A special purpose vehicle (SPV)/ special purpose entity (SPE) that is used in the process of securitization and involves a second step transfer, after the transferor(s) transfer the loans/ mortgage loans (the assets) to the depositor (a single bankruptcy remote special purpose vehicle) that is owed by the transferor in order to achieve legal isolation of the assets. The second step would involve accounting for the securitization as secured borrowing. The transferee(s) would be able to sell or pledge the transferred assets.
February 22, 2025
