Program implementation is a process. Once all vendor, service provider, and customer responses have been assessed, First National will establish a schedule for encouraging renovation of their systems. If we conclude that a vendor or service providers potential Y2K problems will have an adverse impact on the bank's operations, we will insist upon system renovation by that vendor or service provider. Those that will not be renovated in time will be replaced. Testing of all systems following renovation Post-renovation testing will validate the bank's belief that system failures adversely affecting bank operations, products and services will not occur on critical dates.
Testing is underway on the hardware and software used by the bank.
By simulating data conditions expected on critical future dates, system tests will continue until we conclude we are prepared to avoid disruption of service on critical dates. Our tests include data exchanges with counterparts outside the bank including, in particular, the Federal Reserve. Testing will extend to other financial institutions and payment system providers, and then to vendors and service providers whose goods and services are critical to our own operations. Finally, where warranted, we will engage in tests with customer whose success in avoiding problems on critical dates is also critical to our own operations. We are confident we have the resources necessary to accomplish the tasks described above.