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 problem asset reports for 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 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 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) a determination of whether the loan is impaired and the amount of the impairment, consistent with FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loan. (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 $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 Board or a designated committee thereof approves the credit extension and documents in writing, 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 by the extension of credit.

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 problem asset reports for of all criticized credit asset relationships totaling two-hundred and fifty thousand dollars ($100,000 250,000) or above, that require, at a minimum, analysis and documentation of the following: (a) an identification of the expected sources of repayment and an analysis of their adequacyrepayment; (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 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) a determination of whether the loan is impaired and the amount of the impairment, consistent with FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors documented support for Impairment of a Loanaccrual status. (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 two-hundred and fifty thousand dollars ($100,000, 250,000) 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 documents records, in writing, the reasons that 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 by the extension of creditcompromised.

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 Within sixty (160) days of this Article Agreement, the Board shall prepare, implement and thereafter ensure adherence to a written program designed to reduce the Bank’s criticized assets (the “Problem Assets Program”). The Problem Assets Program shall include or address the development of procedures for the monthly submission and review of problem asset reports for all criticized credit relationships totaling $100,000 or above, that require, at a minimum, analysis and documentation of the followingfollowing matters: (a) an identification aggregate reporting of criticized asset levels by type to the expected sources of repayment and an analysis of their adequacyBoard or a designated committee thereof every month; (b) specific plans for the appraised value reduction 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;criticized assets by asset type with target reductions by month; and (c) an analysis procedures for the monthly review and preparation of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; (d) written determinations by the proposed action Board or a designated committee thereof regarding the effectiveness of the responsible officer’s efforts to eliminate the basis of criticism and the time frame for its accomplishment; weaknesses in each criticized credit relationship or other real estate totaling one hundred thousand dollars (e$100,000) trigger dates for positive borrower actions or for loan officers more (including participations to reassess the strategy and enact collection plans; and (f) a determination of whether the loan is impaired and the amount of the impairment, consistent with FASB Statement of Financial Accounting Standards No. 114, Accounting by Creditors for Impairment of a Loanaffiliates). (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 of credit equal or exceed 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 Board or a designated committee thereof approves the credit extension and documents in writing, 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 by the extension of credit. (4) Copies of best interest statements prepared in response to the requirements of Paragraph (3) of this Article shall be maintained in the minutes to the Board of Director meetings and in the relevant credit file(s).