A Study On Legal Issues Of The Credit Asset Securitization

Credit Asset Securitization refers to the originating institution, generally refers tobanks, transferring credit-based assets to a special purpose vehicle which issuingasset-backed securities, and ultimately sold to investors by the underwriters. Themain credit asset securitization legal regulations include contract law, security law,trust law, securities law, corporate law, tax law and so on. Currently, the practice ofsecuritization of credit assets produced a number of legal problems. According to thecredit asset securitization process, there exist some legal issues like the choice of theunderlying asset on credit terms, migration trust-based asset and setting up a specialpurpose vehicle form, this article will focus on these issues.The first part of the paper discusses the general theory of the securitization ofcredit assets, including the concept of securitization of credit assets, the legalrelationship between the parties and the main operational processes, so we can have abasic understanding.The second part analyzes the legal problems of securitization of credit assets inthe underlying assets that exist. First pointed out the legal property of credit-basedassets are creditors which lay the theoretical foundation for the transferability. Thenpointed out that the practice of securitized assets on the basis of the existence of creditclaims and avoid future problems containing selected terms creditor transfer ban. ByTransferability analysis and analysis of future trust claims to come in the future asdebt is credit assets securitization asset base; For credit terms with restricted transfer,by drawing on its analysis and the effectiveness of foreign practices have out in thesecuritization of credit assets transfer ban should negate the effectiveness ofprovisions.The third part analyzes the legal problems of the credit asset securitization trusttransfers. These problems are the paradox between special purpose trust and true sale, transfer of subsidiary equity and publicity of the trust property.The fourth part analyzes the forms of SPV. Find the reasons why choose trustmode.The last part is the conclusion. For more legal issues raised summary view, theproposed introduction of legislation specifically asset securitization, therebypromoting the development of the industry.