PNC Bancorp, Inc. Successor to First National Pennsylvania Corporation, et al. - Page 12

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          necessary to evaluate the prospective borrower's financial                  
          condition.  Where loans were to be secured by an interest in real           
          property, the application would include a description of the                
          collateral sufficient to permit the ordering of a property report           
          or appraisal.  FNBP would generally obtain 3 years of financial             
          statements, interim financial statements, aging reports to                  
          determine the current status of accounts receivable and payable,            
          and secured transaction reports to determine whether any liens              
          had been filed against the property of the client.  Applicants              
          also typically submitted personal financial statements of                   
          guarantors, operating projections, a business plan,                         
          organizational documents, and certificates of good standing and             
          references.  Information obtained in connection with a commercial           
          loan request was used to evaluate the creditworthiness of the               
          client and to identify other needs of the client that might be              
          met by the bank such as investment services, treasury management            
          services, and employee benefit services.                                    
               As a general rule, evaluation of a commercial loan                     
          application required FNBP to obtain more information and to                 
          expend more resources than was required in the case of a consumer           
          loan application.  In a typical month, each of the nine                     
          commercial loan officers at FNBP took between 2 and 10 commercial           
          loan requests.  With respect to commercial loans, it was common             
          for FNBP and the prospective borrower to negotiate the loan                 
          terms.                                                                      





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