special purpose entity
+ special purpose entity (SPE)
USA
An entity formed to develop, own and operate a special project while isolating financial risk and minimizing bankruptcy risk (making it "bankruptcy-remote"). It is typically prohibited from incurring debt or other obligations, and limited in its purpose and the activities in which it may engage. The entity's sole asset is the property securing the loan and its sole purpose is to own and manage the property. To isolate financial risk, the business is structured to meet strict accounting requirements to qualify for off-balance sheet treatment. Other restrictions are often put in place to reduce the risk that the entity itself will voluntarily file for bankruptcy, be involuntarily forced into bankruptcy as a result of substantive consolidation with an affiliate's bankruptcy, or otherwise be adversely affected by a bankruptcy of its parent or affiliates.
See also

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • special purpose entity — ( SPE); special purpose vehicle ( SPV) A legal entity, sometimes a trust or a limited partnership, that is created solely for the purpose of holding assets. (1) The SPV may be used to obtain off balance sheet funding by obtaining secured loans… …   Financial and business terms

  • Special purpose entity — A special purpose entity (SPE) (sometimes, especially in Europe, special purpose vehicle or simply SPV) is a body corporate (usually a limited company of some type or, sometimes, a limited partnership) created to fulfill narrow, specific or… …   Wikipedia

  • Special Purpose Entity — Als Zweckgesellschaft, engl.: Special Purpose Vehicle (SPV) oder Special Purpose Entity (SPE) wird eine juristische Person bezeichnet, die für einen klar definierten und eingegrenzten Zweck gegründet wird.[1] Nach Erreichen ihres Zwecks kann die… …   Deutsch Wikipedia

  • Special-Purpose Entity — A financing technique in which a company decreases its risk by creating separate partnerships, rather than subsidiaries ( subsidiary), for certain holdings and solicits outside investors to take on the risk. In order to qualify as a special… …   Financial and business terms

  • Special Purpose Entity — SPE An organization or entity established as a vehicle for *off balance sheet financing. The use of SPEs played a major role in the *Enron corporate governance scandal, and as a consequence the topic has attracted the attention of *accounting… …   Auditor's dictionary

  • Special-Purpose Entity — (SPE) спецюрлицо, защищенное от банкротства (в форме партнерства, траста, корпорации, общества с ограниченной ответственностью или в любой другой форме) …   Ипотека. Словарь терминов

  • securitisation special purpose entity — specialusis pakeitimo vertybiniais popieriais subjektas statusas Aprobuotas sritis kredito ir finansų įstaigos apibrėžtis Patikėtinė korporacija arba kitas subjektas (ne bankas), kurio vienintelis tikslas – atlikti pakeitimą (pakeitimus)… …   Lithuanian dictionary (lietuvių žodynas)

  • special purpose vehicle — (SPV) 1) A legal entity created for a limited purpose, usually for the acquisition and/or financing of a project. special purpose vehicle abbr. SPV: A legal entity created for a limited purpose. SPVs are used for a number of purposes including… …   Law dictionary

  • special-purpose vehicle — (SPV) 1) A legal entity created for a limited purpose, usually for the acquisition and/or financing of a project. special purpose vehicle abbr. SPV: A legal entity created for a limited purpose. SPVs are used for a number of purposes including t …   Law dictionary

  • special purpose vehicle — special purpose entity ( SPE); special purpose vehicle ( SPV) A legal entity, sometimes a trust or a limited partnership, that is created solely for the purpose of holding assets. (1) The SPV may be used to obtain off balance sheet funding by… …   Financial and business terms

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