A loan is generally an extension of credit resulting from direct negotiations between a lender and a borrower. The loan may have originated through direct negotiations with the borrower or it may have been originated by another lender that directly negotiated with a
borrower. Loans may take the form of promissory notes, acknowledgements of advance, due bills, invoices, overdrafts, and similar written or oral obligations.
Loans include:
- Factored accounts receivable.
- Participations (acquired or held) in a single loan or pool of loans or receivables (see glossary entry for PARTICIPATIONS).
- Drawn syndicated loans.
- Repurchase/resale agreements, where securities have been transferred in return for cash balances.
- Loans made to finance trade other than those between purchaser and seller of the traded good or service.
- Loans exclude those instruments that meet the definition of a security (See glossary entry for SECURITIES).