Eligible Participation Interest definition
Eligible Participation Interest means a Participation Interest issued by Guarantor that satisfies the criteria set forth below:
Eligible Participation Interest. A Participation Interest in a Loan originated by a bank or financial institution that, at the time of acquisition, or the Borrower’s commitment to acquire the same, satisfies each of the following criteria: (i) such participation would constitute a Loan were it acquired directly, (ii) the Selling Institution is a lender on the Loan, (iii) the aggregate participation in the Loan granted by such Selling Institution to any one or more participants does not exceed the principal amount or commitment with respect to which the Selling Institution is a lender under such Loan, (iv) such participation does not grant, in the aggregate, to the participant in such participation a greater interest than the Selling Institution holds in the Loan or commitment that is the subject of the participation, (v) the entire purchase price for such participation is paid in full (without the benefit of financing from the Selling Institution or its affiliates) at the time of the Borrower’s acquisition, (vi) the participation provides the participant all of the economic benefit and risk of the whole or part of the Loan or commitment that is the subject of the Loan participation and (vii) such participation is documented under a Loan Syndications and Trading Association, Loan Market Association or similar agreement standard for Loan participation transactions among institutional market participants, provided, in each case, that each such Participation Interest shall cease to constitute an “Eligible Participation Interest” for the purposes of this Agreement or any other Transaction Document on the earlier of (x) its respective Elevation Date and (y) the 45th calendar day (or such later date as may be determined by the Administrative Agent in its sole and absolute discretion) following the relevant Portfolio Asset Trade Date. For the avoidance of doubt, Eligible Participation Interests shall not include any sub-participation interest in any Loan.
Eligible Participation Interest means an interest in a performing Whole Loan as identified by Seller to Buyer from time to time (a) which, if the majority economic interest in the Whole Loan is a Purchased Asset, represents a controlling position in such Purchased Asset as reasonably determined by Buyer (unless control is initially held by the companion participation interest in which event control shall move to the Eligible Participation Interest upon the occurrence of an Event of Default under this Agreement), (b) as to which the companion participation interest which is not a Purchased Asset is owned by an Affiliate of Guarantor and is serviced by the Servicer, (c) which is senior to or pari passu with all other interests in such Purchased Asset, (d) which is issued pursuant to a participation agreement acceptable to Buyer in its sole discretion exercised in good faith and is represented by a physical participation certificate which is held by Custodian pursuant to the Custodial Agreement, and (e) which vests the holders thereof with approval or veto rights over customary major decisions concerning such Whole Loan acceptable to Buyer. Once an Eligible Participation Interest is proposed by Seller and determined to be acceptable for a Transaction by Buyer and becomes a Purchased Asset that is a Senior Interest on a Purchase Date, such Purchased Asset shall be treated as a Purchased Asset for all purposes of this Agreement and shall be subject to all provisions of this Agreement related to Purchased Assets in the same manner as all other Purchased Assets
Examples of Eligible Participation Interest in a sentence
For the avoidance of doubt, any reference to “Loan” in this definition of “Advance Rate” includes any Eligible Participation Interest in such Loan.
More Definitions of Eligible Participation Interest
Eligible Participation Interest means a Participation Interest in a Government Receivable:
Eligible Participation Interest means an interest in a performing Whole Loan as identified by Seller to Buyer from time to time
Eligible Participation Interest means a Participation Interest in a Specified Government Receivable that meets the following criteria and which Participation Interest has been transferred to the Borrower pursuant to the Sale Agreement in a “true participation” transaction:
Eligible Participation Interest means a performing pari passu participation interest that does not entitle the holder thereof to control servicing and other decisions with respect to the related Whole Loan or A-Note pursuant to the related Participation Agreement and is evidenced by a Participation Certificate retained by Seller in connection with a Whole Loan or A-Note previously subject to a Transaction hereunder (and the Controlling Participation in such Whole Loan or A-Note is held by a securitization trust (or trustee on its behalf) in connection with a capital markets transaction executed by or on behalf of any Guarantor or any of Guarantors’ Affiliates) that satisfies each of the following criteria:
Eligible Participation Interest means a Participation Interest that satisfies the applicable representations and warranties set forth on Schedule 1-C with respect thereto at all times.
Eligible Participation Interest means a Participation Interest with respect to which the related Participated Receivable is an Eligible Participated Receivable.
Eligible Participation Interest has the meaning assigned to such term in Section 5.13.