Common use of Classified Loans Clause in Contracts

Classified Loans. Except as disclosed in the FNB Disclosure Schedule, as of the date of this Agreement, there are no loans presently owned by FNBNC that have been classified by FNBNC’s management or FNBNC internal policy or procedure, any outside review examiner, accountant or any bank regulatory authority as “Non-Accrual,” “Watch,” “Other Assets Specially Mentioned,” “Substandard,” “Doubtful,” or “Loss” or classified using categories or words with similar import and all loans or portions thereof so classified have been reserved to the extent required. FNBNC regularly reviews and appropriately classifies its loans in accordance with all applicable legal and regulatory requirements and generally accepted banking practices. All loans and investments of FNBNC are legal, valid and binding obligations enforceable in accordance with their respective terms and are not subject to any setoffs, counterclaims or disputes (subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and subject, as to enforceability, to equitable principles of general applicability), except as disclosed in the FNB Disclosure Schedule or reserved for in the unaudited balance sheet of FNBNC as of the end of the most recent fiscal quarter, and were duly authorized under and made in compliance with applicable federal and state laws and regulations. FNBNC does not have any extensions of credit, investments, guarantees, indemnification agreements or commitments for the same (including without limitation commitments to issue letters of credit, to create acceptances, or to repurchase securities, federal funds or other assets) other than those documented on the books and records of FNBNC.

Classified Loans. Except as disclosed in the FNB VCB Disclosure Schedule, as of the date of this Agreement, there are no loans presently owned by FNBNC VCB that have been classified by FNBNC’s VCB management or FNBNC VCB internal policy or procedure, any outside review examiner, accountant or any bank regulatory authority as “Non-Accrual,” “Watch,” “Other Assets Specially Mentioned,” “Substandard,” “Doubtful,” or “Loss” or classified using categories or words with similar import and all loans or portions thereof so classified have been reserved to the extent required. FNBNC VCB regularly reviews and appropriately classifies its their loans in accordance with all applicable legal and regulatory requirements and generally accepted banking practices. All loans and investments of FNBNC VCB are legal, valid and binding obligations enforceable in accordance with their respective terms and are not subject to any setoffs, counterclaims or disputes (subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and subject, as to enforceability, to equitable principles of general applicability), except as disclosed in the FNB VCB Disclosure Schedule or reserved for in the unaudited balance sheet of FNBNC VCB as of the end of the most recent fiscal quarter, and were duly authorized under and made in compliance with applicable federal and state laws and regulations. FNBNC VCB does not have any extensions of credit, investments, guarantees, indemnification agreements or commitments for the same (including without limitation commitments to issue letters of credit, to create acceptances, or to repurchase securities, federal funds or other assets) other than those documented on the books and records of FNBNCVCB.

Classified Loans. Except as disclosed to PACIFIC in the FNB BANK Disclosure Schedule, as of the date of this AgreementStatement, there are no loans presently owned by FNBNC BANK as of October 31, 1997 that have been classified by FNBNC’s management or FNBNC internal policy or procedureany bank examiner, any outside review examinerloan reviewer, accountant or any bank regulatory authority the management of BANK as “Non-Accrual,” “Watch,” “"Other Assets Specially Loans Especially Mentioned,” “" "Substandard,” “" "Doubtful,” " or “"Loss” " or classified using categories or words with similar import and all loans or portions thereof so classified "Loss" have been reserved charged off. Notwithstanding the above, BANK shall be under no obligation to disclose to PACIFIC any such classification by any bank examiner where such disclosure would violate any obligation of confidentiality of BANK imposed by the extent requiredDFI, the FDIC, or any other bank regulator. FNBNC BANK regularly reviews and appropriately classifies its loans in accordance with all applicable legal and regulatory requirements and generally accepted banking practices. All loans and investments of FNBNC BANK are legal, valid and binding obligations enforceable in accordance with their respective terms and are not subject to any setoffs, counterclaims or disputes (subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ ' rights generally and subject, as to enforceability, to equitable principles of general applicability), except as disclosed to PACIFIC in the FNB BANK Disclosure Schedule Statement or reserved for in the unaudited consolidated balance sheet of FNBNC BANK as of the end of the most recent fiscal quarterJune 30, 1997, and were duly authorized under and made in material compliance with applicable federal and state laws and regulations. FNBNC BANK does not have any extensions of credit, investments, guarantees, indemnification agreements or commitments for the same (including without limitation commitments to issue letters of credit, to create acceptances, or to repurchase securities, federal funds or other assets) other than those documented on the books and records of FNBNCBANK.

Classified Loans. Except as disclosed in the FNB Disclosure Schedule, as of the date of this Agreement, there There are no loans presently owned by FNBNC KSB that have been classified by FNBNC’s management or FNBNC internal policy or procedureany bank examiner, any outside review examinerloan reviewer, accountant or any bank regulatory authority management as “Non-Accrual,” “Watch,” “"Other Assets Specially Loans Especially Mentioned,” “" "Substandard,” “" "Doubtful,” " or “"Loss” " or classified using categories or words with similar import and all loans or portions thereof so classified "Loss" have been reserved charged off. Notwithstanding the above, KSB shall not be under any obligation to disclose to WABC any such classification by any bank examiner where such disclosure would violate any obligation of confidentiality of KSB imposed by the extent requiredFDIC, the DFI, or other regulator. FNBNC KSB regularly reviews and appropriately classifies its loans in accordance with all applicable legal and regulatory requirements and generally accepted banking practices. All loans and investments of FNBNC KSB are legal, valid and binding obligations enforceable in accordance with their respective terms and are not subject to any setoffs, counterclaims or disputes (subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ ' rights generally and subject, as to enforceability, to equitable principles of general applicability), except as disclosed in the FNB Disclosure Schedule or reserved for in the unaudited consolidated balance sheet of FNBNC KSB as of the end of the most recent fiscal quarterSeptember 30, 2001, and were duly authorized under and made in compliance with applicable federal and state laws and regulations. FNBNC does not have any KSB has no extensions of credit, investments, guarantees, indemnification agreements or commitments for the same (including without limitation commitments to issue letters of credit, to create acceptances, or to repurchase securities, federal funds or other assets) other than those documented on the books and records of FNBNCKSB.