Problem Loans Clause Samples

Problem Loans. Make, commit to make any, renew, extend the maturity of, or alter any of the material terms of any Loan in excess of $500,000 to a borrower or to a known related interest of a borrower who has a loan with Texas Citizens Bank that is classified as “substandard”;

Problem Loans. Make, commit to make any, renew, extend the maturity of, or alter any of the material terms of any Loan to a borrower or to a known related interest of a borrower who is classified as “substandard” by SI Bank;

Problem Loans. Monitoring policies specifically relating to problem loan situations are outlined in Policy 5.2– Problem Loan Management. Carlyle GMS Finance, Inc. 28 Risk Policy Manual – May 2013 Trade Secret and Strictly Confidential

Problem Loans. Salomon, in its sole discretion, may determine ------------- that a Mortgage Loan is (x) of insufficient quality to be financed or purchased, (y) missing documentation or other information and such problem is not cured by New Century in sixty days or (z) a loan which is delinquent at the time of financing by Salomon, which becomes delinquent during such financing by Salomon or was more than thirty days delinquent on one or more occasions in the prior twelve months (each such Mortgage Loan, a "Problem Loan"). Problem Loans shall be subject to the following qualifications with respect to the Aggregation Line: (i) the maximum Aggregation Line with respect to Problem Loans shall equal $10 million as of any trade date on which there was formal notification of a trade by a confirmation letter or trade ticket; and (ii) the Purchase Price shall be equal to (A) for the first ninety-day period after purchase, 80% of the unpaid principal balance of the Problem Loan as of the date of purchase and (B) thereafter, 80% of the unpaid principal balance of the Problem Loan, minus 20% of the unpaid principal balance of such Problem Loan for each additional month after the initial ninety-day period. New Century Mortgage Corporation November 4, 1996 Page 9. In the event that Salomon determines in its sole discretion that any Problem Loan has ceased to be a Problem Loan, such Mortgage Loan shall be treated as a Standard Loan or a Non-Standard Loan, as the case may be, as of the first day of the month following such determination.

Problem Loans. To avoid problems with credit delinquency and possible losses, program administrator’s staff along with WDC staff will review the borrower’s financials and those factors that indicate loan payment deterioration. Some of the danger signals include: a. Delinquency b. Anticipated renewal request. c. Adverse financial trends. d. Incorrect or improperly prepared financial information. e. Overly optimistic P&L and Cash Flow statements. f. Failure to provide any requested information in a timely manner. g. Disappearance of collateral or other assets. h. Borrowers hesitant to permit WDC staff to visit business. i. Appearance of other creditors and credit inquiries.

Problem Loans. Monitoring policies specifically relating to problem loan situations are outlined in Policy 5.1– Problem Loan Management.