Utah Admin. Code R331-12-2 - Definitions
(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.
Notes
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