Credit investments require ongoing risk monitoring and risk management tailored to the nature and risk of the loan to the credit union. As with all loans, credit unions should regularly check the financial situation, business environment and activities of the borrower and participating borrowers. In addition, you should work closely with the original lender or leader and request all the information necessary to be fully informed of the borrower`s risk. Therefore, the formulation of exclusions and assurances in the participation agreement on the availability of all relevant documents and the assessment of the borrower`s creditworthiness can be a very effective tool to prevent allegations of dependence on representation or inducement to leading banks. The agreement should specify that (1) the participant has access to all the information necessary to make his decision to acquire a stake; (2) the participant independently verified all relevant documents requested by the management bank; 3. The leading bank does not provide assurance as to the ability to recover, sustainability or adequacy of security; and (4), the participant acknowledges that he did not rely on the first bank to examine or assess the risks, but that he made his decision solely on the basis of his own independent assessment of the loan and the value and collateral status of the collateral that insure the loan. Properly managed credit participation programs can benefit financial institutions, whether they buy or sell credit. Credit holdings can provide selling financial institutions with a mechanism to manage regulatory limits, interest rates, liquidity, credit and geographic concentration risks, as well as a better ability to serve customers. Financial institutions that purchase credit holdings can benefit from the diversification of their balance sheets, the use of excess liquidity and increased revenues. The discharge language can be used to protect the lead bank from the claims of mere negligence, where the lead may be reluctant only for behavior, to assume faith, gross negligence or intentional fault. On the one hand, participants can ensure that the Principal treats the loan with some care of how she would handle her own loans.