Common use of CRITICIZED ASSETS Clause in Contracts

CRITICIZED ASSETS. (1) Within ninety (90) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written program designed to eliminate the basis of criticism of assets criticized in the ▇▇▇, in any subsequent ▇▇▇, or by any internal or external loan review, or in any list provided to management by the National Bank Examiners. This program shall include, at a minimum: (a) an identification of the expected sources of repayment; (b) the appraised value of supporting collateral and the position of the Bank's lien on such collateral where applicable; (c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; and (d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment. (2) The Board, or a designated committee, shall conduct a review, on at least a quarterly basis, to determine: (a) the status of each criticized asset or criticized portion thereof that equals or exceeds 100 thousand dollars ($100,000); (b) management’s adherence to the program adopted pursuant to this Article; (c) the status and effectiveness of the written program; and (d) the need to revise the program or take alternative action. (3) A copy of each review shall be forwarded to the Assistant Deputy Comptroller on a quarterly basis (in a format similar to Appendix I, attached hereto). (4) The Bank may extend credit, directly or indirectly, including renewals, extensions, or overdrafts, to a borrower whose loans or other extensions of credit are criticized only if each of the following conditions is met: (a) the Board or designated committee finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending, or capitalizing any additional credit, a majority of the full Board (or designated committee) approves the credit extension and records, in writing, why such extension is necessary to promote the best interests of the Bank; and (b) a comparison to the written program adopted pursuant to this Article shows that the Board’s formal plan to collect or strengthen the criticized asset will not be compromised. (5) A copy of the approval of the Board or of the designated committee shall be maintained in the file of the affected borrower.

CRITICIZED ASSETS. (1) Within ninety (90) days, the Board The Bank shall adopt, implement, take immediate and thereafter ensure Bank adherence continuing action to a written program designed to eliminate the basis of criticism of protect its interest in those assets criticized (those listed as “special mention,” “substandard,” or “doubtful”) in the ▇▇▇, in any subsequent ▇▇▇Report of Examination, or by any internal or external loan review, or in any list provided to management by the National Bank ExaminersExaminers during any examination. (2) The Board shall immediately take all necessary steps to ensure Bank adherence to a written program designed to eliminate the basis of criticism of assets in the ▇▇▇, in any subsequent Report of Examination or OCC correspondence, or by any internal or external loan review. This program shall include, at a minimum: (a) an identification of the expected sources of repayment; (b) the appraised value of supporting collateral and the position of the Bank's ’s lien on such collateral where applicable; (c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; and (d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment. (23) The Board, or a designated committee, shall conduct a review, on at least a quarterly basis, to determine: (a) the status of each criticized asset or criticized portion thereof that equals or exceeds 100 five hundred thousand dollars ($100,000500,000); (b) management’s adherence to the program adopted pursuant to this Article; (c) the status and effectiveness of the written program; and (d) the need to revise the program or take alternative action. (3) A copy of each review shall be forwarded to the Assistant Deputy Comptroller on a quarterly basis (in a format similar to Appendix I, attached hereto). (4) The Bank may extend credit, directly or indirectly, including renewals, extensions, extensions or overdraftscapitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, in any subsequent Report of Examination or OCC correspondence, in any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination and whose aggregate loans or other extensions exceed five hundred thousand ($500,000), only if each of the following conditions is are met: (a) the Board or its designated committee finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending, or capitalizing any additional credit, a majority of the full Board (or its designated committeecommittee that must include at least two external directors) approves the credit extension and records, in writing, why and documents the reasons such extension is necessary to promote the best interests of the Bank; and (b) a comparison to the written program adopted pursuant to this Article shows that the Board’s formal plan to collect or strengthen the criticized asset will not be compromised. (5) A copy of the approval of the Board or of the its designated committee shall be maintained in the credit file of the affected borrower.

CRITICIZED ASSETS. (1) Within ninety (90) days, the Board The Bank shall adopt, implement, and thereafter ensure Bank adherence take timely action to a written program designed to eliminate the basis of criticism of protect its interest in those assets criticized (those listed as “special mention,” “substandard,” or “doubtful”) in the ▇▇▇, in any subsequent ▇▇▇, or by any internal or external loan review, or in any list provided to management by the National Bank ExaminersExaminers during any examination. (2) The Board shall implement its action plans to ensure Bank adherence to a written program designed to reduce the Bank’s criticized assets and eliminate the basis of criticism of assets in the ▇▇▇, in any subsequent ▇▇▇ or OCC correspondence, or by any internal or external loan review. This program shall include, at a minimum: (a) aggregate reporting of criticized asset levels by type to the Board or a designated committee thereof every month; (b) specific plans for the reduction of criticized assets by asset type with target reductions by month; (c) an identification of the expected sources of repayment; (bd) the appraised value a current appraisal or evaluation as appropriate of supporting collateral and the position of the Bank's ’s lien on such collateral where applicable; (ce) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (f) the appropriate loan history and related debt information; (g) the appropriate support for the loan grade; and (dh) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment. (23) The Board, or a designated committee, shall conduct a review, on at least a quarterly basis, to determine: (a) the status of each criticized asset or criticized portion thereof that equals or exceeds 100 seven hundred and fifty thousand dollars ($100,000750,000); (b) management’s adherence to the program adopted pursuant to this Article; (c) the status and effectiveness of the written program; and (d) the need to revise the program or take alternative action. (3) A copy of each review shall be forwarded to the Assistant Deputy Comptroller on a quarterly basis (in a format similar to Appendix I, attached hereto). (4) The Bank may not extend credit, directly or indirectly, including renewals, renewals or extensions, or overdrafts, to a borrower whose loans or other extensions of credit are criticized only if in the ▇▇▇, in any subsequent ▇▇▇ or OCC correspondence, in any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination and whose aggregate loans or other extensions exceed seven hundred and fifty thousand dollars ($750,000), unless the Board certifies in writing that each of the following conditions is met: (a) the Board extension or designated committee finds that the extension of additional credit renewal is necessary to promote the best interests of the Bank and Bank; (b) the Board has documented the reason(s) that prior to renewing, extending, the extension or capitalizing any additional credit, a majority of the full Board (or designated committee) approves the credit extension and records, in writing, why such extension renewal is necessary to promote the best interests of the Bank; and (bc) a comparison to the written program adopted pursuant to this Article shows that the Board’s formal plan to collect or strengthen the criticized asset will not be compromised. (5) A copy of the approval written certification required by Paragraph (4) of the Board or of the designated committee this Article shall be maintained in the credit file of the affected borrower.

CRITICIZED ASSETS. (1) Within ninety (90) days, the Board The Bank shall adopt, implement, and thereafter ensure Bank adherence take timely action to a written program designed to eliminate the basis of criticism of protect its interest in those assets criticized (those listed as "special mention," "substandard," or "doubtful") in the ▇▇▇, in any subsequent ▇▇▇, or by any internal or external loan review, or in any list provided to management by the National Bank ExaminersExaminers during any examination. (2) The Board shall implement its action plans to ensure Bank adherence to a written program designed to reduce the Bank's criticized assets and eliminate the basis of criticism of assets in the ▇▇▇, in any subsequent ▇▇▇ or OCC correspondence, or by any internal or external loan review. This program shall include, at a minimum: (a) aggregate reporting of criticized asset levels by type to the Board or a designated committee thereof every month; (b) specific plans for the reduction of criticized assets by asset type with target reductions by month; (c) an identification of the expected sources of repayment; (bd) the appraised value a current appraisal or evaluation as appropriate of supporting collateral and the position of the Bank's lien on such collateral where applicable; (ce) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (f) the appropriate loan history and related debt information; (g) the appropriate support for the loan grade; and (dh) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment. (23) The Board, or a designated committee, shall conduct a review, on at least a quarterly basis, to determine: (a) the status of each criticized asset or criticized portion thereof that equals or exceeds 100 seven hundred and fifty thousand dollars ($100,000750,000); (b) management’s 's adherence to the program adopted pursuant to this Article; (c) the status and effectiveness of the written program; and (d) the need to revise the program or take alternative action. (3) A copy of each review shall be forwarded to the Assistant Deputy Comptroller on a quarterly basis (in a format similar to Appendix I, attached hereto). (4) The Bank may not extend credit, directly or indirectly, including renewals, renewals or extensions, or overdrafts, to a borrower whose loans or other extensions of credit are criticized only if in the ▇▇▇, in any subsequent ▇▇▇ or OCC correspondence, in any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination and whose aggregate loans or other extensions exceed seven hundred and fifty thousand dollars ($750,000), unless the Board certifies in writing that each of the following conditions is met: (a) the Board extension or designated committee finds that the extension of additional credit renewal is necessary to promote the best interests of the Bank and Bank; (b) the Board has documented the reason(s) that prior to renewing, extending, the extension or capitalizing any additional credit, a majority of the full Board (or designated committee) approves the credit extension and records, in writing, why such extension renewal is necessary to promote the best interests of the Bank; and (bc) a comparison to the written program adopted pursuant to this Article shows that the Board’s 's formal plan to collect or strengthen the criticized asset will not be compromised. (5) A copy of the approval written certification required by Paragraph (4) of the Board or of the designated committee this Article shall be maintained in the credit file of the affected borrower.

CRITICIZED ASSETS. (1) Within ninety (90) days, the Board The Bank shall adopt, implement, take immediate and thereafter ensure Bank adherence continuing action to a written program designed to eliminate the basis of criticism of protect its interest in those assets criticized (those listed as “special mention,” “substandard,” or “doubtful”) in the ▇▇▇, in any subsequent ▇▇▇Report of Examination, or by any internal or external loan review, or in any list provided to management by the National Bank ExaminersExaminers during any examination. (2) The Board shall immediately take all necessary steps to ensure Bank adherence to a written program designed to eliminate the basis of criticism of assets in the ▇▇▇, in any subsequent Report of Examination or OCC correspondence, or by any internal or external loan review. This program shall include, at a minimum: (a) an identification of the expected sources of repayment; (b) the appraised value of supporting collateral and the position of the Bank's ’s lien on such collateral where applicable; (c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; and (d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment. (23) The Board, or a designated committee, shall conduct a review, on at least a quarterly basis, to determine: (a) the status of each criticized asset or criticized portion thereof that equals or exceeds 100 two hundred thousand dollars ($100,000200,000); (b) management’s adherence to the program adopted pursuant to this Article; (c) the status and effectiveness of the written program; and (d) the need to revise the program or take alternative action. (3) A copy of each review shall be forwarded to the Assistant Deputy Comptroller on a quarterly basis (in a format similar to Appendix I, attached hereto). (4) The Bank may not extend credit, directly or indirectly, including renewals, renewals or extensions, or overdrafts, to a borrower whose loans or other extensions of credit are criticized only if in the ▇▇▇, in any subsequent Report of Examination or OCC correspondence, in any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination and whose aggregate loans or other extensions exceed two hundred thousand dollars ($200,000), unless the Board certifies in writing that each of the following conditions is met: (a) the Board extension or designated committee finds that the extension of additional credit renewal is necessary to promote the best interests of the Bank and Bank; (b) the Board has documented the reason(s) that prior to renewing, extending, the extension or capitalizing any additional credit, a majority of the full Board (or designated committee) approves the credit extension and records, in writing, why such extension renewal is necessary to promote the best interests of the Bank; and (bc) a comparison to the written program adopted pursuant to this Article shows that the Board’s formal plan to collect or strengthen the criticized asset will not be compromised.; (5) A copy of the approval written certification required by paragraph (4) of the Board or of the designated committee this article shall be maintained in the credit file of the affected borrower.

CRITICIZED ASSETS. (1) Within ninety The Bank shall take immediate and continuing action to protect its interest in those assets criticized (90those listed as “special mention,” “substandard,” or “doubtful”) daysin the ▇▇▇, the any subsequent Report of Examination, any internal or external loan review, or any OCC correspondence. (2) The Board shall adopt, implement, and thereafter take all necessary steps to ensure Bank adherence to a written program designed to eliminate the basis of criticism of assets criticized in the ▇▇▇, in any subsequent ▇▇▇Report of Examination or OCC correspondence, or by any internal or external loan review, or in any list provided to management by the National Bank Examiners. This program shall include, at a minimum: (a) an identification of the expected sources of repayment; (b) the appraised value of supporting collateral and the position of the Bank's ’s lien on such collateral where applicable; (c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; and (d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment. (23) The Board, or a designated committee, which may include or be constituted of, members of the current risk management team, shall conduct a review, on at least a quarterly basis, to determine: (a) the status of each criticized asset or criticized portion thereof that equals or exceeds 100 three hundred thousand dollars ($100,000300,000); (b) management’s adherence to the program adopted pursuant to this Article; (c) the status and effectiveness of the written program; and (d) the need to revise the program or take alternative action. (3) A copy of each review shall be forwarded to the Assistant Deputy Comptroller on a quarterly basis (in a format similar to Appendix I, attached hereto). (4) The Bank may extend credit, directly or indirectly, including renewals, extensions, extensions or overdraftscapitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, any subsequent Report of Examination, any internal or external loan review, or any OCC correspondence and whose aggregate loans or other extensions exceed three hundred thousand dollars ($300,000), only if each of the following conditions is are met: (a) the Board or its designated committee finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending, or capitalizing any additional credit, a majority of the full Board (or its designated committeecommittee that must include at least one external director) approves the credit extension and records, in writing, why and documents the reasons such extension is necessary to promote the best interests of the Bank; and (b) a comparison to the written program adopted pursuant to this Article shows that the Board’s formal plan to collect or strengthen the criticized asset will not be compromised. (5) A copy of the approval of the Board or of the its designated committee shall be maintained in the credit file of the affected borrower.