Tony Williams,  Loan Technologist

Once the investor has agreed to the sale terms, the legal agreements between the bank and the investor must be signed, and the loan funding, if any, must take place for the sale to be closed.

The bank drafts a Participation or Assignment Agreement, based on other such agreements with the investor, if they exist. The participation or assignment agreement is a legal document describing the terms and conditions of the sale.

An annex to the Agreement is also prepared, which describes the particulars of this deal ,e.g., amount, dates, rates.