CREDIT UNDERWRITING AND ADMINISTRATION. (1) Effective as of the date of this Agreement, the Board shall ensure that all lending officers comply with all laws, rules, regulations, Bank policies and procedures, safe and sound banking practices, and fiduciary duties. (2) Effective as of the date of this Agreement, the Bank may not grant, extend, renew, modify or restructure any loan or other extension of credit, or purchase any loan participation, equal to or exceeding $500,000 without: (a) Documenting the specific reason or purpose for the extension of credit; (b) Identifying the expected source of repayment in writing; (c) Structuring the repayment terms to coincide with the expected source of repayment; (d) Obtaining current and satisfactory credit information, including performing and documenting analysis of credit information and a detailed cash flow analysis of all expected repayment sources; (e) Determining and documenting whether the loan complies with the Bank’s Loan Policy and if it does not comply, providing identification of the exception and justification to support waiving the policy exception; (f) Making and documenting the determinations made regarding the customer’s ability to repay the credit on the proposed repayment terms; (g) Providing an accurate risk assessment grade and proper accrual status for each credit; (h) Documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable; and (i) Obtaining the written approval of the Bank’s Loan Committee or Board. (3) Within sixty (60) days of this Agreement, the Board shall take the necessary steps to eliminate credit, collateral, and Bank Loan Policy exceptions, to include, at a minimum, the development of a program that makes loan officers accountable for such exceptions and considers such exceptions in the periodic performance reviews and compensation of such loan officers.
Appears in 3 contracts
Samples: Banking Agreement, Banking Agreement, 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 applicable laws, rules, regulations, Bank policies and procedures, safe and sound banking practices, and fiduciary duties.
(2) Management must update the Credit Policy to require:
(a) appropriate loan terms and amortization schedules by loan type;
(b) appropriate curtailment and re-margining requirements;
(c) appropriate use of interest reserves;
(d) expectations for maintaining current collateral valuations for all collateral supporting the loan; and
(e) Analysis of the borrower's global debt service based on a reasonable loan structure; and
(f) a description of the Bank’s loan workout arrangement process.
(3) Effective as of the date of this Agreement, the Bank may not grant, extend, renew, modify alter, or restructure any loan or other extension of credit, or purchase any loan participation, credit equal to or exceeding two-hundred fifty thousand dollars ($500,000 250,000), without:
(a) Documenting documenting the specific reason or purpose for the extension of credit;
(b) Identifying identifying the expected source of repayment in writing;
(c) Structuring structuring the repayment terms to coincide with the expected source of repayment;
(d) 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;
(e) Determining determining and documenting whether the loan complies with the Bank’s 's revised Loan Policy and if it does not comply, providing identification of the exception and ample justification to support waiving the policy exceptionprovision;
(f) Making making and documenting the determinations made regarding the customer’s 's ability to repay the credit on the proposed repayment terms;
(g) Providing providing an accurate risk assessment grade and proper accrual status for each creditcredit as further described in Article IX;
(h) Documentingdocumenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s 's lien on it where applicable.; and
(i) Obtaining without obtaining the written approval of the Bank’s 's Loan Committee or Board.
(35) Within sixty (60) days of this Agreement, the Board shall take the necessary steps to eliminate creditobtain current and satisfactory credit information on all loans lacking such information, collateralincluding those listed in the XXX, and Bank Loan Policy exceptionsin any subsequent Report of Examination, in any internal or external loan review, or in any listings of loans lacking such information provided to include, management by the Comptroller's Examiners at a minimumthe conclusion of an examination.
(6) Within sixty (60) days of this Agreement, the development of a program that makes loan officers accountable for such exceptions Board shall ensure proper collateral documentation is maintained on all loans and considers such exceptions correct each collateral exception listed in the periodic performance reviews and compensation XXX, in any subsequent Report of Examination, in any internal or external loan review, or in any listings of loans lacking such loan officersinformation provided in writing to management by the Comptroller's Examiners at the conclusion of an examination or will be obtained within sixty (60) days of the receipt of any collateral exception.
Appears in 2 contracts
Samples: Banking Agreement (Riverview Bancorp Inc), 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) Effective as of the date of this Agreement, the Bank may not grant, extend, renew, modify alter or restructure any loan or other extension of credit, or purchase any loan participation, credit equal to or exceeding fifty thousand dollars ($500,000 50,000), without:
(a) Documenting documenting the specific reason or purpose for the extension of credit;
(b) Identifying identifying the expected source of repayment in writing;
(c) Structuring structuring the repayment terms to coincide with the expected source of repayment;
(d) 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;
(e) Determining 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 making and documenting the determinations made regarding the customer’s ability to repay the credit on the proposed repayment terms;
(g) Providing providing an accurate risk assessment grade and proper accrual status for each creditcredit as further described in Article X;
(h) Documentingdocumenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable; and
(i) Obtaining obtaining the written approval of the Bank’s Loan Committee or Board.
(3) Within thirty (30) days of the date of this Agreement, the Board shall take the necessary steps to obtain current and satisfactory credit information on all loans lacking such information, including those listed in the XXX, in any subsequent Report of Examination, in any internal or external loan review, or in any listings of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examination.
(4) Within thirty (30) days of the date of this Agreement, the Board shall ensure proper collateral documentation is maintained on all loans and correct each collateral exception listed in the XXX, in any subsequent Report of Examination, in any internal or external loan review, or in any listings of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examination.
(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.
(6) Within sixty (60) days of the date of this Agreement, the Board shall take the necessary steps to eliminate credit, collateral, and Bank Loan Policy exceptions, to include, at a minimum, the development of a program that makes loan officers accountable for such exceptions and considers such exceptions in the periodic performance reviews and compensation of such loan officers.
Appears in 1 contract
Samples: Banking Agreement
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Effective as 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 the date of this Agreementnotification, the Board shall ensure that all lending officers comply with all lawsthe Bank obtains any missing credit or collateral information described in the Report of Examination for the examination that commenced on February 16, rules2010 (“XXX”), regulationsin any internal or external loan review, or in any listings of loans lacking such information provided to management by the National Bank policies and procedures, safe and sound banking practices, and fiduciary dutiesExaminers at the conclusion of an examination.
(2) Effective as of the date of this Agreement, the Bank may not grant, extend, renew, modify or restructure any loan or other extension of credit, or purchase any loan participation, equal to or exceeding two hundred thousand dollars ($500,000 200,000), without:
(a) Documenting documenting the specific reason or purpose for the extension of credit;
(b) Identifying identifying the expected source of repayment in writing;
(c) Structuring structuring the repayment terms to coincide with the expected source of repayment;
(d) 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;
(e) Determining 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 making and documenting the determinations made regarding the customer’s ability to repay the credit on the proposed repayment terms;
(g) Providing providing an accurate risk assessment grade and proper accrual status for each credit;
(h) Documentingdocumenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(i) ensuring that any participations purchased are consistent with sound banking practices, guidelines set forth in Banking Circular 181 (Revised), dated August 2, 1984, and the requirements of 12 C.F.R. Part 34; and
(ij) Obtaining obtaining the written approval of the Bank’s Loan Committee or Board.
(34) Within sixty The Bank shall not waive the requirements of Paragraph (602) days of this Agreement, Article unless a majority of the Board or a designated committee thereof finds that the extension of credit is necessary to promote the best interests of the Bank and documents in writing the reason(s) that the failure to comply with Paragraph (2) of this Article is necessary to promote the best interests of the Bank. The required documentation of this approval shall take the necessary steps to eliminate credit, collateral, and Bank Loan Policy exceptions, to include, at a minimum, the development of a program that makes loan officers accountable for such exceptions and considers such exceptions be retained in the periodic performance reviews Board minutes and compensation of such loan officersin the relevant credit file.
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) Effective as of the date Within sixty (60) days of this Agreement, the Board shall take the necessary steps to ensure that the Bank may develops safe and sound credit risk management and administration practices, to include at a minimum:
(a) policies and procedures to ensure that the Bank does not grant, extend, renew, modify or restructure any loan or other extension of credit, or purchase any loan participation, equal to or exceeding five hundred thousand dollars ($500,000 500,000), without:
(ai) Documenting documenting the specific reason or purpose for the extension of credit;
(bii) Identifying identifying the expected source of repayment in writing;
(ciii) Structuring structuring the repayment terms to coincide with the expected source of repaymentrepayment and the useful life of the collateral;
(div) 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, evaluation of contingent liabilities and verification of liquid assets, where appropriate;
(ev) Determining 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;
(fvi) Making making and documenting the determinations made regarding the customer’s ability to repay the credit on the proposed repayment terms;
(gvii) Providing providing an accurate risk assessment grade and proper accrual status for each credit;
(hviii) Documentingobtaining an appraisal or evaluation as appropriate;
(ix) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank’s lien on it where applicable; and;
(ix) Obtaining the written approval of the Bank’s Loan Committee or Board.performing periodic, meaningful, well-documented, inspections on all construction projects;
(3xi) Within sixty ensuring draw requests are advanced in accordance with construction progress and budget;
(60xii) days maintaining records of this Agreementproject completion versus amount advanced for all construction projects;
(xiii) obtaining lien waivers from contractors and sub-contractors;
(xiv) tracking the borrower’s hard equity by project;
(xv) determining and documenting that any participations purchased comply with safe and sound banking practices, the Board shall take the necessary steps to eliminate creditguidelines set forth in Banking Circular 181 (Revised), collateraldated August 2, 1984, and Bank Loan Policy exceptions, to include, at a minimum, the development requirements of a program that makes loan officers accountable for such exceptions and considers such exceptions in the periodic performance reviews and compensation of such loan officers.12
Appears in 1 contract
Samples: Banking Agreement
CREDIT UNDERWRITING AND ADMINISTRATION. (1) Effective as of the date Within ninety (90) days of this Agreement, the Board shall ensure that all lending officers comply with all lawssubmit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection, rules, regulations, Bank 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, safe and sound banking practicesprovisions requiring:
(a) guidelines addressing the allowance of a loan extension or restructure that includes minimum repayment periods by collateral type, and fiduciary dutiescollateral and cash flow coverage requirements.
(2b) Effective as of the date of this Agreement, procedures to ensure that the Bank may does not grant, extend, renew, modify alter or restructure any loan loan, participation purchased or other extension of credit, or purchase any loan participation, credit equal to or exceeding fifty thousand dollars ($500,000 50,000), without:
(ai) Documenting documenting the specific reason or purpose for the extension of credit;
(bii) Identifying identifying the expected source of repayment in writing;
(ciii) Structuring structuring the repayment terms to coincide with the expected source of repaymentrepayment and the useful life of the collateral;
(div) 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;
(ev) Determining and documenting whether the loan complies with the Bank’s Loan Policy and if it does not comply, providing identification of the exception and justification to support waiving the policy exception;
(f) Making and documenting the determinations made regarding the customer’s ability to repay the credit on the proposed repayment terms;
(g) Providing an accurate risk assessment grade and proper accrual status for each credit;
(hvi) Documentingdocumenting the value of collateral, with adequate supporting materialmaterial including a current appraisal or evaluation as appropriate, the value of collateral and properly perfecting the Bank’s lien on it where applicable;
(vii) obtaining loan curtailment or re-margining as necessary to ensure the Bank’s collateral position is adequate; and
(iviii) Obtaining obtaining the written approval of the Bank’s Loan Committee or Board;
(c) procedures to ensure that monthly exception reports are accurate and that employees and officers are held accountable for non-compliance with the Bank’s loan policy and other underwriting requirements;
(d) 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;
(e) the establishment of criteria for obtaining updated appraisals, new appraisals, and evaluations, in accordance with the provisions of 12 C.F.R. § 34;
(f) 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
(g) procedures to ensure that troubled debt restructures are accurately reported in the Bank’s Consolidated Report of Condition (“Call Report”).
(2) 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.
(3) Within sixty (60) days of this Agreement, the The Board shall take the necessary steps to eliminate credit, collateral, ensure that current and Bank Loan Policy exceptions, to include, at a minimumsatisfactory credit information is maintained on all loans. Within thirty (30) days of notification, the development of a program Board shall ensure that makes loan officers accountable for such exceptions and considers such exceptions the Bank obtains any missing credit information described in the periodic performance reviews and compensation Report of Examination conducted as of June 30, 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.
(4) 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 officersreview, 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
