Common use of LOAN PORTFOLIO MANAGEMENT Clause in Contracts

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within thirty (30) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (c) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (e) procedures to ensure interim construction lending standards are adhered to; (f) procedures to ensure asset-based lending standards are enforced through the maintenance of current accounts receivable aging reports, inventory listings, borrowing base agreements, and inspections; (g) procedures to ensure conformance with Call Report instructions; (h) procedures to ensure the accuracy of internal management information systems; and (i) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios. (2) Upon completion, a copy of the program shall be submitted to the ADC for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the ADC, the Bank shall implement and adhere to the program. (3) Within thirty (30) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will 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) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; (f) compliance with OCC Bulletin 2000-20 Uniform Retail Credit Classifications and Account Management Policy dated June 20, 2000; and, (g) concentrations of credit. (4) Beginning September 1, 2006, and on a monthly basis thereafter, management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and, (h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies. (5) The Board shall forward a copy of the written reports, with any additional comments by the Board, to the ADC within five (5) business days of receiving such reports. (6) Within thirty (30) days, the Board shall engage a qualified consultant to perform an ongoing asset quality review of the Bank. The review should be completed and a report provided to the Board within ninety (90) days of engagement. (7) Prior to the appointment or employment of any individual to this asset quality review position or entering into any contract with a consultant, the Board shall submit the name and qualifications of the proposed consultant and the draft of the engagement letter setting out the proposed terms of employment, to the ADC for a prior written determination of no supervisory objection. (8) The requirement to submit information and the provisions for prior written determination of no supervisory objection in this Article are based on the authority of 12 U.S.C. § 1818(b)(6) and do not require the Comptroller or the ADC to complete his review and act on any such information or authority within ninety (90) days.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within thirty sixty (3060) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's ’s loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (b) procedures to ensure loans in excess of $500 thousand are reviewed on an annual basis after obtaining and analyzing current and satisfactory credit information; (c) procedures to ensure conformance with loan approval requirements;; and (d) a system to track and analyze exceptions; (e) procedures to ensure interim construction lending standards are adhered to; (f) procedures to ensure asset-based lending standards are enforced through the maintenance of current accounts receivable aging reports, inventory listings, borrowing base agreements, and inspections; (g) procedures to ensure conformance with Call Report instructions; (h) procedures to ensure the accuracy of internal management information systems; and (i) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfoliosreview real estate appraisals or evaluations. (2) Upon completion, a copy of the program shall be submitted forwarded to the ADC for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the ADC, the Bank shall implement and adhere to the programAssistant Deputy Comptroller. (3) Within thirty (Beginning on June 30) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will 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) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; (f) compliance with OCC Bulletin 2000-20 Uniform Retail Credit Classifications and Account Management Policy dated June 20, 2000; and, (g) concentrations of credit. (4) Beginning September 1, 2006, 2010 and on a monthly quarterly basis thereafter, management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) an analysis of criticized loans greater than $100 thousand, including background information, status of the loan, reason for criticism, collateral coverage, a workout strategy, upgrade and downgrade trigger points, and updated information (in a format similar to Appendix A, attached hereto). (d) credit and collateral documentation exceptions; (de) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and, (h) the identification of loans and leases not in conformance with the Bank's ’s lending and leasing policies, and exceptions to the Bank’s lending and leasing policies. (54) The Board shall forward a copy ensure that the Bank has processes, personnel, and control systems to ensure implementation of the written reports, with any additional comments by the Board, and adherence to the ADC within five (5) business days of receiving such reports. (6) Within thirty (30) days, the Board shall engage a qualified consultant to perform an ongoing asset quality review of the Bank. The review should be completed program and a report provided to the Board within ninety (90) days of engagement. (7) Prior to the appointment or employment of any individual systems developed pursuant to this asset quality review position or entering into any contract with a consultant, the Board shall submit the name and qualifications of the proposed consultant and the draft of the engagement letter setting out the proposed terms of employment, to the ADC for a prior written determination of no supervisory objectionArticle. (8) The requirement to submit information and the provisions for prior written determination of no supervisory objection in this Article are based on the authority of 12 U.S.C. § 1818(b)(6) and do not require the Comptroller or the ADC to complete his review and act on any such information or authority within ninety (90) days.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within thirty forty-five (3045) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory loan documents are completed accurately and perfected collateral documentationare consistent regarding terms and conditions, borrowing authorizations and resolutions; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (c) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptionsall exceptions to lending policy; (e) procedures to ensure interim construction lending standards are adhered to; (f) procedures to ensure asset-based lending standards are enforced through the maintenance of current accounts receivable aging reports, inventory listings, borrowing base agreements, and inspections; (g) procedures to ensure conformance with Call Report instructions; (h) procedures to ensure the accuracy of internal management information systems; (f) a performance appraisal process, including performance appraisals and job descriptions for loan officers and lending staff, which adequately considers employees’ performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; and (ig) procedures to track ensure appropriate oversight and analyze concentrations resolution of creditproblem loan workouts, significant economic factors, and general conditions and their impact on which include: (i) collateral releases only when documented as in the credit quality best interest of the Bank’s loan bank; (ii) the bank receiving full benefit from the sale of all collateral; (iii) borrower liability for collateral shortfalls or deficiencies; and (iv) establishing criteria and lease portfoliosguidelines for purchasing bank collateral only at established fair market value less sale costs. (2) Upon completion, a copy of the program shall be submitted forwarded to the ADC Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the ADC, the Bank shall implement and adhere to the programapproval. (3) Within thirty Beginning in forty-five (3045) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will 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) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; (f) compliance with OCC Bulletin 2000-20 Uniform Retail Credit Classifications and Account Management Policy dated June 20, 2000; and, (g) concentrations of credit. (4) Beginning September 1, 2006, and on a monthly basis thereafter, management will shall provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) the identification of outstanding credit and collateral documentation exceptions; (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and, (hg) the identification of loans and leases leases, and the specific policy exceptions thereon, that were made and are not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies. (54) The Board shall forward a copy ensure that the Bank has processes, personnel, and control systems to ensure implementation of the written reports, with any additional comments by the Board, and adherence to the ADC within five (5) business days of receiving such reports. (6) Within thirty (30) days, the Board shall engage a qualified consultant to perform an ongoing asset quality review of the Bank. The review should be completed program and a report provided to the Board within ninety (90) days of engagement. (7) Prior to the appointment or employment of any individual systems developed pursuant to this asset quality review position or entering into any contract with a consultant, the Board shall submit the name and qualifications of the proposed consultant and the draft of the engagement letter setting out the proposed terms of employment, to the ADC for a prior written determination of no supervisory objectionArticle. (8) The requirement to submit information and the provisions for prior written determination of no supervisory objection in this Article are based on the authority of 12 U.S.C. § 1818(b)(6) and do not require the Comptroller or the ADC to complete his review and act on any such information or authority within ninety (90) days.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within thirty (30) daysnot later than August 31, 2002, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program management which shall include, but not be limited toat a minimum: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (c) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions;; and (e) procedures a performance appraisal process, including performance appraisals and job descriptions, which adequately considers loan officers’ performance relative to ensure interim construction lending standards are adhered to; (f) procedures to ensure asset-based lending standards are enforced through the maintenance of current accounts receivable aging reportspolicy compliance, inventory listingsdocumentation standards, borrowing base agreementsaccuracy in credit grading, and inspections; (g) procedures to ensure conformance with Call Report instructions; (h) procedures to ensure the accuracy of internal management information systems; and (i) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s other loan and lease portfoliosadministration matters. (2) Upon completion, a copy of the program shall be submitted forwarded to the ADC for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the ADC, the Bank shall implement and adhere to the programAssistant Deputy Comptroller. (3) Within thirty (30) daysNot later than August 31, 2002, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will 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) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function;; and (ec) adequacy of credit and collateral documentation; (f) compliance with OCC Bulletin 2000-20 Uniform Retail Credit Classifications and Account Management Policy dated June 20, 2000; and, (g) concentrations of credit. (4) Beginning September 1, 20062002, and on a monthly basis thereafter, management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (db) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and, (hc) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies; and (d) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (c) of this Article and Paragraph. (5) The Board shall forward a copy ensure that the Bank has processes, personnel, and control systems to ensure implementation of the written reports, with any additional comments by the Board, and adherence to the ADC within five (5) business days of receiving such reports. (6) Within thirty (30) days, the Board shall engage a qualified consultant to perform an ongoing asset quality review of the Bank. The review should be completed program and a report provided to the Board within ninety (90) days of engagement. (7) Prior to the appointment or employment of any individual systems developed pursuant to this asset quality review position or entering into any contract with a consultant, the Board shall submit the name and qualifications of the proposed consultant and the draft of the engagement letter setting out the proposed terms of employment, to the ADC for a prior written determination of no supervisory objectionArticle. (8) The requirement to submit information and the provisions for prior written determination of no supervisory objection in this Article are based on the authority of 12 U.S.C. § 1818(b)(6) and do not require the Comptroller or the ADC to complete his review and act on any such information or authority within ninety (90) days.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within thirty ninety (3090) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's ’s loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (c) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (e) procedures to ensure interim construction lending standards are adhered to;a comprehensive capitalization of interest policy; and (f) procedures an effective post-funding credit analysis program to ensure asset-based lending standards are enforced through monitor the maintenance ongoing condition of current accounts receivable aging reports, inventory listings, borrowing base agreements, and inspections; (g) procedures to ensure conformance with Call Report instructions; (h) procedures to ensure the accuracy of internal management information systems; and (i) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s your loan and lease portfolioscustomers. (2) Upon completion, a copy of the program shall be submitted forwarded to the ADC for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the ADC, the Bank shall implement and adhere to the programAssistant Deputy Comptroller. (3) Within thirty (30) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure ensure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will 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) previously charged-off assets and their recovery potential; (d) compliance with the Bank's ’s lending policies and laws, rules, and regulations pertaining to the Bank's ’s lending function;; and (ec) the adequacy of credit and collateral documentation; (f) compliance with OCC Bulletin 2000-20 Uniform Retail Credit Classifications and Account Management Policy dated June 20, 2000; and, (g) concentrations of credit. (4) Beginning September 1immediately, 2006, and on a monthly basis thereafterquarterly basis, management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions;; and (d) the identification and status of credit related violations of law, rule or regulation; (e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph; (f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios; (g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and, (h) the identification of loans and leases not in conformance with the Bank's ’s lending and leasing policies, and exceptions to the Bank’s lending and leasing policies. (5) The Board shall forward a copy ensure that the Bank has processes, personnel, and control systems to ensure implementation of the written reports, with any additional comments by the Board, and adherence to the ADC within five (5) business days of receiving such reports. (6) Within thirty (30) days, the Board shall engage a qualified consultant to perform an ongoing asset quality review of the Bank. The review should be completed program and a report provided to the Board within ninety (90) days of engagement. (7) Prior to the appointment or employment of any individual systems developed pursuant to this asset quality review position or entering into any contract with a consultant, the Board shall submit the name and qualifications of the proposed consultant and the draft of the engagement letter setting out the proposed terms of employment, to the ADC for a prior written determination of no supervisory objectionArticle. (8) The requirement to submit information and the provisions for prior written determination of no supervisory objection in this Article are based on the authority of 12 U.S.C. § 1818(b)(6) and do not require the Comptroller or the ADC to complete his review and act on any such information or authority within ninety (90) days.

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within thirty ninety (3090) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (cb) procedures to ensure conformance with loan approval requirements; (dc) a system to track and analyze exceptions; (e) procedures to ensure interim construction lending standards are adhered to; (f) procedures to ensure asset-based lending standards are enforced through the maintenance of current accounts receivable aging reports, inventory listings, borrowing base agreements, and inspections; (gd) procedures to ensure conformance with Call Report instructions; (h) procedures to ensure the accuracy of internal management information systems; and (ie) procedures to track and analyze concentrations of credita performance appraisal process, significant economic factorsincluding performance appraisals, job descriptions, and general conditions incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and their impact on the credit quality of the Bank’s other loan and lease portfoliosadministration matters. (2) Upon completion, a copy of the program shall be submitted forwarded to the ADC for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the ADC, the Bank shall implement and adhere to the programAssistant Deputy Comptroller. (3) Within thirty ninety (3090) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will 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) previously charged-off assets and their recovery potential;; and (db) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; (f) compliance with OCC Bulletin 2000-20 Uniform Retail Credit Classifications and Account Management Policy dated June 20, 2000; and, (g) concentrations of credit. (4) Beginning September 1July 31, 20062004, and on a monthly quarterly basis thereafter, management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (db) the identification and status of credit related violations of law, rule or regulation; (ec) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through and (db) of this Article and Paragraphparagraph; (fd) an analysis of concentrations of credit, significant economic factors, factors and general conditions conditions, and their impact on the credit quality of the Bank’s loan and lease portfolios; (ge) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and, (hf) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies. (5) The Board shall forward a copy ensure that the Bank has processes, personnel, consultants, and control systems to ensure implementation of the written reports, with any additional comments by the Board, and adherence to the ADC within five (5) business days of receiving such reports. (6) Within thirty (30) days, the Board shall engage a qualified consultant to perform an ongoing asset quality review of the Bank. The review should be completed program and a report provided to the Board within ninety (90) days of engagement. (7) Prior to the appointment or employment of any individual systems developed pursuant to this asset quality review position or entering into any contract with a consultant, the Board shall submit the name and qualifications of the proposed consultant and the draft of the engagement letter setting out the proposed terms of employment, to the ADC for a prior written determination of no supervisory objectionArticle. (8) The requirement to submit information and the provisions for prior written determination of no supervisory objection in this Article are based on the authority of 12 U.S.C. § 1818(b)(6) and do not require the Comptroller or the ADC to complete his review and act on any such information or authority within ninety (90) days.