Credit Evaluation School Instructor eBook - Oct 2023

Internal Use Only

UNACCEPTABLE OR HIGH-RISK LOANS • Illegal or illegal purpose • Speculative • Finance changing business ownership • Construction loans without firm takeout • Loans for new business ventures/venture capital loans • Non-amortizing term loans • Loan where source of repayment is not firmly committed • Loans on unmarketable securities • Unsecured loans for real estate purposes

• This is again not an all ‐ inclusive list, but when working loan files, examiners should be alert to these type of loans or characteristics.