Common use of INTERNAL LOAN REVIEW Clause in Contracts

INTERNAL LOAN REVIEW. (1) Within sixty (60) days, the Board shall establish an effective, independent and ongoing loan review system to review 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” and “Allowance for Loan and Lease Losses” booklets of the Comptroller’s Handbook. Such reports shall include, at a minimum, conclusions regarding: (a) the overall quality of the loan and lease portfolios; (b) the identification, type, rating, and amount of problem loans and leases; (c) the identification and amount of delinquent loans and leases; (d) credit and collateral documentation exceptions; (e) concentrations of credit; (f) follow up on previously noted deficiencies listed in either regulatory examination reports or internal loan review reports; (g) the identification and status of credit related violations of law, rule or regulation; and (h) loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies. (2) Within sixty (60) days, the Board shall develop, implement, and thereafter ensure Bank adherence to a written program providing for independent review of problem loans and leases in the Bank’s loan and lease portfolios for the purpose of monitoring portfolio trends, on at least a quarterly basis. The program shall require a quarterly report to the Board. At a minimum, the program shall provide for an independent reviewer’s assessment of the Bank’s: (a) monitoring systems for early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) system for monitoring previously charged-off assets and their recovery potential; (d) system for monitoring compliance with the Bank’s lending policies and laws, rules, and regulations pertaining to the Bank’s lending function; and (e) system for monitoring the adequacy of credit and collateral documentation. (3) A written description of the program called for in this Article shall be forwarded to the Assistant Deputy Comptroller upon implementation. (4) The Board shall evaluate the internal loan and lease review report(s) and shall ensure that immediate, adequate, and continuing remedial action, if appropriate, is taken upon all findings noted in the report(s). (5) A copy of the reports submitted to the Board, as well as documentation of the action taken by the Bank to collect or strengthen assets identified as problem credits, shall be preserved in the Bank.

INTERNAL LOAN REVIEW. (1) The Board shall within thirty (30) days employ or designate a sufficiently experienced and qualified person(s) or firm to ensure the timely and independent identification of problem loans and leases. (2) Within sixty forty-five (6045) days, the Board shall establish an effective, independent and ongoing loan review system to periodically review the Bank's loan and lease portfolios to assure the timely identification and categorization of problem creditscredits and provide an assessment of the overall condition of the loan and lease portfolios. 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 “the Rating Credit Risk” and “Allowance for Loan and Lease Losses” booklets Risk booklet, A-RCR, of the Comptroller’s 's Handbook. Such These reports shall includeshall, at a minimum, include conclusions regarding: (a) the overall quality of the loan and lease portfolios; (b) the identification, type, rating, and amount of problem loans and leases; (c) the identification and amount of delinquent loans and leases; (db) credit and collateral documentation exceptions; (e) concentrations of credit; (f) follow up on previously noted deficiencies listed in either regulatory examination reports or internal loan review reports; (gc) the identification and status of credit related violations of law, rule or regulation; and; (hd) the identity of the loan officer and/or participating financial institution who originated each loan reported in accordance with subparagraphs (a) through (c) of the Article as well as the adequacy of loan officer credit analyses; (e) loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; (f) loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s 's lending and leasing policies; (g) the adequacy of allowance for loan and lease loss allocations; and (h) the adequacy of written action plans for criticized borrowers as outlined in Article VII. (23) Within sixty (60) daysAt least annually, the Board such report, also shall developinclude conclusions on, implement, and thereafter ensure Bank adherence to a written program providing for independent review of problem loans and leases in the Bank’s loan and lease portfolios for the purpose of monitoring portfolio trends, on at least a quarterly basis. The program shall require a quarterly report to the Board. At a minimum, the program shall provide for an independent reviewer’s assessment of the Bank’s: (a) monitoring systems for early problem the overall quality of the loan identification to assure the timely identification and rating of loans and leases based on lending officer submissionslease portfolios; (b) statistical records that serve as a basis for identifying sources concentrations of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer;credit; and (c) system for monitoring previously charged-off assets and their recovery potential; (d) system for monitoring compliance with the Bank’s lending policies and laws, rules, and regulations pertaining to the Bank’s lending function; and (e) system for monitoring the adequacy of credit management's documentation supporting the allowance for loan and collateral documentation. (3) A written description of lease loss methodology and as well as the program called for in this Article shall be forwarded to the Assistant Deputy Comptroller upon implementationmethodology's compliance with regulatory guidance. (4) The Board shall evaluate the internal loan and lease review report(s) and shall ensure that immediate, adequate, and continuing remedial action, if appropriate, is taken upon all findings noted in the report(s). (5) A copy of the reports submitted to the Board, as well as documentation of the action taken by the Bank to collect or strengthen assets identified as problem credits, shall be preserved maintained in the Bank. (6) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.

INTERNAL LOAN REVIEW. ‌ (1) The Board shall within thirty (30) days employ or designate a sufficiently experienced and qualified person(s) or firm to ensure the timely and independent identification of problem loans and leases. (2) Within sixty forty-five (6045) days, the Board shall establish an effective, independent and ongoing loan review system to periodically review the Bank's loan and lease portfolios to assure the timely identification and categorization of problem creditscredits and provide an assessment of the overall condition of the loan and lease portfolios. 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 “the Rating Credit Risk” and “Allowance for Loan and Lease Losses” booklets Risk booklet, A-RCR, of the Comptroller’s Handbook. Such These reports shall includeshall, at a minimum, include conclusions regarding: (a) the overall quality of the loan and lease portfolios; (b) the identification, type, rating, and amount of problem loans and leases; (c) the identification and amount of delinquent loans and leases; (db) credit and collateral documentation exceptions; (e) concentrations of credit; (f) follow up on previously noted deficiencies listed in either regulatory examination reports or internal loan review reports; (gc) the identification and status of credit related violations of law, rule or regulation; and; (hd) the identity of the loan officer and/or participating financial institution who originated each loan reported in accordance with subparagraphs (a) through (c) of the Article as well as the adequacy of loan officer credit analyses; (e) loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; (f) loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies; (g) the adequacy of allowance for loan and lease loss allocations; and (h) the adequacy of written action plans for criticized borrowers as outlined in Article VII. (23) Within sixty (60) daysAt least annually, the Board such report, also shall developinclude conclusions on, implement, and thereafter ensure Bank adherence to a written program providing for independent review of problem loans and leases in the Bank’s loan and lease portfolios for the purpose of monitoring portfolio trends, on at least a quarterly basis. The program shall require a quarterly report to the Board. At a minimum, the program shall provide for an independent reviewer’s assessment of the Bank’s: (a) monitoring systems for early problem the overall quality of the loan identification to assure the timely identification and rating of loans and leases based on lending officer submissionslease portfolios; (b) statistical records that serve as a basis for identifying sources concentrations of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer;credit; and (c) system for monitoring previously charged-off assets and their recovery potential; (d) system for monitoring compliance with the Bank’s lending policies and laws, rules, and regulations pertaining to the Bank’s lending function; and (e) system for monitoring the adequacy of credit management’s documentation supporting the allowance for loan and collateral documentation. (3) A written description of lease loss methodology and as well as the program called for in this Article shall be forwarded to the Assistant Deputy Comptroller upon implementationmethodology’s compliance with regulatory guidance. (4) The Board shall evaluate the internal loan and lease review report(s) and shall ensure that immediate, adequate, and continuing remedial action, if appropriate, is taken upon all findings noted in the report(s). (5) A copy of the reports submitted to the Board, as well as documentation of the action taken by the Bank to collect or strengthen assets identified as problem credits, shall be preserved maintained in the Bank. (6) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.

INTERNAL LOAN REVIEW. (1) The Board shall within thirty (30) days employ or designate a sufficiently experienced and qualified person(s) or firm to ensure the timely and independent identification of problem loans and leases. (2) Within sixty forty-five (6045) days, the Board shall establish an effective, independent and ongoing loan review system to periodically review the Bank's loan and lease portfolios to assure the timely identification and categorization of problem creditscredits and provide an assessment of the overall condition of the loan and lease portfolios. 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 “the Rating Credit Risk” and “Allowance for Loan and Lease Losses” booklets Risk booklet, A-RCR, of the Comptroller’s Handbook. Such These reports shall includeshall, at a minimum, include conclusions regarding: (a) the overall quality of the loan and lease portfolios; (b) the identification, type, rating, and amount of problem loans and leases; (c) the identification and amount of delinquent loans and leases; (db) credit and collateral documentation exceptions; (e) concentrations of credit; (f) follow up on previously noted deficiencies listed in either regulatory examination reports or internal loan review reports; (gc) the identification and status of credit related violations of law, rule or regulation; and; (hd) the identity of the loan officer and/or participating financial institution who originated each loan reported in accordance with subparagraphs (a) through (c) of the Article as well as the adequacy of loan officer credit analyses; (e) loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; (f) loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies; (g) the adequacy of allowance for loan and lease loss allocations; and (h) the adequacy of written action plans for criticized xxxxxxxxx as outlined in Article VII. (23) Within sixty (60) daysAt least annually, the Board such report, also shall developinclude conclusions on, implement, and thereafter ensure Bank adherence to a written program providing for independent review of problem loans and leases in the Bank’s loan and lease portfolios for the purpose of monitoring portfolio trends, on at least a quarterly basis. The program shall require a quarterly report to the Board. At a minimum, the program shall provide for an independent reviewer’s assessment of the Bank’s: (a) monitoring systems for early problem the overall quality of the loan identification to assure the timely identification and rating of loans and leases based on lending officer submissionslease portfolios; (b) statistical records that serve as a basis for identifying sources concentrations of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer;credit; and (c) system for monitoring previously charged-off assets and their recovery potential; (d) system for monitoring compliance with the Bank’s lending policies and laws, rules, and regulations pertaining to the Bank’s lending function; and (e) system for monitoring the adequacy of credit management’s documentation supporting the allowance for loan and collateral documentation. (3) A written description of lease loss methodology and as well as the program called for in this Article shall be forwarded to the Assistant Deputy Comptroller upon implementationmethodology’s compliance with regulatory guidance. (4) The Board shall evaluate the internal loan and lease review report(s) and shall ensure that immediate, adequate, and continuing remedial action, if appropriate, is taken upon all findings noted in the report(s). (5) A copy of the reports submitted to the Board, as well as documentation of the action taken by the Bank to collect or strengthen assets identified as problem credits, shall be preserved maintained in the Bank. (6) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.