Common use of LENDING POLICIES Clause in Contracts

LENDING POLICIES. (1) Within one hundred fifty (150) days, the Board shall review, revise, and adhere to the Bank's written loan policies. In revising these policies, the Board shall refer to the Loan Portfolio Management (a) a description of acceptable types of loans; (b) a provision that current and satisfactory credit information will be obtained on each borrower and significant guarantor(s); (c) minimum requirements for uniform and comprehensive credit analysis, including appropriate cash flow analysis, full disclosure of all significant aspects of the proposed credit, and an assessment of the risks involved, prior to credit approval; (d) minimum requirements for audited or compiled financial statements; (e) procedures for appropriate underwriting and management of all commercial lines of credit; (f) collection procedures, to include follow-up efforts, that are systematically and progressively stronger; (g) maturity scheduling related to the anticipated source of repayment, the purpose of the loan, and the useful life of the collateral; (h) guidelines for appraisal and/or evaluating collateral; (i) guidelines and limitations for participation loans; (j) a limitation on aggregate outstanding loans in relation to other balance sheet accounts; (k) guidelines and limitations on concentrations of credit; (l) guidelines designed to improve Board oversight of the loan approval process, specifically with regard to credits exhibiting significant risk; and (m) charge-off guidelines, by type of loan or other asset, addressing the circumstances under which a charge-off would be appropriate and ensuring the recognition of losses within the quarter of discovery. (2) Upon completion, a copy of this policy shall be forwarded to the Assistant Deputy Comptroller for review. (3) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.

LENDING POLICIES. (1) Within one one-hundred fifty (150) days, the Board shall review, revise, and adhere to the Bank's written loan policies. In revising these policies, the Board shall refer to the Loan Portfolio ManagementManagement booklet. A-LPM, of the Comptroller's Handbook. For all loans, these policies shall incorporate, but not necessarily be limited to, the following: (a) a description of acceptable types of loans; (b) a provision that current and satisfactory credit information will be obtained on each borrower and significant guarantor(s); (c) minimum requirements for uniform and comprehensive credit analysis, including appropriate cash flow analysis, full disclosure of all significant aspects of the proposed credit, and an assessment of the risks involved, prior to credit approval; (d) minimum requirements for audited or compiled financial statements; (e) procedures for appropriate underwriting and management of all commercial lines of credit; (f) collection procedures, to include follow-up efforts, that are systematically and progressively stronger; (g) maturity scheduling related to the anticipated source of repayment, the purpose of the loan, and the useful life of the collateral; (h) guidelines for appraisal and/or evaluating collateral; (i) guidelines and limitations for participation loans; (j) a limitation on aggregate outstanding loans in relation to other balance sheet accounts; (k) guidelines and limitations on concentrations of credit; (l) guidelines designed to improve Board oversight of the loan approval process, specifically with regard to credits exhibiting significant risk; and (m) charge-off guidelines, by type of loan or other asset, addressing the circumstances under which a charge-charge- off would be appropriate and ensuring the recognition of losses within the quarter of discovery. (2) Upon completion, a copy of this policy shall be forwarded to the Assistant Deputy Comptroller for review. (3) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.