Under a so-called 100 percent loan participation, a bank sells portions of a commercial loan to investors, according to the OCC . For example, a financial institution could break up a $ 100, 000 loan into $ 10, 000 portions for sale.
12.
Pilgrim's prime-rate fund is ranked as the No . 1 performing " loan participation " fund of the past three years by Lipper Analytical, beating the performance of similar funds marketed by firms, including Eaton Vance Corp . and Van Kampen American Capital.
13.
Loan participations can either be made on a pari passu basis with equal risk sharing for all loan participants, or on a senior / subordinated basis, where the senior lender is paid first and the subordinate loan participation paid only if there is sufficient funds left over to make the payments.
14.
Loan participations can either be made on a pari passu basis with equal risk sharing for all loan participants, or on a senior / subordinated basis, where the senior lender is paid first and the subordinate loan participation paid only if there is sufficient funds left over to make the payments.
