Special Purpose Vehicle
/ˈspɛʃəl ˈpɜrpəs ˈviːɪkəl/
Definitions
- (n.) A separate legal entity created for a specific, narrow objective, often to isolate financial risk.
The company created a special purpose vehicle to secure funding without impacting its main balance sheet.
Forms
- special purpose vehicles
Related terms
See also
Commentary
SPVs should be drafted clearly to specify purpose, scope, and limited liability to ensure effective risk isolation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.