Analysis Of Asset Securitization Special Purpose Vehicle Legal Issues

Asset securitization is an important form of financial innovation. The essence of asset securitization is securitization of future cash flows of the division of assets and restructuring process. Asset Securitization has a great significance to the current reform of China's financial sector. In the trend of financial globalization, China's asset securitization legal system has roughly formed a scale. However, the introduction of asset securitization in China doesn't have a long time, there are still many shortcomings in related systems, especially in special purpose vehicle systems. This paper combines asset securitization practice in china with international advanced legislation, on the assets of our asset securitization special purpose vehicle to conduct a thorough analysis of the legal system, attempt to make some useful proposals. Asset securitization is the basic principle of the transfer of assets build the basis of the full text of this article was carried out in the Introduction briefly discussed. The research scope of this paper is special purpose vehicle, the paper analyses the special purpose vehicle structure, bankruptcy-remote special purpose vehicle, special purpose vehicle tax and other issues. Special purpose vehicle have two major types, including special purpose company and special purpose trust, the internal control systems have different emphases. This paper calls for a specific purpose trust legislation specifically, both in legislation on the amendment of the existing system deficiencies, but also gaps in the existing law to be filled. Transfer of assets in the asset securitization effects, we should achieve a "bankruptcy remote." This chapter of the bankruptcy isolation system is studied. To achieve "bankruptcy remote", transfer of assets effect on the premise of "true sales." On the real conditions of sale, judicial practice finds confusion, if true sale fell to be identified, the transfer of assets will be re-classified as secured financing. Assets cannot be isolated from the risk of sponsor. Besides, the paper also gives some asset securitization practice, a special purpose vehicle in China tax related systems were studied. Special purpose vehicle in China focused on tax issues tax status, tax liability, tax relief and so on. At the end of the paper, the author makes a comprehensive proposal for the relevant regime.