Oregon Bankers Association - Independent Community Banks of Oregon

Problem Loan Workouts

AIB Course Code: 6366

Course Length: 6 weeks

Course Description:
This course will explore the four major components of problem loan management. Problem Loan Detection will explore how problems loans can be avoided and how loans can be managed to make early detection possible. Problem Loan Situation Evaluation will consider what must be done to confirm the bank's position with the borrower in preparation for negotiation with the borrower. Problem Loan Negotiation will cover the negotiation process in determining the best course of action to resolve problem loans. Problem Loan Resolution will consider alternatives of resolution and how to proceed with options for workout or liquidation.
Audience:
Commercial lenders, those in training to be commercial lenders, business bankers, small business lenders, credit analysts, loan review personnel and other bank personnel interested in the subject of problem loan management and resolution.

Learning Objectives:
After successfully completing this program, you will be able to:

Understand the element of and importance of early prevention and detection of problem loans
Understand the process of problem loan situation evaluation to determine the bank's position with the borrower
Understand the negotiation process to determine the best course of action to pursue with the borrower to resolve the problem
Understand the process of problem resolution and options for workout or liquidation of the loan

Textbook:
All reading materials are provided online.

Topics:
The topics to be covered are as follows: