The relationship between the lenders and agent is documented in a co-lender agreement while the relationship between a participant and lender is governed by a participation agreement.
To establish the rights and obligations of the members of the company as a group and as individuals, and those of the company. The principal reasons for a participation agreement are: to provide certainty of the steps and decisions to be taken in the enfranchisement.
A Master Risk Participation Agreement (MRPA) is the legal agreement executed between a lender and a participant. This is the agreement that defines the rights, duties and obligations of the originating lender and the participant.
Agreement to Participate means the agreement evidencing an Eligible Employee's election to participate in the Plan and setting forth the amount of Health Reimbursement Benefits to be made available to the Participant for a Plan Year or portion of a Plan Year as reimbursement for Qualified Expenses.