Opinion ID: 1282412
Heading Depth: 1
Heading Rank: 5

Heading: the loans

Text: The case at hand involves two participated loans arising under agreements, each denominated a Certificate of Participation, in which Fairfield Bank as the lead bank and Northern Bank as the participating bank covenanted, in relevant part, that: [Northern Bank] is entitled to participation in said loan to the extent of the principal amount of such contribution, plus interest thereon at the rate of ... per cent per annum from [date].... The said obligation and any security or enforcement rights in connection therewith, of any nature whatsoever, are held and will be enforced and disposed of by [Fairfield Bank] for its benefit and the benefit of the holders of this and like certificates, representing in the aggregate the principal of said loan, and the holders of this and other like certificates are entitled respectively to a pro rata share of the proceeds of any and all payments made on account of the principal or interest of said loan, after deducting therefrom all expenses incurred in connection with the collection of said loan, foreclosure of any liens or security interests given to secure the same, and the sale or other disposition of said collateral. [Fairfield Bank], by issuing this certificate, makes no representation or warranty as to the collectibility of the loan, and while [Fairfield Bank] agrees to use the same degree of care in servicing said loan as would if said loan had been made for its own sole account, the holder hereof, by accepting this certificate, releases [Fairfield Bank] from any and all liabilities in connection with the above loan except the proportionate distribution of the funds received by [Fairfield Bank] for such distribution as above provided.