Common use of CREDIT UNDERWRITING AND ADMINISTRATION Clause in Contracts

CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within ninety (90) days of this Agreement, the Board shall 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) guidelines addressing the allowance of a loan extension or restructure that includes minimum repayment periods by collateral type, and collateral and cash flow coverage requirements. (b) procedures to ensure that the Bank does not grant, extend, renew, alter or restructure any loan, participation purchased or other extension of credit equal to or exceeding fifty thousand dollars ($50,000), 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) documenting the value of collateral, with adequate supporting material including a current appraisal or evaluation as appropriate, 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 (viii) 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) The Board shall take the necessary steps to ensure that current and satisfactory credit information is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing credit information described in the Report of Examination conducted as of 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 review, or in any listings of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examination.

CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within ninety (90) days Effective as of the date of this Agreement, the Board shall submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objectionensure that all lending officers comply with all laws, a program (including revisions to rules and regulations, Bank policies and procedures) designed to improve the Bank’s credit risk management , safe and administration sound banking practices, and fiduciary duties. The Board shall ensure that there is a program shall include at a minimum, provisions requiringin place that addresses: (a) guidelines addressing the allowance of a loan extension or restructure requirements that includes minimum repayment periods by collateral typelending officers appropriately analyze, document, and communicate appropriate credit and collateral and cash flow coverage requirements.information; (b) procedures requirement to establish a training policy for loan officers to ensure they understand policy requirements; (c) establishment of a tracking system to ensure that the Bank does not grantappropriate documentation is obtained for financial and collateral requirements for each loan; (d) policies and procedures designed to aggregate, extendtrack and eliminate exceptions to the loan Policy, renewunderwriting guidelines, alter or restructure any loanand supervisory loan to value limits, participation purchased or other extension of credit equal for all loans to or exceeding fifty thousand dollars ($50,000)include, withoutat a minimum: (i) documenting the specific reason or purpose for the extension monthly Board monitoring of creditpolicy exception reports that track aggregate number and dollar amount of loans with material exceptions by type of loan and loan officer; (ii) identifying the expected source of repayment in writing; (iii) structuring the repayment terms procedure 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) documenting the value of collateral, with adequate supporting material including a current appraisal or evaluation as appropriate, 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 (viii) obtaining the written approval of the Bank’s Loan Committee or Board; (c) procedures to ensure that monthly exception reports are accurate and that hold employees and officers are held accountable for non-compliance noncompliance with the Bank’s loan policy and other underwriting requirements;; and (de) procedures to ensure that loans are properly monitored to include periodic receipt, analysis and documentation of sufficient financial and operating information to measure and monitor the borrower’s and guarantor’s financial condition and repayment ability, to include periodic (at least annually) cash flow analysis of income producing collateral. (2) Effective as of the date of this Agreement, the Bank may not grant, extend, renew modify or restructure any loan or other extension of credit, or purchase any loan participation equal to or exceeding one-hundred thousand dollars ($100,000), without: (a) documenting the specific reason or purpose for the extension of credit; (b) identifying the expected source of repayment in writing; (c) analyzing of the adequacy of repayment including borrower’s ability to service the debt with recurring cash flow; (d) structuring the repayment terms to coincide with the expected source of repayment and the useful life of the collateral; (e) the establishment of criteria for obtaining updated appraisals, new appraisalscurrent and satisfactory credit information, and evaluationsperforming and documenting a financial analysis of credit information, including a detailed cash flow analysis of all expected repayment sources. The analysis should document an assessment and conclusions on the borrower and guarantor’s financial condition and trends in accordance with the provisions borrowers financial information such as the adequacy of 12 C.F.R. § 34global cash flow, the level of leverage, and the level and verification of liquid assets, where appropriate; (f) procedures determining and documenting whether the loan complies with the Bank’s loan policy and if it does not comply, providing identification of the exception(s) and ample justification to ensure support waiving the policy exception(s); (g) providing an accurate risk assessment grade and proper accrual status for each credit; (h) obtaining appraisals or evaluations, as appropriate; (i) performing loan stress testing and/or sensitivity analysis on individual loans as required by the Bank’s loan policy and prudent banking standards; (j) obtaining the written approval of the Bank’s Loan Committee or Board; and (k) ensuring that the renewal, grant, purchase, assumption, or acquisition of any loan participation is underwritten and monitored in a manner that is participations purchased are consistent with safe and sound banking practices, . Refer to the guidelines set forth in Banking Circular 181 (Revisedrevised), 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) 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 information described in the Report of Examination conducted or collateral information, as of June 30the date of this Agreement, 2010 (the “XXX”), in any subsequent Report of Examination, communicated 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 review, or in any listings of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examination.

CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within ninety (90) days Effective as of the date of this Agreement, the Board shall submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objectionensure that all lending officers comply with all laws, a program (including revisions to rules, regulations, Bank policies and procedures) designed to improve the Bank’s credit risk management , safe and administration sound banking practices, and fiduciary duties. The Board shall ensure that there is a program shall include at a minimum, provisions requiringin place that includes: (a) guidelines addressing the allowance of a loan extension or restructure requirements that includes minimum repayment periods by collateral typelending officers appropriately analyze, document, and communicate appropriate credit and collateral and cash flow coverage requirements.information; (b) procedures requirement to provide training for loan officers to ensure they understand policy requirements; (c) establishment of a tracking system to ensure that the Bank does not grantappropriate documentation is obtained for financial and collateral requirements for each loan; (d) policies and procedures designed to aggregate, extendtrack and eliminate exceptions to the Loan Policy, renewunderwriting guidelines, alter or restructure any loanand supervisory loan to value limits, participation purchased or other extension of credit equal for all loans to or exceeding fifty thousand dollars ($50,000)include, withoutat a minimum: (i) documenting the specific reason or purpose for the extension monthly Board monitoring of credit;policy exception reports that track aggregate number and dollar amount of loans with material exceptions by type of loan and loan officer; and (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) documenting the value of collateral, with adequate supporting material including a current appraisal or evaluation as appropriate, 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 (viii) obtaining the written approval of the Bank’s Loan Committee or Board; (c) procedures to ensure that monthly exception reports are accurate and that hold employees and officers are held accountable for non-compliance with the Bank’s loan policy and other underwriting requirements;. (de) procedures to ensure that loans are properly monitored to include periodic receipt, analysis and documentation of sufficient financial and operating information to measure and monitor the borrower’s and guarantor’s financial condition and repayment ability, to include periodic (at least annually) cash flow analysis of income- producing collateral. (2) Effective as of the date of this Agreement, the Bank may not grant, extend, renew, modify or restructure any loan or other extension of credit, or purchase any loan participation, equal to or exceeding two hundred fifty thousand ($250,000) without: (a) documenting the specific reason or purpose for the extension of credit; (b) identifying the primary source of repayment in writing and lien status; (c) structuring the repayment terms to coincide with expected source of repayment; (d) obtaining current and satisfactory verified 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 establishment of criteria for obtaining updated appraisals, new appraisals, and evaluations, in accordance loan complies with the provisions Bank’s Loan Policy and if it does not comply, providing identification of 12 C.F.R. § 34the exception and ample justification to support waiving the policy exception; (f) procedures making and documenting the determinations made regarding the customer’s ability to ensure that repay the renewal, grant, purchase, assumption, or acquisition of any credit on the proposed repayment terms; (g) providing an accurate risk assessment grade for all loan participation is underwritten and monitored in a manner that is consistent types; (h) documenting with safe and sound banking practicesadequate supporting material, the guidelines set forth value of collateral and collateral type for each loan, properly perfecting the Bank’s lien on it where applicable; and (i) performing adequate documented credit analysis for participation loans in accordance with OCC 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) 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 takes reasonable steps to obtain missing credit or collateral information described in the 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 review, or in any listings of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examination.

CREDIT UNDERWRITING AND ADMINISTRATION. (1) Within ninety (90) days Effective as of the date of this Agreement, the Board shall submit to the Assistant Deputy Comptroller for a prior written determination of no supervisory objectionensure that all lending officers comply with all laws, a program (including revisions to rules, regulations, Bank policies and procedures) designed to improve the Bank’s credit risk management , safe and administration sound banking practices, and fiduciary duties. The Board shall ensure that there is a program shall include at a minimum, provisions requiringin place that includes: (a) guidelines addressing a requirement to provide training from a qualified third-party or the allowance of a independent consultant for loan extension or restructure that includes minimum repayment periods by collateral type, officers to ensure they understand policy requirements and collateral and cash flow coverage requirements.prudent underwriting standards; (b) procedures the establishment of a tracking system to ensure that the Bank does not grantappropriate documentation is obtained for financial and collateral requirements for each loan; (c) policies and procedures designed to aggregate, extendtrack and eliminate exceptions to the Bank’s loan policy, renewunderwriting guidelines, alter or restructure any loanand supervisory loan to value limits, participation purchased or other extension of credit equal for all loans to or exceeding fifty thousand dollars ($50,000)include, withoutat a minimum: (i) documenting the specific reason or purpose for the extension monthly Board monitoring of credit;policy exception reports that track aggregate number and dollar amount of loans with material exceptions by type of loan and loan officer; and (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) documenting the value of collateral, with adequate supporting material including a current appraisal or evaluation as appropriate, 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 (viii) obtaining the written approval of the Bank’s Loan Committee or Board; (c) procedures to ensure that monthly exception reports are accurate and that hold employees and officers are held accountable for non-non- compliance with the Bank’s loan policy and other underwriting requirements;; and (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, to include periodic (at least annually) cash flow analysis of income-producing collateral. (2) Effective as of the date of this Agreement, the Bank may not grant, extend, renew, modify or restructure any loan or other extension of credit that is equal to or exceeding fifty thousand dollars ($50,000), involving a classified or special mention credit relationship or a new credit relationship, without: (a) documenting the specific reason or purpose for the extension of credit; (b) identifying the primary source of repayment in writing and lien status; (c) structuring the repayment terms to coincide with the expected source of repayment; (d) obtaining current and satisfactory credit information, including information necessary to perform cash flow analysis; (e) the establishment performing analysis of criteria for obtaining updated appraisals, new appraisals, and evaluations, in accordance with the provisions credit information to include an appropriate cash flow analysis of 12 C.F.R. § 34all expected repayment sources; (f) procedures documenting the analysis of such credit information; (g) 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 ensure support waiving the policy exception; (h) making and documenting the determinations made regarding the customer’s ability to repay the credit on the proposed repayment terms; (i) providing an accurate risk assessment grade for all loan types; (j) documenting, with adequate supporting material, the value of collateral and collateral type for each loan and properly perfecting the Bank’s lien on it where applicable; (k) ensuring that the renewal, grant, purchase, assumption, extension of credit does not contain inappropriate capitalization of interest 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 collateralamortizations; and (gl) procedures to ensure that troubled debt restructures are accurately reported in obtaining the written approval of 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 if required by this ArticleBank policy. (3) The Board shall take the necessary steps to ensure that current and satisfactory credit and proper collateral information is maintained on all loans. Within thirty (30) days of notification, the Board shall ensure that the Bank obtains any missing credit or collateral information described in the Report most recent examination of Examination conducted as of June 30, 2010 (the “XXX”), in any subsequent Report of ExaminationBank, 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 review, or in any listings of loans lacking such information provided to management by the National Bank Examiners at the conclusion of an examination.