This program covers the risks and rewards of loan participations to both the lead bank and the purchasing bank. Attendees will gain a thorough understanding of Participation Agreements.
A participant’s checklist for a well-drafted Participation Agreement will be reviewed, and administration of the participated loan will be discussed. Including items such as loan purchase options, loan administration issues, waivers, and conflicts of interest. We will also cover the due diligence by the participant, access to information, and lack of involvement in negotiations.
What You’ll Learn
- Dependency upon lead
- Financial instability/insolvency of lead
- Set-off by borrower
- Failure to perfect
- Due diligence by the participant and access to information
- Disclosure of participation to borrower
- Concentrations and other regulatory aspects of participations
- Loan agreement provisions related to participations
- Duties owed by lead to participant
- Rights to loan collateral and guaranties
- Loan payments and other functions
- Consent to amendments
- Restrictions on transfer
- Reimbursement and indemnification obligations
- Subparticipations
Who Should Attend
CRE lenders, commercial lenders, credit analysts, loan review specialists, special assets officers, lending managers and credit officers should attend. Support personnel involved in the administration of loan participations are also encouraged to attend.