Charitable trust - A trust formed for non-business purposes. Specific to securitisations, charitable trusts are used as an intermediary owner of the SPV - that is, the SPV is owned by the trust; had the SPV been owned by the originator, the originator or the shareholders of the originator could either take the SPV to liquidation. By inducting the charitable trust as owner, the SPV becomes an orphan company.

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