Ch_13_-_LOAN_POLICY

Ch_13_-_LOAN_POLICY - Bank Level – Equal to Regulatory...

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LOAN POLICY LOAN COMMITTEES Director Level-Committee Chair, members Management Level- Chief Credit Officer, CEO, Chief Credit Administrator, CFO TYPES OF LOANS AND VOLUME: Real Estate Construction 15% - 20% Commercial RE 25% - 40% Land/Land Development 5% - 10% 1 – 4 Family 10% - 20% Commercial/Industrial 25% - 35% Agriculture 0 – 10% Consumer 5% - 10% UNDERWRITING GUIDELINES/STANDARDS Acceptable Non Acceptable Business >= 3 yrs old New Business Min Fin Strength Adult Entertainment Types of Bus/Indust Illegal Activities Not For Profit? COLLATERAL Loan/Value or LTV min LENDING LIMITS Regulatory Limits – Secured 25%, unsecured 15% of Cap+ALLL+LT Debts
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Unformatted text preview: Bank Level – Equal to Regulatory limits or less Individual Loan Officers – AVP, VP, SVP, EVP, directors loan committee ALLOWANCE for LOAN AND LEASE LOSSES (ALLL) – Level Methodology - FAS 114, FAS 5 NON-ACCRUAL – 90 days CHARGE OFFS – 120 days; 365 days CREDIT GRADING – loan review 1 cash secured 2 RE with good Cash Flow, DSC >1.25X 3 unsecured with good Cash Flow, financials 4 Watch 5 Special Mention 6 Substandard (less than BBB-) 7 Doubtful 8 Loss CREIDT ADMINISTRATION Loan Documentations Perfecting Liens Loan Covenants...
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