On The Legal Standard Of The True Sale Of Credit Asset

Asset securitization is one of the most important finance innovations since 1970s. There are many risks in it, so securitization has sophisticated structure to build "risk-remote system". "risk-remote system" means that transfer assets to a special purpose vehicle, the vehicle burdens risks for security owners and can't influence by promoter's bankrupt. "True sale" is one of the most important steps. Because of the character of underlying assets is different from other assets that risks and profits of them are uncertain. The transfer of them is different from others too. The transferor always keeps risks and profits of them through many different approaches. Incomplete transfer of risks and profits cause that it is necessary to analyze the economic substance of the assignment. Different countries have different standards. In our country our securitization follows the USA model, the standard of "true sale" applies the substantial doctrine. But in our country the rank of asset securitization legislation is low and there is not explicit standard of "true sale". Because of the legislation is focus on "securitization of credit assets" so I just study the "true sale" standard of credit assets.My mind is: first, introducing the basic knowledge of "true sale"; second, analyzing the existing circumstances of credit asset transfer, analyzing the advantage and disadvantage of our law; third, studying "true sale" standards in other fields, other countries that using substantial doctrine, and scholar's viewpoints. On this base I will raise my own point.There are three parts, four chapters in my essay.First part includes the first chapter. In this part, first, I want to write the conception, origin and resizable array of "true sale". At the same time I analyze the importance and the substance of "true sale". In my opinion, "true sale" is transfer of underlying assets. "True sale" of credit assets is transfer of creditor's rights. Second, I write the two models of "true sale" identification standards and factors that influence "true sale" identification.The second part includes the second chapter. In this chapter I descript the developing and the legislation of credit assets securitization in our country. I analyses the transfer structure of our credit assets combine with our practice. I study advantages and disadvantages through a latest case.The third and fourth chapters constitute the third parts. In these chapters I descript the rule of accounting field, other countries and areas that use substance doctrine and The Basel Committee on Banking Supervision as well as scholar's viewpoints. On this basis, I raise my point in the fifth chapter.