Though special purpose entities were originally formed to lower the cost of funds and remove assets from balance sheets, in response to a more demanding asset-backed securities market, the role has grown substantially in recent years, said industry specialists.

For a large portion of transactions, companies like New York-based Lord Securities Corp., the industry's largest provider of SPE-related services, not only provide independent members or even corporate management for the SPE, but provide complete debt-side administration, with services such as full commercial paper administration. Other services include managing financial records, maintaining bank accounts and relationships with transfer parties, issuing paying agents, and/or providing swap counter parties.

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