Study On The Legal Issues Of "True Sale" In Asset Securitization

With the steady progress of interest rate liberalization and RMB globalization,asset securitization is very beneficial in China's great environment of economic transformation,restructuring,internationalization and diversification.It can release the balance sheet burden on financial institutions,broaden investment and financing channels,improve cash flow efficiency to adapt to the development of new normal of Chinese economy.Confirmation of “true sale” as a key step in asset securitization transactions,there has always been a lot of controversy of its criteria no matter in mature overseas securitization market or the domestic securitization market with rapid development in recent years.The use and identification of “true sale” has many legal problems especially in China.This paper attempts to sort out the content,standard,legal risk and procedural obstacles of “true sale”.On the basis of current Chinese practice cases and foreign experiences,it hopes to investigate the establishment of localized and rationalized legal criteria and institutional arrangement of “true sale”.Except the introduction and conclusion part,body of this paper is divided into four chapters.The first chapter has defined the concept of “true sale” and clarified that its legal nature is credit assignment and the legal effect is control transfer of underlying asset.Moreover it has demonstrated the choice of asset sales mode.The second chapter proposed that China's “true sale” should take substantive recognized standards after comparing with mature overseas securitization market's institutional experience.The third chapter analyzed related cases of asset securitization “true sale”.Combined with the previous theoretical and empirical analysis,the fourth chapter considers and improves localization rules of “true sale” from the point of improvement of “true sale standard”,choice of legal transaction structure of asset “sale”,unification of laws and regulations and system building of avoiding “negative justice”.It aims to avoid legal obstacles of “true sale” determination and get rid of blurred legal difficulties.