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.
If the participation is re-characterized as a loan, the court will not view the participant as having an ownership interest in the underlying loan and will likely not find an automatically perfected security interest under Article 9 of the UCC.