Special purposes entities like CDOs are said to be ‘bankrupt remote.’ One aspect of the term is that they are new entities without previous business activities. They, therefore, cannot have any legal liability for sins of the past. Another aspect of their ‘remoteness from bankruptcy’ is that the CDO will not be caught up in the bankruptcy of any other entity, such as the manager of the CDO’s assets, a party that sold assets to the CDO, or the banker that structured the CDO.