This memorandum examines the use of Cayman Islands off-balance sheet financing structures. There are several types of transactions that would call for an off-balance sheet structure, the two most common of which would be structured finance transactions and asset finance transactions. The off-balance sheet structure is designed to isolate the underlying assets from the control, and hence the bankruptcy risk, of third parties (eg the originator in a securitisation transaction or the airline in an aircraft finance transaction).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.