In a Synthetic Lease a Special Purpose Entity (SPE) Is

question 16

True/False

In a synthetic lease a special purpose entity (SPE) is set up by a corporation that wants to acquire the use of an asset.The SPE borrows up to 97% of its capital, uses its funds to buy the asset, and then leases it to the sponsoring corporation on a short-term basis.This keeps both the asset and the debt off the sponsoring company's books.

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Definitions:

Personal Property

Items owned by an individual that are moveable and not permanently attached to or part of real estate.

Hudson v. Palmer

A 1984 U.S. Supreme Court case ruling that prison officials have the authority to search cells and confiscate any materials found, without violating the Fourth Amendment.

Ethical Standards

The principles and codes of conduct that govern the behavior of individuals and organizations in various professions and situations.

Modern Era

A period in history marked by significant changes in society, technology, and culture, broadly considered to start from the late 19th century to the present.