Survey of Terms of Bank Lending to Farmers

SURVEY OF TERMS OF BANK LENDING TO FARMERS (FR 2028B)
INSTRUCTIONS
Purpose

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The Federal Reserve System uses data from this
survey to measure the cost of agricultural borrowing
from banks for the analysis of developments in farm
credit markets.

Exclude:

Reporting Burden
Public reporting burden for this collection of
information is estimated to average 1.2 hours per
response, including the time to gather and maintain
data in the required form and to review instructions
and complete the information collection. Send
comments regarding this burden estimate or any other
aspect of this collection of information, including
suggestions for reducing this burden, to: Secretary,
Board of Governors of the Federal Reserve System,
20th and C Streets, N.W., Washington, DC 20551; and
to the Office of Management and Budget, Paperwork
Reduction Project (7100-0061), Washington, DC
20503.

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Survey Scope
This survey covers loans to farmers when funds are
advanced to borrowers during the report period. The
report period covers the first full business week of
February, May, August, and November.
Loans to farmers comprises “Loans to finance
agricultural production and other loans to farmers” in
item 3 and “Loans secured by farmland” in item 1.b of
Schedule RC-C, Part I, of the quarterly Report of
Condition (Call Report; FFIEC 031 and 041). For
banks with foreign offices, the reference is to Column
B of Schedule RC-C. Include loans to farmers made
at all offices of your institution in the fifty states of the
United States and the District of Columbia.

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1.

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Date made. Enter the calendar date the funds
reported in column 2 were disbursed, also known
as the effective date of the loan. For example, for
a loan made on May 3, enter ‘‘0503.”
For a renewal of an existing loan, enter the date
of the renewal, not the date of the original loan.
Do not report the date the loan was entered onto
your institution’s books or loan record system if
that date differs from the date of disbursement.

Include:
New loans, takedowns under revolving credit
agreements, notes written under credit lines, and
renewals. Renewals include new loans under
revolving credit agreements that roll over earlier
loans, including conversions of revolving credits
into term loans.
Loans disbursed during the report period, even if
the loans are not entered onto your institution’s
books or loan record system until after the report
period.

Loans denominated in non-U.S. currencies.
Loans of less than $3,000.
Loans disbursed before the report period that are
entered onto your institution’s books or loan
record system during the report period.
Purchased loans and factored loans (that is,
purchased accounts receivable).
Loans made by an international division or an
international operations subsidiary, or Edge or
Agreement subsidiary of your institution.
Loans made to non-U.S. addressees (farmers
domiciled outside of the fifty states of the United
States, the District of Columbia, or U.S.
territories and possessions).
Loans resulting from unplanned overdrafts to
deposit accounts. Note, however, that loans
extended as part of a cash management program
that would be classified as “Loans to finance
agricultural production and other loans to
farmers” or “Loans secured by farmland” on the
Call Report should be reported on the survey.
Existing variable-rate loans, on which the rate
changes during the survey week reflecting a
change in the base rate. For example, an
outstanding loan advance that has an interest rate
tied to prime should not be reported when the
prime rate changes during the survey week.

Column number:

“U.S. addressee” encompasses borrowers domiciled in
the fifty states of the Unites States, the District of
Columbia, or U.S. territories and possessions,
including U.S. offices or subsidiaries of non-U.S.
(foreign) businesses.

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Your institution’s portion of loan participations
and syndications (See the glossary entry for
syndications in the instructions for the Call
Report).

2.

Face amount of loan. Enter the face amount of
the loan in dollars.
If the note represents the first advance of a loan
agreement or an addition to an existing loan,
enter only the amount advanced on the date
shown in column 1. A loan advance or takedown
refers to the actual drawing of funds by a
borrower under a loan commitment agreement.

SURVEY OF TERMS OF BANK LENDING TO FARMERS (FR 2028B)
INSTRUCTIONS
If the loan represents a renewal or renegotiation
of an existing loan, enter only the amount
renewed or renegotiated on the date in column 1.

If the interest rate on the loan is fixed for a period
less than the maturity of the loan (for example, a
loan that matures in 90 days but has a rate that is
recalculated every 30 days relative to the prime
rate), enter the date on which the interest rate can
first be recalculated.

If the loan is a participation or syndication (as
defined in column 12), enter only your
institution’s portion of the loan in this column.
3.

If the interest rate is fixed for the life of the loan,
enter the loan’s date of maturity, as reported in
column 6.

Nominal rate of interest. Enter the stated
nominal rate of interest--not the effective rate or
APR—on the date that the loan was disbursed
(reported in column 1). The stated nominal rate
usually is shown in the note or agreement. If the
loan amount reported in column 2 is an advance,
takedown, or renewal under an existing loan
commitment, enter the rate of interest for this
advance only. For example, if the stated rate of
interest is 50 basis points over prime, the nominal
rate of interest reported here should be the prime
rate for the day of the takedown plus 50 basis
points.

If the interest rate is fixed and the loan has no
stated date of maturity, enter ‘‘0.”
6.

For loans made under a revolving loan facility or
other types of commitments, enter the maturity
date of the takedown advanced on the date
reported in column 1, not the date of termination
of the commitment.

Report the rate in percent to three decimal places;
for example, for a loan made at 8-1/4 percent,
enter “8.250.”
4.

For renewals, enter the maturity date of the
renewal made on the date reported in column 1,
not the maturity date of the original loan.

Frequency with which interest is compounded
or paid. Enter the frequency with which interest
is compounded, or the frequency with which
interest is paid to the lender, whichever is greater.
Enter

If interest is compounded or paid:

0
1
2
4
12
24
52
360 or 365

Only at maturity
Annually
Semiannually
Quarterly
Monthly
Semimonthly
Weekly
Daily

Maturity date. Enter either the date in
YYYY/MM/DD format of maturity or the date of
the final repayment of the loan amount. Enter the
year, month, and day on which the loan matures.

If a revolving credit is converted to a term loan
during the survey week, enter the maturity date of
the new term loan.
For loans with no stated maturity, enter ‘‘0” in
columns 6 and 8.
7.

Termination options.
a.

For example, if interest is calculated on a simple
basis (with no compounding over the period of
repayment) and is paid monthly, enter ‘‘12” for
monthly. Similarly, if interest is calculated on a
simple basis and paid quarterly, enter ‘‘4” for
quarterly.
5.

Check “yes” under “Callable” when,
according to the terms of the agreement, the
lender can call or renegotiate the terms of
the loan before maturity. Otherwise, check
“no” under “Callable.”
Check “no” if the lender’s ability to call or
renegotiate the loan is contingent on a
change in the status of the borrower (for
example, an increase in the borrower’s
debt/equity ratio).

Next date on which the loan rate may be
recalculated. Enter the first date in
YYYY/MM/DD format on which the rate on the
loan will be recalculated to reflect changes in the
base rate, if any.

b.

For a loan rate that can be recalculated at any
time (as with many prime-based loans), enter the
date made, as reported in column 1.

2

Check “yes” under “Prepayment penalty”
when the borrower must pay a penalty or fee
(sometimes called a breakage fee”) in order
to repay or reprice the loan before its
scheduled maturity or the next scheduled
date on which the rate is recalculated (if
any). If there is no such fee or penalty,
check “no” under “Prepayment penalty.”

SURVEY OF TERMS OF BANK LENDING TO FARMERS (FR 2028B)
INSTRUCTIONS
8.

loan was not insured by an agency or department
of the U.S. government, check “Not insured by
U.S. agencies or departments (column 10.c).”

Number of scheduled repayments over term of
loan. Include the number of scheduled
repayments of principal over the term of the loan.
Exclude interest-only payments.

11. Security status. Check the appropriate space.
For loans made under a revolving loan facility,
enter the number of repayments scheduled for the
takedown advanced on the date reported in
column 1. Do not include any payments
scheduled for the facility prior to the date
reported in column 1.

a.

“Farm real estate” applies when the loan
would be classified in Schedule RC-C of the
Call Report as item 1.b.

b.

“Other collateral” applies when the loan is
secured by collateral other than farm real
estate.

c.

“Not secured” applies when the loan is not
secured by collateral of any kind.

For loans with a single scheduled repayment of
principal, enter “1.”
If repayments are not explicitly scheduled, enter
“0.”

12. Participation status. The term “participation”
encompasses a variety of arrangements among
institutions to make loans.
When each
participating lender agrees in advance to fund and
be at risk only up to a specified percentage of the
total credit and the contract is executed by all
participants and the borrower, the arrangement is
often referred to as a syndication. When a lead
lender originates the transaction and is the only
party to the contract with the borrower and sells
shares as prearranged with others, the
arrangement is referred to as a participation.

For loans with no stated maturity, enter ‘‘0” in
columns 6 and 8.
9.

Commitment status. Commitments are broadly
defined to include all official promises to lend
that are expressly conveyed, orally or in writing,
to the borrower. Commitments generally fall into
two categories: formal commitments and
informal lines of credit.
A commitment is defined as a formal agreement,
usually evidenced by a binding contract, to lend a
specified amount, frequently at a predetermined
spread over a specific base rate. It requires that
the borrower meet covenants in the contract and
pay a fee on the unused credit available. These
include revolving credits under which the
borrower may draw and repay loans for the
duration of the contract.

If the loan amount reported represents your
institution’s portion of a participation or
syndication, check whether it was originated by
your institution or by other lenders. If the loan
does not represent a participation or syndication
with other lenders, check “Not participated.”
Check the
13. Primary purpose of loan.
appropriate space to indicate the one
classification which best describes the borrower’s
primary use of the loan funds.

A line of credit is defined as an informal
arrangement under which the lender agrees to
lend within a set credit limit and to quote a rate
on demand for a takedown amount and maturity
requested by the borrower.

a.

“Feeder livestock” applies when a loan is
used primarily to purchase feeder cattle,
feeder pigs, or feeder lambs to be fattened
for slaughter.

b.

“Other livestock” applies when a loan is
used primarily to purchase poultry and
livestock other than feeder livestock.

c.

“Other current operating expenses”
applies when a loan is used primarily to
finance such items as current crop
production expenses and the care and
feeding of livestock (including poultry).

d.

“Farm machinery and equipment” applies
when a loan is used primarily to finance

Authorizations or internal guidance lines, where
the customer is not informed of the amount, are
not to be considered as commitments.
If the loan was made under a formal or informal
commitment so defined, check “yes.” If the loan
was not made under a formal or informal
commitment, check “no.”
10. Federal insurance status. Check whether the
loan was fully or partially insured or guaranteed
by the Consolidated Farm Service Agency
(column 10.a) or any other agency or department
of the U.S. government including wholly-owned
government corporations (column 10.b). If the

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SURVEY OF TERMS OF BANK LENDING TO FARMERS (FR 2028B)
INSTRUCTIONS
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purchase of tractors, trucks, machinery, and
other farm equipment, such as irrigation
equipment and equipment for structural
facilities (for example, automated feeding
equipment).
e.

f.

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“Farm real estate” applies when a loan is
used primarily to purchase or improve farm
real estate.

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“All other loans” applies when a loan is
used for purposes not listed above as well as
loans for which the primary purpose is
unknown.

Low risk (enter ‘‘2”). Loans in this category are very
unlikely to result in a loss. They would have a level of
risk similar to a loan with the following
characteristics:

14. Risk rating. If your institution assigns internal
risk ratings to farm loans, enter the numerical
designation from the list provided below that
most closely matches the definition of the
internal rating assigned to this loan. Do not enter
your institution’s own internal risk rating.

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If your institution rates loans, but a particular
loan is unrated, or not yet rated, enter ‘‘0” for that
loan.

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If your institution does not assign internal risk
ratings to farm loans, either (a) leave this column
blank or (b) use the categories presented below to
make the assignment.

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The definitions provided here take account of
both the characteristics of the borrower and the
protections provided in the loan contract. Note
that the definitions are intended to characterize
ranges of risk; hence the definition of your
institution’s internal rating for a loan probably
will not exactly match any of the provided
definitions. Enter the numerical designation that
corresponds most closely to the internal rating of
your institution.

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Minimal risk (enter ‘‘1”). Loans in this category
have virtually no chance of resulting in a loss. They
would have a level of risk similar to a loan with the
following characteristics:

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The customer has an excellent credit history.
The customer’s cash flow is steady and
comfortably exceeds required debt repayments
plus other fixed charges.
The customer has a BBB or higher public debt
rating.
The customer has good access to alternative
sources of finance at favorable terms.
The management is of high quality and has
unquestioned character.
The collateral, if required, is sufficiently liquid
and has a large enough margin to make very
likely the recovery of the full amount of the loan
in the event of default.
The guarantor, if required, would achieve
approximately this rating if borrowing from your
institution.

Moderate risk (enter ‘‘3”). Loans in this category
have little chance of resulting in a loss. This category
should include the average loan, under average
economic conditions, at the typical lender. Loans in
this category would have a level of risk similar to a
loan with the following characteristics:

The risk rating categories provided here are not
intended to establish a supervisory standard for
the maintenance or reporting of internal risk
rating systems.

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The customer has excellent access to alternative
sources of finance at favorable terms.
The management is of uniformly high quality and
has unquestioned character.
The collateral, if required, is cash or cash
equivalent and is equal to or exceeds the value of
the loan.
The guarantor, if required, would achieve
approximately this rating if borrowing from your
institution.

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The customer has been with your institution for
many years and has an excellent credit history.
The customer’s cash flow is steady and well in
excess of required debt repayments plus other
fixed charges.
The customer has an AA or higher public debt
rating.

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4

The customer has a good credit history.
The customer’s cash flow may be subject to
cyclical conditions, but is adequate to meet
required debt repayments plus other fixed charges
even after a limited period of losses or in the
event of a somewhat lower trend in earnings.
The customer has limited access to the capital
markets.
The customer has some access to alternative
sources of finance at reasonable terms.
The firm has good management in important
positions.
Collateral, which would usually be required, is
sufficiently liquid and has a large enough margin
to make likely the recovery of the value of the
loan in the event of default.

SURVEY OF TERMS OF BANK LENDING TO FARMERS (FR 2028B)
INSTRUCTIONS
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The guarantor, if required, would achieve
approximately this rating if borrowing from your
institution.

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Acceptable risk (enter ‘‘4”). Loans in this category
have a limited chance of resulting in a loss. They
would have a level of risk similar to a loan with the
following characteristics:
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The customer has only a fair credit rating but no
recent credit problems.
The customer’s cash flow is currently adequate to
meet required debt repayments, but it may not be
sufficient in the event of significant adverse
developments.
The customer does not have access to the capital
markets.

The customer has some limited access to
alternative sources of finance possibly at
unfavorable terms.
Some management weakness exists.
Collateral, which would generally be required, is
sufficient to make likely the recovery of the value
of the loan in the event of default, but liquidating
the collateral may be difficult or expensive.
The guarantor, if required, would achieve this
rating or lower if borrowing from your
institution.

Special mention or classified asset (enter ‘‘5”).
Loans in this category would generally fall into the
examination
categories:
“special
mention,”
“substandard,” “doubtful,” or “loss.” They would
primarily be work-out loans, as it is highly unlikely
that new loans would fall into this category.

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SURVEY OF TERMS OF BANK LENDING TO FARMERS (FR 2028B)
Questions and Answers
survey week rather than loans that are
disbursed during the survey week?

Survey Scope
1)

The survey covers the first full business weeks of
February, May, August, and November. Do we
report loans made each day?

A. No. The lag between the date of disbursement and
the date the loan is posted would lead to errors since
some of the reported loans would not have been
extended during the survey week. As a result, their
terms would not necessarily be similar to those on
loans that were extended during the survey week.

A. Report loans made only on the days your
Federal Reserve Bank asks you to report; depending
on the size of your institution, it may negotiate the
number of days on which loans made should be
reported. Once this determination is made, loans
should be reported on consistent days each quarter.

Column 1: Date made
6) Can we report the date the loan is posted
rather than the date the loan was disbursed?

2) It is burdensome to eliminate loans of less
than $3,000 from our report. May we include
them?

A. No, because then the Federal Reserve would
compare the rates charged on the loans to market rates
on the days the loans were posted rather than the days
the loans were disbursed. Because market rates can
move significantly from day to day, this reporting
error could lead to errors in the measurement of loan
spreads. In addition, for loans with short maturities,
this type of misreporting can lead to loans having
reported dates of maturity before the reported date that
they were made.

A. Yes, you may include loans of less than $3,000 if it
is easier for you to do so.

3) When is a drawdown under a line of credit a
rollover? When should we report such loans
on the FR 2028B?
A. A new drawdown under a line of credit that is
used to pay off a previous drawdown is a
rollover and should be reported.
Many
drawdowns priced off of the prime rate have no
stated maturity, and so they do not need to be
rolled over. Note: Outstanding prime-based
loans should not be reported when the prime rate
changes. Similarly, term loans that reprice from
time to time are not new loans, and so such loans
should not be reported when they reprice.

Column 3: Nominal rate of interest
7) Our institution calculates an effective loan
rate for internal purposes. Should we simply
report that rate?
A. No, report the stated nominal rate on the loan. The
Federal Reserve will calculate effective rates on a
consistent basis for all respondents based on the
nominal rate and compounding frequency reported on
the FR 2028B.

4) Should we report farm loans disbursed under
overdraft facilities?

Column 4: Frequency
compounded or paid

A. On the Call Report, loans resulting from
unintentional overdrafts are excluded from
“Loans to finance agricultural production and
other loans to farmers,” and “Loans secured by
farmland” (they are reported in other loans), so
they should not be reported here. However,
loans extended under cash management
arrangements that would be included in these
items on the Call Report should be reported if
they exceed the $3,000 threshold for inclusion on
the FR 2028B.

with

which

interest

is

8) At our institution interest is sometimes
calculated and accrued in an interest
receivables account more frequently than the
balance of that account is paid off by the
borrower.
Should
the
frequency
of
compounding be reported as the frequency
with which interest is accrued in the interest
receivables account or the frequency with
which the borrower pays the accrued
interest?

5) Loans are posted to our computerized record
system with a lag of a few days. Can we
report the loans that are posted to our
computerized record system during the

A. In this case the frequency to report depends on
whether interest is charged on the account balance in
the interest receivables account. If interest is charged
on the account balance, then you should report the

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SURVEY OF TERMS OF BANK LENDING TO FARMERS (FR 2028B)
Questions and Answers
frequency with which interest is accrued in the
receivables account. If interest is not charged on

can earn over the same period by investing the
amount of the prepayment. Does this arrangement
constitute a prepayment fee?

the account balance, then report the frequency
with which the borrower pays the accrued
interest.

A. Yes, such a loan should be reported as having a
prepayment fee.

Column 5: Next date on which the loan rate may
be recalculated

Column 9: Commitment status
14) Sometimes our institution makes loans as part
of a participation, and we do not know the
commitment status. In such cases, what
should we report as the status of the
commitment?

9) Rates on some loans at our institution adjust
in ways not covered in the instructions. For
example, the rates on some loans are tied to
the prime rate as of the first day of each
month. How should we report the next date
on which the loan rate may be recalculated in
this case?

A. In this case, enter “no.”.

Column 11: Security status
A. Generally, report the first date on which the
rate to be charged is subject to change. In the
example, this date would be the first of the next
month after the loan was made.

15) On farm loans our institution often requires
the principals of the business borrowing the
money to provide personal guarantees for
repayment. Should these loans be classified as
secured?

Column 7: Termination options
10) If our institution can call the loan, but only on
certain prespecified dates, such as at the end of the
year, should the loan be reported as “callable”?

A. No, the loan should be classified as secured only if
it is backed by specific assets.

16) Our institution does not consider a loan to be
collateralized if the collateral is very small
relative to the size of the loan, or if we believe
that the collateral is unlikely to be collected in
the event of default. Should such loans be
classified as secured when reported on the FR
2028B?

A. Yes, for the purposes of the survey, a loan is
callable if the lender can call or renegotiate the terms
of the loan at its discretion, even if that discretion can
only be exercised from time to time.
11) The terms on some loans made by our institution
automatically reset based on changes in the
characteristics of the borrower, such as its interest
coverage ratio. Should such loans be reported as
“callable”?

A. No, you may use your institution’s definition of
whether or not a loan is collateralized.

A. No, such automatic resetting of loan terms does
not constitute calling or renegotiating the loan.

Column 14: Risk rating

17) Our institution does not rate loans. Should we
nevertheless report risk ratings based on the
definitions provided in the instructions?

12) Loans at our institution can be called or
renegotiated if the borrower violates a loan
covenant. Should such loans be reported as
“callable”?
A. No, only loans that can be called or renegotiated
solely at the discretion of the lender (although perhaps
only at prespecified dates, as discussed in question 10)
should be reported as “callable.”

A. If your institution does not find it excessively
burdensome, such ratings would be valued by the
Federal Reserve. However, respondents that do
not have internal ratings need not provide risk
ratings on the FR 2028B.

13) At our institution, fixed-rate loans can be prepaid
at the borrower’s discretion, but the borrower has
to make up the difference between the interest that
would have been paid on the loan over its
remaining term and the interest that our institution

18) Our institutions’ internal rating system does
not match the ratings provided in the
instructions. Can we report our institutions’
internal ratings?

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SURVEY OF TERMS OF BANK LENDING TO FARMERS (FR 2028B)
Questions and Answers
22) The risk ratings on our loans change over
time, reflecting changes in customers’ balance
sheets and business prospects. Do we need to
provide updates?

A. No. Please use the definitions provided in the
instructions. The reported ratings have to be based on
a common set of definitions so that the Federal
Reserve can understand the meaning of the ratings
assigned, calculate average ratings across institutions,
and make comparisons of ratings over time.

A. The survey only collects information on ratings
when loans are disbursed. Do not provide updated
information on loan risk ratings unless the original
data reported were in error.

19) The definition of our institution’s internal
ratings do not line up with the definitions
provided in the instructions. How should we
translate the ratings?

23) Our institution’s ratings are limited to pass or
not pass. How should we map these ratings
into the common ratings?

A. It is inevitable that there be some slippage between
the internal ratings of individual lenders and the
common definitions used on the FR 2028B. For each
internal rating at your institution, report on the FR
2028B the rating provided in the instructions with the
definition that matches most closely.

A. In this case, follow the instructions for institutions
that do not rate loans (see the survey instructions and
question 17).

24) How should we rate a loan that is quite risky
in terms of the probability of default, but has
excellent collateral?

20) Our institution reports hundreds of loans
each quarter, how can we take the time to
judge the riskiness of each of them when
preparing our report?

A. The risk rating reported on the FR 2028B should
take into account all protections provided in the loan
contract. In this case, the loan should be reported as
not very risky because the excellent collateral makes it
very unlikely that your institution will sustain a loss.

A. It should not be necessary to exercise any judgment
when preparing the report. An employee of your
institution familiar with your internal risk-rating
system should prepare a correspondence, or mapping,
from your internal risk ratings to the ratings defined in
the instructions. With that correspondence, you can
convert the internal ratings into the common ratings
without any additional judgment. Of course, if your
institution changes the definitions of its internal risk
ratings, the correspondence will have to be adjusted.
Please check before each survey week to see if the
definitions of your internal ratings have changed.

25) Our institution’s internal risk ratings are for
borrowers rather than for loans, and so do
not take into account the protections provided
by the loan contract. Should we still try to
report loan risk ratings?
A. Yes. Since the rating of the customer will generally
have a significant effect on the rating of the loan,
please report the loan risk rating that most closely
corresponds to your institution’s internal rating of the
borrower. Although this information may not be as
precise as it is for institutions that rate loans, it is
preferable to having no information at all.

A worksheet is provided for your institution’s use in
mapping your internal risk ratings to the ratings
defined for the FR 2028B.

21) Our institution does not rate loans until after
they have been made, hence we cannot include
this information on the FR 2028B. How
should we report risk ratings?

26) Our institution occasionally makes loans that
have more than one risk rating, for example a
better rating for that part of the loan that is
secured. How should we report the rating on
such a loan?

A. If your institution does not have loan risk ratings
available at the time of the survey, then it should
follow the instructions for institutions that do not rate
loans (see the survey instructions and question 17).

A. In this case, choose the rating that applies to the
largest part of the loan. If the ratings are split evenly,
choose the highest–risk rating.

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SURVEY OF TERMS OF BANK LENDING TO FARMERS (FR 2028B)
Risk Rating Worksheet

This worksheet is for a respondent’s internal use in mapping its own internal risk ratings
to the ratings defined for the FR 2028B. It should be revised if the institution changes its
risk ratings. This worksheet should not be submitted to the Federal Reserve Bank.
Equivalent FR 2028B Rating 1
1 Minimal risk - Loans in this category
have virtually no chance of resulting in a
loss.
2 Low risk - Loans in this category are
very unlikely to result in a loss.
3 Moderate risk - Loans in this category
have little chance of resulting in a loss.
This category should include the average
loan, under average economic conditions,
at the typical lender.
4 Acceptable risk - Loans in this category
have a limited chance of resulting in a loss.
5 Special mention or classified asset Loans in this category would generally fall
into the examination categories: “special
mention,” “substandard,” “doubtful,” or
“loss.” They would primarily be work-out
loans, as it is highly unlikely that new loans
would fall into this category.

Respondent Rating(s)

1

The complete definitions of the rating categories are provided in the instructions.

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