Asset Securitization, Transfer Of Assets Of A Number Of Legal Issues

Asset securitization is the process of turning the assets that are short of liquidity but can engender future cash flow into securities that can be sold or transferred in the capital market through certain arrangement of reconstructing the risk and benefit of the assets.Since its appearance in America in 1930's, asset securitization develops prosperously in the world relying on its advantages in legal institutional arrangement and economic functions.Asset transferring is the beginning of the asset securitization.Which credit asset can use to securitize, how to transfer the receivables and how to build a SPV are the most important problems during the transferring procedure.This paper has 4 chapters to do the researeh for the subject.The first chapter is a summary of basic theories on asset securitization.Through an analysis on different viewpoints regarding" what is asset securitization",the chapter offers a reasonable definition, the legal characteristics,the sort,the procedure of asset securitization and the basic principle of the asset transfer.The second chapter touch upon the topic of asset transfer in securitization, which is about the natural quality, legal nature and assignability of basic assets. Then, the section carries out future credit transfer and transfer of secured rights and interests.The chapter three is mainly about the subject of asset transfer in the process of asset securitization. The legal system of transferee, namely, Special Purpose vehicle(SPV) is very special,and the section describes the legal characteristics, organization form and the system of bankruptcy-remote. This chapter also studies the legal obstacles existing under current law frame in our country.The fourth chapter analyzes several methods of asset transfer. And there is a discussion on the issue of notifying the debtor. The identification of asset transfer as true sale is essential to the success of asset securitization. This chapter discusses various factors court may consider concerning recharacterizing the nature of asset transfer in detail and analyses the standard of true sale in China.