CRITICIZED ASSETS. (1) The Association shall take immediate and continuing action to protect its interest in those assets criticized in the XXX, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination.
(2) Within sixty (60) days, the Board shall adopt, implement, and thereafter ensure Association adherence to a written program designed to eliminate the basis of criticism of assets equal to or exceeding two hundred and fifty thousand dollars ($250,000), criticized in the XXX, in any subsequent Report of Examination, or by any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination as “doubtful” “substandard.” This program shall include, at a minimum:
(a) an identification of the expected sources of repayment;
(b) the appraised value of supporting collateral and the position of the Association’s lien on such collateral where applicable;
(c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; and
(d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment.
(3) Upon adoption, a copy of the program shall be forwarded to the Assistant Deputy Comptroller.
(4) The Board shall ensure that the Association has processes, personnel, and control systems to ensure implementation of and adherence to the program developed pursuant to this Article.
(5) The Board, or a designated committee, shall conduct a review, on at least a quarterly basis, to determine:
(a) the status of each criticized asset or criticized portion thereof that equals or exceeds two hundred and fifty thousand dollars ($250,000);
(b) management’s adherence to the program adopted pursuant to this Article;
(c) the status and effectiveness of the written program; and
(d) the need to revise the program or take alternative action.
(6) A copy of each review shall be forwarded to the Assistant Deputy Comptroller on a quarterly basis (in a format similar to Appendix A, attached hereto).
(7) The Association may extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the XXX, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the Nati...
CRITICIZED ASSETS. (1) Within thirty (30) days, the Board shall adopt revisions to and the Bank, subject to Board review and ongoing monitoring, shall implement and thereafter ensure adherence to a revised written Criticized Asset Reduction Plan (“CARP”) designed to protect the Bank’s interest in those assets criticized in the most recent Report of Examination (“XXX”) in any subsequent XXX, by any internal or external loan review, or in any list provided to management by OCC examiners during any examination as "doubtful," "substandard," or "special mention." The CARP shall continue to include Asset Action Plans (“AAPs”), except the Bank shall revise or develop AAPs as needed to ensure that the CARP identifies all credit relationships and other assets totaling in aggregate two hundred and fifty thousand dollars ($250,000) or more, criticized as "doubtful," "substandard," or "special mention," and that each AAP otherwise meets the requirements listed below. The AAPs shall continue to be updated and submitted to the Board monthly. Each AAP shall cover an entire credit relationship and include, at a minimum, analysis and documentation of the following:
(a) the origination date and any renewal or extension dates, amount, purpose of the loan, and the originating and current loan officer(s);
(b) the expected primary and secondary sources of repayment, and an analysis of the adequacy of the repayment source;
(c) the appraised value of supporting collateral and the position of the Bank's lien on such collateral, where applicable, as well as other necessary documentation to support the current collateral valuation;
(d) an analysis of current and complete credit information, including cash flow analysis where loans are to be repaid from operations;
(e) results of any ASC 310 impairment analysis;
(f) significant developments, including a discussion of changes since the prior AAP, if any; and
(g) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment.
(2) Upon adoption, a copy of the CARP shall be submitted to the ADC. The AAPs shall be submitted to the ADC on a quarterly basis.
(3) The Bank shall not extend credit, directly or indirectly, including renewals, modifications or extensions, to a borrower whose loans or other extensions of credit are criticized in any XXX, in any internal or external loan review, or in any list provided to management by OCC Examiners during any examination, unless and until the Board, or its designated committee, fi...
CRITICIZED ASSETS. (1) The Bank shall take immediate and continuing action to protect its interest in those assets criticized in the XXX, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the National Bank Examiners.
(2) The Board shall continue to ensure Bank adherence to a written program designed to eliminate the basis of criticism of assets criticized in the XXX, in any subsequent Report of Examination, or by any internal or external loan review, or in any list provided to management by the National Bank Examiners as “doubtful,” “substandard,” or “special mention.” This program shall include, at a minimum:
(a) an identification of the expected sources of repayment;
(b) the appraised value of supporting collateral and the position of the Bank’s lien on such collateral where applicable;
(c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; and
(d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment.
(3) Upon adoption, a copy of the program for all criticized assets equal to or exceeding five hundred thousand dollars ($500,000) shall be forwarded to the Assistant Deputy Comptroller.
(4) The Board, or a designated committee, shall conduct a review, on at least a monthly basis, to determine:
(a) the status of each criticized asset or criticized portion thereof that equals or exceeds five hundred thousand dollars ($500,000);
(b) management’s adherence to the program adopted pursuant to this Article;
(c) the status and effectiveness of the written program; and
(d) the need to revise the program or take alternative action.
(5) A copy of each review shall be forwarded to the Assistant Deputy Comptroller on a quarterly basis in a format similar to Appendix A, attached hereto.
(6) The Bank may extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the XXX, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the National Bank Examiners and whose aggregate loans or other extensions exceed five hundred thousand dollars ($500,000) only if each of the following conditions is met:
(a) the Board or designated committee finds that the extension of additional credit is necessary to promote the best ...
CRITICIZED ASSETS. (1) The Bank shall take immediate and continuing action to protect its interest in those assets criticized in the XXX, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination.
(2) Within thirty (30) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written program designed to eliminate the basis of criticism of assets criticized in the XXX, in any subsequent Report of Examination, by any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination as “doubtful,” “substandard,” or “special mention” that equals or exceeds seven hundred and fifty thousand dollars ($750,000). This program shall be documented using the format of the Bank’s Quarterly Asset Report form, and include, at a minimum:
(a) an identification of the expected sources of repayment;
(b) the current value of supporting collateral and the position of the Bank’s lien on such collateral where applicable;
(c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations and a robust, global guarantor analysis where repayment is guarantor dependent; and
(d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment.
(3) A copy of this written program shall be maintained in the file of the affected borrower.
(4) The Board shall ensure that the Bank has processes, personnel, training, and control systems to ensure implementation of and adherence to the program developed pursuant to this Article.
(5) The Board, or a designated committee of the Board, shall conduct a review, on at least a monthly basis, to determine:
(a) the status of each criticized asset or criticized portion thereof that equals or exceeds three million dollars ($3,000,000);
(b) management’s adherence to the workout plan adopted pursuant to this Article;
(c) the status and effectiveness of the workout plan; and
(d) the need to revise the workout plan or take alternative action.
(6) A copy of each review shall be forwarded to the Assistant Deputy Comptroller on a quarterly basis along with all Quarterly Asset Reports developed for paragraph (2).
CRITICIZED ASSETS. (1) The Bank shall take immediate and continuing action to protect its interest in those assets criticized in the XXX, in any subsequent Reports of Examination, by internal or external loan review, or in any list provided to management by the National Bank Examiners during any supervisory activity.
(2) Within sixty (60) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written program designed to eliminate the basis of criticism of assets criticized in the XXX, in any subsequent Reports of Examination, or by any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination as "doubtful," "substandard," or "special mention." This program shall include, at a minimum:
(a) an identification of the expected sources of repayment;
(b) the appraised value of supporting collateral and the position of the Bank's lien on such collateral where applicable;
(c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; and
(d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment.
(3) Upon adoption, a copy of the program for all criticized assets equal to or exceeding $100 thousand dollars ($100,000) shall be forwarded to the ADC.
(4) The Board, or a designated committee, shall conduct a review, on at least a quarterly basis, to determine:
(a) the status of each criticized asset or criticized portion thereof that equals or exceeds $100 thousand dollars ($100,000);
(b) management's adherence to the program adopted pursuant to this Article;
(c) the status and effectiveness of the written program; and
(d) the need to revise the program or take alternative action.
(5) A copy of each review shall be forwarded to the ADC on a quarterly basis (in a format similar to Appendix A, attached hereto).
(6) The Bank may extend credit, directly or indirectly, including renewals, extensions or capitalization of accrued interest, to a borrower whose loans or other extensions of credit are criticized in the XXX, in any subsequent Report of Examination, in any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination and whose aggregate loans or other extensions exceed $100 thousand ($100,000) only if each of the following conditions is met:
(a) the Board or designated committee finds that the extension of addi...
CRITICIZED ASSETS. (1) The Bank shall take immediate and continuing action to protect its interest in those assets criticized in the most recent Report of Examination, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination.
(2) Within sixty (60) days, the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement, and thereafter ensure adherence to a written program designed to reduce the level of criticized assets to a level deemed satisfactory.
(3) A copy of the Board’s program shall be submitted to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Bank shall implement and adhere to the program.
(4) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program developed pursuant to this Article.
(5) The Board, or a designated committee, shall conduct a review, on at least a quarterly basis, to determine:
(a) the status of each criticized asset or criticized portion thereof that equals or exceeds two hundred fifty thousand dollars ($250,000);
(b) management’s adherence to the program adopted pursuant to this Article;
(c) the status and effectiveness of the written program; and
(d) the need to revise the program or take alternative action.
(6) A copy of each review shall be forwarded to the Assistant Deputy Comptroller on a quarterly basis.
CRITICIZED ASSETS. (1) Within sixty (60) days of the Effective Date of this Agreement the Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to a written program designed to protect the Bank’s interest in those assets criticized in the most recent Report of Examination (“XXX”), in any subsequent XXX, by any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination as “doubtful,” “substandard,” or “special mention.” The program shall include the development of Criticized Asset Reports (“CARs”) identifying all credit relationships and other assets totaling in aggregate one million five hundred thousand dollars ($1,500,000) or more, criticized as “doubtful,” “substandard,” or “special mention.” The CARs must be updated and submitted to the Board and the Assistant Deputy Comptroller quarterly. Each CAR shall cover an entire credit relationship and include, at a minimum, analysis and documentation of the following:
(a) the origination date and any renewal or extension dates, amount, purpose of the loan, the originating and current loan officer(s), and a brief explanation of why the relationship is a problem asset;
(b) the expected primary and secondary sources of repayment, and an analysis of the adequacy of the repayment source;
(c) the appraised value of supporting collateral and the position of the Bank’s lien on such collateral, where applicable, as well as other necessary documentation to support the current collateral valuation;
(d) an analysis of current and complete credit information, including cash flow analysis where loans are to be repaid from operations, and analysis of any guarantor on whom the Bank intends to rely as part of the workout strategy;
(e) results of any FAS 114 impairment analysis;
(f) significant developments, including a discussion of changes since the prior CAR, if any and any charge offs, including date and amount; and
(g) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment, including an appropriate exit strategy.
(2) The Board shall assess periodically, and no less than quarterly, the adequacy of work-out staff, in terms of both numbers and expertise, to ensure staffing levels are appropriate to address the Bank’s level of criticized assets.
(3) The Bank may not extend credit, directly or indirectly, including renewals, extensions, or capitalization of accrued ...
CRITICIZED ASSETS. (1) The Bank shall take immediate and continuing action to protect its interest in those assets criticized in the XXX, in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the National Bank Examiners.
(2) Within sixty (60) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written program designed to eliminate the basis of criticism of assets criticized in the XXX, in any subsequent Report of Examination, or by any internal or external loan review, or in any list provided to management by the National Bank Examiners as “doubtful,” “substandard,” or “special mention.” This program shall include, at a minimum:
(a) an identification of the expected sources of repayment;
(b) the appraised value of supporting collateral and the position of the Bank’s lien on such collateral where applicable;
(c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; and
(d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment.
(3) Upon adoption, a copy of the program for all criticized assets equal to or exceeding two hundred fifty thousand dollars ($250,000) shall be forwarded to the Assistant Deputy Comptroller.
(4) The Board, or a designated committee, shall conduct a review, on at least a quarterly basis, to determine:
CRITICIZED ASSETS. (1) Within thirty (30) days, the Board shall adopt, implement, and thereafter take all available measures to ensure the Bank adherence to, a written program designed to eliminate the basis of criticism of assets criticized in the XXX, in any subsequent XXX, or by any internal or external loan review, or in any list provided to management by the National Bank Examiners. This program shall include, at a minimum:
(a) an identification of the expected sources of repayment;
(b) the appraised value of supporting collateral and the position of the Bank’ lien on such collateral where applicable;
(c) an analysis of current and satisfactory credit information, including cash flow analysis where loans are to be repaid from operations; and
(d) the proposed action to eliminate the basis of criticism and the time frame for its accomplishment.
(2) The Board, or a designated committee, shall conduct a review, on at least a quarterly basis, to determine:
(a) the status of each criticized asset or criticized portion thereof that equals or exceeds 50 thousand dollars ($50,000);
(b) management’s adherence to the program adopted pursuant to this Article;
(c) the status and effectiveness of the written program; and
(d) the need to revise the program or take alternative action.
(3) A copy of each review shall be forwarded to the ADC on a quarterly basis (in a format similar to Appendix I, attached hereto).
(4) The Bank may extend credit, directly or indirectly, including renewals, extensions or overdrafts, to a borrower whose loans or other extensions of credit are criticized only if each of the following conditions are met:
(a) the Board or designated committee finds that the extension of additional credit is necessary to promote the best interests of the Bank and that prior to renewing, extending, or capitalizing any additional credit, a majority of the full Board (or designated committee) approves the credit extension and records, in writing, why such extension is necessary to promote the best interests of the Bank; and
(b) a comparison to the written program adopted pursuant to this Article shows that the Board’s formal plan to collect or strengthen the criticized asset will not be compromised.
(5) A copy of the approval of the Board or of the designated committee shall be maintained in the file of the affected borrower.
CRITICIZED ASSETS. The total amount of (i) criticized assets of Colonial Bank (which, for purposes of this Agreement, shall be those assets with risk ratings of 6 or higher, as calculated in accordance with Colonial Bank’s current practice as of the date of this Agreement), and (ii) OREO of Colonial Bank, does not exceed $30.0 million as of the last day of the month prior to the Closing Date. Colonial Financial will furnish Cape Bancorp with such certificates of its officers or others and such other documents to evidence fulfillment of the conditions set forth in this Section 9.2 as Cape Bancorp may reasonably request.
