The Research On Legal Issues Of Cross-border Asset Securitization

Asset securitization has the characteristics of structured finance. There are different legal systems and economic surroundings in different countries. In order to minimize the cost of financing, financers always display the different aspects all over the world with the minimum cost, so that the cross-border asset securitization is born. The essay aims to conduct the research on how to improve the legal issues of cross-border asset securitization by globally anglicizing it. It will be based on the newly-approved laws, the pilot securitization of credits assets having been carried out for four years and the abroad lessons.The essay is divided into five parts. The first part is an overview of asset securitization, which introduces the origin of asset securitization as well as the development in the United States, Europe and Asia. Then it will generalize the characteristic and nature of the financial innovation from the legal perspect, which will make a preparation for the following analysis. As well, the cross-border asset securitization will be compared with mortgage debate, project financing and other financing models to demonstrate the advantages of financing.After a brief introduction of the securities ,the second section of the paper devotes to cross-border operation of asset securitization. First of all, this paper analyzes the concept of cross-border operation of asset securitization. After the definition of the concept, the thesis followed both from the economic and legal perspective why asset securitization produces cross-border operation. And the basic procedures of papers introduces the cross-broader operation of asset securitization process .This introduction of asset securitization is not from a complete legal point of view, because the asset securitization is more an economic phenomenon. It is necessary for us to start from economic point of view to understand it and then we can better analyze the legal issues from legalistic terms.The third part of the paper addresses the legal issues in cross-border operation of asset securitization. First is in the process of assignment problem, the transferring of assets is the basis of asset securitization .In this part, we analyze the following questions: what assets are, what assets can be used in asset securitization, how to qualify asset transfer in laws, how to transfer assets in each country, how to perfect the existing problems and so on. This paper will combine the Civil Law with "United Nations Commission on International Trade Convention on Assignment of Receivables" for analysis. The second part analyzes the special purpose vehicle of the invention and core asset securitization. In this part, the analysis is about the selection of setting forms of special purpose vehicle SPV in asset securitization, and the restriction of business purposes, and the isolation of bankruptcy risk, as well as the location. Asset securitization brings capital flow, which inevitably brings the questions about double taxation imposed by the governments on cash flow and the risks of currency exchange and exchange rate. This paper will introduce the use of the current international practice ways to reduce the tax burden, such as select "tax havens" or the agreement between the tax cuts. This part will be discussed with the relevant knowledge of international tax law.Risks as well as cross-border asset securitization always accompany with the financial problems. Correspondingly there are problems concerning the financial surveillance supervision question. After analyzing the legal issues of the operation of cross-border asset securitization, the thesis will also give a comprehensive analysis about the risks in cross-border asset securitization operation. And at the same time it will introduce the trend of current supervision and how to get over the problems in it.Finally the thesis analyses the practice of cross-border asset securitization. Through analysis it explains the actual condition of carrying out cross-border asset securitization. In combination with the experiment site, we know the obstacles in cross-border asset securitization, including the transfer of assets of assets, regulatory issues, tax issues, currency exchange rate problems. Difficulties and obstacles reflect a more special meaning of cross-border asset securitization. After introducing and analyzing the problems, next the article will unify other countries with the system internationally and put forward a sound proposal about our country's legal system, mainly through targeted legislation to improve the related legal system of our country...