The Legal Risks And Countermeasures Of Shipping Finance Lease For Banks

The shipping finance lease is a new way of finacing and its developmentin China has experienced only a very short period of time. Relative tothe other shipping leasing, shipping finance lease has its own advantagesand broad prospects for development. The society of marketing economy isto maximize the allocation of resources. In shipbuilding, on the one hand,because of increasing of the ship technical content and the increasingof the ship size, on the other hand the cost of purchasing ship isincreasingly expensive. After all, the best way of funding is through theBank of shipping finance leases. Bank, in shipping finance lease legalrelationship, generally appear as two roles, as lessor or lessor’s lender.The bank different identities in different legal relationships, faces thedifferent risks, the measures taken to cope with risks are not the same.Under the influence of the financial crisis, the bank increases riskawareness, more stringent review of the loan program, especially like theshipping industry which is of high investment, high risk, the return needsa long period. Banks are more cautious, the bank did not even dare toget involved. China’s shipping finance leasing market system is notstandardized and these banks which participate in the ship financialleasing activities, should pay special attention to risk identificationand countermeasures.Compared to the legal theory of the foreign shipping finance lease,the study of domestic on shipping finance lease legal issues are lessmature. China’s shipping finance lease law is more fragmented. ShippingFinance Lease Law is closely related to contract law, property law,financial law, maritime law, company law etc, as well as our ship finance lease contract disputes in practice involving financial innovation andcharter business, increases the difficulty of the applying of thesubstantive law and the administration of justice. Due to the registrationof ships, maritime liens, ship lien system is imperfect in the ship financeleases practice, often will lead to the occurrence of the risks of trading,after all ship finance lease has its own particularity and complexityrelative to other financing, the existence of these risks is a greatchallenge for the banks.The first chapter introduces through the basic concepts of financelease leads to the center of the article, the basic concepts of the shipfinance lease and related concepts. In view of this article is a bank-angleanalysis of the risks of shipping finance lease, firstly defines the legalstatus of the bank in the shipping finance lease. Chapter Two analysesfrom the point of view of the bank as the buyer in shipping finance lease,bank encounters different legal risks in the purchase of the constructionof the ship and operating ship and its countermeasures. The third chapteris the focus of this article, first expounded the relationship betweenshipping financial leasing and ship registration system, the marineinsurance, followed by banks from the ship finance lease as lessor angleanalysis, bank faces the different risks of the people who claims maritimeliens, ship lien, compensation for oil pollution damage, salvaging sunkenobjects and the ISM Code,and propose a reasonable countermeasures froma legal point of view, to prevent banks from unnecessary losses. Finallyanalyses that the bank as a lessor may face additional risks, includingcredit risk, market risk, operational risk and natural disasters andpolitical risk. Chapter Four from the bank as a lender, not involved inship rental, only faces mortgage risk as a lessor’s lender and themeasures taken in order to avoid the risk. Chapter Five is the Conclusionof the article, it summarizes above measures and analyses that bank under the current legal system how to avoid the risk of the various risks, froma practical point of view, proposes appropriate institutionalconstruction advice from the perspective of legal theory, which for ourshipping system good development escort.