When lenders require a bankruptcy-remote structure in a structured finance transaction, the inclusion of an independent director isn’t optional, it’s essential. But how exactly are these directors appointed? And what qualifies someone to take on this critical role?

What Is Bankruptcy Remoteness and Why Does It Matter? In the world of structured finance, risk isolation is everything. When lenders and investors commit capital to a transaction, they need certainty that their investment won’t be swept up in someone else’s financial troubles. That’s where bankruptcy remoteness comes in—a legal and structural safeguard that helps protect assets from the fallout of corporate insolvency.