Research On Bankruptcy-Remote Mechanism Under Asset Securitization

Since asset securitization was born in American capital market at the beginning of the 1970s, asset securitization has become one of the most favorite financing ways by its delicate thoughts and unique functions in the world capital market.Bankruptcy-remote mechanism is the core legal issue of asset securitization.Whether securitization could accomplish the anticipated effects successfully or not depends on the successful establishment and operation of such mechanism.In the context of law,the accomplishment of bankruptcy-remote mechanism need two key steps:one is to set up independent SPV as a bankruptcy-remote carrier;the other is that the achievement of true sale of asset.This paper aims to study bankruptcy-remote mechanism by beginning analyzing the legal issues relating to the two core issues.The first chapter is an overview of the asset securitization.At firt the writer of this thesis refers to the conception of asset securitization and basic principles, then expatiates on the flow of asset securitization.The second chapter focus on the basic status of asset securitization. In the first place,the writer defines the legal meaning of bankruptcy-remote mechanism analyzing the purpose of bankruptcy-remote mechanism which is to cut down the cost of the transaction and points out the two key steps to realize the bankruptcy-remote mechanism by the construction of SPV and the achievement of true sale.The third chapter devotes to the core of bankruptcy-remote mechanism:dependent SPV. Firstly the writer of this thesis introduces the forms of SPV and analyzes the advantages and disadvantages of them with a specific analysis of the design of bankruptcy-remote system for SPV.The fourth chapter discusses the accomplishment of bankruptcy-remote system:the true sale.Firstly the writer of the thesis analyzes how to judge the true scale and the ways of transfermation of assets. The last chapter mainly gives some constructive suggestions and thoughts for the solution of the builing-up of SPV, the means of settlemtnt and improvement of the transferring ways of assets.In the end,it presents a summary of this paper and then advances the importance of strengthening the establishment of legal system, at last points out the importance of building up the bankruptcy-remote mechanism of asset securitization in China.