Professional Documents
Culture Documents
Asset-Based Financing (Bankruptcy-Remote Entity)
Asset-Based Financing (Bankruptcy-Remote Entity)
usu.
requires at least one independent director to be appointed, as well as a
unanimous vote by the entity's directors, before a bankruptcy petition may be
filed. The business is usu. a special-purpose entity established to perform limited functions, such as to
purchase and hold accounts receivable or other financial assets that generate revenue. It also has only one or a
few primary creditors, to reduce the likelihood of an involuntary bankruptcy. A bankruptcy-remote entity
will sometimes issue securities instead of receiving a loan from a financial institution. See SINGLEPURPOSE
FINANCING STATEMENT
financing statement. A document filed in the public records to notify third parties, usu.
prospective buyers and lenders, of a secured party's security interest in goods or real property. See
UCC 9-102(a)(39). Cf. FINANCIAL STATEMENT . [Cases: Secured Transactions 92. C.J.S.
Secured Transactions 6566.]