Springing Member/Independent Director Services
Springing members (also referred to as independent directors or special members) are often utilized in situations where a single-member LLC or special purpose entity (SPE) is seeking financing. Lending institutions, who want to safeguard their assets, will often require that a qualified springing member be appointed prior to structured finance, credit and/or securitization transactions. That way, should the entity file for bankruptcy or the single member become unable to continue as a member of the LLC, the appointed independent director can step in, preventing the entity from dissolving. Designed to operate as an interim member with no economic interest in the company, qualified springing members are able to make sound business decisions for the entity.
Parasec offers experienced and professional springing member services at a competitive rate—making us a sound choice for your company.