Study Of The Basic Legal Issues Of Asset Securitization

Asset-securitization is both a economic and legall process . Legally, the innovation of it lie in establishing a new kind of independent asset-credit guarantee .The independence is based on "true sale" of asset and SPV bankrupt insulation .The initiator transfers the systematic risk of asset to the investors by the independence, meanwhile the securitization holders have more confidence in investing because of keeping off the uncertain credit of the initiator. In the eyes of the law, Asset-Securitization is completed through a series of legal acts most of which are contracts .Every legal relation failure in the structure can add certain risk to Asset-Securitization ,but only the legal relations that bring law risk to SPV will affect the independence of asset credit ,Thus bringing fatal risk to the Asset-Securitization operation .They become the basic law problem in Asset-Securitization.Asset-Securitization (as a new financial innovation) has different law system in Common law system from Continental law system. In Common law system , an innovation is allowed unless it is forbidden by law. And case law tradition and the flexible interpretation of law by judge also provide the ideological and institutional guarantee for the people' s creative activity. In continental law system , an innovation is allowed unless it is definitely protected by law ,thus it face more risk than in Common law system. As a continental law system country , china will take on the mission of the development in system and ideology when we carry on Asset-Securitization .The essay mainly falls into three parts .In the first part , using theoretical and logical analysis method, it first discusses the meaning and the operation process of Asset-Securitization .Then it studies the legal essence and characteristic of Asset-Securitization .This part is the soul of the essay and lay substantial foundation .In the second part ,it discusses the risk-remote in Asset-Securitization operation in different countries, such as America .England Japan with comparative method .This part is theemphesis and the difficulty of the essay. In the third part ,it studies our country' s legal circumstances for carrying out Asset-Securitization. Finally , it primarily recommends our legislative mode for Asset-Securitization that we should chose.