Loan participation notes

1) Loan Agreement - Sample Contracts and Business Forms
2) Margill | Loan Servicing Software Solution
3) Manappuram Finance - Jewellery Loan | Jewel Loans | Loan.

loan participation notes

As I’ve noted previously  [link to due diligence topics], one big difference between the current commercial real estate melt down and the last big one (in the late 80s) is the amount or level of “structure” in the deals. Like the last time, the debtorborrower side is “structured” (with a multi-tier borrower and perhaps even a “single purpose” entity); however, unlike the last time, the creditorlender side also is structured.

A multi-creditor structure greatly complicates decisions covering a possible workout, the remedies to be invoked, and the management, leasing and eventual sale of the collateral (after foreclosure).

Indeed, co-lender disagreements are the most difficult part of this process.  (And one lesson learned is to NOT do co-lender deals in the future; or do them only with similar lenders having similar balance sheets, ownership, investment objectives and criteria, etc.)

Loan agreements provide the terms and conditions under which a lender provides a loan to borrower. The agreement includes the amount of the loan, the interest charged, the repayment schedule, conditions of the loans, and the representations, warranties and covenants of each party.

Asset Purchase
Business Separation
Collaboration
Construction
Consulting
Distribution
Employment
Franchise
Indemnification
Joint Venture
Lease
License
LLC
Loan
Management
Manufacturing/Supply
Merger
Non-Competition
Offer Letter
Partnership
Promissory Note
Sales
Services
Severance
Shareholder
Stock Purchase

Divorce
DMV
Durable Power of Attorney
Employment
Government
Identity Theft
Landlord-Tenant
Living Will
Mechanic's Lien
Medical
Probate
Workers' Compensation

In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest, strong domestic markets for mortgages have developed.

Mortgage lending is the primary mechanism used in many countries to finance private ownership of residential and commercial property (see commercial mortgages ). Although the terminology and precise forms will differ from country to country, the basic components tend to be similar:

Many other specific characteristics are common to many markets, but the above are the essential features. Governments usually regulate many aspects of mortgage lending, either directly (through legal requirements, for example) or indirectly (through regulation of the participants or the financial markets, such as the banking industry), and often through state intervention (direct lending by the government, by state-owned banks, or sponsorship of various entities). Other aspects that define a specific mortgage market may be regional, historical, or driven by specific characteristics of the legal or financial system.

Groucho Marx once said, "I'd never join any organization that would invite me to be a member." Well, we'd want Groucho in our organization, and (if he were alive) we think we might get him to join. That's because we want members from all sectors of the community. And that's what this section is about.

Who are the potential members of your group or organization? The answer is, "just about everyone." There are very few people in your community who could never be members, which is a helpful and eye-opening point to keep in mind. More than that: just about everyone actually could become a member, if you really wanted them, and if you worked hard enough to get them to join.

Of course, you (probably) don't want everyone in the community to join, for even ambitious people like you have their limits. You probably want to keep your group to a manageable size. At the same time, it's a good idea to keep your eyes open to all parts of the community for potential members.

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