Common use of Reserves for Losses Clause in Contracts

Reserves for Losses. All reserves or other allowances for possible losses reflected in MECH's most recent financial statements referred to in Section 3.6 complied with all Laws and are adequate under GAAP. Neither of MECH or MS Bank has been notified by the FRB, the FDIC, the Connecticut Commissioner or MECH's independent auditor, in writing or otherwise, that such reserves are inadequate or that the practices and policies of MECH or MS Bank in establishing such reserves and in accounting for delinquent and classified assets generally fail to comply with applicable accounting or regulatory requirements, or that the FRB, the FDIC, the Connecticut Commissioner or MECH's independent auditor believes such reserves to be inadequate or inconsistent with the historical loss experience of MECH or MS Bank. MECH has previously furnished Xxxxxxx with a complete list of all extensions of credit and OREO that have been classified by any bank or trust examiner (regulatory or internal) as other loans specially mentioned, special mention, substandard, doubtful, loss, classified or criticized, credit risk assets, concerned loans or words of similar import. MECH agrees to update such list no less frequently than monthly after the date of this Agreement until the earlier of the Closing Date or the date that this Agreement is terminated in accordance with Section 8.1. All OREO held by MECH or MS Bank is being carried net of reserves at the lower of cost or net realizable value.

Reserves for Losses. All reserves or other allowances for possible losses reflected in MECHNutmeg's most recent financial statements referred to in Section 3.6 3.6(a) hereof as of December 31, 1999 and March 31, 2000 complied with all Laws and are adequate under GAAP. Neither of MECH or MS Bank Nutmeg has not been notified by the FRBOTS, the FDIC, the Connecticut Commissioner or MECHNutmeg's independent auditor, in writing or otherwise, that such reserves are inadequate or that the practices and policies of MECH or MS Bank Nutmeg in establishing such reserves and in accounting for delinquent and classified assets generally fail to comply with applicable accounting or regulatory requirements, or that the FRBOTS, the FDIC, the Connecticut Commissioner or MECHNutmeg's independent auditor believes such reserves to be inadequate or inconsistent with the historical loss experience of MECH or MS BankNutmeg. MECH Nutmeg has previously furnished Xxxxxxx NewMil with a complete list of all extensions of credit and OREO that have been classified by any bank or trust examiner (regulatory or internal) since January 1, 1998 as other loans specially mentioned, special mention, substandard, doubtful, loss, classified or criticized, credit risk assets, concerned loans or words of similar import. MECH Nutmeg agrees to update such list no less frequently than monthly after the date of this Agreement until the earlier of the Closing Date or the date that this Agreement is terminated in accordance with Section 8.18.1 hereof. All OREO held by MECH or MS Bank Nutmeg is being carried net of reserves at the lower of cost or net realizable value.