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This excerpt taken from the FBNC 8-K filed Jun 24, 2009. Related
Loans.
(a) The
Assuming Bank shall not manage, administer or collect any “Related Loan” in any
manner which would have the effect of increasing the amount of any collections
with respect to the Related Loan to the detriment of the Shared-Loss Asset to
which such loan is related. A “Related Loan” means any loan or extension of
credit held by the Assuming Bank at any time on or prior to the end of the final
Recovery Quarter that is: (i) made to the same Obligor with respect to a Loan
that is a Shared-Loss Asset or with respect to a Loan from which Other Real
Estate, Additional ORE or Subsidiary ORE derived, or (ii) attributable to the
same primary Obligor with respect to any Loan described in clause (i) under the
rules of the Assuming Bank’s Chartering Authority concerning the legal lending
limits of financial institutions organized under its jurisdiction as in
effect on the Commencement Date, as applied to the Assuming Bank.
(b) The
Assuming Bank shall prepare and deliver to the Receiver with the Quarterly
Certificates for the Calendar Quarters ending June 30 and December 31 for all
Shared-Loss Quarters and Recovery Quarters, a schedule of all Related Loans
which are commercial loans or commercial real estate loans with Legal Balances
of $500,000 or more on the Accounting Records of the Assuming Bank as of the end
of each such semi-annual period, and all other commercial loans or commercial
real estate loans attributable to the same Obligor on such loans of $500,000 or
more.
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