Operations and internal controls Sample Clauses

Operations and internal controls. Each SBA Supervised Lender’s board of directors (or management, if the SBA Supervised Lender is a division of an- other company and does not have its own board of directors) must adopt an internal control policy which provides adequate direction to the institution in establishing effective control over and accountability for operations, pro- grams, and resources. The internal con- trol policy must, at a minimum: (1) Direct management to assign re- sponsibility for the internal control function (covering financial, credit, credit review, collateral, and adminis- trative matters) to an officer or offi- cers of the SBA Supervised Lender; (2) Adopt and set forth procedures for maintenance and periodic review of the internal control function; and (3) Direct the operation of a program to review and assess the SBA Super- vised Lender’s assets. The asset review program policies must specify the fol- lowing: