▁in ▁the ▁same ▁manner . ▁ ▁" Part icip ations " ▁in ▁the ▁loan ▁are ▁sold ▁by ▁the ▁lead ▁financial ▁institution ▁(" FI ") ▁to ▁other ▁FI ' s . ▁ ▁A ▁separate ▁contract ▁called ▁a ▁loan ▁participation ▁agreement ▁is ▁struct ured ▁and ▁agreed ▁among ▁the ▁FI ' s . ▁ ▁Lo an ▁particip ations ▁can ▁either ▁be ▁made ▁on ▁a ▁par i ▁pass u ▁basis ▁with ▁equal ▁risk ▁sharing ▁for ▁all ▁loan ▁participants , ▁or ▁on ▁a ▁senior / sub ordin ated ▁basis , ▁where ▁the ▁senior ▁l ender ▁is ▁paid ▁first ▁and ▁the ▁sub ordinate ▁loan ▁participation ▁paid ▁only ▁if ▁there ▁are ▁sufficient ▁funds ▁left ▁over ▁to ▁make ▁the ▁pay ments . ▁ ▁Such ▁senior / sub ordin ated ▁loan ▁particip ations ▁can ▁be ▁struct ured ▁either ▁on ▁a ▁LI FO ▁( Last ▁In ▁First ▁Out ) ▁or ▁FI FO ▁( First ▁In ▁First ▁Out ) ▁basis ▁( see ▁FI FO ▁and ▁LI FO ▁account ing ). ▁ ▁The ▁most ▁comp elling ▁reasons ▁that ▁financial ▁institutions ▁use ▁participation ▁lo ans ▁are ▁as ▁follows : ▁ ▁S elling ▁loan ▁particip ations ▁allows ▁the ▁lead ▁bank ▁to ▁origin ate ▁an ▁exception ally ▁large ▁loan ▁that ▁would ▁otherwise ▁be ▁too ▁large ▁for ▁it ▁to ▁handle ▁by ▁itself . ▁By ▁eng aging ▁other ▁banks ▁as ▁participants , ▁the ▁lead ▁bank ▁can ▁remain ▁within ▁its ▁own ▁legal ▁l ending ▁limits ▁and ▁still ▁come ▁up ▁with ▁sufficient ▁c ash ▁for ▁fund ing . ▁B anks ▁that ▁buy ▁loan ▁particip ations ▁share ▁in ▁the ▁prof its ▁of ▁the