Special purpose entities

After identifying the assets to be used in the securitization, the originator transfers the receivables to a newly formed special puirpose corporation, trust, or other legally separate entity—often referred to as a special purpose vehicle, or "SPV." The transfer is intended to separate the receivables from risks associated with the originator. For this reason, the originator will often structure the transfer so that it constitutes a "true sale," a sale that is sufficient under bankruptcy law to remove the receivables from the originator s bankruptcy estate. ... 

The originator of the transaction establishes a bankruptcy-remote legal entity known as a special purpose vehicle (SPV) that is the formal issuer of the notes. 

Credit derivative products are defined by reference to underlying reference entities, and reference obligations, which include corporate bonds, bank loans, sovereign debt, Brady bonds, and Eurobonds. Credit derivatives are now used increasingly in structured transactions. For example synthetic collateralised loan obligations (see Chapter 15) often use credit default swaps to transfer credit risk from the originator to the special purpose vehicle (SPV). Currently, the most common products are credit default products and total return swaps. 

The issuer of the bonds under a traditional CDO or ABS structure or of credit-linked notes in a synthetic funded structure is a special purpose vehicle (SPY). The structure relies on the fact that such SPY is bankruptcy remote, that is, the entity is unlikely to become subject to bankruptcy proceedings or claims by other investors. For these purposes, the constitutional documents of the SPY usually prohibit any merger, or consolidation, the SPY is prohibited from engaging in business other than those directly related to the transaction and is restricted from incurring any additional debt. 

T]he events which are analyzed into more minute events have been assigned a secondary degree of reality, and the actions in virtue of which the lesser ones constitute the original gross event are lost from view, or what is even more harmful, are treated as themselves simple or elementary static entities. It is one of the functions of philosophy to recall us from the results of analyses, which are made for special purposes, to the larger, if coarser and in many respects cruder, events which alone have primary existence. (Dewey 2012, 324)... 

CAT bonds have probably been the most successful instrument used to package catastrophe risks into a securitization. This solution consists of creating a special purpose vehicle, which acts as a reinsurer to a single entity and which holds the bond principal invested in safe, low-risk, short-term securities. Cummins (2008) presents a comprehensive view of the history and types of securitizations and derivatives that have been used in the market. 

Apart from subtle exceptions, an isolated molecule differs from a molecule in a crystal in that the isolated molecule has no shape, whereas in a crystal it acquires shape, but loses its identity as an independent entity. This paradoxical situation is best understood through the famous Goldstone theorem, which for the present purpose is interpreted to state that any phase transition, or symmetry broken, is induced by a special interaction. When a molecule is introduced into an environment of other molecules of its own kind, a phase transition occurs as the molecule changes its ideal (gas) behaviour to suit the non-ideal conditions, created by the van der Waals interaction with its neighbours. An applied electric or magnetic field may induce another type of transformation due to polarization of the molecular charge density, which may cause alignment of the nuclei. When the field is switched off the inverse transformation happens and the structure disappears. The Faraday effect (6.2.3) is one example. 

From Fig. 1 we can see the students are the main entity and already using many of the cloud platforms like Software as a Service (SaaS) and Platform as a Service (PaaS) for obtaining the advantages of the ability of working and communicating in the educational sector. The faculty can also benefit from the cloud platform for teaching and research purposes. Now, they will not worry for loss of lecture material, not need to carry study materials for security in pen drives or disks, etc. Third, the entity staff, specially developers, can benefit from Infrastructure as a Service (laaS)... 

For purposes of assessing the impacts of this rule on small entities, small entity is defined in accordance with section 601 of the RFA as (1) a small business as defined by the Small Business Administration s (SBA) regulations at 13 CFR 121.201 (2) a small governmental jurisdiction that is a government of a city, county, town, school district, or special district with a population of less than 50,000 and (3) a small organization that is any not-for-profit enterprise which is independently owned and operated and is not dominant in its field. 

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