Special Legal Services for the First Trust Project of Zhongying Xinyidai 2016 Personal Consumption Loan Credit Asset Securitization

Hylands Law Firm provided legal services for the personal consumption loan credit asset securitization trust asset-backed securities of CNY 699 million initiated by BOC Consumer Finance Co. Ltd. and issued by Huaneng Guicheng Trust Corporation Limited.

The main legal services provided this time included: conducting sampling legal due diligence on the assets to be pooled, judging whether they are in line with the criteria for pooled assets, and issuing a due diligence report; Analyzing the product structure, legal relationship, legal nature, focus of disputes, legal risk points and other aspects to prompt legal risks and put forward suggestions to prevent related legal risks; Drafting the contract text related to this project, discussing and designing the product transaction structure and contract terms, drafting the contract text such as definition list, trust contract, service contract, fund custody contract, lead underwriting agreement, etc.; Reviewing and judging the entity qualification, transaction structure, asset pool formation, trust establishment, transaction documents, etc. of the project based on due diligence, and issuing legal opinions, etc.

The project was the first credit asset securitization project initiated by a consumer finance company as a sponsor in China. It attracted great attention in the market since its issuance. In the process of providing legal services, the legal team also participated in the design of the issuance plan of the project in the light of the characteristics of the consumer finance company and provided legal advice to the main concerns of sponsors such as the registration system, retention ratio of subordinated asset-backed securities, transaction structure of circular buying, etc.