeding, etc.

Article 126 The contractual term of cultivated land shall be 30 years. The contractual term of grassland shall be 30 up to 50 years. The contractual term of wood land shall be 30 up to 70 years. The contractual term of special forest land may, upon approval of the forestry administrative department under the State Council, be extended.

After the contractual term as referred to in the preceding paragraph expires, the holder of the right to the contracted management of land may, according to the relevant provisions of the state, contract continuously.

Article 127 The right to the contracted management of land shall be established since the contract thereon goes into effect.

The local people's government at the county level or above shall issue a certificate of the right to the contracted management of land, a forestry right certificate or a grassland-use right certificate to the holder, register it in the brochure so as to confirm such rights.

Article 128 The holder of the right to the contracted management of land has the right, in accordance with the provisions in the law on the contracting of rural land, to circulate his/her such right by means of subcontract, exchange or transfer, etc. The circulated term may not be more than the remnant term of the original contract. Any contracted land may not be used for non-agricultural constructions without approval.

Article 129 In case the right to the contracted management of land is circulated by means of exchange or transfer, where the parties concerned require for the registration of such circulation, an application for the alteration registration thereof shall be filed to the local people's government at the county level or above. Without such registration, neither party may challenge any third party with good faith.

Article 130 The contract-letting party may not readjust the contracted land within the duration of a contract.

In case it is necessary to readjust the cultivated land or grassland as contracted by virtue of such especial events as natural calamities that have materially injured the contracted land, a readjustment may, in accordance with the legal provisions in the law on the contracting of rural land and other related laws, be carried out.

Article 131 The contract-letting party may not take back the contracted land within the term of the contract. In case there exists any otherwise provision in the law on the contracting of rural land or any other law, such provision shall prevail.

Article 132 In case a contracted land is expropriated, the holder of the right to the contracted management of such land has the right to obtain corresponding compensations in accordance with Paragraph 2 of Article 42 in the present Law.

Article 133 As regards the barren land or other rural land that is contracted through bid invitation, auction, or open negotiation, etc., the right to the contracted management thereof may, according to the law on the contracting of rural land and other laws as well the related regulations of the State Council, be circulated by means of alienation, equity contribution, or mortgage, etc.

Article 134 In case the contracted management is conducted over any state-owned rural land, the related provisions in the present Law shall apply by analogy.

Chapter XII Right to Use Construction Land

Article 135 The holder of the right to use construction land has the right to possess, use and seek proceeds from the land owned by the state, and shall be entitled to the construction of buildings, fixtures and their auxiliary facilities by