Skip to content

Lead Bank Extends Loan that is Participated-Rules

Question: 
If a lead bank extends a loan that is participated, and the participating bank does not agree with the new terms, where do we stand as far as: Is the lead bank required to repurchase the participation? Does it affect the lending limit of the lead? What statute or regulation clarifies questions of this type?
Answer: 

Answer by Randy Carey: This will all depend on the participation agreement signed by both parties.

Answer: 

Answer by Kathleen Blanchard: Also, a re-purchased participation will be back on the bank's books and affect the legal lending limit.

First published on BankersOnline.com 10/3/11

First published on 10/03/2011

Filed under: 
Filed under lending as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics