Asset Securitization Spv Risk Isolation Legal System

Asset Securitization is the most important financing technique in the field of international finance since 1970s, which raise money from capital market on asset base instead of on traditional company base. The essence of the asset securitization is Special Purpose Vehicle(SPV)'s the bankruptcy remote system. From the sponsor's perspective, the bankruptcy remote system can set asset away from possible dangers, which can help asset securitization to attract investors, to be saled and raise money. From the inspector's perspective, the bankruptcy remote system can help make the state financial system operation safely. From the investor's perspective, the bankruptcy remote system can help protect the right of investors, avoiding being deceived by others. So it is meaningful to study on the bankruptcy system of asset securitization. After occurrence of Subprime crisis, people have realized the possible dangers caused by asset securitization and try to find the way to wave the possible dangers.The paper will study the SPV's the bankruptcy remote system of asset securitization from the perspective of law. The paper consists of five chapters:Chapter one briefly introduces the definition, law essence and the process of asset securitization;Chapter two explores the essence of asset securitization——the bankruptcy remote system. The chapter explores from the reason why asset securitization is created and the difference between asset securitization and secured financing to make readers realize the essence of asset securitization——the bankruptcy remote system. And introduce the bankruptcy remote system of asset securitization from its broad meaning;Chapter three explores law issues related to constitute SPV. The chapter study on it's function, the essence, the organization and how to constitute SPV according to law. In addition, the chapter mention the dangers of SPV to be substantive consolidated and give the advice on how to wave the dangers. Chapter four explores law issues related to the way of assettransferring——"true sale" . The chapter study on the way of assettransferring, the standard to judge the "true sale" and the related dangers. In addition, the chapter also give the advice on how to wave the dangers.Chapter five study on the possible law obstacles to realize the bankruptcy remote system of asset securitization in China. In addition, the chapter also give the advice on how to solve the problem.