I have seen this done on PEs so that if the link to the customer goes down, 
part of the VRF is still reachable on that PE.

Andrew


On 24/07/2012, at 8:25 AM, Michael Sprouffske wrote:

> I'm having a hard time understanding exactly why you need to create a 
> loopback interface and associate that with a customer vrf. Could someone 
> please list out a couple reasons and examples why this is used and then its 
> not used so I have a better understanding.


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