The unlabeled field group on the right side of the Classification/Purpose tab is explained in the table below.
The fields in this field group are as follows:
Field
|
Description
|
Primary/Secondary Source of Payment
Mnemonic: MLSRPM, MLSSPM
|
Use these fields to indicate the Primary and Secondary options for for repayment of the loan. Possible selections in this field are:
| 1. | Cash Flow From Operations (most common) |
| 3. | Conversion Of Receivables |
|
Policy Exception
Mnemonic: LNEXPY, MLEXCC
|
All institutions should have their own commercial loan underwriting policies. The policy should balance the institution’s needs for aggressive lending with the safety and soundness of the bank.
The lending policy should determine:
| 1. | The types of loans that a bank will make. |
| 2. | What constitutes an unacceptable credit or form of collateral? |
| 3. | Under what circumstances the bank will make an unsecured loan. |
| 4. | Under what circumstances the bank will allow documentation exceptions. |
If this loan was originated or allowed to renew with any exceptions to the bank’s lending policy, then this field should be selected. The space below this field provides a place to briefly identify what the exception is.
For instance, the loan may have been originated over your policy on LTV ratios, without a current appraisal, out of compliance with state or federal regulations, etc.
|
Purpose
Mnemonic: MLPRL1
|
Use this user-defined field to explain the purpose of the loan. Click <Save Changes> to save your changes. This field is used for reference purposes only.
|
Payment Terms
Mnemonic: MLPTM1
|
Use this user-defined field to explain the terms of payment. This field is used for reference purposes only.
|
