participating mortgage (loan) Definition | Business Dictionaries from AllBusiness.com
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Business Definition for: participating mortgage (loan)
participating mortgage (loan)

one that allows the lender to share in part of the income or resale proceeds.

Example: A loan is given on an office building. In addition to a fixed payment of principal and interest , the lender is entitled to 2% of gross rental income. This is a participating loan in which the lender participates in the income stream provided by the property.

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