Legal Issues Research Of Asset Securitization Under The Trust Mode In Our Country

As a structural financing innovation having a great influence on the developmentof financial industry in United States, asset securitization stems from United States inthe1970s. In recent years, China also comes to approve the securitization of assetsheld by financial institutions. Relevant supervision authorities stipulate relevant lawsand regulations on asset securitization. However, as asset securitization is still in theexploration stage in our country, many problems still exist in the understanding ofasset securitization, a structural financing measure. This paper is finished throughanalyzing and talking over these problems. I hope it does well to the legal frameworkof asset securitization in our country in the future.The paper is divided into three parts: Introduction, main body and epilogue. Inthe introduction, the background and significance of this paper is introduced.The main body includes three chapters. In the first chapter, I mainly expound theconcept and the structural principle of asset securitization. At present, no clearconcept of asset securitization exists in theory and there are various definitions on it indifferent regions.In the second chapter, the status of asset securitization in our country is mainlyintroduced. I mainly introduce the scope of basic assets which can be securitized andthe trust model to carry out asset securitization in our country at present. In2012, thethird phase of the pilot program of asset securitization was started in our country.Central Bank of China and China Banking Regulatory Commission jointly issued "the notification to further expanding the pilot program of asset securitization. Thenotification has the two significant spot, which is broadening the scope of basic assetsand participants taking part in asset securitization. In addition, in March of this year,supervision authorities issued “the regulations on asset securitization businesses ofsecurities companies”, in order to further lower the threshold of development assetssecuritization for securities companies, and do favor to the smooth operation of assetsecuritization for enterprises in our country.In the third chapter, the legal issues of assets securitization and thecorresponding perfecting suggestions is discussed. There are three significant parts inthis chapter: The first part is the discussion of the issue on notification of transferringsecuritized assets. There are different provisions on the legal effect which thenotification of transferring creditor’s rights has on the efficacy of the contract oftransferring creditor’s rights. Whether the contract of transferring creditor’s rights isvalid if creditors fail to notify the debtor, someone says yes and some others say no.As we can see in the existing legal provisions, the valid holds. However, these lawsand regulations bring certain obstacles for the practice of asset securitization.Secondly, the issue of “true sale” and the independence of trust property is discussedin the paper. For the smooth implementation of the asset securitization, the mostimportant design is to ensure the “true sale” of available asset for asset securitizationor the establishment of the independence of trust property. In order to settle thisproblem, double deck structure is designed to isolate the available asset for assetsecuritization from the risk of originator’s bankruptcy in the United State. In contrast,trust model is adopted in our country. And insurance of the independence of the trustproperty is particularly important. Finally, the revenue problem of asset securitizationis discussed. Revenue is one of the most important sources of the country’s fiscal. Soit should be punished to abuse asset securitization to avoid being taxed. The field ofthe laws in our country has some deficiencies, which urgently needs to be perfectedand improved.The epilogue part is mainly about the summary of this paper and my expectationon it.