Kevin's Stumpers
Two instances where a positive FRR amount can be entered in Carma when outside debt or prior liens on equipment shown in the financial statement versus the historical financial statement book value is above the >40% guideline.
What is when adding new equipment loans for future purchases which reduces the outside loans to under 40% of the new total book value of equipment and when the accountant provided the actual Book value of the equipment?
The purpose of doing a risk reconciliation (LIP Reconciliation) and ways to determine why there is a discrepancy. (handout #1)
What is to confirm if there is double banking and money laundering? What is double check the account to make sure deposits match the system, determine if there are sales that need to be included/excluded and are there other accounts with TD that could have some of the deposits?
This is the minimum amount of authorized credit requiring a leverage lending assessment.
What is $5MM?
Stressing the MFA for the undrawn portion on a tranche loan facilities is to be based on the undrawn amount as off when.
What is as of Year end (not current available)?
I am going to tell you two truths and 1 lie. Guess the lie?
I have swum in the Persian Gulf. I am a big University of Michigan Fan My favorite beer type is IPA
What is I am a big University of Michigan Fan? (the Lie)
This is the proper way to complete Credit Lens when you have a lead operating borrowing entity and one or more "holdco" type borrowers on thee same economic entity credit.
What is only layer in TD debt and assets equaling the TD debt total into the operating borrower's CL to arrive the lockdown.
These items s/b looked at to try to balance this W/C Reconciliation. (handout #2)
What is....
Long term assets if there is a corresponding item in the income sheet (i.e breeding herd change, investment income, or agristability income)
Income taxes will need to adjusted to lower debt service
Statement cashflow items that are not covered in the debt service or w/c change.
This is how long we have to test covenants with a financial assessment component.
What is 10 days?
You will have a "recourse" exemption if you are missing either of these items on an ATL? (naming 1 is acceptable)
What is a general security agreement and personal/corporate guarantee if required to tie assets outside the business.
Other than adjudicating rush deals what is one of my favorite things to do on the weekends. (i.e. hobbies)
What is watching my youngest son play baseball and playing golf?
When a borrower breaches a financial covenant immediately after breaching that same covenant the last two consecutive years.
What is a formal written noncompliance letter must be issued or a CCRM-Ag approval not to obtain must be obtained regardless of credit amount.
Tell me the quality of each of the following Accounts Receivable. (See Handout #3)
A1- Low, A2 - N/A,
B1 - Low, B2 - N/A, B3 - High
C1 - Med, C2 - Med, C3 - Med, C4-Low, C5 Low, C6 Low, C7 Low, C8 High, C9 - Low, C10- low, C11 - med, C12- med, C13- Low, c14 - Low, C15 - High/Med, C16 - Med, C17-Med, C18-Low, C19-Med, C20- Med, CF21- Low, C22- Med, C23-Low, C24-Low.
On the PPSA registry, this is proper format for an individual debtor's name.
What is ...
MB: Last Name, First name, Second Name
SK: Last Name, First Name, Second Name, Third Name
The borrower's individual Debt Service coverage covenant is different from the prescribed definition as per the product policy. Which DSC should you use to determine if a Material Exemption exists and what is the % theshold?
What is the client's DSC based on the PRESCRIBED definition as per the applicable product policy and compare the result with the 115% Material Exception DSC threshold.
I have been to summit how many time?
What is twice? (and both as a MAC)
The credit review format level where Environmental and social risk tools are not required to be taken every 3 years or when the operation is farming new land-owned or rented.
What is NO levels, the varying credit review formats do not affect the ESR BEQ and SV requirements.?
Client is wanting a loan to purchase some land in the future and 3 pieces of equipment timing and from where are unknown for each piece. It is decided that 2 loans make sense for the client with the following disbursement conditions. (SEE HANDOUT 4).
Are these reasonable disbursement conditions and why?
What is NO?
DC1 is only set up for 1 draw. Loan 1 should have the wording for a private purchase and a lien search. D3 is not required as we don't take fire insurance on equipment on ag.
Loan 2 DC3 numbering is in duplicate. Loan 2 DC 3 could work but where is the downpayment coming from. DC4 should be4 on both loans. If it was missing as we don't know which will be drawn down first and also it is a company. Loan 2 is missing ESR - BQ & SV especially if land is new to the operation, missing the OTP, and odds are we need more security so we should be funding in trust to the solicitor.
Signing officers & restrictions for credit-only corporate customers are documented on this CIF Screen.
What is MCOM?
Business Banking Financial Statement Policy for Mid Market Ag states combined statements must be received for total credit exposure greater or equal to ______________ where:
______ or more financial statements are being combined or:
Financial statements have differing______________.
What is $5MM, 3 or more, differing year ends?
How many years have I been with TD?
What is 26 years and counting?
This is the amount of credit our internal DLs allow us to approve for annual reviewed, interim reviews, and incremental credits to any existing borrower (BRR 0-5) irrespective of Group Exposure.
What is $750,000?
$750 in Total credit exposure is permitted irrespective of Group exposure for approval of annual reviews, interim reviews, and incremental credit up to the $750,000 limit. (however remains subject to Daylight Exposure Limits) No additional incremental limits applies and limit transfers are permitted.
The delinquent loan payment screen should be reviewed how often and list the steps for ACB/AM.
What is weekly?
Steps: (1) Review the CCS Delq screen weekly by entering the branch cost centre and applicable teams. Determine the course of action. (2) When being taken from another FI a next retry date maybe entered in the loan system (3) Comment on the follow up action by entering in the loan system.
This is the appropriate time to use 'N/A' for Permitted Liens.
What is never?
As per credit writer's job aid, tranche details on carma credit should only be entered in what section in the facility screens.. The other facility section s/b __________ information.
What is:
Only input tranche details in the repayment section, input FULL credit limit for the facility and for all other sections use the generic information so it is applicable to all tranches. Not just the loan next due.
The school did I attend for my 3rd year of University.