12 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.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011