In a recent, confidential case where Allen & Overy LLP acted for the winning party, Spanish courts examined for the first time the nature of a sub-participation. The bank has submitted an expert opinion from an English legal expert that LMA`s under-holding is not an assignment of the loan and that none of the terms of the sub-equity require the assignment of any of the bank`s existing rights to the borrower, so that, in accordance with Uk law, the bank remains the lender in respect of the loan and that, therefore, the party entitled to bring an action against the borrower for non-payment of the loan. A type of loan or sale of assets by equity in which the borrower is neither consulted nor, in most cases, informed of the transaction. In practice, most credit agreements allow. The distinguishing feature of an under-participation agreement is that the original lender remains the “registration lender” for the borrower and there is no direct contractual relationship between the subscriber and the borrower. No borrower consent is required, so this process may be confidential. The application of English law to LMA`s partial participation agreements has increased considerably in Spain since the financial crisis and, in particular, in the market for doubtful debt securities. Syndicated loans can lead to risk-taking agreements when lenders take certain steps. If a borrower wishes to obtain significant financing, a syndicated loan can be offered through a bank of agents that cooperates with a consortium of other lenders. .