Common use of Liquidity Risk Management Program Clause in Contracts

Liquidity Risk Management Program. (1) Within thirty (30) days, the Board shall revise and maintain a comprehensive liquidity risk management program which assesses, on an ongoing basis, the Bank’s current and projected funding needs, and ensures that sufficient funds or access to funds exist to meet those needs. The Board shall ensure that the program makes use of reliable and credible management information systems to manage and monitor liquidity. Such a program must reflect the balance sheet composition and incorporate prudent risk management standards as set forth in OCC Bulletin 2010-13 (dated March 22, 2010), include effective methods to achieve and maintain sufficient liquidity and measure and monitor liquidity risk, to include at a minimum: (a) strategies to maintain sufficient liquidity at reasonable costs including, but not limited to, the following; (i) increasing liquidity through such actions as obtaining additional capital, placing limits on asset growth, aggressive collection of problem loans and recovery of charged-off assets, and asset sales; and (ii) monitoring the projected impact on reputation, economic and credit conditions in the Bank's market. (b) enhancements to existing reporting to the Board and management to show whether the Bank is in compliance with established asset/liability management guidelines, liquidity guidelines, and investment policy guidelines such as funding concentrations and investment portfolio composition; (c) the preparation of liquidity contingency reports which shall be reviewed by the Board on at least a monthly basis, to include, at a minimum, the following: (i) a monthly sources and uses of funds report for a minimum period of six months, updated monthly, which reflects known and projected changes in asset and liability accounts, and the quantitative measures and assumptions used in developing the projections. Those measures and assumptions shall be updated to reflect the Bank’s then current balance sheet and strategic initiatives based on guidelines established by the Board. Such reports shall include, at a minimum: (1) all funding obligations, including money market accounts, unfunded loan commitments, outstanding lines of credit and outstanding letters of credit; (2) projected additional funding sources, including loan payments, loan sales/participations, or deposit increases; and (3) projected additional funding requirements from a reduction in deposit accounts including uninsured and brokered deposits, inability to acquire federal funds purchased, or availability limitations or reductions associated with borrowing relationships. (d) a contingency funding plan that, on a monthly basis, forecasts funding needs, and funding sources under different stress scenarios which represent management’s best estimate of balance sheet changes that may result from a liquidity or credit event. Based on guidelines established by the Board, the contingency funding plan should regularly reassess current circumstances and the assumptions and scenarios being used, the appropriateness of the assumed severity of result and the structure of the Bank’s balance sheet. The contingency funding plan shall include: (i) specific plans detailing how the Bank would comply with restrictions or requirements set forth in 12 U.S.C. §1831 if it were no longer deemed to be well capitalized, including the restrictions against brokered deposits in 12 C.F.R. §337.6, loss of access to borrowing from the Federal Home Loan Bank and other adverse liquidity events; (ii) consideration of impacts on liquidity ranging from high probability events with a low negative impact that might be encountered in day-to-day operations to low probability events with a high negative impact that might result because of systemic, market, operational or institution specific events; (iii) the preparation of reports which identify and quantify all sources of funding and funding obligations under best case and worst case scenarios, including asset funding, liability funding and off-balance sheet funding; and (iv) procedures which ensure that the Bank's contingency funding practices are consistent with the Board's guidance and risk tolerances. (2) The Board shall ensure that the management information system used to evaluate liquidity and the contingency funding plan is reviewed under the internal audit program for reasonableness and comprehensiveness during the next review of asset/liability management. (3) The Board shall submit a copy of the comprehensive liquidity risk management program, along with the reports required by this Article, to the Assistant Deputy Comptroller for review.

Liquidity Risk Management Program. (1) Within thirty sixty (3060) days, the Board shall revise develop, implement and maintain a comprehensive liquidity risk management program program, consistent with OCC Bulletin 2010-13, "Liquidity" (March 22, 2010), which assesses, assesses on an ongoing basis, basis the Bank’s 's current and projected funding needs, and ensures that sufficient funds or access to funds exist to meet those needs. The Board shall ensure that the program makes use of reliable and credible management information systems to manage and monitor liquidity. Such a program must reflect the balance sheet composition and incorporate prudent risk management standards as set forth in OCC Bulletin 2010-13 (dated March 22, 2010), include effective methods to achieve and maintain sufficient liquidity and to measure and monitor liquidity risk, to include at a minimum: (a) strategies Strategies to maintain sufficient liquidity at reasonable costs including, but not limited to, the following: (i) lower concentrations of funding sources, reducing reliance on high cost providers and brokered deposits; (iii) reducing rollover risk; (iii) increasing liquidity through such actions as obtaining additional capital, placing limits on asset growth, aggressive collection of problem loans and recovery of charged-off assets, and asset sales; and (iiiv) monitoring the projected impact on of changes in the Bank's reputation, and changes in economic and credit conditions in the Bank's marketmarket(s). (b) enhancements to existing reporting to Establishment of liquidity ratios and limits that are based on the Board Bank's business model and management to show whether the Bank is in compliance with established asset/liability management guidelines, liquidity guidelines, and investment policy guidelines such as funding concentrations and investment portfolio compositioninherent risk exposures; (c) Guidelines which measure the level of available liquidity in comparison to the price sensitivity of deposits and the potential runoff of deposits, especially within the next twelve months; (d) The preparation of liquidity contingency reports which shall be reviewed by the Board on at least a monthly basis, to include, at a minimum, the following: (i) comparison of established liquidity limits and actual liquidity levels; (ii) a certificate of deposit maturity schedule, including separate line items for brokered deposits and uninsured deposits, depicting maturities on a weekly basis for the next month and monthly thereafter for the following five months, which schedule shall be updated at least weekly; (iii) a schedule of all funding obligations, including unfunded loan commitments, outstanding lines of credit and outstanding letters of credit, showing the obligations that can be drawn immediately, and on a weekly basis for the next month and monthly thereafter for the following five months, which schedule shall be prepared and updated at least weekly; (iv) a listing of funding sources, prepared and updated on a weekly basis for the next month and monthly thereafter for the following five months, including federal funds sold; unpledged assets and assets available for sale; and borrowing lines by lender, including original amount, remaining availability, type and book value of collateral pledged, terms, and maturity date, if applicable; (v) a monthly sources and uses of funds report for a minimum period of six months, updated monthly, which reflects known and projected changes in asset and liability accounts, and the quantitative measures and assumptions used in developing the projections. Those measures and assumptions shall be updated to reflect the Bank’s then current balance sheet and strategic initiatives based on guidelines established by the Board. Such reports shall include, at a minimum: : 1. the funding obligations and sources required by (1b)(ii) all funding obligations, including money market accounts, unfunded loan commitments, outstanding lines and (b)(iii) of credit and outstanding letters of credit; (this paragraph; 2) . projected additional funding sources, including loan payments, loan sales/participations, or deposit increases; and (and 3) . projected additional funding requirements from a reduction in deposit accounts including uninsured and brokered deposits, inability to acquire federal funds purchased, or availability limitations or reductions associated with borrowing relationships. (de) a A contingency funding plan that, on a monthly basis, forecasts funding needs, and funding sources under different stress scenarios which represent management’s 's best estimate of balance sheet changes that may result from a liquidity or credit event. Based on guidelines established by the Board, the contingency funding plan should regularly reassess current circumstances and the assumptions and scenarios being used, the appropriateness of the assumed severity of result and the structure of the Bank’s balance sheet. The contingency funding plan shall include: (i) specific plans detailing how the Bank would will comply with restrictions or requirements set forth in this Agreement and 12 U.S.C. §1831 if it were no longer deemed to be well capitalized1831o, including the restrictions against brokered deposits in 12 C.F.R. §337.6, loss of access to borrowing from the Federal Home Loan Bank and other adverse liquidity events; (ii) consideration of impacts on liquidity ranging from high probability events with a low negative impact that might be encountered in day-to-day operations to low probability events with a high negative impact that might result because of systemic, market, operational or institution specific events; (iii) the preparation of reports which identify and quantify all sources of funding and funding obligations under best case and worst case scenarios, including asset funding, liability funding and off-off- balance sheet funding; and (iviii) procedures which ensure that the Bank's contingency funding practices are consistent with the Board's guidance and risk tolerances. (2) The . Upon completion, the Board shall ensure that implement the comprehensive liquidity risk management information system used to evaluate liquidity program and the contingency funding plan is reviewed under the internal audit program for reasonableness and comprehensiveness during the next review of asset/liability management. (3) The Board shall submit a copy of the comprehensive program to the Director. The Bank shall submit liquidity risk management program, along with the reports required by paragraph (2)(d) of this Article, Article to the Assistant Deputy Comptroller for reviewDirector on a monthly basis.

Liquidity Risk Management Program. (1) Within thirty sixty (3060) days, the Board shall revise develop, implement and maintain ensure adherence to a comprehensive liquidity risk management program which assesses, on an ongoing basis, the Bank’s 's current and projected funding needs, and ensures that sufficient funds or access to funds exist to meet those needs. The Board shall ensure that the program makes use of reliable and credible management information systems to manage and monitor liquidity. Such a program must reflect the balance sheet composition and incorporate prudent risk management standards as set forth in OCC Bulletin 2010-13 (dated March 22, 2010), include effective methods to achieve and maintain sufficient liquidity and to measure and monitor liquidity risk, to include at a minimum: (a) strategies to maintain sufficient liquidity at reasonable costs including, but not limited to, the following;: (i) diversification of funding sources, reducing reliance on high cost providers; (ii) reducing rollover risk; (iii) increasing liquidity through such actions as by obtaining additional capital, placing limits on asset growth, aggressive collection of problem loans and recovery of charged-off assets, and asset sales; and (iiiv) monitoring the projected impact on reputation, economic and credit conditions in the Bank's marketmarket(s). (b) enhancements to existing reporting to the Board and management to show whether the Bank is in compliance with established asset/liability management guidelines, liquidity guidelines, and investment policy guidelines such as funding concentrations and investment portfolio composition; (c) the The preparation of liquidity contingency reports which shall be reviewed by the Board on at least a monthly basis, to include, at a minimum, the following: (i) a certificate of deposit maturity schedule, including separate line items for brokered deposits and uninsured deposits, (ii) a schedule of all funding obligations, including money market accounts, unfunded loan commitments, outstanding lines of credit and outstanding letters of credit, showing the obligations that can be drawn immediately; (iii) a listing of funding sources, including federal funds sold; unpledged assets and assets available for sale; and borrowing lines by lender, including original amount, remaining availability, type and book value of collateral pledged, terms, and maturity date, if applicable; and (iv) a monthly sources and uses of funds report for a minimum period of six months, updated monthly, which reflects known and projected changes in asset and liability accounts, and the quantitative measures and assumptions used in developing the projections. Those measures and assumptions shall be updated to reflect the Bank’s then current balance sheet and strategic initiatives based on guidelines established by the Board. Such reports shall include, at a minimum: : 1. the funding obligations and sources required by (1ii) all funding obligations, including money market accounts, unfunded loan commitments, outstanding lines and (iii) of credit and outstanding letters of credit; (this paragraph; 2) . projected additional funding sources, including loan payments, loan sales/participations, or deposit increases; and (and 3) . projected additional funding requirements from a reduction in deposit accounts including uninsured and brokered deposits, inability to acquire federal funds purchased, or availability limitations or reductions associated with borrowing relationships. (dc) a A contingency funding plan that, on a monthly basis, forecasts funding needs, and funding sources under different stress scenarios which represent management’s 's best estimate of balance sheet changes that may result from a liquidity or credit event. Based on guidelines established by the Board, the contingency funding plan should regularly reassess current circumstances and the assumptions and scenarios being used, the appropriateness of the assumed severity of result and the structure of the Bank’s balance sheet. The contingency funding plan shall include: (i) specific plans detailing how the Bank would comply with restrictions or requirements set forth in 12 U.S.C. §1831 if it were no longer deemed to be well capitalized, including the restrictions against brokered deposits in 12 C.F.R. §337.6, loss of access to borrowing from the Federal Home Loan Bank and other adverse liquidity events; (ii) consideration of impacts on liquidity ranging from high probability events with a low negative impact that might be encountered in day-to-day operations to low probability events with a high negative impact that might result because of systemic, market, operational or institution specific events; (iii) the preparation of reports which identify and quantify all sources of funding and funding obligations under best case and worst case scenarios, including asset funding, liability funding and off-balance sheet funding; and (ivii) procedures which ensure that the Bank's contingency funding practices are consistent with the Board's guidance and risk tolerances. (2) The Board shall ensure that the management information system used to evaluate liquidity and the contingency funding plan is reviewed under the internal audit program for reasonableness and comprehensiveness during the next review of asset/liability management. (3) The Board shall submit a copy of the comprehensive liquidity risk management program, along with the reports required by this Article, to the Assistant Deputy Comptroller for review.

Liquidity Risk Management Program. (1) Within thirty sixty (3060) days, the Board shall revise adopt, implement, and maintain thereafter ensure Bank adherence to a comprehensive liquidity risk management program, consistent with OCC Bulletin 2010-13, “Liquidity: Final Interagency Policy Statement on Funding and Liquidity Risk Management” (March 22, 2010). This program which assessesshall assess, on an ongoing basis, the Bank’s current and projected funding needs, and ensures ensure that sufficient funds or access to funds exist to meet those needs. The Board This program shall ensure that the program makes use of reliable include a process to identify, measure, monitor, and credible management information systems to manage and monitor liquidity. Such a program must reflect the balance sheet composition and incorporate prudent risk management standards as set forth in OCC Bulletin 2010-13 (dated March 22, 2010), include effective methods to achieve and maintain sufficient liquidity and measure and monitor control liquidity risk, to include at and this program must be integrated into the Bank’s risk management processes. At a minimum, this program shall include the following elements: (a) strategies to maintain sufficient liquidity at reasonable costs including, but not limited to, the following: (i) better diversification of funding sources, reducing the Bank’s reliance on brokered deposits and wholesale funding sources. The program should include reasonable policy limits for these types of funding sources and strategies for achieving and maintaining compliance with these new limits within reasonable time frames; (iii) increasing liquidity through such actions as obtaining additional capital, placing limits on asset growth, aggressive collection of problem loans and recovery of charged-off assets, and asset sales; and, (iiiii) monitoring the projected impact on reputation, economic and credit conditions in the Bank's market.’s market(s); (b) enhancements to existing reporting to the Board and management to show whether the Bank is in compliance with established asset/liability management guidelines, liquidity guidelines, and investment policy guidelines such as funding concentrations and investment portfolio composition; (c) the preparation of liquidity contingency reports which shall be reviewed by the Board on at least a monthly basis, basis to include, at a minimum, the following: (i) a monthly sources and uses certificate of funds report for deposit maturity schedule; (ii) a minimum period schedule of six months, updated monthly, which reflects known and projected changes in asset and liability accounts, and the quantitative measures and assumptions used in developing the projections. Those measures and assumptions shall be updated to reflect the Bank’s then current balance sheet and strategic initiatives based on guidelines established by the Board. Such reports shall include, at a minimum: (1) all funding obligations, including money market accounts, unfunded loan commitments, outstanding lines of credit and outstanding letters of credit; credit which shall be prepared and updated at least weekly; (2iii) projected additional a listing of funding sources, prepared and updated on a weekly basis, including loan payments, loan sales/participations, or deposit increasesfederal funds sold; unpledged assets and assets available for sale; and borrowing lines by lender, including original amount, remaining availability, type and book value of collateral pledged, terms, and maturity date, if applicable; (iv) a monthly sources and uses of funds report for a minimum period of three (3) months, updated monthly, which reflects known and projected additional funding requirements from a reduction changes in deposit accounts including uninsured asset and brokered depositsliability accounts, inability to acquire federal funds purchased, or availability limitations or reductions associated with borrowing relationships.and the assumptions used in developing the projections; and, (dc) a comprehensive contingency funding plan (“CFP”) that, on a monthly basis, sufficiently forecasts funding needs, needs and funding sources under different stress scenarios which represent management’s best estimate of balance sheet changes that may result from a liquidity or credit event. Based on guidelines established by the Board, the contingency funding plan should regularly reassess current circumstances and the assumptions addresses potential adverse liquidity events and scenarios being used, the appropriateness of the assumed severity of result and the structure of the Bank’s balance sheetemergency cash flow requirements. The contingency funding plan CFP shall include: (i) specific plans detailing how the Bank would will comply with restrictions or requirements set forth in this Agreement and 12 U.S.C. §1831 if it were no longer deemed to be well capitalized§ 1831o, including the restrictions against brokered deposits in 12 C.F.R. §337.6, loss of access to borrowing from the Federal Home Loan Bank and other adverse liquidity events; (ii) consideration of impacts on liquidity ranging from high probability events with a low negative impact that might be encountered in day-to-day operations to low probability events with a high negative impact that might result because of systemic, market, operational or institution specific events; (iii) the preparation of reports which identify and quantify all sources of funding and funding obligations under best case and worst case scenarios, including asset funding, liability funding and off-balance sheet funding; and (iv) procedures which ensure that the Bank's contingency funding practices are consistent with the Board's guidance and risk tolerances. (2) The Board shall ensure that the management information system used to evaluate liquidity and the contingency funding plan is reviewed under the internal audit program for reasonableness and comprehensiveness during the next review of asset/liability management. (3) The Board shall submit a copy of the comprehensive liquidity risk management program, along with the reports required by this Article, to the Assistant Deputy Comptroller for review.contained in

Liquidity Risk Management Program. (1) The Board shall take appropriate action to ensure there are adequate sources of liquidity in relation to the Bank's needs. (2) Within thirty sixty (3060) days, the Board shall revise and maintain a comprehensive liquidity risk management program which assesses, on an ongoing basis, the Bank’s 's current and projected funding needs, and ensures that sufficient funds or access to funds exist to meet those needs. The Board shall ensure that the program makes use of reliable and credible management information systems to manage and monitor liquidity. Such a program must reflect the balance sheet composition and incorporate prudent risk management standards as set forth in OCC Bulletin 2010-13 (dated March 22, 2010), include effective methods to achieve and maintain sufficient liquidity and to measure and monitor liquidity risk, to include at a minimum: (a) strategies to maintain sufficient liquidity at reasonable costs including, but not limited to, the following: (i) better diversification of funding sources, reducing reliance on high cost providers; (iii) reducing rollover risk; (iii) increasing liquidity through such actions as obtaining additional capital, placing limits on asset growth, aggressive collection of problem loans and recovery of charged-off assets, and asset sales; and (iiiv) monitoring the projected impact on reputation, economic and credit conditions in the Bank's market.market(s); (b) enhancements to existing reporting to the Board and management to show whether the Bank is in compliance with established asset/liability management guidelines, liquidity guidelines, and investment policy guidelines such as funding concentrations and investment portfolio composition; (c) the The preparation of liquidity contingency reports which shall be reviewed by the Board on at least a monthly basis, to include, at a minimum, the following: (i) a certificate of deposit maturity schedule, including separate line items for brokered deposits and uninsured deposits. (ii) a schedule of all funding obligations, including money market accounts, unfunded loan commitments, outstanding lines of credit and outstanding letters of credit. (iii) a listing of funding sources, including federal funds sold; unpledged assets and assets available for sale; and borrowing lines by lender, including original amount, remaining availability, type and book value of collateral pledged, terms, and maturity date, if applicable. (iv) a monthly sources and uses of funds report for a minimum period of six months, updated monthly, which reflects known and projected changes in asset and liability accounts, and the quantitative measures and assumptions used in developing the projections. Those measures and assumptions shall be updated to reflect the Bank’s then current balance sheet and strategic initiatives based on guidelines established by the Board. Such reports shall include, at a minimum: : 1. the funding obligations and sources required by (1b) all funding obligations, including money market accounts, unfunded loan commitments, outstanding lines and (c) of credit and outstanding letters of credit; (this paragraph; 2) . projected additional funding sources, including loan payments, loan sales/participations, or deposit increases; and (3) projected additional funding requirements from a reduction in deposit accounts including uninsured and brokered deposits, inability to acquire federal funds purchased, or availability limitations or reductions associated with borrowing relationships.and (dc) a A contingency funding plan that, on a monthly basis, forecasts funding needs, and funding sources under different stress scenarios which represent management’s 's best estimate of balance sheet changes that may result from a liquidity or credit event. Based on guidelines established by the Board, the contingency funding plan should regularly reassess current circumstances and the assumptions and scenarios being used, the appropriateness of the assumed severity of result and the structure of the Bank’s balance sheet. The contingency funding plan shall include: (i) specific plans detailing how the Bank would comply with restrictions or requirements set forth in 12 U.S.C. §1831 if it were no longer deemed to be well capitalized, including the restrictions against brokered deposits in 12 C.F.R. §337.6, loss of access to borrowing from the Federal Home Loan Bank and other adverse liquidity events; (ii) consideration of impacts on liquidity ranging from high probability events with a low negative impact that might be encountered in day-to-day operations to low probability events with a high negative impact that might result because of systemic, market, operational or institution specific events; (iii) the preparation of reports which identify and quantify all sources of funding and funding obligations under best case and worst case scenarios, including asset funding, liability funding and off-balance sheet funding; and (ivii) procedures which that ensure that the Bank's contingency funding practices are consistent with the Board's guidance and risk tolerances. (2) The Board shall ensure that the management information system used to evaluate liquidity and the contingency funding plan is reviewed under the internal audit program for reasonableness and comprehensiveness during the next review of asset/liability management. (3) The Board shall submit a copy of the comprehensive liquidity risk management program, along with the reports required by this Article, to the Assistant Deputy Comptroller for review.

Liquidity Risk Management Program. (1) Within thirty (30) days, the Board shall revise and maintain a comprehensive liquidity risk management program which assesses, on an ongoing basis, the Bank’s 's current and projected funding needs, and ensures that sufficient funds or access to funds exist to meet those needs. The Board shall ensure that the program makes use of reliable and credible management information systems to manage and monitor liquidity. Such a program must reflect the balance sheet composition and incorporate prudent risk management standards as set forth in OCC Bulletin 2010-13 (dated March 22, 2010), include effective methods to achieve and maintain sufficient liquidity and measure and monitor liquidity risk, to include at a minimum: (a) strategies to maintain sufficient liquidity at reasonable costs including, but not limited to, the following; (i) increasing liquidity through such actions as obtaining additional capital, placing limits on asset growth, aggressive collection of problem loans and recovery of charged-off assets, and asset sales; and (ii) monitoring the projected impact on reputation, economic and credit conditions in the Bank's market. (b) enhancements to existing reporting to the Board and management to show whether the Bank is in compliance with established asset/liability management guidelines, liquidity guidelines, and investment policy guidelines such as funding concentrations and investment portfolio composition; (c) the preparation of liquidity contingency reports which shall be reviewed by the Board on at least a monthly basis, to include, at a minimum, the following: (i) a monthly sources and uses of funds report for a minimum period of six months, updated monthly, which reflects known and projected changes in asset and liability accounts, and the quantitative measures and assumptions used in developing the projections. Those measures and assumptions shall be updated to reflect the Bank’s then current balance sheet and strategic initiatives based on guidelines established by the Board. Such reports shall include, at a minimum: (1) all funding obligations, including money market accounts, unfunded loan commitments, outstanding lines of credit and outstanding letters of credit; (2) projected additional funding sources, including loan payments, loan sales/participations, or deposit increases; and (3) projected additional funding requirements from a reduction in deposit accounts including uninsured and brokered deposits, inability to acquire federal funds purchased, or availability limitations or reductions associated with borrowing relationships. (d) a contingency funding plan that, on a monthly basis, forecasts funding needs, and funding sources under different stress scenarios which represent management’s 's best estimate of balance sheet changes that may result from a liquidity or credit event. Based on guidelines established by the Board, the contingency funding plan should regularly reassess current circumstances and the assumptions and scenarios being used, the appropriateness of the assumed severity of result and the structure of the Bank’s balance sheet. The contingency funding plan shall include: (i) specific plans detailing how the Bank would comply with restrictions or requirements set forth in 12 U.S.C. §1831 if it were no longer deemed to be well capitalized, including the restrictions against brokered deposits in 12 C.F.R. §337.6, loss of access to borrowing from the Federal Home Loan Bank and other adverse liquidity events; (ii) consideration of impacts on liquidity ranging from high probability events with a low negative impact that might be encountered in day-to-day operations to low probability events with a high negative impact that might result because of systemic, market, operational or institution specific events; (iii) the preparation of reports which identify and quantify all sources of funding and funding obligations under best case and worst case scenarios, including asset funding, liability funding and off-balance sheet funding; and (iv) procedures which ensure that the Bank's contingency funding practices are consistent with the Board's guidance and risk tolerances. (2) The Board shall ensure that the management information system used to evaluate liquidity and the contingency funding plan is reviewed under the internal audit program for reasonableness and comprehensiveness during the next review of asset/liability management. (3) The Board shall submit a copy of the comprehensive liquidity risk management program, along with the reports required by this Article, to the Assistant Deputy Comptroller for review.

Liquidity Risk Management Program. (1) Within thirty sixty (3060) days, the Board shall revise and maintain a comprehensive liquidity risk management program which that assesses, on an ongoing basis, the Bank’s 's current and projected funding needs, and ensures that sufficient funds or access to funds exist to meet those needs. The Board shall ensure that the program makes use of reliable and credible management information systems to manage and monitor liquidity. Such a program must reflect the balance sheet composition and incorporate prudent risk management standards as set forth in OCC Bulletin 2010-13 (dated March 22, 2010), include effective methods to achieve and maintain sufficient liquidity and to measure and monitor liquidity risk, to include at a minimum: (a) strategies to maintain sufficient liquidity at reasonable costs including, but not limited to, the following: (i) better diversification of funding sources, reducing reliance on high-cost providers; (iii) reducing rollover risk; (iii) increasing liquidity through such actions as obtaining additional capital, placing limits on asset growth, aggressive collection of problem loans and recovery of charged-off assets, and asset sales; and (iiiv) monitoring the projected impact on reputation, economic and credit conditions in the Bank's marketmarket(s). (b) enhancements to existing reporting to the Board and management to show whether the Bank is in compliance with established asset/liability management guidelines, liquidity guidelines, and investment policy guidelines such as funding concentrations and investment portfolio composition; (c) the preparation of liquidity contingency reports which shall be reviewed by the Board on at least a monthly basis, to include, at a minimum, the following: (i) a certificate of deposit maturity schedule, including separate line items for brokered deposits and uninsured deposits, depicting maturities on a weekly basis for the next two months and monthly sources and uses of funds report for a minimum period of six the following four months, updated monthly, which reflects known and projected changes in asset and liability accounts, and the quantitative measures and assumptions used in developing the projections. Those measures and assumptions schedule shall be updated to reflect the Bank’s then current balance sheet and strategic initiatives based on guidelines established by the Board. Such reports shall include, at least weekly; (ii) a minimum: (1) schedule of all funding obligations, including money market accounts, unfunded loan commitments, outstanding lines of credit and outstanding letters of credit, showing the obligations that can be drawn immediately, and on a weekly basis for the next two months and monthly for the following four months, which schedule shall be prepared and updated at least weekly; and (2iii) projected additional a listing of funding sources, prepared and updated on a weekly basis for the next two months and monthly for the following four months, including loan payments, loan sales/participations, or deposit increasesfederal funds sold; unpledged assets and assets available for sale; and borrowing lines by lender, including original amount, remaining availability, type and book value of collateral pledged, terms, and maturity date, if applicable. (3c) a monthly sources and uses of funds report for a minimum period of six months, updated monthly, that reflects known and projected additional funding requirements from a reduction changes in deposit accounts including uninsured asset and brokered depositsliability accounts, inability to acquire federal funds purchased, or availability limitations or reductions associated with borrowing relationships.and the assumptions used in developing the projections; and (d) a contingency funding plan that, on a monthly basis, forecasts funding needs, needs and funding sources under different stress scenarios which represent representing management’s 's best estimate of balance sheet changes that may result from a liquidity or credit event. Based on guidelines established by the Board, the contingency funding plan should regularly reassess current circumstances and the assumptions and scenarios being used, the appropriateness of the assumed severity of result and the structure of the Bank’s balance sheet. The contingency funding plan shall include: (i) specific plans detailing how the Bank would will comply with restrictions or requirements set forth in this Agreement and in 12 U.S.C. §1831 if it were no longer deemed to be well capitalized1831o, including the restrictions against brokered deposits in 12 C.F.R. §337.6 (which plans may be subject to revision as may be appropriate upon the adoption, if any, of currently-proposed changes to 12 C.F.R. § 337.6, loss of access to borrowing from the Federal Home Loan Bank and other adverse liquidity events); (ii) consideration of impacts on liquidity ranging from high probability events with a low negative impact that might be encountered in day-to-day operations to low probability events with a high negative impact that might result because of systemic, market, operational or institution specific events; (iii) the preparation of reports which to identify and quantify all sources of funding and funding obligations under best case and worst case scenarios, including asset funding, liability funding funding, and off-off- balance sheet funding; and (iviii) procedures which to ensure that the Bank's contingency funding practices are consistent with the Board's guidance and risk tolerances. (2) The Board shall ensure that the management information system used to evaluate liquidity and the contingency funding plan is reviewed under the internal audit program for reasonableness and comprehensiveness during the next review of asset/liability management. (3) The Board shall submit a copy of the comprehensive liquidity risk management program, along with the reports required by this Article, to the Assistant Deputy Comptroller Director for review.

Liquidity Risk Management Program. (1) Within thirty sixty (3060) days, the Board shall revise develop, implement and maintain a comprehensive liquidity risk management program program, consistent with OCC Bulletin 2010-13, “Liquidity” (March 22, 2010), which assesses, assesses on an ongoing basis, basis the Bank’s current and projected funding needs, and ensures that sufficient funds or access to funds exist to meet those needs. The Board shall ensure that the program makes use of reliable and credible management information systems to manage and monitor liquidity. Such a program must reflect the balance sheet composition and incorporate prudent risk management standards as set forth in OCC Bulletin 2010-13 (dated March 22, 2010), include effective methods to achieve and maintain sufficient liquidity and to measure and monitor liquidity risk, to include at a minimum: (a) strategies Strategies to maintain sufficient liquidity at reasonable costs including, but not limited to, the following: (i) lower concentrations of funding sources, reducing reliance on high cost providers and brokered deposits; (iii) reducing rollover risk; (iii) increasing liquidity through such actions as obtaining additional capital, placing limits on asset growth, aggressive collection of problem loans and recovery of charged-off assets, and asset sales; and (iiiv) monitoring the projected impact on of changes in the Bank’s reputation, and changes in economic and credit conditions in the Bank's market’s market(s). (b) enhancements to existing reporting to Establishment of liquidity ratios and limits that are based on the Board Bank’s business model and management to show whether the Bank is in compliance with established asset/liability management guidelines, liquidity guidelines, and investment policy guidelines such as funding concentrations and investment portfolio compositioninherent risk exposures; (c) Guidelines which measure the level of available liquidity in comparison to the price sensitivity of deposits and the potential runoff of deposits, especially within the next twelve months; (d) The preparation of liquidity contingency reports which shall be reviewed by the Board on at least a monthly basis, to include, at a minimum, the following: (i) comparison of established liquidity limits and actual liquidity levels; (ii) a certificate of deposit maturity schedule, including separate line items for brokered deposits and uninsured deposits, depicting maturities on a weekly basis for the next month and monthly thereafter for the following five months, which schedule shall be updated at least weekly; (iii) a schedule of all funding obligations, including unfunded loan commitments, outstanding lines of credit and outstanding letters of credit, showing the obligations that can be drawn immediately, and on a weekly basis for the next month and monthly thereafter for the following five months, which schedule shall be prepared and updated at least weekly; (iv) a listing of funding sources, prepared and updated on a weekly basis for the next month and monthly thereafter for the following five months, including federal funds sold; unpledged assets and assets available for sale; and borrowing lines by lender, including original amount, remaining availability, type and book value of collateral pledged, terms, and maturity date, if applicable; (v) a monthly sources and uses of funds report for a minimum period of six months, updated monthly, which reflects known and projected changes in asset and liability accounts, and the quantitative measures and assumptions used in developing the projections. Those measures and assumptions shall be updated to reflect the Bank’s then current balance sheet and strategic initiatives based on guidelines established by the Board. Such reports shall include, at a minimum: : 1. the funding obligations and sources required by (1b)(ii) all funding obligations, including money market accounts, unfunded loan commitments, outstanding lines and (b)(iii) of credit and outstanding letters of credit; (this paragraph; 2) . projected additional funding sources, including loan payments, loan sales/participations, or deposit increases; and (and 3) . projected additional funding requirements from a reduction in deposit accounts including uninsured and brokered deposits, inability to acquire federal funds purchased, or availability limitations or reductions associated with borrowing relationships. (de) a A contingency funding plan that, on a monthly basis, forecasts funding needs, and funding sources under different stress scenarios which represent management’s best estimate of balance sheet changes that may result from a liquidity or credit event. Based on guidelines established by the Board, the contingency funding plan should regularly reassess current circumstances and the assumptions and scenarios being used, the appropriateness of the assumed severity of result and the structure of the Bank’s balance sheet. The contingency funding plan shall include: (i) specific plans detailing how the Bank would will comply with restrictions or requirements set forth in this Agreement and 12 U.S.C. §1831 if it were no longer deemed to be well capitalized1831o, including the restrictions against brokered deposits in 12 C.F.R. §337.6, loss of access to borrowing from the Federal Home Loan Bank and other adverse liquidity events; (ii) consideration of impacts on liquidity ranging from high probability events with a low negative impact that might be encountered in day-to-day operations to low probability events with a high negative impact that might result because of systemic, market, operational or institution specific events; (iii) the preparation of reports which identify and quantify all sources of funding and funding obligations under best case and worst case scenarios, including asset funding, liability funding and off-balance sheet funding; and (iviii) procedures which ensure that the Bank's ’s contingency funding practices are consistent with the Board's ’s guidance and risk tolerances. (2) The . Upon completion, the Board shall ensure that implement the comprehensive liquidity risk management information system used to evaluate liquidity program and the contingency funding plan is reviewed under the internal audit program for reasonableness and comprehensiveness during the next review of asset/liability management. (3) The Board shall submit a copy of the comprehensive program to the Director. The Bank shall submit liquidity risk management program, along with the reports required by paragraph (2)(d) of this Article, Article to the Assistant Deputy Comptroller for reviewDirector on a monthly basis.