Welcome

 About Us Our Team Services Contact Us

Commercial/Agricultural Lending and Compliance

At CMA Bank Advisors, our associates provide commercial and agricultural lending and compliance assistance to assure that your institution’s loan policy, loan department structure, procedures and various reporting requirements are current with today’s standards and meet regulatory requirements.

We can also assist with proper methods, accounting and reporting requirements of the Allowance for Loan and Lease Losses (ALLL) that conform to recent changes in requirements issued by all regulatory authorities. These enhancements will result in more accurate and well-documented determination of the ALLL.

Our lending professionals can develop or enhance your institution’s loan grading and loan review systems and procedures to assure that the grade definitions directly coincide with the regulatory classified loan definitions as now required. Additional loan documentation training or seminars are available for new and experienced loan officers and credit department staff members.




Services

Loan Grading Systems and Integration with Loan Review Requirements

  • Assist you in Assuring your bank’s loan policy and loan department procedures comply with current regulatory requirements for objective loan grading and risk rating objectives and methodology (December, 2006 Interagency Policy Statement (IPS) and SR Letter 07-1)

  • Perform reviews of your bank’s loan grading system to assure that grade definitions directly relate to regulatory classified loan definitions as currently required

  • Define the difference in requirements and scope between loan grading and loan review

Loan Documentation Training and Seminars Covering Chapter 554.9 (Article 9) of the Uniform Commercial Code (Secured Transactions)

  • Explanation of definitions of classes of collateral and their effective use

  • Requirements for “Attachment” and “Perfection” of security interest

  • Use of ”Purchase Money Security Interests” to effectively protect the bank

  • Explanation of “Proceeds” of collateral

  • Proper language for use in Security Agreements

  • Proper language for use in Financing Statements (UCC-1, UCC-2)

  • Explanation and proper usage of “After-Acquired Property” and “Future Advances” clauses in bank’s documents

  • Formal requirements of Financing Statements

  • Documentation and filing requirements when borrower changes name or legal entity

  • Rights and duties when collateral is in secured party’s possession

  • Review bank’s loan forms for language required to protect the bank

  • Define or provide loan documentation audits and formats

  • All other sections as needed or requested

Loan Policy Evaluation and Enhancement

  • Define responsibilities of board of directors

  • Define loan committee structure and responsibilities

  • Assure policy contains current ALLL methodology and reporting requirements

  • Assure policy contains required non-accrual loan procedures and accounting requirements for returning to accrual status

  • Assure policy addresses current real estate appraisal requirements

  • Define loan charge-off requirements

Compliance with Regulatory Requirements

  • July, 2001 and December, 2006 IPS for ALLL requirements

  • Title XI of the FDIC Real Estate Appraisal Reform amendments

  • SR Letter 07-1 commercial real estate loan requirements

  • Attachment 1 of December, 2006 IPS concerning loan review system requirements

Loan Department Structure and Reporting Requirements

  • Independence of credit department quality analysis from influence of senior lending staff

  • Requirements of loan review to report directly to board of directors loan committee or to the board of directors

  • Credit department structure and reporting requirements

  • Use of independent loan review personnel


CMA Bank Advisors © 2008 | Privacy Policy