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Legal Definitions - SPE

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Definition of SPE

Term: SPE

Definition: SPE stands for SPECIAL-PURPOSE ENTITY.

Examples:

  • A company creates an SPE to hold a specific asset, such as a building or a piece of equipment, to protect it from the company's creditors.
  • A group of investors creates an SPE to pool their money and invest in a specific project, such as a real estatedevelopment or a renewable energy project.

The examples illustrate how an SPE is a separate legal entity created for a specific purpose. It is often used to isolate assets or liabilities from the rest of a company or group of investors. This can provide protection from creditors or allow for more efficient management of a specific project or asset.

A lawyer is a person who writes a 10,000-word document and calls it a 'brief'.

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Simple Definition

Term: SPE

Definition: SPE stands for SPECIAL-PURPOSE ENTITY. It is a type of legal structure that is created for a specific purpose, such as owning and managing a particular asset or project. It is often used in business and finance to help manage risk and protect investors. Think of it like a special container that holds something valuable and keeps it safe.

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If the law is on your side, pound the law. If the facts are on your side, pound the facts. If neither the law nor the facts are on your side, pound the table.

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