Common use of LOAN REVIEW AND PROBLEM LOAN IDENTIFICATION Clause in Contracts

LOAN REVIEW AND PROBLEM LOAN IDENTIFICATION. (1) The Board shall within sixty (60) days employ or designate a sufficiently experienced and qualified person(s) or firm to ensure the timely, independent, and accurate identification of problem loans and leases. (2) Prior to entering into any contract with a person or firm to perform services required by this Article, the Board shall submit the name and qualifications of the proposed consultant the proposed terms and scope of the engagement (including the proposed engagement letter and any amendments thereto) to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. (3) Within ninety (90) days, the Board shall establish an accurate, independent, and on-going loan review system to review, at least quarterly, the Bank’s loan and lease portfolio 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 the “Rating Credit Risk” booklet of the Comptroller’s Handbooks and “OCC Bulletin 2006-47 – Interagency Policy Statement on the Allowance for Loan and Lease Losses.” 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) The identification and status of credit related violations of law, rules, or regulations; (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 identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (f) of this Article;

LOAN REVIEW AND PROBLEM LOAN IDENTIFICATION. (1) The Board Upon execution of this document, the Board, or a designated committee, shall within sixty (60) days employ promptly ensure that the Bank’s internal loan review officer has the demonstrated experience and skills to be, or designate a sufficiently experienced receives the external training and qualified person(s) or firm on-the-job training necessary to ensure become competent in performing the timely, independent, and accurate identification of problem loans and leasesinternal loan review function. (2) Prior to entering into any contract with The Board, or a person or firm to perform services required by this Articledesignated committee, the Board shall submit the name develop and qualifications of the proposed consultant the proposed terms and scope of the engagement implement an internal loan review program within thirty (including the proposed engagement letter and any amendments thereto30) to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection.days; (3) Within ninety (90) daysIn implementing the internal loan review program, the Board or a designated committee shall establish an accurateeffective, independent, and on-going loan review system to review, at least quarterly, the Bank’s loan and lease portfolio portfolios to assure the timely identification and categorization of problem credits. The system Bank’s loan review function shall provide for a written report to be filed with the Board or a designated committee after each review and shall use a loan and lease grading system consistent with the guidelines set forth in the “Rating Credit Risk” booklet of the Comptroller’s Handbooks and “OCC Bulletin 2006-47 – Interagency Policy Statement on the Allowance for Loan and Lease Losses.” booklets of the Comptroller’s Handbook. Such reports shall include, at a minimum, conclusions and comments regarding: (a) The the scope of the review; (b) the overall quality of the loan and lease portfolios; (bc) The the identification, type, rating, and amount of problem loans and leases; (cd) The the identification and amount of delinquent loans and leases; (de) Credit credit and collateral documentation exceptions; (ef) The the identification and status of credit related violations of law, rulesrule, or regulationsregulation; (fg) Loans the identity of the loan officer who originated each loan reported in accordance with subparagraphs (b) through (e) of this Article; (h) concentrations of credit; (i) loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (j) loans and leases not in conformance with the Bank’s lending and leasing policies, and exceptions to the Bank’s lending and leasing policies. (g4) The identity Board shall establish the required scope of the Bank’s internal loan review program to include reasonable, annual loan portfolio coverage minimums based on: the dollar volume of commercial and commercial real estate loans reviewed as a percent of total commercial and commercial real estate loans; the dollar volume of loans reviewed as a percent of total loans; the dollar volume of each officer’s commercial and commercial real estate as a percent of the officer’s total portfolio; and an annual sample review of consumer loans; however no less than 50% coverage of outstanding total loan balances annually is required. (5) The Board or a designated committee 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). (6) Upon execution of this document, the Board or a designated committee shall promptly ensure that each loan officer who originated assigns an appropriate risk rating for each loan reported in accordance with subparagraphs his/her respective portfolio and initiates grading changes in a timely manner based upon: (a) through Past due status, payment history, bankruptcy, or similar indicators; and/or (fb) Lack of this Article;financial capacity indicated by current financial information and cash flow analysis.

LOAN REVIEW AND PROBLEM LOAN IDENTIFICATION. (1) Within ninety (90) days, the Board shall implement a written program which ensures that the Bank’s loan officers are, on an on-going basis, timely and accurately identifying and classifying problem loans and leases. This program shall emphasize that it is the individual loan officer’s responsibility to timely identify and risk rate any problem loans or leases originated by that officer and/or within that officer’s portfolio. Performance appraisals and incentive programs for loan officers shall appropriately consider their performance relative to, among other factors, accuracy and timeliness in credit grading. (2) The Board shall shall, within sixty ninety (6090) days days, employ or designate a sufficiently experienced and qualified person(s) or firm to ensure the timely, independent, timely and accurate independent identification of problem loans and leases. (2) Prior to entering into any contract with a person or firm to perform services required by this Article, the Board shall submit the name and qualifications of the proposed consultant the proposed terms and scope of the engagement (including the proposed engagement letter and any amendments thereto) to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. (3) Within ninety (90) days, the Board shall establish implement an accurateeffective, independent, independent and on-on- going loan review system to review, at least quarterly, the Bank’s loan and lease portfolio 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 the “Rating Credit Risk” booklet and “Allowance for Loan and Lease Losses” booklets of the Comptroller’s Handbooks Handbook and “OCC Bulletin 2006-47 – Interagency Policy Statement on the Allowance for Loan and Lease Losses.” . Such reports shall include, at a minimum, conclusions conclusion regarding: (a) The the overall quality of the loan and lease portfoliosportfolio; (b) The monitoring systems for early problem loan identification; (c) the identification, type, rating, and amount of problem loans and leases; (cd) The the identification and amount of delinquent loans and leases; (de) Credit credit and collateral documentation exceptions; (ef) The the identification and status of credit related violations of law, rules, rule or regulationsregulation; (g) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (c) through (f) Loans of the Article; (h) concentrations of credit; (i) loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (j) 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. (g4) A written description of the programs called for in this Article shall be forwarded to the Assistant Deputy Comptroller upon implementation. (5) The identity 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). (6) 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. (7) Within ninety (90) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of early problem loan identification to assure the timely identification and rating of loans and leases, based on lending officer who originated each loan reported in accordance with subparagraphs submissions. (a) through (f) 8) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the programs and systems developed pursuant to this Article;.

LOAN REVIEW AND PROBLEM LOAN IDENTIFICATION. (1) The Board shall within Within sixty (60) days employ or designate a sufficiently experienced and qualified person(s) or firm to ensure the timely, independent, and accurate identification of problem loans and leases. (2) Prior to entering into any contract with a person or firm to perform services required by this Article, the Board shall submit the name and qualifications of the proposed consultant the proposed terms and scope of the engagement (including the proposed engagement letter and any amendments thereto) to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. (3) Within ninety (90) days, the Board shall establish an accurate, independent, and on-on- going loan review system to review, at least quarterly, the Bank’s loan and lease portfolio 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 the “Rating Credit Risk” booklet of the Comptroller’s Handbooks and “OCC Bulletin 2006-47 – Interagency Policy Statement on the Allowance for Loan and Lease Losses.” 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) The identification and status of credit related violations of law, rules, or regulations; (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 identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (f) of this Article; (h) Concentrations of credit; and (i) Loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank. (2) Within ninety (90) days, the Board shall develop, implement, and thereafter ensure Bank adherence to a written program providing for independent and accurate 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 quarterly reports 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) System for monitoring compliance with the Bank’s lending policies and laws, rules, and regulations pertaining to the Bank’s lending function; and, (c) System for monitoring the adequacy of credit and collateral documentation. (3) The Board shall evaluate the internal loan and lease review reports and shall ensure that immediate, adequate, and continuing remedial action, if appropriate, is taken upon all findings noted in the reports. (4) A copy of the reports submitted to the Board, as well as documentation of the actions taken by the Bank to collect or strengthen assets identified as problem credits, shall be preserved in the Bank. (5) Within ninety (90) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of early problem loan identification to assure the timely identification and rating of loans and leases, based on lending officer submissions. (6) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the programs and systems developed pursuant to this Article.

LOAN REVIEW AND PROBLEM LOAN IDENTIFICATION. (1) The Board shall within sixty (60) days employ or designate a sufficiently experienced and qualified person(s) or firm to ensure the timely, independent, and accurate identification of problem loans and leases. (2) Prior to entering into any contract with a person or firm to perform services required by this Article, the Board shall submit the name and qualifications of the proposed consultant and the proposed terms and scope of the engagement (including the proposed engagement letter and any amendments thereto) to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. (3) Within ninety (90) days, the Board shall establish an accurate, independent, and on-going loan review system to review, at least quarterly, the Bank’s loan and lease portfolio 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 the “Rating Credit Risk” booklet of the Comptroller’s Handbooks and “OCC Bulletin 2006-47 – — Interagency Policy Statement on the Allowance for Loan and Lease Losses.” 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) The identification and status of credit related violations of law, rules, or regulations; (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 identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (f) of this Article;

LOAN REVIEW AND PROBLEM LOAN IDENTIFICATION. (1) The Board shall within sixty ninety (6090) days employ or designate a sufficiently experienced and qualified person(s) or firm to ensure the timely, independent, timely and accurate independent identification of problem loans and leases. (2) Prior to entering into any contract with a person or firm to perform services required by this Article, the Board shall submit the name and qualifications of the proposed consultant the proposed terms and scope of the engagement Within one hundred-twenty (including the proposed engagement letter and any amendments thereto) to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. (3) Within ninety (90120) days, the Board shall establish an accurateeffective, independent, independent and on-going loan review system to review, at least quarterly, the Bank’s 's loan and lease portfolio 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 the “Rating Credit Risk” booklet of the Comptroller’s Handbooks and “OCC Bulletin 2006-47 – Interagency Policy Statement on the Allowance for Loan and Lease Losses.” booklets of the Comptroller’s Handbook. Such reports shall include, at a minimum, conclusions regarding: (a) The the overall quality of the loan and lease portfolios; (b) The the identification, type, rating, and amount of problem loans and leases; (c) The the identification and amount of delinquent loans and leases; (d) Credit credit and collateral documentation exceptions; (e) The the identification and status of credit related violations of law, rules, rule or regulationsregulation; (f) Loans the identity of the loan officer who originated each loan reported in accordance with subparagraphs (b) through (e) of the Article; (g) concentrations of credit; (h) loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (i) 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. (g3) Within ninety (90) 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 identity program shall require a quarterly report to the Board. At a minimum the program shall provide for an independent reviewer’s assessment of the loan officer who originated each loan reported in accordance with subparagraphs Bank’s: (a) through monitoring systems for early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (fb) 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. (4) A written description of the program called for in this Article shall be forwarded to the Assistant Deputy Comptroller upon implementation. (5) 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). (6) 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. (7) Within ninety (90) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of early problem loan identification to assure the timely identification and rating of loans and leases, based on lending officer submissions. (8) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the programs and systems developed pursuant to this Article;.

LOAN REVIEW AND PROBLEM LOAN IDENTIFICATION. (1) The Board Upon execution of this document, the Board, or a designated committee, shall within sixty (60) days employ promptly ensure that the Bank’s internal loan review officer has the demonstrated experience and skills to be, or designate a sufficiently experienced receives the external training and qualified person(s) or firm on-the-job training necessary to ensure become competent in performing the timely, independent, and accurate identification of problem loans and leasesinternal loan review function. (2) Prior to entering into any contract with The Board, or a person or firm to perform services required by this Articledesignated committee, the Board shall submit the name develop and qualifications of the proposed consultant the proposed terms and scope of the engagement implement an internal loan review program within thirty (including the proposed engagement letter and any amendments thereto30) to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection.days; (3) Within ninety (90) daysIn implementing the internal loan review program, the Board or a designated committee shall establish an accurateeffective, independent, and on-going loan review system to review, at least quarterly, the Bank’s loan and lease portfolio portfolios to assure the timely identification and categorization of problem credits. The system Bank’s loan review function shall provide for a written report to be filed with the Board or a designated committee after each review and shall use a loan and lease grading system consistent with the guidelines set forth in the “Rating Credit Risk” booklet of the Comptroller’s Handbooks and “OCC Bulletin 2006-47 – Interagency Policy Statement on the Allowance for Loan and Lease Losses.” booklets of the Comptroller’s Handbook. Such reports shall include, at a minimum, conclusions and comments regarding: (a) The the scope of the review; (b) the overall quality of the loan and lease portfolios; (bc) The the identification, type, rating, and amount of problem loans and leases; (cd) The the identification and amount of delinquent loans and leases; (de) Credit credit and collateral documentation exceptions; (ef) The the identification and status of credit related violations of law, rulesrule, or regulationsregulation; (fg) Loans the identity of the loan officer who originated each loan reported in accordance with subparagraphs (b) through (e) of this Article; (h) concentrations of credit; (i) loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and (j) 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. (g4) The identity Board shall establish the required scope of the Bank’s internal loan review program to include reasonable, annual loan portfolio coverage minimums based on: the dollar volume of commercial and commercial real estate loans reviewed as a percent of total commercial and commercial real estate loans; the dollar volume of loans reviewed as a percent of total loans; the dollar volume of each officer’s commercial and commercial real estate as a percent of the officer’s total portfolio; and an annual sample review of consumer loans; however no less than 50% coverage of outstanding total loan balances annually is required. (5) The Board or a designated committee 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). (6) Upon execution of this document, the Board or a designated committee shall promptly ensure that each loan officer who originated assigns an appropriate risk rating for each loan reported in accordance with subparagraphs his/her respective portfolio and initiates grading changes in a timely manner based upon: (a) through Past due status, payment history, bankruptcy, or similar indicators; and/or (fb) Lack of this Article;financial capacity indicated by current financial information and cash flow analysis.