Revision with unchanged content. Since the 1970s, securitization has become a major financial technique in the international financial arena. Most developed countries and some developing countries utilize it for financing and hedging credit risks. After the Basel II Accord was released in June 2004, true sale securitization transactions play an increasingly important role for banks to find cheap funding and therefore to gain or increase their competitiveness. All member states of the European Union will implement the Basel II Accord into their domestic laws. German banks and the German Federal Ministry of Finance are seeking new methods and policies to support them. The incentive for this study is provided by the similarities between the German and Chinese financial system. In addition, due to China's commitments to the World Trade Organization (WTO) China is under huge pressures to open its financial market to foreign banks. Analyzing the legal obstacles that lie in true sale securitization transactions in Germany, I will draw some useful conclusions for developing securitization in China.