Loan participations.

CFR · 2024-01-01 · US · Title 12

Agreements to purchase or sell a participation interest shall be subject to the provisions of § 614.4325 of this subpart, and, in addition, shall satisfy the requirements of this section. (a) (1) Define the duties and responsibilities of the participating institution and the lead lender, and/or the servicing institution, if different from the lead lender. (2) Provide for loan servicing and monitoring of the servicer; (3) Set forth authorization and conditions for action in the event of borrower distress or default; (4) Provide for sharing of risk; (5) Set forth conditions for the offering and acceptance of the loan participation and termination of the agreement; (6) Provide for sharing of fees, interest charges, and costs between participating institutions; (7) Provide for a method of resolution of disagreements arising under the agreement between two or more institutions; (8) Specify whether the contract is assignable by either party; and (9) Provide for the issuance of certificates evidencing a participation interest in a loan. (b)

official document · source cfr-2024 · id 12:§ 614.4330