abhishreshthaa
Abhijeet S
BASIC ORGANISATIONAL FORMS:
Essentially, there are three forms of SPVs prevalent:
1. A single purpose company
2. Trust
3. Limited partnership
The following are the characteristics of the SPV:
1. It must be capable of acquiring, holding and disposing of the assets
2. The SPV would stand dissolved on satisfaction of the securitization transaction
3. It must be ‘Bankruptcy Remote’, i.e. the bankruptcy of the originator should
not affect the interests of the holder of the instruments issued by the SPV
4. An SPV should ideally be tax neutral. It should be a mere conduit or collective name for investors. It should not be seen as a taxable entity itself
Essentially, there are three forms of SPVs prevalent:
1. A single purpose company
2. Trust
3. Limited partnership
The following are the characteristics of the SPV:
1. It must be capable of acquiring, holding and disposing of the assets
2. The SPV would stand dissolved on satisfaction of the securitization transaction
3. It must be ‘Bankruptcy Remote’, i.e. the bankruptcy of the originator should
not affect the interests of the holder of the instruments issued by the SPV
4. An SPV should ideally be tax neutral. It should be a mere conduit or collective name for investors. It should not be seen as a taxable entity itself