Banking & Finance

What is a loan participation?

A participation is a funding arrangement whereby a participant (buyer) provides to the loan originator and grantor (lender of record, existing lender) funding (a deposit) for the l...


What is a loan modification?

Loan modification involves an amendment to the terms of an outstanding loan, typically involving a change in the interest, principal and/or term of the loan.  One or more of the fo...


What is a liquidation? What is a dissolution?

Liquidation is the bankruptcy process in which a liquidator assembles and sells a debtor’s assets and distributes the sale proceeds to creditors in accordance with the priority rul...


What is a leveraged lease?

A leveraged lease is a noncancellable long-term big-ticket finance lease that relies on long-term debt provided to the lessor for the leased asset’s refinancing, it involving the l...


What is a lessor’s investment in a lease?

The sum of the undiscounted minimum lease payments (MLPs) to be made on a finance lease plus any unguaranteed residual value (URV) accruing to the lessor is the gross investment in...


What is a leasing company?

A financial institution predominantly engaged in the business of originating and underwriting lease transactions is a leasing company.  Leasing companies come in the form of bank l...


What is a lease underwriter?

A lease underwriter is a lessor, typically the lease originator, that assumes the risk of a lease and assures and arranges the transaction.  Lease underwriters commonly originate l...


What is a lease proposal?

Instead of a lease application, a request for proposal (RFP) outlining the need of prospective lessees for the financing of mid- and big-ticket assets is prepared and sent to prosp...


What is a lease master trust?

A master trust is an investment structure that allows for the holding and management of a portfolio of assets and a dynamic collateral profile allowing for the addition of new coll...


What is a lease funder?

A lease funder is any party other than the lessor that provides funding to the lease originator either as a lease purchaser purchasing legal title and the risks, rewards and contro...


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