The collateral pledged was originated by customer, and is serviced and owned by the same, and therefore is not encumbered by any prior lien, pledge, participation, or any other form of encumbrance. No collateral pledged is 60 days or more past due, on nonaccrual or in foreclosure. The borrower of collateral pledged is not an officer, director, attorney or agent of the customer. No construction or operating loans are included. No loans included are currently classified as substandard, doubtful, or loss, either internally or by a regulator. Collateral pledged will be of the following type and percentage of collateral coverage:
A current list of collateral pledged must be sent to BND every 60 days along with an executed copy of the Certificate of Available Eligible Collateral, during the term of the LOC. Substitutions also require this certificate. Substitutions are required for paydowns, payoffs or other changes in eligibility. BND reserves the right to review the collateral prior to acceptance and to perform periodic collateral reviews to insure compliance with collateral requirements. All LOCs are approved by Accounting or Treasury personnel and reported to the Investment Committee. Exceptions are approved by the Treasury Services Manager and the Investment Committee.