Special-purpose entity

Special-Purpose Entity
Definition: [crh] A financing technique in which a company decreases its risk by creating separate partnerships, rather than subsidiDefinition: aries, ...

Special-Purpose Entity
A financing technique in which a company decreases its risk by creating separate partnerships, rather than subsidiaries, for certain holdings and solicits outside investors to take on the risk.

Without recourse Giving the lender no right to seek payment or seize assets in the event of nonpayment from anyone other than the party specified in the debt contract (such as a special-purpose entity).

When a company creates a special-purpose entity to arrange for a loan to purchase property, and then leases the property from the entity.

Project Company: A special-purpose entity created to develop, own, and operate a project.
Project Completion: Occurs when a defined set of technical and financial tests have been met as stipulated in the financing documents.

2 They typically involve an originator of receivables who forms a pool of receivables that is then sold to a special-purpose entity. This entity in turn issues securities backed by a beneficial interest in the receivables. For a successful ...

Without the lender having any right to seek payment or seize assets in the event of
nonpayment from anyone other than the party (such as a special-purpose entity) specified in the debt contract.
Workout ...

Particular Average (WPA) See: With Average Without recourse Giving the lender no right to seek payment or seize assets in the event of nonpayment from anyone other than the party specified in the debt contract (such as a special-purpose entity).

See also: Exercise price, Values, Bills, Systematic risk, Expected return