Also known as bankruptcy-remote entity, single purpose entity, special purpose vehicle and SPV. An entity formed to develop, own and operate a special project while isolating financial risk and minimizing bankruptcy risk (making it "bankruptcy-remote"). It is typically prohibited from incurring debt or other obligations, and limited in its purpose and the activities in which it may engage. The entity's sole asset is the property or assets securing the loan and its sole purpose is to own and manage the property or assets. The entity's organizational documents typically include restrictions and mechanisms designed to reduce the risk that the entity itself will voluntarily file for bankruptcy, be involuntarily forced into bankruptcy as a result of substantive consolidation with an affiliate's bankruptcy, or otherwise be adversely affected by a bankruptcy of its parent or affiliates.