GlossaryGuide

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).