The Resolution Of Financial Leasing Contract In The Process Of Bankruptcy

Financial lease is a new born industry. Because of this, there is littlemature research in this field. But in recent years, financial leasing got theattention of the legist with the fast growing dispute in this field. The samething happened in china. We do not have specific legislation until1999,when contract law was enacted. And we have even less study on thebankruptcy of financial leasing industry. This paper is trying to solve theproblem of applying bankruptcy law to the financial leasing industry.Hope this paper can provide some possible resolution of practical disputeand benefit the legislation of the financial lease.This paper contents four parts. The first part introduced the conceptand properties of the financial lease. And then raised issues that shall besolved in this paper.The second part analyzed the ownership of the leasehold.Bankruptcy eventually will center on the bankruptcy property. Hence the ownership of the lease item will be the key issue in the process ofbankruptcy. In consideration of the growing rights and interests of thelessee with the proceeding of the tenancy, we introduce the concept ofdivided property interest. And we launch a dynamic co-ownership byshares between lessee and leaser to solve this problem.The third part talked about the applying of the bankruptcy law whenthe lessee bankrupt. This part mainly confined the range of thebankruptcy property and confirmed the duty of liquidation of the leaserwhen the leaser decided to retrieve the lease item.The last part talked about the applying of the bankruptcy law whenthe leaser bankrupt. The main intention of this part is to restrict the rightof leaser’s rescission. And the transfer of the financial leasing contractwill be encouraged in order to protect the lessee’s rights and interests aswell as to maintain the leaser’s properties.