# Loan Participation Interest

**IRI:** https://folio.openlegalstandard.org/RBNJRrn32LiG4q8cOTsB72C

## Labels

**Alternative Labels:**

- Loan Fractions
- Loan Participations
- Participations

## Definition

Participations refer to the fractional interests in a loan or pool of loans sold by the original lender to other investors in the secondary market. These investors, known as participants, acquire the rights to receive payments and share in the risks associated with the underlying loans.

## Examples

- An investor purchases a participation in a mortgage loan, receiving a proportional share of the interest and principal payments.

## Sub Class Of

- https://folio.openlegalstandard.org/R9UcujGuJ216ZiqT4I2aRge

**Deprecated:** False