18. Can an Originator hold preference shares in an SPV? Would holding preference shares contravene the requirement that "an Originator must not hold any equity stake, directly or indirectly, in an SPV"?

Originators may hold preference shares in an SPV so long as such instruments do not entitle the holder to the right to vote at a general meeting or to any right to participate beyond a specified amount in any distribution whether by way of dividend, or on redemption, in a winding up or confer on the holder an ability to directly or indirectly exercise effective control over the SPV.

Remark: A Bond is a debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities.