The Master Participating Lender Network affords a wealth of services and benefits to its Participating Lenders. In order to access the Participating Lender Network, a Participant enters into two foundational agreements that enable its participation; a Master Participation Agreement and a Ntework Subscription Agreement.
The first of these agreements provides the basis of the understanding between each Participant and the Network Manager as to mutual performance obligations, the Participant's role in the Participating Lender Network and future expectations as to acquisition process and servicing of a Credit Participation Certificate. It enables a Participant to access network-approved underwriting guidelines that it can use when assessing a Credit for participation or when originating a Credit that it wishes to participate to other networked Participating Lenders. It establishes a relationship with an ever-growing network of Qualified Lenders that can be accessed with ease. It establishes a standardized product structure that is a CPC, regardless of the nature of the underlying Credit.
Next, the Network Subscription Agreement is entered as the basis to access CPC-linked credit data and information and perform certain foundational functions in support of its participations. Web-based on-demand technology services are available via the platform inclusive of foreign and domestic payment services to enable global Credit scope and reach among Participants, foreign exchange capability to foster operations in multiple currencies, and finally, a compliance platform that supports and enables independent and "know your customer" practices as a pre-qualifier for any CPC that may be acquired. This technology platform also brings with it exceptional future growth opportunities as additional platform services such as trading desk functionality and CPC Portfolio Management tools are introduced in coming months.
Through a cohesive coordination of the Participants, the Credit Participation Certificate and the Participating Lender Network:
a. actively applies a master set of credit underwriting criteria as the basis to offer a CPC for participation among Qualified Participants for individual values of as little as US$100,000;
b. promotes transparency and accountability as to the underlying credit and performance of each participated Credit;
c. permits the accredited and Qualified Participants in the Master Participating Network to directly select individual Credits to be held on portfolio rather than permitting a third party underwriter to select and bundle underlying Credits that it has determined meet minimum credit quality considerations for investors;
d. provides Credit reporting and performance track records;
e. applies a common web-based electronic platform among all Qualified Participants to enable the efficient offering, commitment, purchase and resale of CPCs;
f. breeds greater credit market liquidity due to the anticipated "natural evolution" of trading strategies among Qualified Participants as well as the introduction of new sources of transactional capital that have specific risk appetites based upon CPC performance profiles whether high-, mid- and low-quality credits;
g. enables Qualified Participants to move in and out of particular Credits due to regulatory directive, individual Credit performance, event-driven considerations, or any other commercial reason via the a more ready resale methodology to other institutions within the Participating Network;
h. fosters a forum for Qualified Participants to directly acquire CPCs linked to other geographic regions without loss of access and information pertaining to the underlying operation of the Credit to which the CPC is tied, thereby better inducing internationally sourced capital to move more freely across borders in search of Credit opportunities; and
i. fuels the long-term creation of CPC Futures Contracts which will aid in hedging credit market risks, performance and the cost of funded and unfunded credit.
Inquire about becoming a Participating Lender by clicking on "Inquire Now" under "Become a Networked Lender" in the upper righthand column of this page.
