Common use of Reporting Incidents of Non-Compliance Clause in Contracts

Reporting Incidents of Non-Compliance. All incidents of non-compliance and misconduct are to be reported to the Chief Risk Officer as soon as practicable after the incidence of non-compliance is detected. Failure on the part of a leader to report an incidence of non-compliance by a direct report will itself be considered a violation. Such reports must document the reason why non-compliance occurred. All violations will be reported to the Xxxxxxx President, COO / CFO, General Counsel and Senior Commercial Manager. In addition, they will be reported to the RMC. Those violations considered fraudulent, conscious, willful and/or intentional violation of Company Policy or Procedures are considered severe and must be communicated to the RMC immediately. Note that notification of the President, COO / CFO and General Counsel meets this RMC notification requirement. Examples of such violations are described in Section 3.2.2 below. To the extent that the Chief Risk Officer does not feel that appropriate actions have been taken to correct violations, the Chief Risk Officer is obligated to communicate these concerns to the RMC. If the condition persists, the Chief Risk Officer should concurrently notify the Xxxxxxx President and the Board of Directors. In the case of a credit risk limit violation, please refer to the Xxxxxxx’x Credit Management Policy Manual and related documentation.