Legal documents govern how this entity (SPV) behaves, and the rights and rules of those members that belong to it. SPV documents include an Operating Agreement, Private Placement Memorandum and Subscription Agreement. Operating Agreement governs the relationship between all of the investors and managers of the SPV. Subscription Agreement covers the committing of capital to the SPV by the investors. The Private Placement Memorandum (also referred to as a PPM) advises all prospective investors of the risks of investing in the SPV.
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