Protection Of The Lessor's Rights In Financial Leasing

Financial leasing is a novel type of transaction with double functions of financing and leasing in modem market economy, In such transaction, the lessor enters into a supply agreement with the supplier selected by the lessee and acquires the equipment specified by the lessee on terms approved by the lessee, and the lessor enters into a leasing agreement with the lessee and delivers the equipment to the lesse for the latter's use, and recovers its loans, interests and other expenses in the form of rentals in installments. Seen from the transaction course of the financial leasing, it is characterized as long term of performance (the term of lease), non-currency of the leased equipment, the lessee's possession of the equipment during the whole leasing period, and whether the lessor's obligatory right of rentals will be realized entirely depends on the credit and debt servicing ability of the lessee. Therefore, among the three parties of the financial leasing, the rights of the lessor are most easily injuried. However, because of the relatively shorter history of the financial leasing and no full knowledge of the nature of this transaction, though "financial leasing contract" has been listed in the of chapter in the Contract Law of PRC, the legislation on the protection of the lessor's rights in financial leasing is not enough. Besides, the research on and probes into the protection of the lessor's rights are not full, either. Therefore, based upon the character that the rights of the lessor are easily infringed, according to the related juridical principles on real law, contract law and bankruptcy law etc. andcompared with UCC and Unidroit Convention on International Financial Leasing, this thesis attempts to inquires into the protection of the lessor's right in financial leasing in order to contribute to the work of legislation of financial leasing in our country.The thesis is composed of seven chapters. Chapter One introduces the history and development of financial leasing home and abroad and the legislation of financial leasing in our country. Chapter Two analyzes the reason why the lessor's rights are easily infringed in financial leasing transaction and introduces the present studies on financial leasing in our country. Chapter Three, based on the functions of the lessor's title of the leased equipment, looks into the measures of protection of lessor's rights when the leased equipment is accessed to the immovable property, possessed in good faith by a third party, and the lessor's title is in conflict with lien or priority. Chapter Four probes into the issues of lessee's default and the relief measures the lessor's shall take. Chapter Five is focused on the protection of lessor's rights when the lessee is declared bankrupt. Chapter Six probes into the lessor right of assignment, and the possibility of leased asset securitization. Chapter Seven provides some suggestions on the legislation of our country in financial leasing.