Loan Participations for Community Banks:
Risks and Rewards
Friday, May 14th, 2021 - 10:00 am CT
A BankWebinars.com Program
Click Here to register for live program and receive recording $395
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
Faculty
Robin Russell
Robin Russell has practiced law for 30 years and is licensed in Texas, New York and Massachusetts. She is a fellow in the American College of Bankruptcy and of the American Law Institute. She combines a depth of experience in bankruptcy restructuring and litigation with financial transactions. She has represented corporate debtors, independent directors, liquidating trustees, bondholders, unsecured creditors' committees, bank groups, private equity funds, landlords, trade creditors and bidders for estate assets in Chapter 11 and Chapter 7 bankruptcy proceedings. She has also represented banks, institutional lenders and corporate borrowers in commercial loan transactions and debt restructurings.