On The Legal Regulations Of China Of Special Purpose Trust In Asset Securitization

Asset Securitization is a new financing technique which comes out from U. S. A in 1970s. It is the core of AS that the construction of the Special Purpose Vehicle makes to remote the bankruptcy of the originator. At present, Trust is selected to be the bankruptcy-remote vehicle of AS in China, that is called Special Purpose Trust. Trust arises from the Common Law, and SPT is an unique conception. In SPT, the trust is the originator . The trustee is the vehicle which operates it, and beneficial owner is the investor who holds the securities sustained by asset. SPT is a new issue, so there are so many legal items to be probed into.It is the purpose of this paper that to probe into the points relate to the Special Purpose Trust backed by Asset Securitization in China. The paper intends to describe the right and obligation among the subjects and disclose the legal system of SPT in China. It also raise the suggestion of legislation relate to the question.There are four sections in the whole paper:In the preference, the writer introduces the developments of AS in China, the background and the necessity of selection of this subject. It describes the legal items relate to SPT in China. Then, it analyzes the current status and inadequacies about the research of SPT.The first section of the text, the writer generally presents the principal theory of SPT. At first, it analyzes the concept of AS. Then, it points the reason that to achieve risk-remote through SPT in China. Further more, it describes the process of SPT and the legal relation. By comparing the difference between SPT and general trust, the paper describes the characteristic of SPT. More over, it establishes the value related to SPT for the further discuss.The second part of the text, the paper probes into the chief legal items. Firstly, it analyzes legal items in the construction of SPT, tightly around the independence of the trust property. Secondly, it is to the credit as an example, that is the common pattern of AS. It clarifies the procedure of the transfer of the Asset, and points out the difference to the general transference of the right of creditors. Furthermore, the writer raises the point that the register is an indispensable condition of the transference. Afterwards, it probes into the chief legal items of the operation of SPT, also analysis the limited obligation of trust, the chief rights and obligation of the party, and presents the chief obligation of the trustee with an emphasis.The third section, the writer expounds legal items of SPT in China. Moreover, it raises the train of thought of the legislation and proposal. The writer points out the lacks of relevant institution, for example, the substantial merges, involve the bankruptcy law, securities law in the construction of SPT, also demonstrates the system of the substantial consolidation is necessary. Then, it elaborate the issue of the subsidiary right in the credit AS. At last, the writer pretends the issues involved that the supervision of SPT in China, and makes suggestion to the internal and external supervision.