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Unformatted text preview: 16,17,and18 Student: ___________________________________________________________________________ 1. The______________ is a uniform rating system developed by regulators where banks are given a rating from one to five in each of six categories and an overall rating from one to five. ________________________________________ 2. One of the 6 C's of lending,______________ suggests that the lender must look at the position of the business firm in the industry and the outlook of the industry to evaluate a loan. ________________________________________ 3. One of the 6 C's of lending,______________ suggests that the lender must look to see if the borrower is legally entitled to sign a binding loan agreement. For an individual this entails making sure the borrower is of legal age to sign a contract. ________________________________________ 4. When a bank purchases a whole loan or a piece of a loan from another bank they are purchasing what is known as a____________________________. ________________________________________ 5. Loans that have minor weaknesses because the bank has not followed its written loan policy or which have missing documentation are called______________ by regulators. ________________________________________ 6. ____________________________ are loans extended to farmers and ranchers to assist in planting crops, harvesting crops and to support the feeding and care of livestock. ________________________________________ 7. ____________________________ devote the bulk of their credit portfolio to large-denomination loans to corporations and other businesses and tend to be large banks. ________________________________________ 8. ____________________________ are loans which are secured by land buildings and other structures. These loans can be short term construction loans or longer term loans to finance the purchase of homes and apartments among others. ________________________________________ 9. A______________ is signed by the borrower and indicates the principal amount of the loan, the interest rate on the loan and the terms under which repayment must take place. ________________________________________ 1 10. ____________________________ are those things a borrower must do. They are actions the borrower must take. Examples include filing periodic financial statements with the bank and purchasing insurance on any collateral pledged. ________________________________________ 11. ___________________________ are when lenders extend credit to banks, insurance companies, and finance companies among others. ________________________________________ 12. ______________ are loans that carry a strong probability of loss to the bank. ________________________________________ 13. A(n)______________ is the process of resolving a troubled loan so the bank can recover its funds....
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This note was uploaded on 11/17/2008 for the course FINA 4443 taught by Professor Mattews during the Fall '08 term at Texas A&M.
- Fall '08