Non-Performing Loans Ratio Clause Samples

Non-Performing Loans Ratio. (a) The Non-Performing Loan Ratio of the Borrower and its Subsidiaries, as of the end of each fiscal quarter shall not exceed three and one half percent (3.50%) of the Borrower's gross loans between execution of this document and 12/31/04. NPL shall not exceed 3.25% beginning 1/01/05 through 3/31/05, NPL shall not exceed 3.00%, beginning 4/01/05 through 6/30/05, NPL shall not exceed 2.50% beginning 7/01/05 through 12/31/05 and thereafter NPL shall not exceed 2.00%. (b) For the purposes hereof, "Non-Performing Loans" shall be defined as the sum of (1) all loans classified internally or by a Bank Regulatory Authority as non-accrual plus (2) loans past due by 90 days or more plus (3) loans for which the obligee has reduced the agreed interest rate, reduced the principal or interest obligation, extend the maturity, applied interest payments to reduce principal, capitalized interest, or otherwise renegotiated the terms of the obligation based upon the actual or asserted inability of the obligor(s) of such loans to perform their obligations pursuant to the agreements with the obligee prior to such modification or renegotiation; provided, however, loans for which the Borrower or the Bank has taken additional collateral satisfactory to it and therefore is prepared to make additional loan advances or any other loans which have been restructured and are performing in a manner satisfactory to the Borrower shall not be included in the definition, herein defined as "Non-performing Loans" and (4) Other Real Estate Owned listed in Call Reports and other such assets acquired through foreclosure or other realization upon collateral or rearrangement or satisfaction of Indebtedness.