Asset Securitization Special Purpose Vehicle In Legal Research

Asset Backed Securitization (here after as "ABS") is a new financing instrument created in the late 20th century. With its special structure and remarkable financing effect, it developed rapidly and has become one of the most important financing instruments in a lot of western countries.ABS means that to pull out either the banks' or corporate illiquid assets from others to form as an asset pool, and through structural reorganization and under the guarantee of expected stable income stream, it becomes one of the financing ways in the international capital market.In this article, I firstly introduced the concept, features and process of ABS, and discussed the importance of bankruptcy-remote mechanism during the process of ABS. To realize bankruptcy-remote, the core is to establish Special Purpose Vehicle (here after as "SPV"). I analyzed the character and functions in law of SPV, especially emphasized on its legal relations and forms. And also, I made a systemic discussion on the problem of how to realize SPY bankruptcy-remote. In the end, I analyzed a series of legal obstacles that will exist in the process of implement of ABS in China current legal situation and put forward some advices on the construction of ABS in China.