Dorney Park is a theme park in Allentown, Pennsylvania.
Loan Sales and Participations. A loan participation is a sharing or selling of interests in a loan. Depository institutions use loan participations as an integral part of their lending operations. Banks may sell participations to enhance their liquidity, interest rate risk management, and capital and earnings. They may also sell participations to diversify their loan portfolio and serve the credit needs of borrowers.
This share of the profits is above and beyond the repayment of the principle plus interest that each of the lenders receives over time. Ad. There are a couple of good reasons why lenders would choose to band together and extend a participation loan.