In many equity agreements, the original lender`s stake in the loan is sold directly to the participant. Therefore, the original lender does not become an agent, agent or agent of the participant. The Master Risk-Participation agreement should expressly state that the relationship between the lender and the participant is that of a buyer and a seller, in order to avoid a situation in which a principal-agent relationship could be involved. In a participation agreement, the intention of the parties is to transfer all economic rights from the original lender to the participant, without there being a trust or agent relationship between them. Uncovered participation is one in which the participant finances the borrower only when the original lender requests or orders the participant to make a payment to the borrower. It is usually issued with a discount and then fully paid on the due date. This bank acceptance project can be transferred to the participating institutions through a framework participation contract. . . .