FOLIO Ontology

Special Purpose Entity

IRI:
https://folio.openlegalstandard.org/RBXeFnOtcGD1SnlKcTDDOAx
Preferred Label Special Purpose Vehicle
Alternative Labels
Financial Vehicle Corporation SPE SPV

Definition

A Special Purpose Entity (SPE) is a legal entity created for a specific, limited purpose, particularly in financial transactions. This entity is often used to isolate financial risk by legally segregating certain activities, assets, or investments from the main organization, thereby facilitating transaction security and credit enhancement.

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