Thus, by partitioning assets of one economic enterprise into different legal entities, investors can create a tailored bankruptcy regime.
In effect, Enron was engaged in a transaction known as parking, in which a paper trail is created falsely indicating that ownership of an asset has shifted from one entity to another.
The CREF stock account, the world's biggest pool of equity managed as one entity, and other Teachers' money matches the combined assets of the next two big pension organizations, the California Public Employees Retirement System, known as Calpers, and the New York State Common Retirement Fund.
There are many sorts of things out there where one entity owns the asset, but there are a vetted group of members with permission to access it, one at a time or with a limited group size.
Entity member means all individuals and all embedded entities, as well as the individual members of the embedded entities, having an ownership interest in the assets of the entity.
The truly essential function of organizational law is, rather, "affirmative asset partitioning". In effect, this is the reverse of limited liability: It involves shielding the assets of the entity from the creditors of the entity's owners or managers.
If, within three months, substantially all the assets of the entity do not consist of qualified mortgages and permitted investments, "the entity would not constitute," he said.
"Is one entity more or less independent of government?
(ii) The right or power to require the use of funds or assets of the controlled entity for any purpose of the controlling entity.
It defines the types of deals the firm can do as any acquisitions of "another business entity or a significant percentage of the outstanding securities or assets of another business entity".
Given the fact that, as noted above, these funds have proven to be more like profitable investments than traditional budgetary outlays, there is a credible argument that they should not be counted as anything more than an exchange of assets with one of the most creditworthy entities in the world.
