Research On The Legal Issues Of Finance Lease

Since the first joint venture financial leasing company, China Eastern LeasingCo., Ltd., established in1981, the financial leasing industry has experienced morethan30years of development in China. During the thirty years of development,China’s financial leasing industry has experienced four periods including the rapidgrowth, the industry consolidation, the establishment of legal system and therevitalization of the industry, the four pillars of finance lease have been slowly builtup from scratch. However, it must be admitted that, due to our finance lease is still inrelatively early stages of development, so there are still many problems. In this thesis,the author, from the perspective of the private law, discusses the finance leasetransactions deeply and attempts to combine the experience of other countries as wellas the current legislation of China to propose the legislative suggestions on issuesrelated to finance lease of existing legislation.In this thesis, the following methods have been used to studying the issuesrelated to finance lease: the historical method, the comparative analysis method andthe combination of theory and practical method.Chapter I introduces the origin and development of finance lease. Leasingoriginated around2000BC in ancient Babylon Euphrates downstream areas, and thenexperienced a process from the original lease to modern lease. So the finance lease isnot appeared in the beginning, but with the economic development and social change,a new lease form is required. Generally the development of finance lease includes fivestages, which are simple leasing, innovative finance lease, operating lease, the lease ofnew products and the maturity of the lease, there is no strict boundaries among thefive stages, but there are overlaps among them. China’s finance lease industry hasbeen developed since1981, in the finance lease market, there are both simple leasing and some mature finance lease, but overall, China’s finance lease penetration is stilllow, so it still needs to be improved.Chapter II introduces the legal concept of finance lease and the legalrelationships between the three parties of finance lease. The concept of finance leaseof different countries, the UNIDROIT and China are compared to introduce in thefirst part of the Chapter, Generally the finance lease transaction involves two contractsand three parties. Two contracts mean the finance lease contract and the purchasecontract; three parties refer to the lessor, the lessee and the supplier. The second partof the Chapter introduces the legal relationships between the three parties in thefinance lease deeply, mainly analyzes the rights and obligations of the three partiesand the remedies for breach of contract in the finance lease transactions.Chapter III analyzes the status quo of China’s financial leasing legislation and theexisting problems. About the status of China’s financial leasing legislation, the authormainly analyzes from two aspects of finance lease transactions, the transaction lawand industry regulation law and introduces the newly issued interpretations on trial offinance lease contract disputes by the Supreme People’s Court. With a combination ofthe legislative status quo, the author discusses some of the problems that exist in ourfinancial leasing legislation, including separate legislation, a unified regulatory issue,registration system and the recall right.Chapter IV attempts to propose some advices on the existing issues in China’sfinance leasing legislation. On the registration of a finance lease, the author combinesthe finance leasing registration system in US and the status quo of China, proposessome advices on the establishment of the finance leasing system in China, includingthe registration form and the registration departments. Meanwhile, the author alsosuggests on the recall right in finance leasing transactions to establish the methods andprocedures of the recall right, which can protect the lessor’s right better. With theseadvices, wish a better development of the finance leasing in China.