CREDIT UNDERWRITING AND ADMINISTRATION Sample Clauses

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) Within sixty (60) days of the date of this Agreement, the Board shall review, revise, and thereafter ensure adherence to the Bank’s Loan Policy to include, at a minimum, revisions relating to: (a) a description of acceptable types of loans and a prohibition against making any loan for which the Bank does not have the knowledge, skills or ability to properly underwrite and monitor; (b) the establishment of underwriting standards by loan type, especially commercial real estate and asset-based lending, that specifically include at a minimum, the requirements of this Paragraph: approval authorizations; documentation; analysis; cash flow (including debt service coverage); repayment periods; collateral coverage (loan to cost and loan to value); guarantor support; appraisals; and loan covenants; (c) expectations regarding required credit file information for each different lending product offered; (d) requirements that lending officers appropriately analyze and document appropriate credit and collateral information on all extensions of credit (including participations purchased), to include, at a minimum: (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; (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; (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 determinations regarding the customer’s ability to repay the credit on the proposed repayment terms, including an evaluation of both primary and secondary sources of repayment, as well as a global cash flow analysis that considers all customer debt service requirements; (vii) verification of liquid assets that the Bank is relying on as a source of repayment; (viii) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on ...
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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 ninety (90) days of the date of this Agreement, the Bank shall revise and submit to the ADC for review and prior written determination of no supervisory objection an acceptable 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) a process to hold loan officers accountable for the timely collection of financial statements and ensure that the statements are reviewed upon receipt to provide adequate monitoring of borrowers; (b) procedures for Bank management to ensure annual reviews are completed timely, accurately, and consistently with sufficient narrative concerning financial analysis and collateral analysis, and to ensure management reports the status of annual reviews to the Board; (c) procedures to ensure credit administration, lending, and loan processing staff receive and demonstrate proficiency in job-specific training that includes, but is not limited to, credit analysis and loan file documentation requirements per Bank policy; (d) procedures to ensure loan presentations and credit analyses contain sufficient financial and collateral analysis; (e) procedures to ensure policies are adhered to with any exceptions noted, mitigated, tracked, and reported to the Board; (f) procedures to ensure loan presentations include all sources of repayment, borrower and guarantor financial trends, current economic conditions and trends, competitive pressures, and industry outlooks; (g) procedures to ensure adequate processes to identify and report all policy, underwriting, collateral, and financial exceptions to the Board; (h) procedures to identify breaches of covenants by borrowers and document waivers to exceptions and/or steps taken to enforce compliance; (i) policies that address acceptable loan types, terms, covenants, concentration limits, and collateral requirements and exceptions; (j) 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 stateme...
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 and regulations, Bank policies and procedures, safe and sound banking practices, and fiduciary duties. The Board shall ensure that there is a program in place that addresses: (a) requirements that lending officers appropriately analyze, document, and communicate appropriate credit and collateral information; (b) requirement to establish a training policy for loan officers to ensure they understand policy requirements; (c) establishment of a tracking system to ensure that the appropriate documentation is obtained for financial and collateral requirements for each loan; (d) 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) monthly Board monitoring of policy exception reports that track aggregate number and dollar amount of loans with material exceptions by type of loan and loan officer; (ii) procedure to hold employees and officers accountable for noncompliance with the Bank’s loan policy and other underwriting requirements; and (e) procedures to ensure that loans are properly monitored to include periodic receipt, analysis and documentation of sufficient financial and operating information to measure and monitor the borrower’s and guarantor’s financial condition and repayment ability, to include periodic (at least annually) cash flow analysis of income producing collateral. (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 one-hundred thousand dollars ($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) analyzing of the adequacy of repayment including borrower’s ability to service the debt with recurring cash flow; (d) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateral; (e) obtaining current and satisfactory credit information, and performing and documenting a financial analysis of credit information, including a detailed cash flow analysis of all expected repayment sources. The analysis should document an assessment and conclusions on the borrower and guar...
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within thirty (30) days of the date of this Agreement the Bank shall submit to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection an acceptable 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, 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, 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) procedures to ensure the Bank’s adherence to safe and sound real estate lending practices, including the establishment and adherence to loan-to- value limits and the establishment of an aggregate limit for loan-to-value policy exceptions as a percentage of capital. See 12 C.F.R. Part 34, Subpart D, Appendix A – Interagency Guidelines for Real Estate Lending, for guidance. (e) procedures to identify and track all exceptions and efforts to mitigate or cure exceptions, including but not limited to financial exceptions, collateral exceptions, policy exceptions, loan-to-value exceptions for real estate loans, and underwriting exceptions. The number of loans with exceptions, and their aggregate dollar value, shall be reported to the Board on a quarterly basis. The Board shall establish aggregate exception level
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Effective immediately, 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 immediately, the Bank may not grant, extend, renew, modify or restructure any loan or other extension of commercial and agricultural credit, or purchase any loan participation, equal to or exceeding two-hundred thousand dollars ($200,000), 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) 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; (i) 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 (j) obtaining the written approval of the Bank’s Loan Committee or Board. (3) Within forty-five (45) days, the Board shall revise its policies and procedures to ensure that the Bank’s credit relationships are monitored and administered in a safe and sound manner, including the development of policies and procedures to ensure that lending officers: (a) formally review all commercial and agricultural credit relationships totaling two-hundred and fifty thousand dollars ($250,000) or more, at least every twelve (12) months, and more frequently should the circumstances of the relationship so require, and that such reviews are written and contain, at a minimum, an analysis of: (i) current and satisfactory credit information, including a detailed cash flow analysis of all expected repayment sources and the financial posi...
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CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within sixty (60) days, the Board shall adopt a written program to improve the Bank's credit underwriting and administration process. The program shall include, at a minimum: (a) guidelines for evaluating and the ongoing monitoring of a borrower’s capacity to meet a realistic repayment program from liquidity and cash flow; (b) annual credit reviews for commercial or agricultural borrowers, which shall include a review and an analysis of updated financial and collateral information to determine an appropriate risk rating for the credit; (c) standards for minimally acceptable financial information on borrowers and guarantors; (d) guidelines for the identification of and accounting treatment for nonaccrual loans that are consistent with the accounting requirements contained in the Consolidated Reports of Condition and Income (“Call Reports”) Instructions; (e) prohibition of the extension of amortization periods to improve a borrower’s debt service coverage ratios or to match competition, unless supported by prudent underwriting; and (f) limitations on the use of interest reserves and capitalized interest that, at a minimum: (i) prohibit advances to fund interest reserves at renewal when the original repayment plan did not materialize, unless such advance is clearly supported by the project’s viability in the current market and the borrower’s repayment capacity; (ii) prohibit advances to fund interest reserves for non- construction or non-development related loans, e.g., holding of raw land; and (iii) prohibit capitalization of interest unless such capitalization is deemed appropriate pursuant to the guidance in Examining Circular 229, Guidelines for Capitalization of Interests on Loans. (2) Upon adoption, the Board shall submit a copy of the program required by this Article, and any subsequent amendments or changes to that program, to the Assistant Deputy Comptroller for determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall implement and thereafter ensure the Bank’s adherence to the program.
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within sixty (60) days, the Board shall develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's credit underwriting and administration process. The program shall include, at a minimum: (a) guidelines for evaluating and monitoring a borrower’s capacity to meet a realistic repayment program from liquidity and cash flow; (b) standards for minimally acceptable financial information on borrowers and guarantors; (c) guidelines for the identification of and accounting treatment for nonaccrual loans that are consistent with the accounting requirements contained in the Call Report Instructions; and (d) prohibition of the extension of amortization periods to improve a borrower’s debt service coverage ratios or to match competition, unless supported by prudent underwriting. (2) Upon adoption, a copy of the program shall be forwarded to the Assistant Deputy Comptroller for review and determination of no supervisory objection.
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within thirty (30) days, the Board shall develop a written program to improve the Bank’s credit underwriting and administration process. The program shall include, at a minimum: (a) guidelines for evaluating and monitoring a borrower’s capacity to meet an appropriate repayment program from liquidity and cash flow; (b) standards for minimally acceptable financial information on borrowers and guarantors prior to making credit decisions and on an ongoing basis as necessary to monitor the Bank’s credit risk, properly account for loans, and assign accurate risk-ratings in a timely manner; (c) guidelines for the identification of and accounting treatment for nonaccrual loans that are consistent with the accounting requirements contained in the Call Report Instructions; (d) annual financial reviews of commercial and non-owner occupied 1-4 family credit relationships over $150,000 that assess the borrower’s ongoing capacity to repay the debt; and (e) an independent loan review process, performed by qualified individual(s), to validate the accuracy of credit risk ratings. (2) Upon adoption, the Board shall submit a copy of the program required by this Article, or any subsequent amendments or changes to that program, to the Assistant Deputy Comptroller for determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall implement and thereafter ensure adherence to the program.
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