participation

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Participation

The amount of loan or bond issue taken directly from another direct lender or underwriter.

Participation

A very large loan made by more than one lender to a single borrower. A participation loan exists when the lenders have a legal limit on the maximum amount they may lend.

participation

see EMPLOYEE PARTICIPATION.

participation

The practice of a lead lender selling portions of a loan to other lenders, called participants. It may be done because the loan is larger than the regulatory limits for the lead lender, or because the loan is very attractive but rather risky, so several lenders will pool their efforts and spread the risk.FDIC regulations that went into effect on January 1,2002,dramatically changed the structure and accounting for many participations. Formerly, lead banks could agree to repurchase a bad loan from a participant. As a result, it was easier to sell shares to other banks because the participants had no risk.Today,such a repurchase agreement will cause the transaction to be treated as a loan from the participant to the lead,rather than a sale,with the result that the lead may be in violation of banking regulations regarding loan size.

References in periodicals archive ?
Although these processes were diverse, they shared one thing in common, declining rates of overall participation in general and youth participation in specific.
What these numbers suggest is that there is a strong connection between levels of youth political participation and the relative openness of the public sphere.
It made sense to the tenants because they both had an equity or cash participation in the project," said Kane, "so any savings would translate into increased cash flows to the tenant since the amount of debt service was that much less.
The Company also holds strategic participations in AsiaSat in Asia, Star One and Nahuelsat in Latin America, and NSAB in Europe.
would come to hold, directly or indirectly, a participation in AmBev's capital and a possible exchange of shares involving AmBev, Interbrew S.
Konczal, Capital Alliance's President and Chief Operating Officer, stated that "we are pleased to add Western United to the group of financial institutions with which Capital Alliance is working, especially since the letter of intent on which this transaction is based contemplates an 'evergreen' quarterly sale to Western United of up to $7,000,000 in senior participations in single family and one-to-four unit residential loans.
Standard & Poor's believes that the rating of subnational debt backed by tax participations, if structured correctly, could be rated higher than the issuer's credit rating.
In addition, equity participations were not a source for concern in 1996 as was the case in 1995 when CNM and Cogedim required a combined clean-up costing FFr4 billion.

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