Mortgage-backed Securities Of Some Legal Issues

Securitilization is an international trend in recent 20 years. Securitilization of House Mortgage (SHM),which is a primitive and standard form of securitilization of assets, has special influence on reducing liquidity risks of Chinese commercial banks and improving our capital market. Now China is embarking on operation of SHM. As a kind of newly created financial product, SHM needs a series of law systems. In western countries, mature theoretical systems that are embodied by detailed system designs, have been created for SHM. However, whether a newly-created financial product that proves useful in advanced countries can be implanted to China depends on two conditions: 1. Whether SHM has a scientific and reasonable system structure; 2. Whether China has appropriate law soil for its survival and development. |The features, function, operation process and supervision of the lawful object of SHM demand a different law system from traditional one. Therefore, it's necessary to standardize the newly-created financial product in a scientific way by independent legislation. This article tries to analyze the special demand of SHM on law domain and system for the SHM in China. This article has five chapters with 35000words.First Chapter: Brief introduction of Securitilization of assets. It covers content, international trend of securitilization of assets, the economical and lawful reasons of its creation and the outstanding position of SHM. It points out that SHM should be treated as the starting point of assets securitilization in China. Second chapter: The concept and operation process of SHM. It analyzes the concept of SHM from the points of economics and law. It compares the two totally different modes of securitilization and describes briefly the operation process of SHM.Third chapter: The civil law questions and commercial law questions relating to SHM. It covers the law position, mode of establishment and law risks of Special Purpose Ventures (SPV). The possible questions of corporate law of SPV in china; features, conflicting conditions and validity of "True Sale" of securitilized assets; the possible questions of Contract and Bankruptcy law of securitilized assets. Fourth chapter: The questions of economical law relating to SHM. It covers the risks of SHM and suggests the goal, content and method of supervision. It also analyzed the special demand of SHM on exterior credit upgrading, accounting, taxation and other law systems together with other relative law questions in China. Fifth chapter: Legislation of SHM. It studies the model, principles and content of legislation of SHM. Currently there are two modes of legislation around the world. One is respective legislation, which is represented by USA. The other is independent legislation represented by France. We should choose independent legislation as a principal legislation and respective legislation as a aiding one. The legislation principles are lawfulness, efficiency and appropriate supervision. The legislation content covers: supervisor of SHM, the scope of assets whichcan be securitilized, the law position of SPV, negotiation, credit upgrading and accounting ofsecuritilized assets(SA), the taxation and othe charges on SHM. Finally it covers the securitilization conditions and disclosure of information of MBS...