Common use of PROBLEM LOAN MANAGEMENT Clause in Contracts

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those 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) The Board’s compliance with Paragraph (1) of this Article shall include the development of procedures for the monthly submission and review of reports of all criticized credit relationships totaling $100,000 or above, that require, at a minimum, analysis and documentation of the following: (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) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (e) trigger dates for positive borrower actions or for loan officers to reassess the strategy and enact collection plans; and (f) for criticized relationships of $100,000 or above that were made for the purpose of constructing or developing CRE, the reports shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount of initial interest reserve and the amount of any subsequent additions to the reserve; (vii) an assessment of the borrower’s global cash flow; (viii) an assessment of the guarantor’s ability to support the project; and (ix) any other significant information relating to the project. (3) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, in any subsequent Report of Examination, 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 one-hundred thousand dollars ($100,000) unless each of the following conditions is met: (a) the Board 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 approves the credit extension and records, in writing, why such extension is necessary to promote the best interests of the Bank; and (b) the Board’s formal plan to collect or strengthen the criticized asset will not be compromised.

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those 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) The Board’s compliance with Paragraph (1) of this Article shall include the development of procedures for the monthly submission and review of reports of all criticized credit relationships totaling $100,000 or above, that require, at a minimum, analysis and documentation of the following: (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) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (e) trigger dates for positive borrower actions or for loan officers to reassess the strategy and enact collection plans; and (f) for criticized relationships participation purchases of $100,000 or above that were made for the purpose of constructing or developing CREabove, the reports shall also include: (i) include a backup action plan to take the initial scheduled maturity date lead in eliminating the criticism of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs credit in the event that the lead financial institution fails to effectively manage the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount of initial interest reserve and the amount of any subsequent additions to the reserve; (vii) an assessment of the borrower’s global cash flow; (viii) an assessment of the guarantor’s ability to support the project; and (ix) any other significant information relating to the projectcredit. (3) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or extensions, capitalization of accrued interest, or renew its purchase of a participation purchased, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, in any subsequent Report of Examination, 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 one-hundred thousand dollars (total $100,000) , or more, unless each of the following conditions is met: (a) the Board 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 approves the credit extension and records, in writing, why such extension is necessary to promote the best interests of the Bank; and (b) the Board’s formal plan to collect or strengthen the criticized asset will not be compromised.

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those 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) The Board’s compliance with Paragraph (1) of this Article shall include the development of procedures for the monthly submission and review of problem asset reports of for all criticized credit relationships totaling $100,000 50,000 or above, that require, at a minimum, analysis and documentation of the following: (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) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (e) trigger dates for positive borrower actions or for loan officers to reassess the strategy and enact collection plans; and (f) for criticized relationships of $100,000 50,000 or above that were made for the purpose of constructing or developing CRE, the reports shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount of initial interest reserve and the amount of any subsequent additions to the reserve; (viivi) an assessment of the borrower’s global cash flow; (viii) an assessment of the guarantor’s ability to support the project; and (ixvii) any other significant information relating to the project. (3) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, in any subsequent Report of Examination, 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 one-hundred thousand dollars ($100,000) 50,000, unless each of the following conditions is met: (a) the Board or a designated committee thereof 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 a designated committee thereof approves the credit extension and records, documents in writing, why the reasons that such extension is necessary to promote the best interests of the Bank; and (b) the Board’s formal plan to collect or strengthen the criticized asset will not be compromised.

PROBLEM LOAN MANAGEMENT. (1) Effective as of the date of this Agreement, the Board shall take immediate and continuing action to protect its interest in those 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) The Board’s compliance with Paragraph (1) of this Article shall include the development of procedures for the monthly quarterly submission and review of reports of all criticized credit relationships or Other Real Estate (“ORE”) totaling one hundred thousand dollars ($100,000 100,000) or abovemore, and that requirerequire the preparation of Problem Asset Reports (“PARs” or “PAR”) that contain, at a minimum, analysis and documentation of the following: (a) an identification of the expected sources of repaymentrepayment and an analysis of their adequacy; (b) the appraised value of supporting collateral and the position of the Bank’s lien on such collateral where applicable 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) the current grade and proposed action to eliminate the basis of criticism and the time frame for its accomplishment; (e) trigger dates for positive borrower actions or for loan officers to reassess the strategy and strategy, enact collection plans, and make appropriate downgrades or place on nonaccrual; and (f) for criticized relationships a determination of $100,000 or above that were made for whether the purpose of constructing or developing CRE, the reports shall also include: (i) the initial scheduled maturity date of the loan, number of extensions and/or renewals, and current maturity date; (ii) project development status; (iii) a comparison of development costs to the budgeted amount; (iv) a comparison of sales activity to the original sales projections; (v) current market conditions and activity; (vi) amount of initial interest reserve loan is impaired and the amount of any subsequent additions to the reserve; impairment, consistent with Accounting Standards Codification 310-10 (viiformerly known as FAS Statement of Financial Accounting Standards No. 114) an assessment and Accounting Standards Codification 450-20 (formerly known as FAS Statement of the borrower’s global cash flow; (viii) an assessment of the guarantor’s ability to support the project; and (ix) any other significant information relating to the projectFinancial Accounting Standards No. 5, Accounting for Contingencies). (3) A copy of each PAR prepared during the month of each quarter end (e.g., March, June, September, and December), along with any Board comments regarding the effectiveness of the effort to eliminate the weaknesses in each credit or to dispose of the ORE, shall be submitted to the Assistant Deputy Comptroller within fifteen (15) days of each calendar quarter end. (4) Effective as of the date of this Agreement, the Bank may not extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the ▇▇▇, in any subsequent Report of Examination, 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 of credit equal or exceed one-one hundred thousand dollars ($100,000) ), unless each of the following conditions is met: (a) the Board or a designated committee thereof 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 a designated committee thereof approves the credit extension and records, documents in writing, why the reasons that such extension is necessary to promote the best interests of the Bank; and (b) the Board’s formal plan to collect or strengthen the criticized asset will not be compromisedcompromised by the extension of credit.