Credit Evaluation School Dec 2022

Internal Use Only

Management’s Comments, Plans and/or Prospects • This can be in the write-up before classification or included in classification comments • Include management comments regarding the problem with the credit and/or borrower • Include any plan’s management has to remedy the problem or work with the borrower • Include management’s response to the classification – agree/disagree

31

Internal Use Only

Management’s Comments, Plans, and/or Prospects

Example: During loan discussion, bank management stated the company is experiencing cash flow difficulties stemming from an increase in the price of materials. They have requested updated financial information to determine current cash flow and may temporarily restructure notes.

32

Pge 16