We have purchased part of a loan from another bank. It has always been my understanding that our “Loan Participation Agreement” should have original signatures on it, not a copy of the signatures. I have looked and can’t seem to find anything about this. Do you have any ideas?
I have looked again and can’t find out the answer…we purchased part of a loan participation from another bank. It has always been my understanding we needed original signatures on the Participation Agreement, not a copy. Can any one answer this question and if we do need the original signatures is there a reason why?
I am not aware of any laws or regulations that create requirements for a loan participation agreement. The document is a contract between two business entities. Generally contracts are signed by all parties to the contract, and the signatures are original signatures. Since your institution is a party to the contract you may insist on original signatures. Your institution can refuse to complete the contract if the selling institution refuses to provide original signatures. Simply do not sign your copy or do not provide the purchase price.