Special Purpose Vehicle

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Special Purpose Vehicle

A subsidiary of a company that attempts to isolate risk from the parent company by maintaining its assets and liabilities on a completely separate balance sheet. It can be used as a counterparty in swap transactions, or the parent company can finance a project through an SPV that would put the parent company in danger of bankruptcy if the project does not perform well. During the Enron scandal, SPVs developed notoriety because Enron hid much of its debt in SPVs.
References in periodicals archive ?
If A forms a corporation as a special purpose entity and completes the exchange, the transaction would most likely result in a taxable gain of $7 million, because a different taxpayer would have completed the exchange.
The Trust is a special purpose entity organized by DTE Energy Company for the sole purpose of issuing the TOPrS.
0 million of trust preferred securities through Dime Community Capital Trust I, an unconsolidated special purpose entity formed for the purpose of the offering.
In a one-tier transaction, the transferor typically sells its credit card receivables directly to a special purpose entity (SPE).
The Trust is a special purpose entity formed by Baltimore Gas & Electric Co.
Macdonald and Phoenix JLMI Holdings LLC, a special purpose entity controlled and owned by Mr.

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