Loan Review Program Clause Samples

Loan Review Program. Within 60 days of this Agreement, the Bank shall submit to the Reserve Bank and the Commissioner an acceptable written program for the ongoing review and grading of the Bank’s loan portfolio by a qualified independent party. The program shall, at a minimum, address, consider, and include:

Loan Review Program. (1) Within sixty (60) days, the Board shall establish, implement, and thereafter ensure Bank adherence to an effective, independent, and on-going loan review system to review, at least quarterly, the Bank’s loan and lease portfolios to assure the timely identification and categorization of problem credits. This system shall provide for a written report to be filed with the Board after each review. Such reports should include, at a minimum, conclusions regarding: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent and nonaccrual loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit-related violations of law, rule, or regulation; (e) concentrations of credit; (f) loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (g) loans and leases not in conformance with the Bank’s lending and leasing policies, and exceptions to the Bank’s lending and leasing policies. (2) Upon adoption, a written description of the system called for in this Article shall be forwarded to the Assistant Deputy Comptroller for review and determination of no supervisory objection. (3) The Board shall evaluate the loan and lease review reports, and shall ensure that immediate, adequate, and continuing remedial action, if appropriate, is taken upon all findings noted in the report. (4) A copy of the reports submitted to the Board, as well as documentation of the action taken by the Bank to collect or strengthen assets identified as problem credits, shall be preserved at the Bank.