Protection Of The Lessor’s Rights In Financial Leasing

The protection of the lessor’s rights in financial leasing is the cornerstone of ensuring a healthy and long-term development of the financial leasing industry. The existing researches at home and abroad mostly focus on exploring protection of lessors from the theoretical aspects. Discussions mainly refer to the scope of the leased property, the registration system of financial leasing, the legal relationships between the contractual parties and the detail rights and obligations between both them. To protect the lessor’s rights has its practical significance, however, to fulfill the protections we need to overcome many obstacles. After collating sorting the protections for lessors, we came up with proposals to make supportive mechanisms including build up second-hand commodities trading system which is an ideal exit mechanism to realize the lease’s residual value, encourage the guarantee companies to get involved in the financial leasing transaction and probe into the asset backed securitization of lease. To build the social credit system which contains property publicity system, credit insurance in leasing, the lessors’personal credit system and lessee’s information publishing system. To update the norm of the financial leasing contract by making the bond clauses, the insurance expenses clauses, the break prohibition clauses and the joint liability guarantee contracts.and allowance for doubtful accounts in order to protect the lessor’s right.