On "True Sale" In Asset Securitization

The credit of security in asset securitization is based on the income-producing assets, rather than the general credit of originator and SPVo In order to improve the credit of the income-producing assets, we should realize the risk isolation of the income-producing assets, the most important of which is to realize the "true sale" of income-producing assets。The originator sale the income-producing assets to SPV, realizing the risk isolation of the income-producing assets from the general risk of originator, to reach the purpose of promoting the income-producing assets。Asset securitization stems from America, so the development of market and the basic legal construction in American are relatively more mature than those of other countries, which provides precious experience for the development of asset securitization in our country. The paper studies the legal system about the "true sale" in foreign asset securitization by using the comparison. On the basis, the paper analyzes the legal environment of asset securitization developed in our country, and put forward the construction about the legal advice of the "true sale".The whole paper is divided into 5 parts as follows:The first part introduces the basic theory of asset securitization, and make a brief introduction for the definition, types, operation process of asset secutization o Then introduction to the "true sale" in asset securitization:the definition and the related concept of "true sale" as well as the significance of the study on the "true sale".The second part analysis of the legal principle of asset "true sale". In subject aspect, it include sponsor and SPV, in object aspect, it include income-producing asset, and on the content of legal relation, it includes the rights and obligations of originator and SPV.The third part deals with the transfer of the income-producing assets:trust, novation, sub-participation, assignment. As the nature of "true sale" is assignment, this paper concentrate on the study of the assignment, concluding the transferability of assets, the transfer of future claims, the notice of transfer and the transfer of related security right.The forth part studies the legal standards of "true sale". They are the intention of originator, the price of income-producing assets, the provisions given the recourse right, the provisions given the remaining property claims, the provisions given the repurchase right and so on that the legal standards of "true sale". This part also discusses the legal risk which will encounter the "true sale" does not meet the legal standards.The fifth part analyzes the legal environment of asset securitization developed and reviews shortcomings of the guarantee system and bankruptcy system in our country. On the basis, this paper puts forward the legal advice for the "true sale" in asset securitization.