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Document Id : 4274

File Type : Microsoft Word

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USA Loan Participation Sale and Trust Agreement

Prepare a Loan Participation Sale and Trust Agreement with this comprehensive template for the USA.
  • Under this Agreement, the lead lender (the Seller) participates in one or more loans by transferring an undivided participation ownership interest in part of the loan to another lender (the Buyer).
  • The Buyer receives a percentage yield on its pro rata interest, plus a pro rata participation in any interest collected.
  • The Seller is entitled to the remainder of the interest plus any default penalties, late charges, etc.
  • The Seller will act as trustee with fiduciary duties to hold the participation ownership and legal title in and to the loans and receipts, and to make the required remittances.
  • The Seller, as trustee, will retain all loan documents, mortgage notes, etc.
  • The Seller will continue to service the loans in the same manner as it services loans for its own account.
This USA Loan Participation Sale and Trust Agreement is provided in MS Word format and is fully editable.

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