(1) "Participation" means the purchase or sale by a lender of a loan or part of a loan under circumstances in which the acquiring institution
- (a) has no formal or direct role in establishing the terms and conditions binding the borrower, or
- (b) is not a signatory of the loan agreement binding the borrower.
- (2) "Participation agreement" means an agreement between the lead financial institution and the participant financial institution spelling out in detail the terms, conditions, and understandings between the parties to a loan participation.
- (3) "Recourse" means an oral or written agreement whereby a selling institution of a loan or participation in a loan agrees to repurchase in whole or in part upon request of the purchaser or the seller.
KEY: financial institutions
Date of Last Change: 1987
Notice of Continuation: July 13, 2022
Authorizing, and Implemented or Interpreted Law: 7-1-301