International Bond Trust System Study

ABSTRACTSince 80,,, the financing infrastructure of the intemational caPital markethas been greatly changed and the scale of the Security Financing has beendramatically expanded, among which the rate of the Bond Fina*ncing exceedsthat of the lnternational Credit. The practice of the International BondFinancing, Which was started from 1982,is also expanding gradually. Butcurrent, in the lax' fields, there is no enough allention has been paid to thelegal cases of the International Bond Financing, especially to theInternational Bond Management System and Trust System, applied by thecountries with the Ocean Law System, be adopted to the countries with theContinent Law System? How can we define it from the legal aspects? Hoxvto define the lega1 functions of this system? ThIough the analysis of thevuIgate methods of the International Bond Financing and the characteristicsof the Intemational Bond, this paper tries to analysis the Trust System, whichis the core of the management system, from the legal aspects and to analysisthe performance of that system and the relevant specific cases. Besides that,it also has a view of the Oversea Bond System in China. This paper consistsof fOur chapters as followed:l.roduction: The definition of the international bond and TrustSystemFrom the general principals of the intemational bond, this chapter, a basisfOr all the rest of the chaPters, discussed the characteristics of theinternational bond and identifies the legal definition of the IntemationalBond and Trust S}stem.2. The legal adoptability of the International Bond and TrustSystemFirst, this chapter discussed the legal structure of the trust system, then illustrates the infrastructure of the International Bond and Trust System to get some enlightenment. For example, it meets not only the requirement of the bond but also the legal requirement of the valid trust to adopt the trust system to the issue of the international bond. Therefore, this system should be adopted to the countries with the Continent Law System3.The legal character of the assignee of the International BondOn the base of the principals and the definitions of the previous two chapters, this chapter discussed the key of the assignee. First, it makes a comparison between the Assignee and the Finance Deputy. Then it states the specific legal duty of the assignee and defines the status of the assignee from the legal aspects.4. The legal functions of the International Bond and Trust SystemFrom the micro internal legal structure, in the case of breach of the faith, this chapter discusses how to draft of the Almsgiving System in the international bond to show its functions, especially the non-sue terms and the assignee抯 convenient conditions with the balanced profit under this system. And from that to testify the advantage of this system, comparing with the Bond Holder Board System.The conclusion from the study in the four chapter above is that as the draft of a valid contract, the International Bond and Trust System should be well studied and adopted by the countries with the Continent Law System, especially by China.