Common use of Securities Portfolio and Investments Clause in Contracts

Securities Portfolio and Investments. All securities owned by Rowan or ------------------------------------ Rowan Bank (whether owned of record or beneficially) are held free and clear of all mortgages, liens, pledges, encumbrances or any other restriction or rights of any other person or entity, whether contractual or statutory, which would materially impair the ability of Rowan or Rowan Bank to dispose freely of any such security or otherwise to realize the benefits of ownership thereof at any time. There are no voting trusts or other agreements or undertakings to which Rowan or Rowan Bank is a party with respect to the voting of any such securities. With respect to all "repurchase agreements" to which Rowan or Rowan Bank has "purchased" securities under agreement to resell, Rowan or Rowan Bank has a valid, perfected first lien or security interest in the government securities or other collateral securing the repurchase agreement, and the value of the collateral securing each such repurchase agreement equals or exceeds the amount of the debt owed that is secured by such collateral. Except for fluctuations in the market values of its investment securities, since December 31, 2001, there has been no significant deterioration or material adverse change in the quality, or any material decrease in the value, of Rowan's securities portfolio as a whole.

Securities Portfolio and Investments. All securities owned by Rowan Crescent Financial or ------------------------------------ Rowan Bank Crescent (whether owned of record or beneficially) are held free and clear of all mortgages, liens, pledges, encumbrances or any other restriction or rights of any other person or entity, whether contractual or statutory, which would materially impair the ability of Rowan Crescent Financial or Rowan Bank Crescent to dispose freely of any such security or otherwise to realize the benefits of ownership thereof at any time. There are no voting trusts or other agreements or undertakings to which Rowan Crescent Financial or Rowan Bank Crescent is a party with respect to the voting of any such securities. With respect to all "repurchase agreements" to which Rowan Crescent Financial or Rowan Bank Crescent has "purchased" securities under agreement to resell, Rowan Crescent Financial or Rowan Bank Crescent has a valid, perfected first lien or security interest in the government securities or other collateral securing the repurchase agreement, and the value of the collateral securing each such repurchase agreement equals or exceeds the amount of the debt owed that is secured by such collateral. Except for fluctuations in the market values of its investment securities, since December 31, 20012002, there has been no significant deterioration or material adverse change in the quality, or any material decrease in the value, of RowanCrescent Financial's securities portfolio as a whole.

Securities Portfolio and Investments. All securities owned by Rowan UCB or ------------------------------------ Rowan Bank any subsidiary (whether owned of record or beneficially) are held free and clear of all mortgages, liens, pledges, encumbrances or any other restriction or rights of any other person or entity, whether contractual or statutory, which would materially impair the ability of Rowan UCB or Rowan Bank any subsidiary to dispose freely of any such security or otherwise to realize the benefits of ownership thereof at any time. There are no voting trusts or other agreements or undertakings to which Rowan UCB or Rowan Bank any subsidiary is a party with respect to the voting of any such securities. With respect to all "repurchase agreements" to which Rowan UCB or Rowan Bank anysubsidiary has "purchased" securities under agreement to resell, Rowan UCB or Rowan Bank any subsidiary has a valid, perfected first lien or security interest in the government securities or other collateral securing the repurchase agreement, and the value of the collateral securing each such repurchase agreement equals or exceeds the amount of the debt owed that is secured by such collateral. Except for fluctuations in the market values of its investment securities, since December 31June 30, 20012002, there has been no significant deterioration or material adverse change in the quality, or any material decrease in the value, of RowanUCB's securities portfolio as a whole.

Securities Portfolio and Investments. All securities owned by Rowan Community or ------------------------------------ Rowan Bank its subsidiaries (whether owned of record or beneficially) are held free and clear of all mortgages, liens, pledges, encumbrances or any other restriction or rights of any other person or entity, whether contractual or statutory, which would materially impair the ability of Rowan Community or Rowan Bank its subsidiaries to dispose freely of any such security or otherwise to realize the benefits of ownership thereof at any time. There are no voting trusts or other agreements or undertakings to which Rowan Community or Rowan Bank its subsidiaries is a party with respect to the voting of any such securities. With respect to all "repurchase agreements" to which Rowan Community or Rowan Bank its subsidiaries has "purchased" securities under agreement to resell, Rowan Community or Rowan Bank its subsidiaries has a valid, perfected first lien or security interest in the government securities or other collateral securing the repurchase agreement, and the value of the collateral securing each such repurchase agreement equals or exceeds the amount of the debt owed that is secured by such collateral. Except for fluctuations in the market values of its investment securities, since December 31June 30, 20012002, there has been no significant deterioration or material adverse change in the quality, or any material decrease in the value, of RowanCommunity's securities portfolio as a whole.