The Legal Construction Of SPV In Asset Securitization

Asset Securitization is a new financing technique. Since coming out in U.S.A in1970s,it developed very fast in the world. Both the government and the enterprises hope tointroduce Asset Securitization into China, in order to improve the financial efficiency inour country. But successful domestic Assets Securitization has not been set up until today.Why? An important reason is that our country meets many difficulties while constructingSPV. But SPV plays a very important role in Asset Securitization. So if we want to makeprogress in Asset Securitization, we have to solve these problems in practice. However, the author find out that there is not enough research about constructingSPV. But we need the research to solve the problems in practice. This is the reason whythe author choose "The Legal Construction of SPV in Asset Securitization" as the topic ofher thesis. The Article includes three chapters. Chapter I try to give an overall introduction about SPV. Firstly, the author analyzes thatthe function of SPV is bankruptcy-remote, which will help the readers to know theessential attribute of SPV .The author also analyzes the legal characteristics of SPV. Withthe help of the analysis, the author can give her definition of SPV. Secondly, the readers 第 3 页can see the legal status of SPV in Asset Securitization. In the end, the author tries to find aprinciple that can guide us to construct SPV. The principle is to find a balance betweenbankruptcy-remote and legal environment. Chapter II try to tell the readers how to realize bankruptcy-remote——the function ofSPV. The chapter includes four parts. Firstly, SPV shall be kept away from itselfbankruptcy risk. Secondly, SPV shall be kept away from originator's bankruptcy risk.Thirdly, SPV shall be kept away from parent company's bankruptcy risk. Fourthly, SPVshall be kept away from other bankruptcy risk. Chapter III mainly studies the establishing mode of SPV in China. According tointernational experience, there are three main establishing modes: Company, Trust andpartnership. The author analyzes their legal environments and gives some advice aboutestablish mode of SPV in China.