Loan Participations for Community Banks

Course Number: Webinar

Course Code: n/a

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
Subparticipations
Set-off by participant
Understanding the participation agreement
The participant’s checklist
The participation in workout

Audience: 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.

Prerequisites: n/a

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Member Price: $265.00
Non-Member Price: $265.00
Textbook Charge: $0.00

Credits: 2.5 CE

Length: 2 hours

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