Bank Participation Loans

Is anyone familar with "Participation Loans" as described below?  Can a bank use their profit sharing plan's assets to purchase a portion of a loan from the lead lender?  

"As defined by the FDIC, a loan participation is an arrangement under which a lender originates a loan to a borrower and then sells a portion of that loan to one or more other financial institutions. The lead or originating lender retains a partial interest in the loan, holds all loan documentation in its own name, services the loan, and deals directly with the customer."

Thank you...

Sure. It's just a loan. Depending on the bank's involvement (if any) in the loan's origination, and other factors, you could have prohibited transaction of fiduciary issues.

Thanks Luke.  I do not know any details at this point.