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Special Purpose Vehicle
special-purpose entity (SPE)
Usually a limited liability company formed in order to separate profits,losses,and risks from the corporation that created it.The most spectacular example of the use of special-purpose entities was Enron, which used SPEs to siphon off losses and “cook the books.” The use of SPEs is legitimate and necessary in many circumstances, though. (Do not confuse with single-purpose entity, also abbreviated as SPE, which is more specialized and is typically a lender requirement before it will extend mortgage financing on large projects.) Also called special-purpose vehicle.