Sub-participation: Difference between revisions
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imported>Doug Williamson (Add reference to "participation".) |
imported>Doug Williamson (Link with Novation and Assignment pages.) |
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Also known as a participation. | Also known as a participation. | ||
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== See also == | |||
* [[Novation]] | |||
* [[Assignment]] | |||
[[Category:Long_term_funding]] | |||
Revision as of 17:27, 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.
