special purpose vehicle

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 obtaining secured loans backed by its assets. GAAP accounting rules may permit the assets and liabilities of the SPV to be unconsolidated and therefore off the balance sheet of the entity that generated the assets.
(2) The SPV may issue securities backed by its assets. In a typical collateralized debt obligation, the underlying assets are owned by a special purpose vehicle. The SPV then issues different classes of securities with different risk characteristics. Note that the term " CDO" may be used to refer to the SPV or to the securities that are issued by the SPV. American Banker Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • 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

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  • Special Purpose Vehicle — Fonds commun de créances Le Fonds commun de créances (FCC), également connu sous le nom de Special Purpose Vehicle (SPV) est régulièrement utilisé dans les opérations de déconsolidation via des techniques de titrisation de certains actifs des… …   Wikipédia en Français

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  • special-purpose vehicle — transportation vehicle designed to fulfill a specific purpose …   English contemporary dictionary

  • special-purpose vehicle — A vehicle incorporating a special chassis and designed to meet a specialized requirement …   Military dictionary

  • Special Purpose Vehicle — (SPV) юридически несвязанная с организатором секьюритизации компания, на баланс которой передаются секьюритизируемые активы: права требований по ипотечным кредитам, обеспеченных залогом объектов недвижимости …   Ипотека. Словарь терминов

  • Special Purpose Vehicle/Entity - SPV/SPE — 1. Also referred to as a bankruptcy remote entity whose operations are limited to the acquisition and financing of specific assets. The SPV is usually a subsidiary company with an asset/liability structure and legal status that makes its… …   Investment dictionary

  • special-equipment vehicle — A vehicle consisting of a general purpose chassis with special purpose body and/or mounted equipments designed to meet a specialized requirement …   Military dictionary

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