PNC Bancorp, Inc. Successor to First National Pennsylvania Corporation, et al. - Page 8

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          regarding its tolerance for risk, how and under what terms loans            
          are to be made, pricing and profit objectives, documentation                
          requirements, acceptable levels of credit losses, and collection            
          and chargeoff procedures.  The risk management process requires             
          continuous adjustment and refinement to address the competing               
          interests of marketing loans to as many customers as possible               
          while at the same time insuring that the bank makes low risk                
          loans.                                                                      

          Consumer Loans6                                                             

               Platform employees at the banks typically met with                     
          prospective consumer borrowers to explain available loan products           
          and to assist the prospective borrowers in completing a loan                
          application where appropriate.  The consumer loan applications              
          were generally taken by branch employees.  The application                  
          identified the prospective borrower and described the prospective           
          borrower's income and assets, existing debt, the purpose of the             
          loan, and other data necessary to evaluate the prospective                  
          borrower's financial condition.  Where loans were to be secured             
          by an interest in real property, the application would also                 
          include a description of the collateral sufficient to permit the            
          ordering of a property report or appraisal.                                 
               The application process is the primary means by which banks            
          obtain information from consumer customers.  The banks took a               


               6Both the FNPC cases and the UFB cases involve expenditures            
          relating to consumer loans.                                                 


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