LOAN LOSS ALLOWANCE. Community Bankshares shall, upon the request of BBC made at any time prior to Closing, adjust Community Bankshares' accruals and allowance for loan losses in an amount determined by BBC in accordance with BBC's practices, such adjustment to be effective on the day immediately preceding the Effective Time, provided, however, that Community Bankshares shall not be required to take such action unless BBC certifies in writing that all conditions to Closing set forth in Article IX hereof have been satisfied or waived; that no such action will be required to be taken more than five business days before Closing or if such action would be inconsistent with GAAP or regulatory accounting principles; and no accrual or reserve made by Community Bankshares or any of its Subsidiaries pursuant to this subsection, or any litigation or regulatory proceedings arising out of any such accrual or reserve, shall constitute or be deemed to be a breach or violation of any representation, warranty, covenant, condition or other provision of this Agreement or to constitute an event which permits or requires termination of this Agreement pursuant to Article X hereof.
LOAN LOSS ALLOWANCE. The allowance for loan losses in the Redwood Empire consolidated balance sheets dated December 31, 2003 and each subsequent period end prior to the Effective Date and as of the Effective Date was and will be determined by application of Redwood Empire's policies and procedures on a basis consistently applied from prior periods and is or will be adequate in all material respects under the requirements of GAAP consistently applied, and all applicable state and federal laws and regulations to provide for possible loan losses on outstanding loans, net of recoveries. Redwood Empire has disclosed in Section 4(cc) of the Disclosure Schedule, and will promptly (and in any event within two Business Days) inform Westamerica of the amounts of all OREO, loans, leases, other extensions of credit or commitments, or other interest-bearing assets of Redwood Empire or any of its subsidiaries that have been classified as of the date hereof or hereafter by any internal bank examiner or any bank regulatory agency as "Other Loans Especially Mentioned", "Substandard", "Doubtful", "Loss", or words of similar import in the case of loans (or that would have been so classified, in the case of other assets, had they been loans). Notwithstanding the above, Redwood Empire shall be under no obligation to disclose to Westamerica any such classification by any bank regulatory agency where such disclosure would violate any obligation of confidentiality of Redwood Empire imposed by such bank regulatory agency.
LOAN LOSS ALLOWANCE. The allowance for loan losses in the KSB consolidated balance sheets dated December 31, 2000 and September 30, 2001, each subsequent period end prior to the Effective Date and as of the Effective Date are or will be adequate in all material respects under the requirements of GAAP, and all applicable state and federal laws and regulations to provide for possible loan losses on outstanding loans, net of recoveries, but in no event will the allowance as of the SAS 71 Date or later be less than $2,400,000 plus any increases required and less any decreases permitted by Section 3.3(b); provided, however, that the allowance may be less than $2,400,000 if it is determined that such lower allowance would be adequate using WABC's methodology. KSB has disclosed in the Disclosure Schedule, and will promptly (and in any event within two business days) inform WABC of the amounts of all OREO, loans, leases, other extensions of credit or commitments, or other interest-bearing assets of KSB that have been classified as of the date hereof or hereafter by any internal bank examiner or any bank regulatory agency as "Other Loans Especially Mentioned", "Substandard", "Doubtful", "Loss", or words of similar import in the case of loans (or that would have been so classified, in the case of other assets, had they been loans). Notwithstanding the above, KSB shall be under no obligation to disclose to WABC any such classification by any bank regulatory agency where such disclosure would violate any obligation of confidentiality of KSB imposed by such bank regulatory agency. KSB has furnished and will continue to furnish to WABC true and accurate information concerning the loan portfolio and other real estate owned ("OREO") of KSB, and no material information with respect to the loan portfolio has been or will be withheld from WABC.
LOAN LOSS ALLOWANCE. Borrower shall cause each Depository Institution Subsidiary to maintain an allowance for possible loan losses which is adequate in all material respects to provide for probable or specific losses, net of recoveries relating to loans previously charged off, on loans outstanding and which complies in all material respects with the Interagency Policy Statement on Allowance for Loan and Lease Losses Methodologies and Documentation for Banks and Saving Institutions of the Federal Financial Institutions Examination Council.
LOAN LOSS ALLOWANCE. The allowance for possible loan and lease losses shown on the financial statements and reports described in Section 7.10 for each Depositary Institution Subsidiary are adequate in all material respects to provide for estimated losses, net of recoveries relating to loans previously charged off, on loans outstanding, as of the date of such statements, and Borrower has no reason to believe that the loan portfolio of each Depositary Institution Subsidiary at such date will incur losses in excess of such allowance.
