The Protection Of Lessor’s Ownership In Finance Leasing For Property Changes

With the rapid development of economy, finance leasing with function in financing andfinancial matter has soon become one of the important ways in financing. In finance leasing,lessor plays an important role in finance leasing, which has been the part of two contracts.However, the lessor is often subject to many threats for its ownership for its unequal rights andobligations.This paper includes introduction, body and conclusion, and the body owns five parts.The first part presents the current status of the lessor in the financial leasing in China.Conflicts of law lead to more legal loopholes in the protection of the financial lessor. What’smore, the risks of bona fide acquisition and accretion regime make the problem more serious.The second part concludes the legal reasons of the problem. The division of ownershipmakes the unequal rights and obligation of both parties: the lessee enjoys the power to possess,apply and income; while the lessor only has the right of disposition. In property law, bona fideacquisition system protects the third party rights, so the lessor meets bigger problem in theprotection of the lessor’s ownership.The third part concludes the practice of the protection of the ownership of the financeleasing in law in China:"Financial Leasing Law (Draft)"in2006; pledge of accounts receivableand finance lease registration publicity system in2007and2009; the latest judicial interpretationin2014. Though these practices reflect the importance of the protection of the lessor’s ownership,there are still many problems.The fourth part describes the initiatives of legislation and practice on the exploration andpractice abroad at present. There are three kinds of actions for other countries in the protection ofthe lessor in finance leasing: compulsory finance lease registration system, optional finance leaseregistration system and other ways. We could get more advice through the analysis of the othercountries’ behavior.The fifth part gives us two advices on the protection of the ownership of the financialleasing. The first one is also the key: we should create a finance lease registration system andmake detailed provisions for the registration authority, content, procedures and effectiveness offinance leasing. The second is to increase the compensation clauses of the lessee infringement in finance lease. We should make the lessee pay more money for lessor and warm them. At thesame time, this compensation will gain the full loss of the lost of his ownership.