A fundamental component in the commercial mortgage-backed securities ("CMBS") market is the lender's reliance that the loan is made to a "bankruptcy remote" special purpose entity ("SPE"). The loan documents and operating agreements relating to an SPE typically require that the SPE maintain separate existence and contain restrictions that limit the SPE's debt and ensure separateness.
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USA, New York, Banking, Insolvency & Restructuring, Litigation, Securitization & Structured Finance, Reed Smith LLP, Corporate governance, Bankruptcy, Debtor, Debt, Maturity (finance), Bad faith, Refinancing, Default (finance), Commercial mortgage-backed security, Mortgage-backed security, Memorandum opinion, Secured loan, Credit crunch, United States bankruptcy court, US District Court for the Southern District of New York
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