Study On Legal Regulations Of Finance Leases In The Construction Machinery Industry

As an important financial innovation, construction machinery financial leasing exists a unique business model and certain legal characteristics, including the non-reciprocity of the rights and obligations, the complexity of legal relationship, particularity of rent, and uncertainty of the lease item disposal when the lease expires. In the meantime, it is different from the general sense of credit products, but also from ordinary construction machinery sales, It is not a simple installment, it is the combination of the construction machinery industry and finance leases, combine with the dual character of financial objects and financing. By comparing the domestic and international business overview and legal status in construction machinery financial leasing industry, this paper found that domestic construction machinery financial leasing showed a legal regulation lag, and there are many obstacles to the development of the industry.In this paper, the author discusses the common legal risk in the financial leasing and points out the unsound and un-comprehensive defects of legal system obviously, combined with the existing legal environment in our country. According to the characteristics of business, this article focuses on the law defects in confirming right and guaranteeing the execution of the leased property. With the practice characteristics of the business and legal risks in this paper, the author puts forward some legislation suggestions and risk prevention measures. This article is divided into five parts.The first part:Introduction to construction machinery finance lease. First of all, this section analyzes the legal nature of engineering machinery financing lease through defining its conception; Second, it introduces the difference of related concept, including the difference between general lease, loan, payment by installment, Finally, when we have a comprehensive understanding on construction machinery finance lease’s basic concept by comparing with the related financing business, this part then introduces its common types and the legal relationship.The second part:The common risk and legal issues of engineering machinery financing lease. This part analyses various common risks of engineering machinery financing lease starting off from the renter’s rights protection, including the seller’s common risks, the lessee’s common risk and the risk caused by change of property.The third part:The relevant legal regulations and defect analysis on engineering machinery finance lease in our country. Based on the summary of the financing lease law, this section analyzes the existing defects of legal background.The fourth part:The financing lease laws and its enlightenment in foreign countries. This part mainly introduces the specific situation of foreign related laws regulations, and then proposes the related legislation enlightenment of our country.The fifth part:The precaution countenneasure against the legal risks of engineering machinery financing lease. This part will be based on the above, to give suggestions on the prevention of legal risks, including three aspects of the proposal, one is to modify the contract law and relevant law’s regulations:two is to improve related rights of the various subjects; the three is to increase protective measures of the real-right changing.