The Legal Research Of Special Purpose Vehicle In Asset Securitizatiom

Asset securitization first appeared in the United States in the 1970s, and spread over the world in the 1990s. Now, the United States and Europe have already formed a asset securitization market with considerable scale. Asset securitization, as a structured finance method, is one of the most influential finance innovations in the world in the latest 30 years, and is playing a more and more important role in the international finance market. As a way to allocate market resources, Asset securitization, in one hand, provides a new method of financing and risk management, in the other hand, supplies a more attractive investment vehicle for the public investors.The most important character of asset securitization is the special purpose vehicle (SPV). SPV is the transferee of assets and also the issuer of asset-backed securities (ABS). SPV, as the core of asset securitization, can divide investors from other risks effectively. As an instrument of asset securitization, the core value of SPV is risk-remote. SPV is a bankruptcy-remote entity. Firstly, SPV should be kept away from the bankruptcy risk of itself. Secondly, SPV should be kept away from the bankruptcy risk of originators. Thirdly, SPV should be kept away from the bankruptcy risk of parent companies. Fourthly, SPV should be kept away from other bankruptcy risks.According to the international practice and experience, there are three main established modes: Company, Trust and partnership. Adopt Special Purpose Trust(SPT),the trust property is not only independent from the client's property, but also from the trustee's. So SPT can realize risk-remote effectively. SPT also can avoid double tax. Special Purpose Company (SPC) can issue different grades or other sources of payment of ABS. Diversified companies can also provide a variety of choices for originators. But SPC is difficult to avoid double tax. Special Purpose limited partnership mostly appeared in asset securitization in the United States, but rarely adopted this form in other countries and regions.Although developing rapidly in the world, asset securitization has still not officially implemented in China. It is one of the major reasons that SPV encounters series of legal obstacles in Chinese current situation. Asset securitization practice appeared in China in the 1990s.But strictly speaking, none of these is of real sense of the asset securitization practice. On March 21, 2005, The People's Bank of China announced the credit-backed securitization started, the China Development Bank and the China Construction Bank will carry on credit-backed securitization and...