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 ninety (90) days of this Agreement, the Board shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management practices. The program shall include, at a minimum, provisions requiring policies and procedures to ensure that: (a) the Bank does not grant, extend, renew, alter or restructure any loan or other extension of credit 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, to include all direct and indirect obligations and personal expenses; (v) providing an accurate risk assessment grade and proper accrual status for each credit; (vi) obtaining an appraisal or evaluation as appropriate; (vii) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable; (viii) performing and documenting the review of real estate appraisals at the time of the underwriting process; and (ix) obtaining the written approval of the Bank’s Loan Committee or Board; (b) the Bank performs, for its agricultural land broker relationships, an initial and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information; (c) the Bank aggregates, tracks and eliminates exceptions to the Loan Policy, underwriting guidelines, and supervisory loan to value limits, to include the following minimum procedures: (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; and (ii) procedures to hold employees and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirements; and (d) Bank management provides complete and effective oversight and sound credit risk management at each Bank branch. (3) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article. (4) 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 for the examination conducted as of December 31, 2008 and updated through June 30, 2009 as appropriate (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. (5) The Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing collateral documentation described 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.
Appears in 1 contract
Samples: Banking Agreement
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.
Within sixty (2) Within ninety (9060) days of this Agreement, the Board shall develop take the necessary steps to ensure that the Bank develops safe and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and sound credit risk management and administration practices. The program shall include, to include at a minimum, provisions requiring :
(a) policies and procedures to ensure that:
(a) that the Bank does not grant, extend, renew, alter modify or restructure any loan or other extension of credit credit, or purchase any loan participation, equal to or exceeding one 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, to include all direct evaluation of contingent liabilities and indirect obligations and personal expensesverification 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;
(viviii) obtaining an appraisal or evaluation as appropriate;
(viiix) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(viiix) 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 documenting the review of real estate appraisals at the time of the underwriting processinterest rates; and
(ixxii) obtaining the written approval of the Bank’s Loan Committee or Board;
(b) the Bank performspolicies and procedures designed to aggregate, for its agricultural land broker relationships, an initial track and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information;
(c) the Bank aggregates, tracks and eliminates eliminate exceptions to the Loan Policy, underwriting guidelines, and supervisory loan to loan-to-value limits, for all loans to include the following minimum proceduresinclude, at a minimum:
(i) monthly Board monitoring of policy exception reports that track aggregate number and dollar amount of loans with material underwriting exceptions by type of loan and loan officer; and
(ii) accountability by the lending staff for such exceptions that, at a minimum, considers such exceptions in the periodic performance reviews and compensation of such lending staff;
(c) policies and procedures to hold employees ensure that all commercial, commercial real estate, and officers accountable for non- compliance with agricultural loans and participations purchased, are properly monitored to include periodic receipt (no less than annually), analysis and documentation of sufficient financial, operating and collateral information to measure and monitor the borrower’s financial condition and repayment ability, and assess the Bank’s loan policy and other underwriting requirementscollateral position; and
(d) Bank management provides complete and effective oversight and sound credit risk management at each Bank branch.
(3) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article.to ensure that management identifies and reports all real estate loans in excess of supervisory loan-to-value limits to the Board on a quarterly basis in accordance with 12 C.F.R. § 34, Subpart D, Appendix A.
(42) The Board shall take the necessary steps to ensure that current and satisfactory credit and collateral information is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing credit and/or collateral information described in the Report of Examination for the examination conducted as of December 31, 2008 and updated through June 30, 2009 as appropriate 2010 (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.
(5) The Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing collateral documentation described 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.
Appears in 1 contract
Samples: Banking Agreement
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Effective immediately, the Board shall take necessary steps to ensure the Bank’s credit risk management systems are sufficient to ensure the Bank’s loan portfolio is managed in a safe and sound manner.
(2) 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 ninety (90) days of this Agreement, the Board shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management practices. The program shall include, at a minimum, provisions requiring policies and procedures to ensure that:
(a) the Bank does may not grant, extend, renew, alter or restructure any loan or other extension of credit equal to or exceeding one hundred thousand dollars ($100,000), without:
(ia) documenting Documenting the specific reason or purpose for the extension of credit;
(iib) identifying Identifying the expected source of repayment in writing;
(iiic) structuring Structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateralrepayment;
(ivd) obtaining 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, to include all direct and indirect obligations and personal expensesa detailed analysis of the financial support of significant guarantors;
(ve) Performing a consistent and complete overview of the borrower’s other obligations (at both this Bank and other financial institutions) to analyze and determine the borrower’s overall debt load and ensure a robust global debt service analysis;
(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 ample justification to support waiving the policy exception;
(g) Documenting a determination regarding the customer’s ability to repay the credit on the proposed repayment terms;
(h) Providing an accurate risk assessment grade according to the guidelines set forth in Rating Credit Risk, A-RCR, of the Comptroller’s Handbook, and proper accrual recognizing nonaccrual status for each creditcredit according to the guidelines set forth in the Instructions for Preparation of Consolidated Reports of Condition and Income (“Call Report”);
(vii) obtaining an appraisal or evaluation as appropriate;
(vii) documentingDocumenting, with adequate supporting material, the value of collateral and properly perfecting proper perfection of the Bank’s lien on it where applicable;
(viii) performing and documenting the review of real estate appraisals at the time of the underwriting processapplicable collateral; and
(ixj) obtaining Obtaining the written approval of the Executive Loan Committee for any loan or extension of credit greater than $250,000.
(3) Within thirty (30) days of the date of this Agreement, the Board shall revise, adopt, implement and thereafter ensure Bank adherence to a written program of policies and procedures designed to manage the high level of credit risk in the Bank’s Loan Committee or Boardloan portfolio, to include at a minimum:
(a) Procedures to strengthen credit underwriting, particularly in the Bank’s commercial real estate (“CRE”) portfolio, including expanded loan presentations and analysis providing for:
(i) Detailed project plans;
(ii) Timeframes for project completion;
(iii) Detailed market analysis;
(iv) Stress testing of significant property and lending assumptions at both the transaction level and the portfolio level at the time of underwriting and periodically throughout the duration of the credit. This includes, as applicable, stress testing of interest rates, capitalization rates, absorption and pricing data, cost overruns, occupancy/vacancy rates, lease rates, and rental rates on non- owner occupied properties; and
(v) Detailed analysis of the financial support of significant guarantors;
(b) the Bank performs, for its agricultural land broker relationships, an initial and ongoing assessment The establishment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable informationCRE concentration limits;
(c) the Bank aggregatesStrategies and procedures, tracks and eliminates exceptions to the Loan Policy, underwriting guidelines, and supervisory including appropriate CRE loan to value limitsgrowth restrictions, to include reduce CRE concentrations to conform with established limits;
(d) Monthly monitoring of concentration reports that stratify the following minimum proceduresCRE portfolio by product type, locality and other meaningful measures;
(e) At a minimum, quarterly reports to senior management and the loan committee of project status, including:
(i) Development status;
(ii) Comparison of sales activity and development costs to budget;
(iii) Current market conditions and activity;
(iv) Level of interest reserve and comparison to budget; and
(v) Any other significant comments on development.
(f) Procedures to strengthen management of loan workout operations and to maintain an adequate, qualified staff in all lending function areas; and
(g) Procedures for strengthening collections.
(4) Within sixty (60) days, the Board shall revise, adopt, implement and thereafter ensure Bank adherence to a written program of policies and procedures designed to aggregate and track exceptions to policy and underwriting guideline for CRE, to include at a minimum, monthly Board monitoring of policy exception reports that track aggregate number and dollar amount of loans with of material underwriting exceptions by type of loan loan, to include exceptions to the appraisal requirements described in paragraph (5) below.
(5) Within sixty (60) days, the Board shall revise, adopt, implement and loan officerthereafter ensure Bank adherence to a written program of policies and procedures designed to ensure the Bank obtains appraisals in compliance with the Uniform Standards of Professional Appraisal Practice, 12 C.F.R. Part 34, OCC Advisory Letter 2003-9, and OCC Bulletin 2005-6, to include at a minimum:
(a) The required use of a standard appraisal form for ordering all appraisals;
(b) The ordering of appraisals, independent of the lending function;
(c) The use of Board approved appraisers only;
(d) The establishment of a policy requiring a meaningful, independent review of all appraisals to include analysis commensurate with the type, size and complexity of the property being appraised; and
(iie) procedures to hold employees The establishment of a tickler system for tracking appraisals ordered, received, returned, and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirements; and
(d) Bank management provides complete and effective oversight and sound credit risk management at each Bank branchreviewed.
(36) Upon receiving The Board shall submit a written determination copy of no supervisory objection from the revised policies and procedures required by this Article to the Assistant Deputy Comptroller.
(7) At least quarterly, the Board shall immediately implement and thereafter ensure adherence to prepare a written assessment of the programbank’s credit risk, which shall evaluate the Bank’s progress in reaching compliance with the policies and procedures required by this Article. The Board shall submit a copy of this assessment to the Assistant Deputy Comptroller.
(4) 8) 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 for the examination conducted as of December 31has processes, 2008 personnel, and updated through June 30, 2009 as appropriate (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.
(5) The Board shall take the necessary steps control systems to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days implementation of notification, and adherence to the Board shall ensure that the Bank obtains any missing collateral documentation described 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 policies and procedures developed pursuant to management by the National Bank Examiners at the conclusion of an examinationthis Article.
Appears in 1 contract
Samples: Banking Agreement
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 ninety (90) days Effective as of this Agreement, the Board shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management practices. The program shall include, at a minimum, provisions requiring policies and procedures to ensure that:
(a) the Bank does may not grant, extend, renew, alter or restructure any loan or other extension of credit equal to or exceeding one hundred thousand dollars (above $100,000), 50,000 without:
(ia) documenting the specific reason or purpose for the extension of credit;
(iib) identifying the expected source of repayment in writing;
(iiic) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateralrepayment;
(ivd) 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, to include all direct and indirect obligations and personal expenses;
(ve) 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 proper accrual status for each credit;as further described in Article VIII; and
(vi) obtaining an appraisal or evaluation as appropriate;
(viih) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(viii) performing and documenting the review of real estate appraisals at the time of the underwriting process; and
(ix) obtaining the written approval of the Bank’s Loan Committee or Board;
(b) the Bank performs, for its agricultural land broker relationships, an initial and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information;
(c) the Bank aggregates, tracks and eliminates exceptions to the Loan Policy, underwriting guidelines, and supervisory loan to value limits, to include the following minimum procedures:
(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; and
(ii) procedures to hold employees and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirements; and
(d) Bank management provides complete and effective oversight and sound credit risk management at each Bank branch.
(3) Upon receiving a written determination Within sixty (60) days of no supervisory objection from the Assistant Deputy Comptrollerdate of this Agreement, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article.
(4) The Board shall take the necessary steps to ensure that obtain current and satisfactory credit information is maintained on all loans. Within thirty (30) days of notificationloans above $50,000 lacking such information, the Board shall ensure that the Bank obtains any missing credit information described including those listed in the Report of Examination for the examination conducted as of December March 31, 2008 and updated through June 30, 2009 as appropriate (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.
(54) The Within sixty (60) days of this Agreement, the Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains loans above $50,000 and correct each collateral exception for any missing collateral documentation described loan above $50,000 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.
Appears in 1 contract
Samples: Banking Agreement
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 ninety (90) days Effective as of the date of this Agreement, the Board shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management practices. The program shall include, at a minimum, provisions requiring policies and procedures to ensure that:
(a) the Bank does may not grant, extend, renew, alter or restructure any loan or other extension of credit equal to or exceeding one hundred thousand dollars ($100,000), without:
(ia) documenting the specific reason or purpose for the extension of credit;
(iib) identifying the expected source of repayment in writing;
(iiic) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateralrepayment;
(ivd) 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, to include all direct and indirect obligations and personal expenses;
(ve) 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 proper accrual status for each credit;grade; and
(vi) obtaining an appraisal or evaluation as appropriate;
(viih) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(viii) performing and documenting the review of real estate appraisals at the time of the underwriting process; and
(ix) obtaining the written approval of the Bank’s Loan Committee or Board;
(b) the Bank performs, for its agricultural land broker relationships, an initial and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information;
(c) the Bank aggregates, tracks and eliminates exceptions to the Loan Policy, underwriting guidelines, and supervisory loan to value limits, to include the following minimum procedures:
(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; and
(ii) procedures to hold employees and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirements; and
(d) Bank management provides complete and effective oversight and sound credit risk management at each Bank branch.
(3) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article.
(4) 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 for the examination conducted as of December 31, 2008 and updated through June 30, 2009 as appropriate (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.
(54) The Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing collateral documentation described 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.
Appears in 1 contract
Samples: Banking Agreement
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 ninety (90) days Effective as of the date of this Agreement, the Board shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management practices. The program shall include, at a minimum, provisions requiring policies and procedures to ensure that:
(a) the Bank does may not grant, extend, renew, alter or restructure any loan or other extension of credit equal to or exceeding one hundred fifty thousand dollars ($100,00050,000), without:
(ia) documenting the specific reason or purpose for the extension of credit;
(iib) identifying the expected source of repayment in writing;
(iiic) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateralrepayment;
(ivd) 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, to include all direct and indirect obligations and personal expenses;
(ve) determining and documenting whether the loan complies with the Bank’s Loan Policy and if it does not comply, providing an accurate risk assessment grade identification of the exception and proper accrual status for each creditample justification to support waiving the policy exception;
(vif) obtaining an appraisal or evaluation as appropriate;making and documenting the determinations made regarding the customer’s ability to repay the credit on the proposed repayment terms; and
(viih) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(viii3) performing and documenting the review of real estate appraisals at the time Effective as of the underwriting process; and
(ix) obtaining the written approval of the Bank’s Loan Committee or Board;
(b) the Bank performs, for its agricultural land broker relationships, an initial and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information;
(c) the Bank aggregates, tracks and eliminates exceptions to the Loan Policy, underwriting guidelines, and supervisory loan to value limits, to include the following minimum procedures:
(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; and
(ii) procedures to hold employees and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirements; and
(d) Bank management provides complete and effective oversight and sound credit risk management at each Bank branch.
(3) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article.
(4) 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 notificationAgreement, the Board shall ensure that the Bank obtains any missing credit information described risks associated with the Bank’s loans are properly reflected and accounted for on the Bank’s books and records using a loan grading system that is based upon current facts, existing repayment terms and that is consistent with the guidelines set forth in Rating Credit Risk, A-RCR, of the Report of Examination Comptroller’s Handbook, to include the following corrective actions, at a minimum:
(a) ensure procedures for appropriately and timely risk rating and charging off loans are followed;
(b) hold loan officers and management accountable for failing to appropriately and timely risk rate and/or place loans on nonaccrual; and
(c) consider the examination conducted as of December 31failure to properly risk rate and/or place loans on nonaccrual in periodic performance reviews and compensation.
(4) the Board shall continue to take all necessary steps to ensure an effective, 2008 independent and updated through June 30, 2009 as appropriate (the “XXX”), in any subsequent Report of Examination, in any internal or external ongoing loan review system to review, at least annually, the Bank’s loan and lease portfolios to assure the timely identification and categorization of problem credits. The system shall provide for a written report to be filed with the Board after each review and shall use a loan and lease grading system consistent with the guidelines set forth in Rating Credit Risk, A-RCR, of the Comptroller’s Handbook. Such reports shall, at a minimum, include comments and conclusions regarding:
(a) the loan review scope and coverage parameters;
(b) the overall quality of the loan and lease portfolios;
(c) the identification, type, rating, and amount of problem loans and leases including grading differences;
(d) the identification and amount of delinquent loans and leases;
(e) credit and collateral documentation exceptions;
(f) the identification and status of credit related violations of law, rule or regulation;
(g) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (b) through (e) of this Paragraph;
(h) concentrations of credit;
(i) loans and leases to affiliates and Related Parties;
(j) loans and leases not in conformance with the Bank’s lending and leasing policies, and exceptions to the Bank’s lending and leasing policies; and
(k) any listings of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examinationrecommendations for improvements.
(5) The Board shall take Effective as of the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days date of notificationthis Agreement, the Board shall review, revise, and thereafter ensure that adherence to the Bank’s Loan Policy to include, at a minimum, revisions relating to guidelines for participations purchased as set forth in Banking Circular 181 (Revised), dated August 2, 1984, and the requirements of 12 C.F.R. Part 34, to include, at a minimum:
(a) a prohibition against purchasing any participation for which the Bank obtains any missing collateral documentation described in does not have the XXXknowledge, in any subsequent Report of Examination, in any internal or external loan reviewskills, or in any listings ability to properly underwrite on its own;
(b) standards, procedures, and limits for the purchase of loans lacking such and participations;
(c) preparation and documentation of complete, independent analysis of the credit quality of the obligations to be purchased, as well as an independent analysis of the value and lien status of the collateral pledged;
(d) maintenance of current, complete financial information provided and analysis on the borrower during the term of the loan; and
(e) the identification, waiver (if appropriate), and mitigation (if appropriate) of any exceptions to management by the National Bank Examiners at the conclusion of an examination.Bank’s Loan Policy;
Appears in 1 contract
Samples: Banking Agreement
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Effective as of the date of this Agreementimmediately, 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 ninety (90) days of this AgreementEffective immediately, the Board shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management practices. The program shall include, at a minimum, provisions requiring policies and procedures to ensure that:
(a) the Bank does may not grant, extend, renew, alter modify or restructure any loan or other extension of credit commercial credit, or purchase any loan participation, equal to or exceeding one hundred thousand dollars ($100,000), without:
(ia) documenting the specific reason or purpose for the extension of credit;
(iib) identifying the expected source of repayment in writing;
(iiic) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateralrepayment;
(ivd) 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, to include all direct and indirect obligations and personal expenses;
(ve) 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;
(vi) obtaining an appraisal or evaluation as appropriate;
(viih) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(viiii) performing ensuring that any participations purchased are consistent with sound banking practices, guidelines set forth in Banking Circular 181 (Revised), dated August 2, 1984, and documenting the review requirements of real estate appraisals at the time of the underwriting process12 C.F.R. Part 34; and
(ixj) obtaining the written approval of the Bank’s Loan Committee or Board;
(b) the Bank performs, for its agricultural land broker relationships, an initial and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information;
(c) the Bank aggregates, tracks and eliminates exceptions to the Loan Policy, underwriting guidelines, and supervisory loan to value limits, to include the following minimum procedures:
(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; and
(ii) procedures to hold employees and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirements; and
(d) Bank management provides complete and effective oversight and sound credit risk management at each Bank branch.
(3) Upon receiving a written determination of no supervisory objection from the Assistant Deputy ComptrollerOn or before March 31, 2016, the Board shall immediately implement and thereafter ensure adherence to revise the program, Bank’s policies and procedures required by to ensure compliance with the requirements of 12 C.F.R. § 34, Subpart D, Appendix A and the requirements of Paragraph (1) of this Article.
(4) The On or before March 31, 2016, the Board shall revise the Bank’s 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 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 position of the borrower and/or guarantor;
(ii) the value of any pledged collateral, with adequate supporting material;
(iii) compliance with any loan covenants;
(iv) repayment prospects considering appropriate stressed scenarios;
(v) the borrower’s operating environment, including any potential changes; and
(vi) the proposed risk assessment grade.
(b) on borrowing base credits, perform appropriate reviews, and take timely corrective actions for all loans totaling one hundred thousand dollars ($100,000) or more, secured by inventory and/or accounts receivable; and
(c) maintain proper collateral margins in loans made for the purpose of constructing upon or developing real estate, including but not limited to, procedures for ensuring that:
(i) periodic, meaningful, well-documented inspections are performed on all construction projects;
(ii) draws are advanced in accordance with construction progress and budget;
(iii) documentation of project completion versus amount advanced is maintained;
(iv) lien waivers are obtained from contractors and sub-contractors; and
(v) borrower’s hard equity is tracked by project.
(5) On or before February 29, 2016, the Board shall take the necessary steps to ensure that obtain current and satisfactory credit information is maintained on all loans. Within thirty (30) days of notificationloans lacking such information, the Board shall ensure that the Bank obtains any missing credit information described including those listed in the Report of Examination for the OCC examination conducted as of December 31commenced on August 24, 2008 and updated through June 30, 2009 as appropriate 2015 (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.
(56) The On or before February 29, 2016, the Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notification, the Board and shall ensure that the Bank obtains any missing correct each collateral documentation described 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.
(7) On or before March 31, 2016, the Board shall revise its policies and procedures to ensure that lending officers and senior management are assigned responsibility and held accountable (to include, at a minimum, consideration in periodic performance reviews and compensation) for ensuring the Bank’s adherence to the policies and procedures adopted pursuant to this Article.
(8) The Board shall submit all policies and procedures adopted pursuant to this Article to the Assistant Deputy Comptroller for a prior determination of no supervisory objection.
(9) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the policies and procedures adopted pursuant to this Article.
Appears in 1 contract
Samples: Banking Compliance Agreement
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 ninety (90) days of this Agreement, the Board shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management and administration practices. The program shall include, include at a minimum, provisions requiring policies and procedures to ensure thatrequiring:
(a) procedures to ensure that the Bank does not grant, extend, renew, alter or restructure any loan or other extension of credit equal to or exceeding one 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, to include all direct and indirect obligations and personal expensesanalysis 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;
(viviii) obtaining an appraisal or evaluation as appropriate;
(viiix) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(viii) performing and documenting the review of real estate appraisals at the time of the underwriting process; and
(ixx) obtaining the written approval of the Bank’s Loan Committee or Board;
(b) the Bank performspolicies and procedures designed to aggregate, for its agricultural land broker relationships, an initial track and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information;
(c) the Bank aggregates, tracks and eliminates eliminate exceptions to the Loan PolicyPolicy and underwriting guidelines for all loans to include, underwriting guidelines, and supervisory loan to value limits, to include the following minimum proceduresat a minimum:
(i) monthly Board monitoring of policy exception reports that track aggregate number and dollar amount of loans with material underwriting exceptions by type of loan and loan officer;
(ii) accountability by the lending staff for such exceptions that, at a minimum, considers such exceptions in the periodic performance reviews and compensation of such lending staff; and
(iii) standards for when installment loan policy exceptions are appropriate and what factors should exist to mitigate exceptions;
(c) procedures to ensure that commercial loans are properly monitored to include periodic receipt, analysis and documentation of sufficient financial and operating information to measure and monitor the borrower’s financial condition and repayment ability;
(d) controls to ensure that installment loans are underwritten in accordance with the Bank’s Loan Policy and safe and sound banking practices, to include at a minimum, policies and procedures to ensure that customers:
(i) meet employment and residency requirements;
(ii) provide complete financial information; and
(iii) provide sufficient collateral to meet or exceed required loan-to-value guidelines; and
(e) controls to ensure repossessed assets are properly safeguarded and accounted for in accordance with Generally Accepted Accounting Principles (“GAAP”), to include at a minimum:
(i) the centralization and assignment of accountability for the maintenance of proper documentation, files and accounting;
(ii) procedures to hold employees ensure repossessed assets are appropriately valued and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirementsrecorded; and
(diii) Bank management provides complete and effective oversight and sound credit risk management at each Bank branchthe development of appropriate internal controls over repossessed assets.
(3) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article.
(4) The Within thirty (30) days of this Agreement, the Board shall take the necessary steps to ensure that obtain current and satisfactory credit information is maintained on all loans. Within thirty (30) days of notificationloans lacking such information, the Board shall ensure that the Bank obtains any missing credit information described including those listed in the Report of Examination for the examination conducted as of December 31, 2008 and updated through June 30, 2009 as appropriate 2008 (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.
(5) The Within thirty (30) days of this Agreement, the Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing loans and correct each collateral documentation described 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.
Appears in 1 contract
Samples: Banking Agreement
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 ninety sixty (9060) days of the date of this Agreement, the Board shall develop review, revise, and submit thereafter ensure adherence to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management practices. The program shall Loan Policy to include, at a minimum, provisions requiring policies and procedures to ensure thatrevisions relating to:
(a) a description of acceptable types of loans and a prohibition against making any loan for which the Bank does not granthave the knowledge, extendskills or ability to properly underwrite and monitor;
(b) the establishment of underwriting standards by loan type, renewespecially commercial real estate and asset-based lending, alter or restructure any 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 or other extension 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 equal to or exceeding one hundred thousand dollars ($100,000including participations purchased), withoutto 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 and the useful life of the collateralrepayment;
(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, to include all direct and indirect obligations and personal expenses;
(v) determining and documenting whether the loan complies with the Bank’s Loan Policy and if it does not comply, providing an accurate risk assessment grade identification of the exception and proper accrual status for each creditample justification to support waiving the policy exception;
(vi) obtaining making and documenting determinations regarding the customer’s ability to repay the credit on the proposed repayment terms, including an appraisal or evaluation of both primary and secondary sources of repayment, as appropriatewell 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 it where applicable;
(viiiix) performing providing an accurate risk assessment grade;
(x) ongoing requirements for obtaining and documenting the review of real estate appraisals at the time of the underwriting processanalyzing financial statements; and
(ixxi) ongoing requirements for obtaining periodic collateral inspections as appropriate.
(e) requirements relating to guarantor support;
(f) minimum loan covenants;
(g) maturity scheduling related to the written approval anticipated source of repayment, the purpose of the loan, and the useful life of the collateral;
(h) maximum ratio of loan value to appraised value or acquisition costs of collateral securing the loan;
(i) collection procedures, to include follow-up efforts, that are systematically and progressively stronger;
(j) a pricing policy that takes into consideration costs, general overhead, and probable loan losses, while providing for a reasonable margin of profit;
(k) a definition of the Bank’s Loan Committee or Boardtrade area;
(bl) guidelines and limitations for loans originating outside of the Bank performs, for its agricultural land broker relationships, an initial and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable informationBank’s trade area;
(cm) a limitation on aggregate outstanding loans in relation to other balance sheet accounts;
(n) a prohibition regarding the Bank aggregatesuse of brokered deposits to fund loan growth or support criticized loans;
(o) guidelines for loans to insiders, tracks including a statement that such loans will not be granted on terms more favorable than those offered to similar outside borrowers;
(p) guidelines and eliminates exceptions limitations on concentrations of credit;
(q) a limitation on the type and size of loans that may be made by loan officers without prior approval by the Board or a committee established by the Board for this purpose;
(r) measures to correct the Loan Policydeficiencies in the Bank’s lending procedures noted in any XXX;
(s) guidelines designed to improve Board oversight of the loan approval process, underwriting guidelinesspecifically with regard to credits exhibiting significant risk. At a minimum, and supervisory loan to value limits, to include the following minimum procedurespolicy shall:
(i) monthly Board monitoring establish dollar limits on extensions of credit to any one borrower, above which the prior approval of the Board, or a committee thereof, would be required;
(ii) establish dollar limits on aggregate extensions of credit to any one borrower, above which any new extensions of credit to that borrower, regardless of amount, would require the prior approval of the Board, or a committee thereof; and
(iii) require that all credits which deviate from the Bank’s normal course of business, including all credits which deviate from the Bank’s written strategic plan, receive the prior approval of the Board, or a committee thereof.
(t) guidelines consistent with Banking Circular 255, setting forth the criteria under which renewals of extensions of credit may be approved. At a minimum the policy exception reports shall:
(i) ensure that track aggregate number and dollar amount renewals are not made for the sole purpose of loans with material exceptions by type reducing the volume of loan and loan officerdelinquencies; and
(ii) procedures provide guidelines and limitations on the capitalization of interest;
(u) charge-off guidelines, by type of loan or other asset, including Other Real Estate Owned, addressing the circumstances under which a charge-off would be appropriate and ensuring the recognition of losses within the quarter of discovery;
(v) guidelines for participations as set forth in Banking Circular 181 (Revised), dated August 2, 1984, and the requirements of 12 C.F.R. Part 34, and a prohibition against purchasing any participation for which the Bank does not have the knowledge, skills or ability to hold employees and officers accountable properly underwrite on its own;
(w) guidelines for non- compliance with periodic review of the Bank’s loan policy and other underwriting requirementsadherence to the revised lending policy; and
(dx) Bank management provides complete guidelines for periodic review and effective oversight and sound credit risk management at each Bank branchrevision of the lending policy.
(3) Upon receiving a written determination Within sixty (60) days of no supervisory objection from the Assistant Deputy Comptrollerdate of this Agreement, the Board shall immediately implement appoint a capable and thereafter ensure adherence qualified person or persons to serve as a real estate lending official who shall:
(a) assist in the program, development of the commercial real estate risk management policies and procedures and the Mortgage Lending Program required by Article VII of this ArticleAgreement; and
(b) be vested with sufficient authority to monitor and ensure the Bank’s compliance with the commercial real estate risk management policies and procedures and the Mortgage Lending Program required by Article VII of this Agreement.
(4) The Within sixty (60) days of the date of this Agreement, the Board shall take the necessary steps to ensure that obtain current and satisfactory credit information is maintained on all loans. Within thirty (30) days of notificationloans lacking such information, the Board shall ensure that the Bank obtains any missing credit information described including those listed in the Report of Examination for the examination conducted as of December 31, 2008 and updated through June 30, 2009 as appropriate 2007 (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.
(5) The Within sixty (60) days of the date of this Agreement, the Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing loans and correct each collateral documentation described 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.
(6) Within sixty (60) days of the date of this Agreement, the Board shall revise, adopt, implement, and thereafter ensure Bank adherence to a written program of policies and procedures designed to aggregate and track exceptions to the Bank Loan Policy and underwriting guidelines for all loans. This includes at a minimum, monthly Board monitoring of policy exception reports that track aggregate number and dollar amount of loans with material underwriting exceptions by type of loan and loan officer.
Appears in 1 contract
Samples: Banking Agreement
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 ninety sixty (9060) days of this Agreementdays, the Board shall develop prepare and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, objection a program (including revisions to policies and procedures) designed to improve which shall ensure the Bank’s underwriting and credit risk management practices. The program shall include, at a minimum, provisions requiring policies and procedures to ensure that:compliance with Paragraphs (3)-(7) of this Article.
(a3) the The Bank does may not grant, extend, renew, alter or restructure any loan or other extension of credit equal to or exceeding one two hundred fifty thousand dollars ($100,000250,000), without:
(ia) documenting the specific reason or purpose for the extension of credit;
(iib) identifying the expected source of repayment in writing;
(iiic) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateralrepayment;
(ivd) 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 global cash flow analysis, to include all sources that incorporates direct and indirect obligations obligations, contingent liabilities and personal expenses;
(ve) 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) providing an accurate risk assessment grade and proper accrual status for each creditcredit as further described in Article VI;
(vi) obtaining an appraisal or evaluation as appropriate;
(viig) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(viii) performing and documenting the review of real estate appraisals at the time of the underwriting process; and
(ixh) obtaining the written approval of the Bank’s Loan Committee or Board.
(4) The Board shall ensure that policies and procedures are created and implemented to ensure that loan officers periodically (at least annually or more frequently if necessary given the circumstances of the particular credit relationship) perform reviews that meet the requirements of Paragraph (3) of this Article, for all credit relationships totaling two hundred fifty thousand dollars ($250,000) or more.
(5) The Board shall ensure that policies and procedures are created and implemented to ensure that loan officers implement prudent repayment structures for all credits;
(b6) the Bank performs, for its agricultural land broker relationships, an initial and ongoing assessment of agricultural land inventory with detailed listings of origination date, The Board shall ensure that loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information;
(c) the Bank aggregates, tracks and eliminates exceptions to the Loan Policy, underwriting guidelines, and supervisory loan to value limits, to include the following minimum procedures:
(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; and
(ii) procedures to hold employees and officers accountable for non- compliance with follow the Bank’s loan policy and other underwriting requirements; andregarding the structure of real estate loans;
(d7) Bank management provides complete and effective oversight and sound Loan officers shall draft credit risk management at each Bank branchmemoranda to document the completion of the requirements of the program adopted pursuant to this Article.
(38) The Board shall ensure that appropriate policies and procedures are in place to hold loan officers accountable for the requirements of this Article.
(9) 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 XXX, in any internal or external loan review, or in any listing of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examination.
(10) Upon receiving a prior written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article.
(4) 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 for the examination conducted as of December 31, 2008 and updated through June 30, 2009 as appropriate (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.
(5) The Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing collateral documentation described 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.
Appears in 1 contract
Samples: Banking Agreement
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 ninety (90) days Effective as of the date of this Agreement, the Board Bank shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management practices. The program shall include, at a minimum, provisions requiring policies and procedures to ensure that:
(a) the Bank does not grant, extend, renew, alter or restructure any loan or other extension of credit equal to or exceeding one hundred fifty thousand dollars ($100,00050,000), without:
(ia) documenting the specific reason or purpose for the extension of credit;
(iib) identifying the expected source of repayment in writing;
(iiic) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateral;
(ivd) 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, to include all direct and indirect obligations and personal expenses;
(ve) providing an accurate risk assessment grade and proper accrual status for each credit;
(vif) obtaining an appraisal or evaluation as appropriate;
(viig) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(viii) performing and documenting the review of real estate appraisals at the time of the underwriting process; and
(ixh) obtaining the written approval of the Bank’s Loan Committee or Board.
(3) Within sixty (60) days of this Agreement, the Board shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s credit risk management and administration practices. The program shall include at a minimum, provisions requiring:
(a) actions to be taken in the event the Bank exceeds its concentration of credit limits;
(b) the Bank performs, development and use of specific guidelines for its agricultural land broker relationships, an initial and ongoing assessment of agricultural land inventory with detailed listings of origination date, when loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable informationextensions are appropriate;
(c) specific guidelines on when additional loan curtailment or re-margining is required;
(d) policies and procedures designed to ensure that the Bank aggregatescomplies with Paragraph (2) of the Article;
(e) policies and procedures designed to aggregate, tracks track and eliminates eliminate exceptions to the Loan Policy, underwriting guidelines, and supervisory loan to value limits, for all loans to include the following minimum proceduresinclude, 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; and
(ii) procedures to hold employees and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirements;
(f) 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;
(g) the establishment of criteria for obtaining updated appraisals, new appraisals, and evaluations;
(h) the establishment and implementation of a policy requiring a meaningful documented review, independent of the lender, of all appraisals to include analysis commensurate with the type, size and complexity of the property being appraised;
(i) procedures to ensure that the renewal, grant, purchase, assumption, or acquisition of any loan participation is underwritten and monitored in a manner that is consistent with safe and sound banking practices, the guidelines set forth in Banking Circular 181 (Revised), dated August 2, 1984, and the requirements of 12 C.F.R. Part 34, to include a sound review of any appraisal of collateral; and
(dj) Bank management provides complete written policies and effective oversight procedures to ensure that each parcel of Other Real Estate Owned (“OREO”) is managed in accordance with 12 U.S.C. § 29 and sound credit risk management at each Bank branch.12 C.F.R. Part 34, Subpart E.
(34) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article.
(45) 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 for the examination conducted as of December 31, 2008 and updated through June 30, 2009 as appropriate (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.
(56) The Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing collateral documentation described 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.
Appears in 1 contract
Samples: Banking Agreement
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 ninety sixty (9060) days of this Agreement, the Board shall develop take the necessary steps to ensure that the Bank develops safe and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and sound credit risk management and administration practices. The program shall include, to include at a minimum, provisions requiring :
(a) policies and procedures to ensure that:
(a) that the Bank does not grant, extend, renew, alter modify or restructure any loan or other extension of credit credit, or purchase any loan participation, equal to or exceeding one hundred seventy five thousand dollars ($100,000175,000), 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, to include all direct evaluation of contingent liabilities and indirect obligations and personal expensesverification 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;
(viviii) obtaining an appraisal or evaluation as appropriate;
(viiix) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(viiix) performing 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 review requirements of real estate appraisals at the time of the underwriting process12 C.F.R. Part 34; and
(ixxi) obtaining the written approval of the Bank’s Loan Committee or Board;
(b) the Bank performspolicies and procedures designed to aggregate, for its agricultural land broker relationships, an initial track and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information;
(c) the Bank aggregates, tracks and eliminates eliminate exceptions to the Loan PolicyPolicy and underwriting guidelines for all loans to include, underwriting guidelines, and supervisory loan to value limits, to include the following minimum proceduresat a minimum:
(i) monthly Board monitoring of policy exception reports that track aggregate number and dollar amount of loans with material underwriting exceptions by type of loan and loan officer; and
(ii) procedures to hold employees accountability by the lending staff for such exceptions that, at a minimum, considers such exceptions in the periodic performance reviews and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirementscompensation of such lending staff; and
(dc) Bank management provides complete policies and effective oversight procedures to ensure that all commercial, commercial real estate, and sound credit risk management at each Bank branchagricultural loans are properly monitored to include periodic receipt (no less than annually), analysis and documentation of sufficient financial and operating information to measure and monitor the borrower’s financial condition and repayment ability.
(3) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article.
(4) 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 for the examination conducted as of December 31that commenced on February 8, 2008 and updated through June 30, 2009 as appropriate 2010 (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.
(54) The Effective as of the date of this Agreement, the Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notificationeliminate credit, collateral, and Bank Loan Policy exceptions, to include, at a minimum, the Board shall ensure development of a program that the Bank obtains any missing collateral documentation described makes loan officers accountable for such exceptions and considers such exceptions in the XXX, in any subsequent Report periodic performance reviews and compensation of Examination, in any internal or external such loan review, or in any listings of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examinationofficers.
Appears in 1 contract
Samples: Banking Compliance Agreement
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. 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; and
(b) loan officer accountability for failure to timely risk rate loans and timely recognize nonaccrual loans under their respective supervision.
(2) Within ninety (90) days Effective as of the date of this Agreement, the Board shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management practices. The program shall include, at a minimum, provisions requiring policies and procedures to ensure that:
(a) the Bank does may not grant, extend, renew, alter or restructure any loan or other extension of credit equal to or exceeding one hundred thousand dollars ($100,000), without:
(ia) documenting the specific reason or purpose for the extension of credit;
(iib) identifying the expected source of repayment in writing;
(iiic) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateralrepayment;
(ivd) 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, to include all direct and indirect obligations and personal expenses;
(ve) 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 proper accrual status for each creditgrade;
(vih) obtaining an appraisal or evaluation as appropriate;
(vii) documenting, 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;
(viii) performing and documenting the review of real estate appraisals at the time of the underwriting process; and
(ixi) obtaining the written approval developing procedures to ensure that an appraisal or evaluation are obtained when there has been a material deterioration in market conditions or physical aspects of the Bankproperty or a deterioration in the borrower’s Loan Committee financial condition or Board;
(b) the Bank performs, for its agricultural land broker relationships, an initial and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information;
(c) the Bank aggregates, tracks and eliminates exceptions to the Loan Policy, underwriting guidelines, and supervisory loan to value limits, to include the following minimum procedures:
(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; and
(ii) procedures to hold employees and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirements; and
(d) Bank management provides complete and effective oversight and sound credit risk management at each Bank branchrating.
(3) Upon receiving a written determination Within sixty (60) days of no supervisory objection from the Assistant Deputy Comptrollerdate of this Agreement, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article.
(4) The Board shall take the necessary steps to ensure that obtain current and satisfactory credit information is maintained on all loans. Within thirty (30) days of notificationloans lacking such information, the Board shall ensure that the Bank obtains any missing credit information described including those listed in the Report of Examination for the examination conducted as of December 31February 11, 2008 and updated through June 30, 2009 as appropriate (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.
(5) The Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing collateral documentation described 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.
Appears in 1 contract
Samples: Banking Agreement
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 ninety (90) days Effective as of the date of this Agreement, the Board shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management practices. The program shall include, at a minimum, provisions requiring policies and procedures to ensure that:
(a) the Bank does may not grant, extend, renew, alter or restructure any loan or other extension of credit equal to or exceeding one hundred thousand dollars ($100,000), without:
(ia) documenting the specific reason or purpose for the extension of credit;
(iib) identifying the expected source of repayment in writing;
(iiic) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateralrepayment;
(ivd) 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, to include all direct and indirect obligations and personal expenses;
(ve) 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 proper accrual status for each credit;grade; and
(vi) obtaining an appraisal or evaluation as appropriate;
(viih) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(viii) performing and documenting the review of real estate appraisals at the time of the underwriting process; and
(ix) obtaining the written approval of the Bank’s Loan Committee or Board;
(b) the Bank performs, for its agricultural land broker relationships, an initial and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information;
(c) the Bank aggregates, tracks and eliminates exceptions to the Loan Policy, underwriting guidelines, and supervisory loan to value limits, to include the following minimum procedures:
(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; and
(ii) procedures to hold employees and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirements; and
(d) Bank management provides complete and effective oversight and sound credit risk management at each Bank branch.
(3) Upon receiving a written determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article.
(4) 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 for the examination conducted as of December 31, 2008 and updated through June 30, 2009 as appropriate (the “XXX”), in any subsequent Report of ExaminationXXX, 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.
(54) The Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing collateral documentation described in the XXX, in any subsequent Report of ExaminationXXX, 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.
(5) Effective as of the date of this Agreement the Board shall ensure Bank adherence to the Bank’s written Appraisal and Evaluation policy and procedures for obtaining updated appraisals, new appraisals, and evaluations, in accordance with the provisions of USPAP, 12 C.F.R. Part 34, Advisory Letter 2003-9, and OCC Bulletin 2005-6.
Appears in 1 contract
Samples: Banking Agreement
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 ninety (90) days Effective as of the date of this Agreement, the Board shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management practices. The program shall include, at a minimum, provisions requiring policies and procedures to ensure that:
(a) the Bank does may not grant, extend, renew, alter modify or restructure any loan or other extension of credit equal to or exceeding one two-hundred fifty thousand dollars ($100,000250,000), without:
(ia) documenting the specific reason or purpose for the extension of credit;
(iib) identifying the expected source of repayment in writing;
(iiic) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateralrepayment;
(ivd) 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, to include all direct and indirect obligations and personal expenses;
(ve) 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 creditcredit as further described in Article X;
(vi) obtaining an appraisal or evaluation as appropriate;
(viih) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(viii) performing and documenting the review of real estate appraisals at the time of the underwriting process; and
(ixi) obtaining the written approval of the Bank’s Loan Committee or Board;
(b) the Bank performs, for its agricultural land broker relationships, an initial and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information;
(c) the Bank aggregates, tracks and eliminates exceptions to the Loan Policy, underwriting guidelines, and supervisory loan to value limits, to include the following minimum procedures:
(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; and
(ii) procedures to hold employees and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirements; and
(d) Bank management provides complete and effective oversight and sound credit risk management at each Bank branch.
(3) Upon receiving a written determination Within thirty (30) days of no supervisory objection from the Assistant Deputy Comptrollerthis Agreement, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article.
(4) The Board shall take the necessary steps to ensure that obtain current and satisfactory credit information is maintained on all loans. 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.
(4) Within thirty (30) days of notificationthis Agreement, the Board shall ensure that the Bank obtains any missing credit information described proper collateral documentation is maintained on all loans and correct each collateral exception listed in the Report of Examination for the examination conducted as of December 31, 2008 and updated through June 30, 2009 as appropriate (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.
(5) The Within sixty (60) days of this Agreement, the Board shall revise, adopt, implement, and thereafter ensure Bank adherence to a written program of policies and procedures designed to aggregate and track exceptions to the Bank Loan Policy. This includes at a minimum, monthly Board monitoring of policy exception reports that track aggregate number and dollar amount of loans with material underwriting exceptions by type of loan and loan officer.
(6) Within sixty (60) days of this Agreement, the Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notificationeliminate credit, collateral, and Bank Loan Policy exceptions, to include, at a minimum, the Board shall ensure development of a program that the Bank obtains any missing collateral documentation described makes loan officers accountable for such exceptions and considers such exceptions in the XXX, in any subsequent Report periodic performance reviews and compensation of Examination, in any internal or external such loan review, or in any listings of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examinationofficers.
Appears in 1 contract
Samples: Banking Compliance Agreement
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 ninety (90) days Effective as of the date of this Agreement, the Board shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management practices. The program shall include, at a minimum, provisions requiring policies and procedures to ensure that:
(a) the Bank does may not grant, extend, renew, alter or restructure any loan or other extension of credit equal to or exceeding one hundred thousand dollars ($100,000), without:
(ia) documenting the specific reason or purpose for the extension of credit;
(iib) identifying the expected source of repayment in writing;
(iiic) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateralrepayment;
(ivd) 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, to include all direct and indirect obligations and personal expenses;
(ve) 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 proper accrual status for each credit;as further described in Article VI; and
(vi) obtaining an appraisal or evaluation as appropriate;
(viih) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(viii) performing and documenting the review of real estate appraisals at the time of the underwriting process; and
(ix) obtaining the written approval of the Bank’s Loan Committee or Board;
(b) the Bank performs, for its agricultural land broker relationships, an initial and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information;
(c) the Bank aggregates, tracks and eliminates exceptions to the Loan Policy, underwriting guidelines, and supervisory loan to value limits, to include the following minimum procedures:
(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; and
(ii) procedures to hold employees and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirements; and
(d) Bank management provides complete and effective oversight and sound credit risk management at each Bank branch.
(3) Upon receiving a written determination Within sixty (60) days of no supervisory objection from the Assistant Deputy Comptrollerdate of this Agreement, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article.
(4) The Board shall take the necessary steps to ensure that obtain current and satisfactory credit information is maintained on all loans. Within thirty (30) days of notificationloans lacking such information, the Board shall ensure that the Bank obtains any missing credit information described including those listed in the Report of Examination for the examination conducted as of December March 31, 2008 and updated through June 30, 2009 as appropriate 2007 (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.
(54) The Within sixty (60) days of the date of this Agreement, the Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing loans and correct each collateral documentation described 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.
(5) Within sixty (60) days of the date of this Agreement, the Board shall revise, adopt, implement, and thereafter ensure Bank adherence to a written program of policies and procedures designed to aggregate and track exceptions to the Bank Loan Policy and underwriting guidelines for all loans and exceptions to the appraisal requirements described in Article VI. This includes at a minimum, monthly Board monitoring of policy exception reports that track aggregate number and dollar amount of loans with material underwriting exceptions by type of loan and loan officer.
Appears in 1 contract
Samples: Banking Agreement
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 ninety (90) days Effective as of the date of this Agreement, the Board shall develop and submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, a program (including revisions to policies and procedures) designed to improve the Bank’s underwriting and credit risk management practices. The program shall include, at a minimum, provisions requiring policies and procedures to ensure that:
(a) the Bank does may not grant, extend, renew, alter or restructure any loan or other extension of credit equal to or exceeding one hundred totaling seventy-five thousand dollars ($100,000)75,000) or above, without:
(ia) documenting Documenting the specific reason or purpose for the extension of credit;
(iib) identifying Identifying the expected source of repayment in writing;
(iiic) structuring Structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateralrepayment;
(ivd) obtaining 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, to include all direct and indirect obligations and personal expenses;
(ve) 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 proper accrual status for each credit;as further described in Article IX; and
(vih) obtaining an appraisal or evaluation as appropriate;
(vii) documentingDocumenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(viii) performing and documenting the review of real estate appraisals at the time of the underwriting process; and
(ix) obtaining the written approval of the Bank’s Loan Committee or Board;
(b) the Bank performs, for its agricultural land broker relationships, an initial and ongoing assessment of agricultural land inventory with detailed listings of origination date, loan amount, outstanding balance, date of purchase, date of sale, collateral description, value and source, amount of pay down, partial/full release, and other applicable information;
(c) the Bank aggregates, tracks and eliminates exceptions to the Loan Policy, underwriting guidelines, and supervisory loan to value limits, to include the following minimum procedures:
(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; and
(ii) procedures to hold employees and officers accountable for non- compliance with the Bank’s loan policy and other underwriting requirements; and
(d) Bank management provides complete and effective oversight and sound credit risk management at each Bank branch.
(3) Upon receiving a written determination of no supervisory objection from the Assistant Deputy ComptrollerEffective immediately, the Board shall immediately implement and thereafter ensure adherence to the program, policies and procedures required by this Article.
(4) The Board shall take the necessary steps to ensure that obtain 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 for the examination conducted as of December 31, 2008 and updated through June 30, 2009 as appropriate (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.
totaling seventy-five thousand dollars (5$75,000) The Board shall take the necessary steps to ensure that proper collateral documentation is maintained on all loans. Within thirty (30) days of notificationor above, the Board shall ensure that the Bank obtains any missing collateral documentation described 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 any examination.
(4) Effective immediately, the Board shall ensure proper collateral documentation is maintained on all loans totaling seventy-five thousand dollars ($75,000) or above, and correct each collateral exception for any loan totaling seventy-five thousand dollars ($75,000) 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 any examination.
Appears in 1 contract
Samples: Banking Agreement
