A securitization entity is a trust or corporation that is legally distinct from the transferor and may be created solely for the purpose of undertaking securitization transactions.

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This statement accurately describes a securitization entity as defined in many legal and financial contexts. A securitization entity is typically created to facilitate the process of packaging and selling assets as securities, and is often legally separate from the entity that originally owned or originated the assets in question. This distinction can help to insulate the transferor from any potential legal or financial liability associated with the securitization transaction.

A Securitization Entity Is a Trust or Corporation That Is