When a bank enters into a lending arrangement with a
borrower, or some time thereafter, the bank may wish to sell a
portion of the loan to another bank. Or a bank may wish to
purchase a portion of a loan made by another bank.
Such transactions may occur in connection with short-term
borrowings, term loans, construction loans or other forms of
extension of credit. This area of lending is closely monitored
by banking regulators because of the inherent risk in this type
of lending, and banks' failure to take precautions to avoid
undue problems.
Learn the basic requirements for successful loan
participations or syndications.
This presentation will help banks that buy or sell
participations among affiliate banks or to unrelated
institutions. Leave with a firm understanding of minimum
required standards to purchase and sell loan participations or
participate in loan syndications to remain in compliance with
sound banking practices.
Covered Topics:
- Purpose of Loan Participations and Basic Rules
- Difference between Loan Participations and
Loan Syndications
- Regulatory Rules Governing Loan Participations
- Role of the Originating Bank and its
Relationship with Participating Banks
- Legal Rights of Participating Banks
- Review of the Certificate of Participation and
other Required Legal Documentation
- Basic Operational Procedures Required for Loan
Participations
- Latest Development on the American Institute
of Certified Public Accountants concerns about LP
Who Should Attend?
Loan Officers, Senior Credit Officers, Senior Loan
Officers, Loan Administrators, Loan Review Officers,
Compliance Officers, Branch Managers, and Credit Analysts
Instructor
Jeffery W. Johnson started his career with
SunTrust Bank in Atlanta as a Management Trainee and progressed to
Vice President and Senior Lender of SouthTrust Bank and Senior Vice
President and Commercial Banking Division Manager for Citizens Trust
Bank of Atlanta.
Most of his career has been spent in Credit Administration,
Lending, Business Development, Loan Review, Management and Training &
Development. He has managed loan portfolios representing a cross
section of loan types including: Large Corporate, High Net Worth
Individual, Middle Market Companies, Small Business, Real Estate and
Non-Profit Organizations.
Mr. Johnson is now a training professional in the financial
industry by leading various seminars covering important topics
relating to issues in financial institutions. He teaches actively for
fifteen state banking associations in the United States, Risk
Management Association (RMA) and individual financial institutions
nationwide. He co-authored a training course entitled "Lending to
Service and Other Professional Organizations" for RMA in 2001.
Mr. Johnson earned a B.A. Degree in Accounting from Morehouse
College in Atlanta; a MBA in Finance from John Carroll University in
University Heights, Ohio; Banking diploma from Prochnow School of
Banking at the University of Wisconsin and a Graduate Certificate in
Bank Management from the Wharton School of Business at the University
of Pennsylvania.
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