Font Size: a A A

Asset Securitization Investment Interests Of The Protection Mechanism

Posted on:2006-08-07Degree:DoctorType:Dissertation
Country:ChinaCandidate:P X HuFull Text:PDF
GTID:1116360152988024Subject:Civil and Commercial Law
Abstract/Summary:PDF Full Text Request
Asset securitization is a kind of financial innovations , can either improve originators' financial structure,afford capitals of the low cost for originators, or benefit the investors safely and reliably. That is the motives that the originators are willing to initiate securitization, and the investors are willing to trade. The main reason that the securitization attracts more and more investors is the special mechanism of protection for investors' interests in the legal structure of securitization. The mechanism of protection for investors' interests in the securitization is made up of the special purpose vehicle (Br. SPV) and the transfer of assets. Special purpose vehicle has the function of assets-partition, responsibility-separating and bankruptcy-remote. Assets transfer has the function of transferring obligation. The combination of the two can afford the special asset credit for the investor. On the other hand, securitizational assets is the material base of operating the mechanism of protection for the investors, the quality of the assets decides the degree of protection; credit-rating and credit enhancement are the most necessary assistant system of investment protecting system. Securitizational investment protecting mechanism is different from ordinary security investment protecting system The mechanism of protection for investors' interests in the securitization, simplified as the property security of the obligation, has the systematical value of safety, efficiency, fair or justice, and is the system which abides by the historical rule and born from the economic transaction. The SPV includes the special purpose trust and the special purpose corporation. The special purpose trust forms the functions to protect the investment apart from bankruptcy through the independence principle in the common trust and the special systems including beneficiary system, trust supervisor system, etc.. The risk-separation function of the special purpose corporation is formed through preventing bankruptcy and substantive consolidation of the corporation. Assets transfer is the substantial coal of the investment protection. It is the public summons, recharacterization, true sale of the property transfer that determines the protection of investment, thus, it should be established that the unit public summons system for registration and affirmatory determination standard for the true sale. In China, Aesset securitization is necessary for the banks,corporations and investors. To transplant the mechanism of protection for investors' interests in the securitization into China is necessary and feasible. Although maybe there are idealistic and systematical obstacles during the transplantation and the no-performance loans which can not be obviated, they can not affect the feasibility of the transaction. Therefore the Japanese form of comprehensively special legislation should be taken in legislative technique.
Keywords/Search Tags:asset securitaztion, interest of investors, mechanism, special purpose vehicle (SPV), asset transfer
PDF Full Text Request
Related items