SPV

Special Purpose Vehicles (SPV), also known as "bankruptcy-remote entity" or “special purpose entity” is a legal entity created by a firm (known as the sponsor/originator) by transferring assets to the SPV to carry out a specific purpose or circumscribed activity, or a series of such transactions. Operations are therefore limited to the acquisition and financing of specific assets. SPVs can make no substantive decisions and have no physical location. The SPV is usually a subsidiary company with an asset/liability structure and legal status that makes its obligations secure even if the parent company goes bankrupt.