Select the statement that describes the difference between a Special Purpose Vehicle (SPV) and a Structured Investment Vehicle (SIV) from the following:

Select one:

A. SPV is formed by depository institutions and the SIV is formed by non-depository institutions.

B. SPV retains ownership of the loans while the SIV sells the loans without recourse so the loan rights are transferred to the investor.

C. SPV may have a line of credit or a loan commitment from the sponsoring institution if a loan goes bad and it cannot make payments to investors; the SIV has no such arrangement.

D. SIV can potentially earn an expected spread between its high-yielding assets and the relatively short-term, low cost funds that it borrows in addition to servicing fees.

E. SIV is just passing cash flows it receives through to the ultimate investor; the SPV has fixed payment obligations that must be met regardless of cash flows received on the loan portfolio.