Special purpose vehicle

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 assets behind the covered bonds assets remain on the originator s balance sheet, even though they may be maintained in distinct pools or lodged in special purpose affiliates. However, in the case of ABS or MBS, the assets are segregated from any other assets and are usually off balance sheet and placed in a special purpose vehicle (SPV). 

In Exhibit 13.6, the loan note issuer, a special purpose vehicle (SPV) acquires the investor interest (Investor Beneficiary Interest) in the trust and finances the purchase by issuing loan notes to the issuer of the notes, a second SPV (Note Issuer No. 1). If new financing is required, the originator transfers new receivables into the trust and the loan note issuer creates a new investor interest in the trust, which is financed by the issuance of loan notes to a new notes issuer (Note Issuer No. 2, Note Issuer No. 3, and so on). The note issuer in turn finances the purchase of these loan notes by issuing notes to investors. 

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. 

As stated, balance sheet CDOs are almost exclusively cash-flow-based, and on that basis, cash flow CDOs are similar in nature to other asset-backed securitisations involving a special purpose vehicle (SPV). Like asset backed securities, assets are pooled together in order to collateralize the liabilities of the SPV. As the underlying assets are sold to the SPV,... 

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. 

Low chassis vehicles, special purpose vehicles, or wheels back vehicles constructed and maintained so that the body, chassis, or... 

The requirements for trailers and semitrailers manufactured on or after January 26, 1998, do not apply to pole trailers, pulpwood trailers, low chassis vehicles, special purpose vehicles, wheels back vehicles, and trailers towed in driveaway-towaway operations. 

Rather than changes in drivers behaviour, more recent research has noted that the requirement for occupants of some special-purpose vehicles, such as school buses, to wear seat belts may result in behavioural adaptation on more strategic (Michon, 1989) levels. For instance, the provision of seat belts on school buses in jurisdictions where three children are usually seated across one bench seat may lead to decreased seating capacity if only two seat belts per seat were installed. This would require either more trips or more buses to accommodate the current population of schoolchildren. A relatively recent U.S. report points out that any benefits associated with the improved occupant protection associated with seat belts would be offset if schoolchildren found alternative, less safe, transportation to schools (Hinch et al., 2002). For more on behavioural adaptation to seat belts, see Chapter 5. 

Delivery of seats to stock holding point by special purpose vehicle Stock to lineside... 

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. 

Commercial Vehicles China (Commercial Special Purpose Vehicles Beijing, China)... 

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