Bank Credit Assets Securitization Legal Issues Research

Asset securitization, as a new means of financing, is not only one economy phenomenon, but also one legal process. From the study in domestic and foreign countries and regions, the development process of asset securitization will inevitably accompanied by the foundation and improvement of the relative laws. Securitization, since its birth, is closely related to bank. Through securitization, the credit asset has been optimized. But this operation is not developed well because there are some insufficiencies in our relative laws.Above all, on the basis of summarizing of the conception, development and operation process, three kinds of law issue, SPV construction, securities issuance, credit enhancement and rating were analyzed detailed in this paper. Besides, the law risk of asset securitization was specified.Afterwards, it is analyzed detailed in this paper that the above three kinds of asset securitization is specified in course of the development on Non-performing loans securitization.Firstly, SPV construction and operation, mostly researched corporation-based SPV and trust-based SPV, and Now the corporation in China construction of SPV is the best choice for asset management companies, And the practice using the trust-based SPV processing credit asset securitization has also been a clue, but it is in need to continuously improve the supporting laws.Secondly, the process of transfer of non-performing assets, mainly researched on the issues, that the quality of non-performing assets of banks sale, transfer mode and the force of law on non-performing assets, the principle in the entry into force of the transfer of bank non-performing assets, the debtor' s right of defence, the loss of immunity in the banks sold non-performing assets, the transfer of mortgages, the customer' s right to offset the banks non-performing assets securitization.Thirdly, in the process of the credit enhancement, there are some legal barriers in "excessive security" and external means to enhance in China, so recommended the adoption of special legislation to solve.Then, the successful experience of bank credit asset securitization operations in some developed countries and regions, and existing practice in China were outlined and summarized on paper, finally the paper proposed legal advice on this business in China.