Calendar of Events

Loan Participations for Community Banks: Risks & Rewards

11/08/2018, 10:00 AM to Noon

No location provided

Amy Davis adavis@msbankers.com 601-948-6366

Description:
Loan Participations for Community Banks: Risks & Rewards


Presented by Robin Russell
Thursday, November 8th, 2018

10:00 am - 12:00 pm CT

COVERED TOPICS
  • 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
Register here