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LSDefine

Simple English definitions for legal terms

equity participation

Read a random definition: adrogate

A quick definition of equity participation:

Equity participation is when a lender becomes a part owner of a project in exchange for granting a loan. This is also known as an equity kicker.

A more thorough explanation:

Equity participation refers to the practice of including a lender in the ownership of a project as a requirement for the lender to grant a loan. This is also known as an equity kicker.

For example, if a company wants to build a new factory but does not have enough funds to do so, they may seek a loan from a bank. The bank may agree to provide the loan, but only if they are given a percentage of ownership in the factory. This means that the bank will share in the profits and losses of the factory, in addition to receiving interest on the loan.

Another example could be a real estate developer who wants to build a new apartment complex. They may seek a loan from an investor, who agrees to provide the funds but only if they are given a percentage of ownership in the complex. This means that the investor will share in the rental income and any profits from the sale of the complex.

These examples illustrate how equity participation works in practice. By including a lender in the ownership of a project, the lender has a vested interest in the success of the project and is more likely to provide the necessary funds. It also allows the borrower to access funds that they may not have been able to obtain otherwise.

equity-of-the-statute rule | equity pleading

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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