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Loan Participations: Risks and Rewards

Loan participations can be beneficial to both the lead bank and the participants although they can also involve significant risks. Join us for this comprehensive overview of loan participations and their risks and rewards.
Upcoming
DATE

Wednesday, July 22, 2026
11:00 am - 1:00 pm

INSTRUCTOR

Robin Russell

FORMAT

Webinar

$299.00 or 1 Token

Includes: Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Collections
  • Commercial/Business Lending
  • Lending
  • Lending Compliance
  • Risk Management/Legal
  • Commercial Lender
  • Credit Analyst
  • Loan Closer
  • Loan Operations Manager/Specialist
  • Workout Specialist/Collector

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This program covers the risks and rewards of loan participations to both the lead bank and the purchasing bank. Attendees will gain a thorough understanding of Participation Agreements.

A participant’s checklist for a well-drafted Participation Agreement will be reviewed, and administration of the participated loan will be discussed.

What You'll Learn

Advantages of a participation to the lead bank and participant bank

Risks to the participant

  • Lack of information
  • Lack of involvement in negotiations
  • Dependency upon lead
  • Waivers
  • Financial instability/insolvency of lead
  • Set-off by borrower
  • Asset-Based Lending
  • Conflicts of interest

Due Diligence by the participant and access to information

Disclosure of participation to borrower

Concentrations and other regulatory aspects of participations

Loan agreement provisions related to participations

Duties owed by lead to participant

Rights to loan collateral and guaranties

Loan administration issues

  • Loan payments and other functions
  • Consent to amendments
  • Restrictions on transfer
  • Loan purchase options
  • Reimbursement and indemnification obligations
  • Subparticipations
  • Set-off by a participant
  • Understanding the participation agreement

The participant’s checklist

The participation in workout

Who Should Attend

Commercial real estate lenders, commercial lenders, credit analysts, loan review specialists, special assets officers, lending managers and credit officers. Support personnel involved in the administration of loan participations are also encouraged to attend. Please forward email to appropriate person(s).

Robin Russell

Instructor Bio

Robin Russell has practiced law for 35 years and is licensed in Texas, New York, and Massachusetts, and has extensive experience in the energy sector, having been named to Oil and Gas Investor's 25 Influential Women in Energy in 2019. She is a fellow in the American College of Bankruptcy and of the American Law Institute. She combines a depth of experience in bankruptcy restructuring and litigation with financial transactions. She has represented corporate debtors, independent directors, liquidating trustees, bondholders, unsecured creditors' committees, bank groups, private equity funds, landlords, trade creditors, and bidders for estate assets in Chapter 11 and Chapter 7 bankruptcy proceedings. She has also represented banks, institutional lenders, and corporate borrowers in commercial loan transactions and debt restructurings.

Robin is the principal author of Thomson Reuters' Texas Practice Guides for both Creditors' Rights and Financial Transactions and the Texas Bankers Association's Texas Secured Lending Guide, Texas Problem Loan Guide, Texas Real Estate Lending Guide, and Texas Account Documentation Guide. She is a frequent speaker on banking, bankruptcy, and financial restructuring-related topics and has served as a Chapter 7 Trustee. Robin received her LL.M. in Banking Law from Boston University and her J.D. from Baylor University where she was Editor-in-Chief of the Baylor Law Review. She clerked for the Texas Supreme Court before beginning her legal career.