Section R331-12-3 - General Rule(1) A written participation agreement covering multiple or individual participations will be on record at each participating institution, and shall include, at a minimum, the following:(a) The party to the agreement to be paid first from the loan repayment proceeds;(b) Party responsible for collection of the note in the event of default;(c) How collection or other expenses related to the participation will be divided among the participants;(d) Recourse arrangements in writing outlining the rights and obligations of each party. Generally, loans will not be sold on a recourse basis except in cases where the sale is made for the purpose of obtaining temporary funds for operations.(2) In addition, a financial institution which buys and sells loans or participations in loans shall establish written policies setting forth satisfactory controls over such sales and purchases. At a minimum, the following conditions shall be met: (a) The loan must comply with applicable state and federal laws;(b) The purchased loan must conform to the financial institution's lending and loan approval standards;(c) Complete and current credit information must be maintained during the term of the loan;(d) The financial institution must maintain evidence of sufficient overall loan documentation including an analysis of the value and lien status of collateral;(e) The status of principal and interest payments including accrual status must be available.Utah Admin. Code R331-12-3