First BanCorp (FBP) in San Juan, Puerto Rico, has resolved a large outstanding loan to Doral Financial (DRL) by taking on $242 million on mortgages that were used as collateral for the loan.

The loans include nearly $234 million of first mortgages, purchased at par, and $8.4 million in second mortgages purchased at 5% of their outstanding balances, First BanCorp said in a regulatory filing late Monday. Doral, also based in San Juan, had pledged the loans as collateral for secured borrowings tied to a series of May 2006 credit agreements.

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