CA-5.8.120
Additional collateral management requirements are as follows:
(a) The types of CRE and RRE collateral accepted by the bank and lending policies (advance rates) when this type of collateral is taken must be clearly documented;
(b) The bank must take steps to ensure that the property taken as collateral is adequately insured against damage or deterioration;
(c) The bank must monitor on an ongoing basis the extent of any permissible prior claims (e.g. tax) on the property; and
(d) The bank must appropriately monitor the risk of environmental liability arising in respect of the collateral, such as the presence of toxic material on a property.
Amended: April 2011
Apr 08
Apr 08