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.

special-purpose vehicle

See special-purpose entity.

References in periodicals archive ?
Insurance-linked securities are often issued from a special-purpose vehicle, which the United Kingdom hopes to court with its new friendlier regulation.
We are proud to bring to the UAE these advanced trucks and special-purpose vehicles catering to every commercial sector.
Guernsey is seeing much more activity in esoteric areas, such as special-purpose vehicles, risk bonds and the securitization of risk, as well as stand-alone captives, Johnson said.
Since its inception in the 1960s, the company has focused on adapting cabs and chassis for special-purpose vehicles.
Both companies will intensify their business association concerning special-purpose vehicles, sales and service of those.
The two companies will step up their business relationship with regard to special-purpose vehicles, sales and service of those with a view to strengthening their respective market positions in the construction-machinery sector and safeguarding them in the long term.
Standard & Poor's has reviewed the structure of PLST 2003-1 and determined that it meets Standard & Poor's criteria for special-purpose vehicles.
Nissan Diesel has developed and marketed a wide range of light-, medium-, and heavy-duty vehicles as well as buses and bus chassis, engines, vehicle components, and special-purpose vehicles.
Standard & Poor's has reviewed the structure of NYLGF and determined that it meets Standard & Poor's criteria for special-purpose vehicles.
Standard & Poor's has reviewed the structure of PGF and determined that it meets Standard & Poor's criteria for special-purpose vehicles.
The course will also address key legal topics, such as banckruptcy remoteness and special-purpose vehicles.
This generic passenger platform vehicle is expected to demonstrate the utility of the SHEP System in a wide range of transportation applications, including passenger, commercial and special-purpose vehicles, with only minor detail refinement.