SPV and Transaction Parties
Definition
Orphan-Zweckgesellschaft
Eine Zweckgesellschaft, deren Eigenkapital von einem professionellen Treuhänder in einem Zwecktreuhandfonds (typischerweise Cayman Islands, Jersey oder Irland) gehalten wird, um sicherzustellen, dass sie nicht im Eigentum des Originators steht oder mit ihm konsolidiert wird.
Deep Dives
Related Terms
Special Purpose Vehicle (SPV)
A bankruptcy-remote legal entity created solely to hold assets and issue securities or borrow against those assets. Bankruptcy-remoteness is the defining feature — achieved through limited purpose charter, limited recourse provisions, and non-consolidation opinions.
True Sale
A transfer of assets constituting a legal sale (not a secured loan) so that the assets are excluded from the originator's insolvency estate. Requires: (1) intent of parties; (2) no obligation to repurchase at par; (3) no practical control retained; (4) supported by a true sale legal opinion. See also: VIE/ASC 810 for US GAAP consolidation consequences.