A participating mortgage is one in which two or more persons own a share. These persons do not own the entire mortgage jointly, but each owns a specified interest in it. A mortgage may be made to a trustee who will issue certificate of ownership to each person having an interest in it. As payments of interest and principal are made, each participant receives his pro-rata share. An arrangement of this kind would usually mean that each ownership in the mortgage was coordinate. In some participating mortgages, the ownerships are not coordinate, but one may rank ahead of another. An owner may wish to secure a mortgage of a certain amount but on application to a lender may find the lender willing to give a smaller amount. There may be some one else however who will take the difference subject to the first lenders amount, so the mortgage is made for the total amount and is usually made to the first or largest lender and the securities placed in his possession. An agreement is made between the two lenders called a participation agreement, or ownership agreement, in which the mortgage is described and in which it is set forth that one party-owns the mortgage to the extent of a certain amount of principal and interest only, and that the other party owns the balance of the mortgage debt, but that the ownership of the first party is superior to that of the second party as though one held a first mortgage for his share and the other a second mortgage for the remainder. The share of one lender in a participating mortgage of this kind is called a prior participation, and that of the other lender a subordinate participation.