The Participating Lender Network is established as a coordinated body of highly qualified institutions and lenders. Each candidate Participating Lender, prior to being permitted to join the Network, must necessarily first meet a minimum qualification benchmark in order to assure other Networked Lenders that any and all parties to a Credit Participation Certificate are sufficiently sophisticated to both understand the nature of the underlying Credit and to perform the duties inherent in the operation of the Master Participation Agreement.
By definition contained in the UFTCF Master Participation Agreement, a Participating Lender in the Network must meet the definition of a Qualified Investor as set forth in Section 3(A)-54 of the Exchange Act of 1934, as amended, which states:
(i) any investment company registered with the Commission under section 8 of the Investment Company Act of 1940; or
(ii) any issuer eligible for an exclusion from the definition of investment company pursuant to section 3(c)(7) of the Investment Company Act of 1940; or
(iii) any bank (as defined in paragraph (6) of this subsection), savings association (as defined in section 1813(b) of Title 12), broker, dealer, insurance company (as defined in section 2(a)(13)) of the Securities Act of 1933, or business development company (as defined in section 2(a)(48) of the Investment Company Act of 1940); or
(iv) any small business investment company licensed by the United States Small Business Administration under section 681(c) or (d) of this title; or
(v) any State sponsored employee benefit plan, or any other employee benefit plan, within the meaning of the Employee Retirement Income Security Act of 1974, other than an individual retirement account, if the investment decisions are made by a plan fiduciary, as defined in section 1002(21) of Title 29, which is either a bank, savings and loan association, insurance company, or registered investment adviser; or
(vi) any trust whose purchases of securities are directed by a person described in clauses (i) through (v) above; or
(vii) any market intermediary exempt under section 3(c)(2) of the Investment Company Act of 1940; or
(viii) any associated person of a broker or dealer other than a natural person; or
(ix) any foreign bank (as defined in section 3101(b)(7) of Title 12); or
(x) the government of any foreign country; or
(xi) any corporation, company, or partnership that owns and invests on a discretionary basis, not less than US$10,000,000 in investments; or
(xii) any natural person who owns and invests on a discretionary basis, not less than US$10,000,000 in investments; or
(xiii) any government or political subdivision, agency, or instrumentality of a government who owns and invests on a discretionary basis not less than US$50,000,000 in investments; or
(xiv) any multinational or supranational entity or any agency or instrumentality thereof; or
(xv) any entity, financial institution or bank that may not be located within the United States or subject to any of the above referenced descriptions, but nonetheless has presented sufficient evidence or made specific warranties, taking into consideration such factors as the financial sophistication of the person, net worth, and knowledge and experience in financial matters, to be considered the equivalent of a “Qualified Investor”, by rule or order, and has been specifically approved in writing for participation by UFT Commercial Finance.
The design and operation of a CPC is highly conducive to cultivating a base of Qualified Participants that are not limited by geographic distance. Geographic risk associated with a Credit and CPC is mitigated by designating a bank, financial institution or other qualified lender “on-the-ground” at the source of the Credit as one of the Co-Leads of a CPC to monitor the health and performance of the underlying Credit. Then, this institution is paired with another lender whose responsibility includes managing "on-demand" Credit data and assuring corresponding reporting transparency to Participating Lenders related to the CPC’s performance. This approach to managing geographic risk has opened the door to inviting the participation of internationally-minded Qualified Participants that are seeking diversified credit exposure in foreign markets. With this in mind, there is a reasonable expectation that the CPC will find a useful home as a vehicle for internationally targeted credit transactions as the appetite for global credit exposure among Participating Lenders and Credit Originators grows.
Click on "Inquire Now" in the right-hand column to learn more about becoming a part of the Master Participating Lender Network.
