CREDIT UNDERWRITING AND ADMINISTRATION Sample Clauses
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within sixty (60) days of this Agreement, the Board shall take the necessary steps to ensure that the Bank develops safe and sound credit risk management and administration practices, to include at a minimum:
(a) policies and procedures to ensure that the Bank does not grant, extend, renew, modify or restructure any loan or other extension of credit, or purchase any loan participation, equal to or exceeding one-hundred thousand dollars ($100,000), without:
(i) documenting the specific reason or purpose for the extension of credit;
(ii) identifying the expected source of repayment in writing;
(iii) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateral;
(iv) obtaining current and satisfactory credit information, including performing and documenting analysis of credit information and a detailed cash flow analysis of all expected repayment sources, including global cash flow analysis, evaluation of contingent liabilities and verification of liquid assets, where appropriate;
(v) determining and documenting whether the loan complies with the Bank’s Loan Policy and if it does not comply, providing identification of the exception and ample justification to support waiving the policy exception;
(vi) making and documenting the determinations made regarding the customer’s ability to repay the credit on the proposed repayment terms;
(vii) providing an accurate risk assessment grade and proper accrual status for each credit;
(viii) obtaining an appraisal or evaluation as appropriate;
(ix) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(x) determining and documenting that any participations purchased comply with safe and sound banking practices, guidelines set forth in Banking Circular 181 (Revised), dated August 2, 1984, and the requirements of 12 C.F.R. Part 34;
(xi) performing loan stress testing and/or sensitivity analysis for agricultural loan relationships totaling three-hundred thousand dollars ($300,000) or more, to quantify the impact of common stresses such as varying input costs, commodity prices, and interest rates; and
(xii) obtaining the written approval of the Bank’s Loan Committee or Board;
(b) policies and procedures designed to aggregate, track and eliminate exceptions to the Loan Policy, underwriting guidelines, and supervisory loan-to-value limits, for all loans to include, at a minimum:
(i) mo...
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within sixty (60) days of this Agreement, the Board shall take the necessary steps to ensure that the Bank develops safe and sound credit risk management and administration practices, to include at a minimum:
(a) policies and procedures that define the Bank’s trade area and guidelines and limitations for originating loans outside of the Bank’s trade area;
(b) policies and procedures that prohibit the origination or purchase of any loan or extension of credit for which the Bank does not have the knowledge, skills, or ability to properly underwrite and control;
(c) policies and procedures to ensure that the Bank does not grant, extend, renew, modify or restructure any loan or other extension of credit, or purchase any loan participation, equal to or exceeding seventy-five thousand dollars ($75,000), without:
(i) documenting the specific reason or purpose for the extension of credit;
(ii) identifying the expected source of repayment in writing;
(iii) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateral;
(iv) obtaining current and satisfactory credit information, including performing and documenting analysis of credit information and a detailed cash flow analysis of all expected repayment sources, including global cash flow analysis, evaluation of contingent liabilities and verification of liquid assets, where appropriate;
(v) determining and documenting whether the loan complies with the Bank’s Loan Policy and if it does not comply, providing identification of the exception and ample justification to support waiving the policy exception;
(vi) making and documenting the determinations made regarding the customer’s ability to repay the credit on the proposed repayment terms;
(vii) providing an accurate risk assessment grade consistent with the guidelines set forth in Rating Credit Risk, A-RCR, of the Comptroller’s Handbook and based upon definitive objective and subjective criterion;
(viii) determining the proper accrual status for each credit;
(ix) obtaining a real estate appraisal or evaluation as appropriate;
(x) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(xi) determining and documenting that any participations purchased comply with safe and sound banking practices, guidelines set forth in Banking Circular 181 (Revised), dated August 2, 1984, and the requirements of 12 C.F.R. Part 34;
(xii) perfor...
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Effective as of the date of this Agreement, the Board shall ensure that all lending officers comply with all laws, rules, regulations, Bank policies and procedures, safe and sound banking practices, and fiduciary duties.
(2) Effective as of the date of this Agreement, the Bank may not grant, extend, renew, modify or restructure any loan or other extension of credit, or purchase any loan participation, equal to or exceeding $500,000 without:
(a) Documenting the specific reason or purpose for the extension of credit;
(b) Identifying the expected source of repayment in writing;
(c) Structuring the repayment terms to coincide with the expected source of repayment;
(d) Obtaining current and satisfactory credit information, including performing and documenting analysis of credit information and a detailed cash flow analysis of all expected repayment sources;
(e) Determining and documenting whether the loan complies with the Bank’s Loan Policy and if it does not comply, providing identification of the exception and justification to support waiving the policy exception;
(f) Making and documenting the determinations made regarding the customer’s ability to repay the credit on the proposed repayment terms;
(g) Providing an accurate risk assessment grade and proper accrual status for each credit;
(h) Documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable; and
(i) Obtaining the written approval of the Bank’s Loan Committee or Board.
(3) Within sixty (60) days of this Agreement, the Board shall take the necessary steps to eliminate credit, collateral, and Bank Loan Policy exceptions, to include, at a minimum, the development of a program that makes loan officers accountable for such exceptions and considers such exceptions in the periodic performance reviews and compensation of such loan officers.
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within sixty (60) days of the date of this Agreement, the Board shall adopt a written credit underwriting and administration program (“Credit Underwriting and Administration Program”) designed to ensure the Bank obtains and analyzes credit and collateral information sufficient to identify, monitor, and report the Bank’s credit risk, properly account for loans, and assign accurate risk ratings in a timely manner. The Credit Underwriting and Administration Program shall be consistent with safe and sound banking practices.
(2) The Credit Underwriting and Administration Program shall, at a minimum, include:
(a) policies that address acceptable loan types, terms, covenants, covenant waivers, concentration limits, and collateral requirements and exceptions;
(b) a description of the types of credit information required from borrowers and guarantors prior to making a loan determination, including annual audited statements, interim financial statements, personal financial statements, tax returns with supporting schedules, and reasonable policies and procedures specific to asset dissipation underwriting for mortgage loans;
(c) procedures that require any extensions of credit be granted, by renewal or otherwise, only after obtaining the required credit information and adequately analyzing and documenting the borrower’s and guarantor’s cash flow, debt service requirements, contingent liabilities, global liquidity condition, and sensitivity analysis in support of the credit decision, including policies to ensure sufficient documentation of information and analysis to support collateral valuations and a risk-based approach to review of collateral valuations;
(d) established aggregate exception level limits; the Bank shall consider each loan officer’s exceptions in conducting periodic performance reviews and compensation decisions;
(e) specific assignment of responsibility and accountability over the credit administration process to ensure the Credit Underwriting and Administration Program developed pursuant to this Article is effectively implemented;
(f) review of lending staff experience levels, on an annual basis, to ensure employees have the requisite knowledge to perform their duties, and implementation of a plan to hire additional staff and/or provide periodic training where staffing or knowledge gaps exist;
(g) risk-based reviews of commercial lending relationships to support or revise current risk ratings on at least an annual basis; and
(h) an independent lo...
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within seventy-five (75) days of the date of this Agreement, the Bank shall submit to the ADC for review and prior written determination of no supervisory objection a credit underwriting and administration program (“Program”) designed to ensure the Bank obtains and analyzes credit and collateral information sufficient to identify, monitor, and report the Bank’s credit risk, properly account for loans, and assign accurate risk ratings in a timely manner. The Program shall be consistent with safe and sound banking practices.
(2) The credit underwriting and administration program shall, at a minimum, include:
(a) policies that address acceptable loan types, terms, concentration limits, and collateral requirements and exceptions;
(b) a description of the types of credit information required from borrowers and guarantors prior to making a loan determination, including, annual statements, interim financial statements, personal financial statements, and tax returns with supporting schedules;
(c) procedures that require any extensions of credit are granted, by renewal or otherwise, only after obtaining the required credit information and adequately analyzing and documenting the borrower’s and guarantor’s cash flow, debt service requirements, contingent liabilities, global liquidity condition, and sensitivity analysis in support of the credit decision;
(d) specific assignment of responsibility and accountability over the credit administration process to ensure the Program developed pursuant to this Article is effectively implemented; and
(e) the Board must review the experience level of lending staff, on an annual basis, to ensure employees have the requisite knowledge to perform their duties, and must implement a plan to hire additional staff and/or provide periodic training where staffing or knowledge gaps exist.
(3) Effective as of the date of this Agreement, the Bank may not grant, extend, renew, alter or restructure any loan or other extension of credit without:
(a) documenting the specific reason or purpose for the extension of credit;
(b) identifying the expected source of repayment in writing;
(c) structuring the repayment terms to coincide with the expected source of repayment;
(d) obtaining current and satisfactory credit information, including performing and documenting analysis of credit information and a detailed cash flow analysis of all expected repayment sources;
(e) determining and documenting whether the loan complies with the Bank's loan poli...
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Effective as of the date of this Agreement, the Board shall ensure that all lending officers comply with all laws, rules, regulations, Bank policies and procedures, safe and sound banking practices, and fiduciary duties.
(2) Effective as of the date of this Agreement, the Bank may not grant, extend, renew, modify or restructure any commercial, agricultural, 1-4 family rental, or indirect consumer related loan, or purchase any loan participation, equal to or exceeding $100,000, without:
(a) documenting the specific reason or purpose for the extension of credit;
(b) identifying the expected source of repayment in writing;
(c) structuring the repayment terms to coincide with the expected source of repayment;
(d) obtaining current and satisfactory credit information, including performing and documenting analysis of credit information and a detailed cash flow analysis of all expected repayment sources;
(e) providing an accurate risk assessment grade for all loan types;
(f) determining and documenting whether the loan complies with the Bank’s Loan Policy and if it does not comply, providing identification of the exception and justification to support waiving the policy exception;
(g) documenting with adequate supporting material, the value of collateral and collateral type for each loan properly perfecting the Bank’s lien on it where applicable;
(h) ensuring that any participations purchased are consistent with sound banking practices, guidelines set forth in Banking Circular 181 (Revised), dated August 2, 1984, and the requirements of 12 C.F.R. Part 34; and
(i) obtaining the written approval of the Bank’s Loan Committee or Board.
(3) The Board shall take the necessary steps to ensure that current and satisfactory credit and proper collateral information is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing credit or collateral information described in the Report of Examination conducted as of December 31, 2014 (the “XXX”), in any internal or external loan review, or in any listings of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examination.
(4) Within ninety (90) days of this Agreement, the Board shall take the necessary steps to eliminate credit, collateral, and Bank Loan Policy exceptions by revising, adopting, implementing, and thereafter ensuring Bank adherence to a written program of policies and procedures designed t...
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within ninety (90) days, the Board shall develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank’s commercial credit underwriting and administration process. The program shall include, at a minimum:
(a) guidelines for prudent terms, principle amortization, and maturities consistent with the anticipated source of repayment, the purpose of the loan, and the useful life of the collateral;
(b) guidelines to ensure the avoidance of conflicts of interest and the appearance of conflicts of interest applicable to the Bank’s and the Bank’s holding company’s directors, principal shareholders, executive officers, affiliates, and employees (Insiders) and related interests of Insiders;
(c) standards for the maximum ratio of loan value to appraised value or acquisition costs of collateral securing the loan;
(d) a provision that current and satisfactory credit information will be obtained on each borrower before the extension of any credit;
(e) a provision that the Bank will use its reasonable best efforts to obtain current and satisfactory credit information in connection with the annual review of any existing loan;
(f) guidelines for the proper placement of loans on non-accrual status in accordance with the Instructions for Consolidated Reports of Condition and Income (Call Report Instructions) and Rating Credit Risk Booklet, A-RCR, of the Comptroller’s Handbook;
(g) guidelines for completion of appraisals and real estate evaluations consistent with 12 CFR 34.43(b);
(h) guidelines to limit advances to fund interest payments, including capitalization of interest and use of interest reserves; and
(i) procedures for approving, tracking, and reporting exceptions to the loan policy to senior management and the Board of Directors.
(2) Upon adoption, the program shall be submitted to the Assistant Deputy Comptroller for prior determination of no supervisory objection.
(3) Upon receipt of a determination of no supervisory objection, the Board shall implement the program and thereafter ensure Bank adherence to the program.
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Effective as of the date of this Agreement, the Board shall ensure that all lending officers comply with all laws, rules, regulations, Bank policies and procedures, safe and sound banking practices, and fiduciary duties.
(2) Effective as of the date of this Agreement, the Bank may not grant, extend, renew, alter or restructure any loan or other extension of credit equal to or exceeding two hundred fifty thousand dollars ($250,000), without:
(a) Documenting the specific reason or purpose for the extension of credit;
(b) Identifying the expected source of repayment in writing;
(c) Structuring the repayment terms to coincide with the expected source of repayment;
(d) Obtaining current and satisfactory credit information, including performing and documenting analysis of credit information and a detailed global cash flow analysis of all expected repayment sources, including an adequate debt service coverage analysis and contingent liabilities for affiliated companies when consolidating global cash flows;
(e) Determining and documenting whether the loan complies with the Bank’s Loan Policy and if it does not comply, providing identification of the exception and ample justification to support waiving the policy exception;
(f) Making and documenting the determinations made regarding the customer’s ability to repay the credit on the proposed repayment terms;
(g) Providing an accurate risk assessment grade; and
(h) Documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable.
(3) The Board shall take the necessary steps to ensure that current and satisfactory credit information is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing credit information described in the Report of Examination conducted as of September 30, 2010, in any subsequent Report of Examination, in any internal or external loan review, or in any listings of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examination.
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within thirty (30) days the Board shall take the necessary steps to obtain current and satisfactory credit information on all loans lacking such information, including those listed in the XXX, in any subsequent Report of Examination, in any internal or external loan review, or in any listings of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examination.
(2) Within thirty (30) days the Board shall take the necessary steps to ensure proper collateral documentation is maintained on all loans and correct each collateral exception listed in the XXX, in any subsequent Report of Examination, in any internal or external loan review, or in any listings of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examination.
(3) If the Board is unable to obtain the credit information or collateral documentation required by paragraphs (1) and (2) of this Article within thirty (30) days, the Board shall document its efforts to obtain such information or documentation, and maintain the documentation of its efforts in the loan file.
(4) Effective immediately, the Bank may grant, extend, renew, alter or restructure any loan or other extension of credit only after:
(a) documenting the specific reason or purpose for the extension of credit;
(b) identifying the expected source of repayment in writing;
(c) structuring the repayment terms to coincide with the expected source of repayment;
(d) obtaining and analyzing current and satisfactory credit information, including verification of significant liquid assets, analysis of contingent liabilities, and cash flow analysis, where loans are to be repaid from operations, specifically including analysis of Schedule K-1 forms for borrowers and guarantors who must file those forms with their federal tax returns;
(i) Failure to obtain the information in (3)(d) shall require a majority of the full Board (or a delegated committee thereof) to certify in writing the specific reasons why obtaining and analyzing the information in (3)(d) would be detrimental to the best interests of the Bank.
(ii) A copy of the Board certification shall be maintained in the credit file of the affected borrower(s). The certification will be reviewed by this Office in subsequent examinations of the Bank.
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Effective as of the date of this Agreement, the Board shall ensure that lending officers comply with all laws, rules, regulations, Bank policies and procedures, safe and sound banking practices, and fiduciary duties.
(2) Effective as of the date of this Agreement, the Bank may not grant, extend, renew, alter or restructure any loan or other extension of credit without:
(a) Documenting the specific reason or purpose for the extension of credit;
(b) Identifying the expected source of repayment in writing;
(c) Structuring the repayment terms to coincide with the expected source of repayment;
(d) Obtaining current and satisfactory credit information;
(e1) Performing a documented analysis of credit information that includes a detailed cash flow analysis of all expected repayment sources, and a detailed analysis of the financial support of significant guarantors;