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.
What You Will Learn:
- Advantages of a participation to the lead bank and participant bank
- Risks to the participant:
- Lack of information
- Lack of involvement in negotiations
- Dependency upon lead
- Waivers
- Financial instability/insolvency of lead
- Set-off by borrower
- Failure to perfect
- Conflicts of interest
- 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 administration issues:
- Loan payments and other functions
- Consent to amendments
- Restrictions on transfer loan purchase options
- Reimbursement and indemnification obligations
- Sub-participations
- Set-off by participant
- Understanding the participation agreement
- The participant’s checklist
- The participation in workout
Who Should Attend?
CRE lenders, commercial lenders; credit analysts, loan review specialists, special assets officers, lending managers and credit officers. Support personnel involved in the administration of loan participations are also encouraged to attend.
Continuing Education (CE) Credits
This webinar is recommended for 2.5 CE Credit Hours. Each attendee will receive a Certificate of Attendance for self-reporting of CE Credits.
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Instructor
Robin Russell
Robin Russell has practiced law for 30 years and is licensed in Texas, New York and Massachusetts. She is a fellow in the American College of Bankruptcy and of the American Law Institute. She combines... read more.
