Sub-participation: Difference between revisions
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imported>Doug Williamson (Link with Loan page and categorise page.) |
imported>Doug Williamson (Add reference to "participation".) |
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As a legal matter sub-participation is solely between the lending and sub-participant banks, giving the latter no contractual link with the borrower. | As a legal matter sub-participation is solely between the lending and sub-participant banks, giving the latter no contractual link with the borrower. | ||
Also known as a participation. | |||
[[Category:Bank_Lending]] | [[Category:Bank_Lending]] |
Revision as of 16:25, 8 November 2013
An arrangement between two banks whereby in return for the sub-participant bank depositing with the lending bank the principal amount of a loan made by the latter, the lending bank will pass to the sub-participant bank its relevant share of any payments received from the borrower.
As a legal matter sub-participation is solely between the lending and sub-participant banks, giving the latter no contractual link with the borrower.
Also known as a participation.