Trust Model Asset Securitization Legal Research

Asset Securitization is the scheme that converts the finance property without mobility but with stable future cash current to the security that can be sold and circulate on the market. Under such scheme, these asserts is firstly converged to a asset pool secondly to be sold to a SPV, that is special-purpose vehicle, through whom the risks and benefits of these assets are dismantled and reorganized ,the credit is enhanced, and the asset-backed security is issued. Among these, what matters is the construction of institutions on SPV.There have been much of continual efforts in China to be put deep research academically and practically on such project as the Special Purpose Vehicle Scheme from the middle of 1990s. However, the achievements in academic research we have made are too little to support to inaugurate the market of securitied assets for the complexity of construction of Asset Securitization Law and the absence of experiences. The development of construction of Special Purpose Vehicles in China is still in an experimental stage while there are in foreign legislation many mature organizational configurations of SPV , namely the special purpose trusts, special purpose company, partnership enterprises etc. Compared with other configurations under the given legislative background, stand out by its conformity to the true sale rule , avoidance of Double Taxation ,and flexibility and feasibility of defining the asset scope that can be securitied. This paper has discussed mainly about the legislation of SPV, that of the special purpose trusts in special. After carefully inspecting those related laws formatted , the paper has advanced some tentative plans of formatting some laws about the asset Securitization in the form of the special purpose trusts. The paper is classified into 4 chapters.In Chapter 1, we have put forth the definition, basic procedure, legislative nature and relationships of asset securitization.In Chapter 2, we have done much research in the core of asset securitization, ie the nature and formation of legislation related to SPV, compared some legislation practices in USA, Japan and Taiwan, summarized the organizational configurations and legislative relationships of the special purpose trusts and the special purpose company, which are the two main forms abroad, and analyzed the inadaptability of the special purpose company and the adaptability of the special purpose trusts to the current legislative context.In Chapter 3, we have stated basic concepts and legislative characters of trusts, discussed the legislative relationships between the special purpose trusts organization and other subjects, explored the superiority of the special purpose trusts organization , and finally pointed out that it is the optimal plan for us to develop the special purpose trusts under the given legislative context.In Chapter 4, we have illustrated the experimental development of the special purpose trusts through the cases of China Huarong Asset Management Corporation etc, analyzed the problems exposed by practices, and explored legislatively and industrially the measures of those problems we met in the process of asset securitization.In Chapter 5 advanced some tentative plans of formatting some laws on the asset Securitization in the form of the special purpose trusts.