Publisher Summary This chapter sheds light on the roles and responsibilities of participants of syndicated loans. Many syndicated loans are structured as medium-term loans, and the borrower must be certain at the time of signing the loan agreement that it will be able to fulfill the covenants at all times without hindering the management of its business and, therefore, its ability to service the syndicated loan. Any breach of a covenant is viewed seriously and may lead to an increase in the interest margin (penalty interest) or even an event of default being declared under which the participants may make demand for early repayment of the loan. In addition, the loan agreement contains a list of events of default, any of which may allow the participants to accelerate the syndicated loan, that is, call for immediate repayments of all amounts drawn and cancel any undrawn portion. Events of default are typically designed to provide banks with advance warning of potential difficulties (for example, technical defaults, such as a financial ratio requirement that is violated) to actual difficulties (for example, financial defaults missing a payment on interest or principle). The responsibilities and obligations of the participant in a syndicated loan are set out in the loan agreement and must be adhered to. They include commitment and payment sharing.