Unlike an assignment, a participation ________, although the holder of the participation has the right to vote on certain legal matters concerning amendments to the loan agreement.

Question

Quizplus · Accepted Answer

A participation does not confer privity of contract on the holder, meaning they do not have a direct contractual relationship with the borrower. They only have certain rights and obligations as outlined in the participation agreement. The right to vote on amendments to the loan agreement is one of these rights.

Unlike an Assignment, a Participation ________, Although the Holder of the Participation