Common use of Certain Loans and Related Matters Clause in Contracts

Certain Loans and Related Matters. (a) Except as set forth in Schedule 3.7(a), as of September 30, 2003, Southern Financial is not a party to any written or oral: (i) loan agreement, note or borrowing arrangement, other than credit card loans and other loans the unpaid balance of which does not exceed $100,000 per loan, under the terms of which the obligor is sixty (60) days delinquent in payment of principal or interest or in default of any other material provisions as of the date hereof; (ii) loan agreement, note or borrowing arrangement which has been classified or, in the exercise of reasonable diligence by Southern Financial or any regulatory agency with supervisory jurisdiction over Southern Financial, should have been classified as "substandard," "doubtful," "loss," "other loans especially mentioned," "other assets especially mentioned" or any comparable classifications by such persons; (iii) loan agreement, note or borrowing arrangement, including any loan guaranty, with any director or executive officer of Southern Financial, or any 10% or more shareholder of Southern Financial, or any person, corporation or enterprise controlling, controlled by or under common control with any of the foregoing; or (iv) loan agreement, note or borrowing arrangement in violation of any law, regulation or rule applicable to Southern Financial including, but not limited to, those promulgated, interpreted or enforced by any regulatory agency with supervisory jurisdiction over Southern Financial and which violation could have a Material Adverse Effect on the Condition of Southern Financial. (b) Schedule 3.7(b) contains the "watch list of loans" of Southern Financial ("Watch List") as of September 30, 2003. Except as set forth in Schedule 3.7(b), to the knowledge of Southern Financial, there is no loan agreement, note or borrowing arrangement which should be included on the Watch List in accordance with Southern Financial's past practices and prudent banking principles.

Certain Loans and Related Matters. (a) Except as set forth in Schedule 3.7(a), as of September 30March 31, 20032007, Southern Financial the Bank is not a party to any written or oral: (i) loan agreement, note or borrowing arrangement, other than credit card loans and other loans the unpaid balance of which does not exceed $100,000 10,000 per loan, under the terms of which the obligor is sixty (60) days delinquent in payment of principal or interest or in default of any other material provisions as of the date hereof; (ii) loan agreement, note or borrowing arrangement which has been classified or, in the exercise of reasonable diligence by Southern Financial the Bank or any regulatory agency with supervisory jurisdiction over Southern Financialthe Bank, should have been classified as "substandard," "doubtful," "loss," "other loans especially mentioned," "other assets especially mentioned" or any comparable classifications by such persons; (iii) loan agreement, note or borrowing arrangement, including any loan guaranty, with any director or executive officer of Southern Financialthe Bank, or any 10% or more shareholder of Southern Financialthe Bank, or any person, corporation or enterprise controlling, controlled by or under common control with any of the foregoing; or (iv) loan agreement, note or borrowing arrangement in violation of any law, regulation or rule applicable to Southern Financial the Bank including, but not limited to, those promulgated, interpreted or enforced by any regulatory agency with supervisory jurisdiction over Southern Financial the Bank and which violation could have a Material Adverse Effect on the Condition of Southern FinancialBank. (b) Schedule 3.7(b) contains the "watch list of loans" of Southern Financial the Bank ("Watch List") as of September 30March 31, 20032007. Except as set forth in Schedule 3.7(b), to the knowledge of Southern Financialthe Bank, there is no loan agreement, note or borrowing arrangement which should be included on the a Watch List in accordance with Southern Financialthe Bank's past practices ordinary course of business and consistent with prudent banking principles.

Certain Loans and Related Matters. (a) Except as set forth in Schedule 3.7(a2.9(a), as of September 30, 2003, Southern Financial the Bank is not a party to --------------- any written or oral: (i) loan agreement, note or borrowing arrangement, other than credit card loans and other loans the unpaid balance of which does not exceed $100,000 15,000 per loan, under the terms of which the obligor is sixty (60) days delinquent in payment of principal or interest or in default of any other material provisions as of the date hereof; (ii) loan agreement, note or borrowing arrangement which has been classified or, in the exercise of reasonable diligence by Southern Financial the Seller or the Bank or any regulatory agency with supervisory jurisdiction over Southern Financialthe Seller or the Bank, should have been classified as "substandard," "doubtful," "loss," "other loans especially mentioned," "other assets especially mentioned" or any comparable classifications by such persons; (iii) loan agreement, note or borrowing arrangement, including any loan guaranty, with any director or executive officer of Southern Financialthe Seller, the Bank or any other subsidiary of the Seller, or any 10% or more shareholder of Southern Financialthe Seller, or any person, corporation or enterprise controlling, controlled by or under common control with any of the foregoing; or (iv) loan agreement, note or borrowing arrangement in violation of any law, regulation or rule applicable to Southern Financial the Seller or the Bank including, but not limited to, those promulgated, interpreted or enforced by any regulatory agency with supervisory jurisdiction over Southern Financial the Seller or the Bank and which violation could have a Material Adverse Effect on the Condition of Southern Financialthe Bank. (b) Schedule 3.7(b2.9(b) contains the "watch list of loans" of Southern Financial the Bank --------------- ("Watch List") as of September 30January 31, 20032002. Except as set forth in Schedule 3.7(b2.9(b), --------------- to the knowledge of Southern Financialthe Seller or the Bank, there is no loan agreement, note or borrowing arrangement which should be included on the Watch List in accordance with Southern Financialthe Bank's past practices and prudent banking principles.

Certain Loans and Related Matters. (a) Except as set forth in Disclosure Schedule 3.7(a)3.5, as of September 30, 2003, Southern Financial Xxxxx is not a party as of the date hereof to any written or oral: (i) loan agreement, note or borrowing arrangement, other than credit card loans and other loans the unpaid balance of which does not exceed $100,000 5,000 per loan, under the terms of which the obligor is sixty (60) days delinquent in payment of principal or interest or in default of any other material provisions provision as of the date hereof; (ii) loan agreement, note or borrowing arrangement which has been classified or, in the exercise of reasonable diligence by Southern Financial or any regulatory agency with supervisory jurisdiction over Southern Financial, should have been classified as "substandard," "doubtful," "loss," "other loans especially mentioned," "other assets especially mentioned" or any comparable classifications by such personsclassifications; (iii) loan agreement, note or borrowing arrangement, including any loan guaranty, with any director or executive officer of Southern Financial, Xxxxx or any ten percent (10% or more %) shareholder of Southern FinancialXxxxx, or any person, corporation or enterprise controlling, controlled by or under common control with any of the foregoing; or (iv) loan agreement, note or borrowing arrangement in violation of any law, regulation or rule applicable to Southern Financial Xxxxx including, but not limited to, those promulgated, interpreted or enforced by any regulatory agency with supervisory jurisdiction over Southern Financial of the Regulatory Authorities and which violation could have a Material Adverse Effect material adverse effect on the Condition of Southern Financial. (b) Schedule 3.7(b) contains Xxxxx. As of the "watch list date of loans" any Financial Statement of Southern Financial ("Watch List") as Xxxxx and any Call Report of September 30, 2003. Except as set forth in Schedule 3.7(b), Xxxxx subsequent to the knowledge execution of Southern Financialthis Agreement, including the date of the Financial Statements of Xxxxx and the Call Reports of Xxxxx that immediately precede the Effective Time of the Share Exchange, there is no shall not have been any material increase in the loan agreementagreements, note notes or borrowing arrangement which should be included on the Watch List arrangements described in accordance with Southern Financial's past practices (i) through (iv) above and prudent banking principlesDisclosure Schedule 3.5.

Certain Loans and Related Matters. (a) Except as set forth in Schedule 3.7(a)) segregated by Bank, as of September May 31, 2006 (and in the case of State Bank, June 30, 20032006), Southern Financial the Company is not a party to any written or oral: (i) loan agreement, note or borrowing arrangement, other than credit card loans and other loans the unpaid balance of which does not exceed $100,000 10,000 per loan, under the terms of which the obligor is sixty (60) days delinquent in payment of principal or interest or in default of any other material provisions as of the date hereof; (ii) loan agreement, note or borrowing arrangement which has been classified or, in the exercise of reasonable diligence by Southern Financial the Company or any regulatory agency with supervisory jurisdiction over Southern Financialthe Company, should have been classified as "“substandard," "” “doubtful," "” “loss," "” “other loans especially mentioned," "” “other assets especially mentioned" ” or any comparable classifications by such persons; (iii) loan agreement, note or borrowing arrangement, including any loan guaranty, with any director or executive officer of Southern Financialthe Company, or any 10% or more shareholder of Southern Financialthe Company, or any person, corporation or enterprise controlling, controlled by or under common control with any of the foregoing; or (iv) loan agreement, note or borrowing arrangement in violation of any law, regulation or rule applicable to Southern Financial the Company including, but not limited to, those promulgated, interpreted or enforced by any regulatory agency with supervisory jurisdiction over Southern Financial the Company and which violation could have a Material Adverse Effect on the Condition of Southern FinancialCompany. (b) Schedule 3.7(b) contains the "“watch list of loans" ” of Southern Financial each Bank shown separately ("each, a “Watch List"”) as of September May 31, 2006 (and in the case of State Bank, June 30, 20032006). Except as set forth in Schedule 3.7(b), to the knowledge of Southern Financialthe Company, there is no loan agreement, note or borrowing arrangement which should be included on the a Watch List in accordance with Southern Financial's past practices the Company’s ordinary course of business and consistent with prudent banking principles.

Certain Loans and Related Matters. (a) Except as set forth in Schedule 3.7(a), as of September 30, 20032004, Southern Financial the Company is not a party to any written or oral: (i) loan agreement, note or borrowing arrangement, other than credit card loans and other loans the unpaid balance of which does not exceed $100,000 10,000 per loan, under the terms of which the obligor is sixty (60) days delinquent in payment of principal or interest or in default of any other material provisions as of the date hereof; (ii) loan agreement, note or borrowing arrangement which has been classified or, in the exercise of reasonable diligence by Southern Financial the Company or any regulatory agency with supervisory jurisdiction over Southern Financialthe Company, should have been classified as "“substandard," "” “doubtful," "” “loss," "” “other loans especially mentioned," "” “other assets especially mentioned" ” or any comparable classifications by such persons; (iii) loan agreement, note or borrowing arrangement, including any loan guaranty, with any director or executive officer of Southern Financialthe Company, or any 10% or more shareholder of Southern Financialthe Company, or any person, corporation or enterprise controlling, controlled by or under common control with any of the foregoing; or (iv) loan agreement, note or borrowing arrangement in violation of any law, regulation or rule applicable to Southern Financial the Company including, but not limited to, those promulgated, interpreted or enforced by any regulatory agency with supervisory jurisdiction over Southern Financial the Company and which violation could have a Material Adverse Effect on the Condition of Southern FinancialCompany. (b) Schedule 3.7(b) contains the "“watch list of loans" ” of Southern Financial the Company ("“Watch List"”) as of September 30, 20032004. Except as set forth in Schedule 3.7(b), to the knowledge of Southern Financialthe Company, there is no loan agreement, note or borrowing arrangement which should be included on the Watch List in accordance with Southern Financial's past practices the Company’s ordinary course of business and consistent with prudent banking principles.

Certain Loans and Related Matters. (a) Except as set forth in Schedule 3.7(a2.7(a), as of September 30, 2003, Southern Financial State Bank is not a party to any written or oral: (i) loan agreement, note or borrowing arrangement, other than credit card loans and other loans the unpaid balance of which does not exceed $100,000 15,000 per loan, under the terms of which the obligor is sixty (60) days delinquent in payment of principal or interest or in default of any other material provisions as of the date hereof; (ii) loan agreement, note or borrowing arrangement which has been classified or, in the exercise of reasonable diligence by Southern Financial State Bank or any regulatory agency with supervisory jurisdiction over Southern FinancialState Bank, should have been classified as "substandard," "doubtful," "loss," "other loans especially mentioned," "other assets especially mentioned" or any comparable classifications by such persons; (iii) loan agreement, note or borrowing arrangement, including any loan guaranty, with any director or executive officer of Southern FinancialState Bank, or any 10% or more shareholder of Southern FinancialState Bank, or any person, corporation or enterprise controlling, controlled by or under common control with any of the foregoing; or (iv) loan agreement, note or borrowing arrangement in violation of any law, regulation or rule applicable to Southern Financial State Bank including, but not limited to, those promulgated, interpreted or enforced by any regulatory agency with supervisory jurisdiction over Southern Financial State Bank and which violation could have a Material Adverse Effect on the Condition of Southern FinancialState Bank. (b) Schedule 3.7(b2.7(b) contains the "watch list of loans" of Southern Financial State Bank ("Watch List") as of September 30March 31, 20032002. Except as set forth in Schedule 3.7(b2.7(b), to the knowledge of Southern FinancialState Bank, there is no loan agreement, note or borrowing arrangement which should be included on the Watch List in accordance with Southern FinancialState Bank's past practices and prudent banking principles.

Certain Loans and Related Matters. (a) Except Other than as set forth in Schedule 3.7(a3.12(a), as of September June 30, 20032005, Southern Financial Express is not a party to any written or oral: (i) loan agreement, note or borrowing arrangement, other than credit card loans and other loans the unpaid balance of which does not exceed $100,000 25,000 per loan, under the terms of which the obligor is sixty (60) days delinquent in payment of principal or interest or in default of any other material provisions as of the date hereof; (ii) loan agreement, note or borrowing arrangement which has been classified by Express or any regulatory agency with supervisory jurisdiction over Express or, in the exercise of reasonable diligence by Southern Financial or any regulatory agency with supervisory jurisdiction over Southern FinancialExpress, should have been classified as "“substandard," "” “doubtful," "” “loss," "” “other loans especially mentioned," "” “other assets especially mentioned" ” or any comparable classifications by such persons; (iii) loan agreement, note or borrowing arrangement, including any loan guaranty, with any director or executive officer of Southern FinancialExpress, or any 10% or more greater shareholder of Southern FinancialExpress, or any person, corporation or enterprise controlling, controlled by or under common control with any of the foregoing; or (iv) loan agreement, note or borrowing arrangement in violation of any law, regulation or rule applicable to Southern Financial Express including, but not limited to, those promulgated, interpreted or enforced by any regulatory agency with supervisory jurisdiction over Southern Financial Express and which violation could have a Material Adverse Effect on the Condition of Southern FinancialExpress. (b) Schedule 3.7(b3.12(b) contains the "“watch list of loans" ” of Southern Financial Express ("“Watch List"”) as of September June 30, 20032005. Except Other than as set forth in Schedule 3.7(b3.12(b), to the knowledge of Southern FinancialExpress, there is no loan agreement, note or borrowing arrangement which should be included on the Watch List in accordance with Southern Financial's Express’ past practices and prudent banking principles.