The SPV remains unaffected, ensuring that the investors would either continue to receive their payments or the assets held by the Real Estate SPV are liquidated to refund the investors.
The Securitisation Special Purpose Vehicle (SPV), acting as the issuer, will form a True Sale Principle Agreement with the SPV that holds the underlying real estate asset. As per this agreement, the (future) receivables of the SPV holding real estate assets will be acquired by the Securitization SPV. The proceeds generated in the Real Estate Special Purpose Vehicle will be allocated to the issuer, who will then distribute these proceeds to the noteholders.
The Securitisation Special Purpose Vehicle (SPV) would subsequently issue a bond, with the real estate asset as collateral, which is being held by the Real Estate SPV. This is achieved through the acquisition of the (future) receivables by the Securitisation SPV from the Real Estate SPV.
In the unlikely event of bankruptcy by PCH Technology LLC, the SPV remains unaffected, ensuring that the investors would either continue to receive their payments or the assets held by the Real Estate SPV are liquidated to refund the investors.
For more info on the meaning of a SPV, please click here.