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Simple English definitions for legal terms

bankruptcy-remote entity

Read a random definition: vagabond

A quick definition of bankruptcy-remote entity:

A bankruptcy-remote entity is a type of business that is designed to minimize the risk of becoming bankrupt. It has a special organizational structure that requires a unanimous vote by its directors and at least one independent director before filing for bankruptcy. This type of entity is usually created to perform limited functions, such as purchasing and holding financial assets that generate revenue. It also has only one or a few primary creditors to reduce the likelihood of involuntary bankruptcy. A bankruptcy-remote entity may issue securities instead of receiving a loan from a financial institution.

A more thorough explanation:

A bankruptcy-remote entity is a type of business that is designed to minimize the risk of becoming bankrupt. It is usually created to perform limited functions, such as purchasing and holding financial assets that generate revenue. The entity's organizational charter requires at least one independent director to be appointed, and a unanimous vote by the entity's directors before a bankruptcy petition may be filed. This type of entity has only one or a few primary creditors to reduce the likelihood of an involuntary bankruptcy.

For example, a company may create a bankruptcy-remote entity to purchase and hold accounts receivable. This entity would have only one or a few primary creditors, reducing the risk of bankruptcy. The organizational charter would require a unanimous vote by the entity's directors before a bankruptcy petition may be filed, further reducing the risk of bankruptcy.

Another example is a special-purpose entity established to develop, own, and operate a power plant. The lender would look primarily to the money generated by the power plant as security for the loan. The lender would be paid solely or primarily from the money generated by the contracts for the facility's output, such as the electricity sold by the power plant. The special-purpose entity would be a bankruptcy-remote entity, reducing the risk of bankruptcy.

bankruptcy proceeding | Bank Secrecy Act

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m10
20:42
Get the ones that are dressed up then!
@JumpySubsequentDolphin: LITERALLY I also just applied to work at garage cuz 50% EMPLOYEE DISCOUNT
m10
20:43
Or legacy collection v1
JumpySubsequentDolphin
20:43
@SplitterusClitterus: GARAGE JEANS FIT ME SO WEIRDLY WHICH SUCKS BC THEYRE SO CUTE
m10
20:43
The cool thing about V2 was it was an infinitely generating collection so they would have never sold out but they ended it early cus of the bear market.
@JumpySubsequentDolphin: NAURRR i need to try them on to see. ive never owned anything from them exceot maybe a tank in middle school?? but ive been a longtime lurker/windowshopper/fan
JumpySubsequentDolphin
20:45
SPLITTY if their jeans fit on my thighs they’re too big on my waist!!! it’s so frustrating
NOOO THEIR WHITE GIRL JEANS actually idk why im surprised
THEYRE**** THAT WAS AUTOCORREXT I SWEAR
babycat
20:46
@m10: infinitely generating means it comes up with new pictures? or new copies of the same pictures?
JumpySubsequentDolphin
20:46
if you’re the slightest bit curvy they are so obnoxious. me and my Abercrombie curve love’s are good together
SHUT UP I LOVE ABERCROMBIE JEANS
m10
20:47
Did y'all see this from ararara last night? https://studicata.com/case-briefs/all/
THOSE FIT SOO GOOD. i desperately need new jeans tho i ahvent gone shopping in millennia so a discount would come in clutch
JumpySubsequentDolphin
20:48
I got these jeans from re/done on a crazy sale and I love them BYT RHEY HAVE FIVE BUTTONS
JumpySubsequentDolphin
20:48
I DIDNT REALIZE WHEJ I BOUGHT THEM BC THEYRE HIDDEN. LIKE INSTEAD OF A ZIPPER THEYREBALL BUTTONS
JumpySubsequentDolphin
20:48
what if I have to pee.
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
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