Problem Assets Sample Clauses
The "Problem Assets" clause defines and addresses assets within a transaction that are identified as having issues or defects, such as legal encumbrances, title disputes, or non-compliance with regulations. In practice, this clause typically outlines the criteria for designating an asset as problematic, the process for notification, and the remedies or actions required, such as replacement, exclusion from the deal, or price adjustment. Its core function is to allocate risk and responsibility for defective or disputed assets, ensuring that both parties are aware of and can manage potential complications arising from such assets.
Problem Assets. Within thirty (30) days, the Association shall submit a detailed, written plan with specific strategies, targets and timeframes to reduce3 the Association’s levels of real estate owned (REO) and adversely classified assets (Problem Asset Reduction Plan) to the Regional Director. The Problem Asset Reduction Plan, at a minimum, shall include:
Problem Assets. By March 31, 2011, the Association shall submit a detailed, written plan with specific 1 A modification shall be considered material under this Paragraph if the Association plans to: (a) engage in any activity that is inconsistent with the Business Plan; or (b) exceed the level of any activity contemplated in the Business Plan by more than ten percent (10%). strategies, targets and timeframes to reduce2 the Association’s level of Problem Assets3 (Problem Asset Reduction Plan) to the Regional Director. The Problem Asset Reduction Plan, at a minimum, shall include:
Problem Assets. Effective immediately, the Association shall identify problem assets, including but not limited to:
Problem Assets. Within thirty (30) days, the Association shall submit a detailed, written plan with specific
Problem Assets. (1) The Bank shall take immediate and continuing action to protect its interest in those classified assets and special mention assets criticized in the ▇▇▇, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination.
(2) Within sixty (60) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written program designed to eliminate the basis of criticism of classified assets and special mention assets equal to or exceeding two hundred fifty thousand dollars ($250,000) criticized 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 Examiners during any examination as "doubtful," "substandard," or "special mention." 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, as well as other necessary documentation to support the collateral valuation;
(c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations;
(d) results of any impairment analysis required under Accounting Standards Codification (“ASC”) 310-10; and
(e) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment.
(3) Upon adoption, a copy of the program for all classified assets and special mention assets equal to or exceeding two hundred fifty thousand dollars ($250,000) shall be forwarded to the Assistant Deputy Comptroller.
(4) The Board, or a designated committee, shall conduct a review, on at least a quarterly basis, to determine:
(a) the status of each classified asset and special mention asset or criticized portion thereof that equals or exceeds two hundred fifty thousand dollars ($250,000) (with classified assets and special mention assets or criticized portions thereof that exceeds one million dollars ($1,000,000) receiving at least a monthly review);
(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.
(5) A copy of each review shall be forwarded to the Assistant Deputy Comptroller on a quarterly basis (in a format similar to A...
Problem Assets. Within thirty (30) days, the Association shall develop individual written specific workout plans for each adversely classified loan or group of loans to individual relationships greater than two hundred and fifty thousand dollars ($250,000) (Asset Workout Plans).