Historia de la sexualidad

1. The credit union will disclose the number and aggregate dollar amount of Commercial Loans to credit union members at the annual meeting.

Z. Commercial Loan Workouts

1. The credit union will develop and maintain a ready network of legal, appraisal, real estate brokerage and property management professionals to handle prospective workouts.

2. Refer to the Workout Loans policy for more information on: a) Repayment plans.

b) Temporary reductions of payment. c) Loan refinancing.

d) Loan re-aging. e) Loan extension. f) Loan deferral.

g) Debt Consolidation Loans. h) Skip payments.

i) Loan collateralization. j) Loan rewrites.

k) Forbearance.

l) Make-whole pre-foreclosure sales. m) Deeds in lieu of foreclosure. n) Short sales.

o) Short pay or refinances.

p) Troubled Debt Restructure (TDR).

AA. Prohibited Business and Commercial Loans

1. No business or commercial loans will be granted to:

a) Any senior management employee directly or indirectly involved in the credit union’s commercial loan underwriting, servicing and collection process and any of their immediate family members. b) Any member meeting the definition of an associated borrower with

respect to an employee or immediate family member listed above. c) Any compensated member of the Board of Directors, unless

approved by the Board.

(1) Said Director must recuse himself or herself from the decision-making process.

2. Equity Kickers and Joint Ventures

a) The credit union shall not grant business or commercial loans where it or its senior management employees receives an amount tied to the profit or sale of the business or commercial endeavor for which the loan is made.

3. MBLs with a term of more than 15 years. 4. Loans secured by floor plan liens.

5. Loans that are illegal or finance illegal enterprises. 6. Loans to individuals who are not credit union members.

7. Loans that violate applicable State or Federal laws or NCUA regulations. 8. Loans secured by household goods, jewelry, antiques, art works, etc.

9. Loans whose collateral is contested, unclear, or subject to another claim (except for real property second mortgages).

10.Loans secured by future payments on judgments or legal settlements in litigation.

11.Loans to a borrower whose integrity is questionable or against whom there is a substantial judgment or tax liens outstanding.

12.No credit will be extended to any member who has caused us a loss unless the loss has been or is being repaid.

a) This policy shall apply whether the loss was caused by bankruptcy or otherwise.

BB. Less Desirable Loans

1. Loans that fit this category are considered to have a higher risk factor than normal, and while not prohibited, such loan applicants should show decided strengths that are noted in the loan officer narrative:

a) Loans to businesses that do not maintain their main transaction accounts with the credit union (exceptions for cause which must be documented).

b) Loans to businesses which are undercapitalized.

c) One-shot loans where no long-term relationship will be developed. d) Loans to unprofitable businesses.

e) Non-amortizing loans.

2. In no event will a loan be granted where the difference between collateral market value and loan balance exceeds the unsecured loan limit.

CC. Provisionally Prohibited MBLs

1. Loans that fit this category are usually considered Less Desirable because of a higher risk factor than normal, but when the credit union’s net worth ratio is below 7.0%, these loans are Provisionally Prohibited unless specific loss mitigation funds or guarantees are in place:

a) Commercial Loans to individuals or businesses on which the credit union has previously had a charge off, or on which it has had to initiate legal action to force collection.

b) Commercial Loans for a term longer than the economic or depreciable life of the assets used as security.

c) Floor planning loans.

d) MBLs secured by marketable securities. e) MBLs for new construction.

XV.

Commercial Loan Risk Rating

A. Overview

1. The credit union will rate Commercial Loans on a continual and ongoing basis.

2. The rating system will provide for the review of the financial position of the borrower, as well as the overall performance of commercial real estate collateral.

3. The credit union will utilize loan history, updated financial data, the most current property operating statements, and the most current rent rolls to determine the loan risk rating.

4. Each loan over $50,000 shall be assigned a risk code by the Business Loan Officer at the time of application.

a) This code shall be reviewed periodically.

5. On all Commercial Loans with an outstanding balance over $50,000, ratings shall be performed annually at the time of financial review or as deemed necessary by management.

6. A loan may be reviewed prior to its financial review period dependent upon repayment and risk factors ascertained by management.

7. Other factors that may be considered in rating include: a) Overall credit union account relationship. b) Analysis and financial trends.

c) Length of term.

d) Certainty of repayment source. e) Marketability of collateral. f) Deposits in the credit union. g) Past due taxes.

h) Lack of insurance coverage. i) Breach of loan covenants.

8. No rating will be assigned without current documentation in the file to support the aspects of the risk classification.

a) A loan may be placed on the Watch List pending requested documentation.

9. If a loan remains on the watch list for 6 consequent months due to pending documentation, the rating may be changed or downgraded.

a) This will be based on the impact the requested information has on the overall risk rating the loan.

10.Risk rating is not a hard science and requires interpretation and judgement.

B. Rating Scale

1. The rating system is designed from 1 to 7, with 1 being the highest possible rating and 7 being the lowest negative rating.

2. The following table is a quick description of each rating and the corresponding risk associated with the loan:

Rating Evaluation of Risk

1 Excellent

2 Satisfactory

3 Pass/Watch

4 Specialized Mention (Criticized Asset)

5 Substandard (Classified Asset)

6 Doubtful (Classified Asset)

7 Loss (Classified Asset)