Finance Deals & Syndicated Lending · glossary
The lender of record is the lender that is a party to the loan agreement and appears on the agent's register of lenders. The borrower and the agent deal only with it: it receives payments and notices and casts the votes. If it sells the risk to another bank by a sub-participation, it stays the lender of record.
The lender that is party to the agreement and on the Agent's register. It receives the notices and casts the votes. In a sub-participation the risk moves to someone else, but the lender of record stays the same. Chapter 12
Explained in Chapter 12, Transfers and the Secondary Market, of Finance Deals & Syndicated Lending.
Atlas is not asked and usually never told. Its consent right in clause 20.2 covers transfers only, and a sub-participation transfers nothing. The selling lender stays the lender of record: it receives the notices, attends the meetings and casts the votes.Read Chapter 12, Transfers and the Secondary Market →
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The lender the agent treats as owning a share of the loan. Only a transfer or an assignment under the loan agreement changes who that is, and the agent then updates its register.
It separates who holds the loan on paper from who carries the risk. A bank can sell the risk by a sub-participation and still be the lender of record, so the borrower is often never told.
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