Product Updates for June 2023
The Product Updates for June 2023 from BankPolicies.com feature the following revised policy template products:
Asset, Liability and Liquidity Management Policy Template
Liquidity Contingency Funding Plan Policy Template
The update to these products is in response to OCC Bulletin 2023-15 entitled “Liquidity: Updated Comptroller’s Handbook and Rescissions” dated 05/23/23 that announced an updated “Liquidity” booklet of the Comptroller’s Handbook. This booklet provides guidance on assessing the quantity of a bank’s liquidity risk and quality of liquidity risk management. The updated booklet replaces version 1.1 of the “Liquidity” booklet issued in August 2021.
Information Systems Security Policy Template
Mobile Device Program Policy Template
The update to these products is in response to NIST SP 800-124 entitled “Guidelines for Managing the Security of Mobile Devices in the Enterprise” dated 05/17/23 that is intended to assist organizations in managing and securing mobile devices against the ever-evolving threats. To address these threats, this publication describes technologies and strategies that can be used as countermeasures and mitigations.
In addition, the publication provides recommendations for secure deployment, use, and disposal of mobile devices throughout the mobile device life cycle. The scope of this publication includes mobile devices, centralized device management, and endpoint protection technologies, while including both organization-provided and personally-owned (bring your own device) deployment scenarios.
BSA Suspicious Activity Report Notices Template
The update to this product is in response to FinCEN’s “Supplement Alert: FinCEN and the U.S. Department of Commerce’s Bureau of Industry and Security Urge Continued Vigilance for Potential Russian Export Control Evasion Attempts” dated 05/19/23 that urges financial institutions to be vigilant against efforts by individuals and entities to evade BIS export controls implemented in connection with the Russian Federation’s (Russia) further invasion of Ukraine. This supplemental joint alert provides financial institutions additional information regarding new BIS export control restrictions related to Russia, as well as reinforces ongoing U.S. Government engagements and initiatives designed to further constrain and prevent Russia from accessing needed technology and goods to supply and replenish its military and defense industrial base. This alert further details evasion typologies, highlights for financial institutions nine high priority Harmonized System (HS) codes to inform their customer due diligence, and identifies additional transactional and behavioral red flags to assist financial institutions in identifying suspicious transactions relating to possible export control evasion. Finally, this alert requests that financial institutions continue to use the existing SAR code (FIN-2022-RUSSIABIS) when submitting SARs specific to Russian export control evasion and reminds them of their Bank Secrecy Act (BSA) reporting obligations.
As a reminder, the BSA Suspicious Activity Report Notices Template is included in the purchase price of the Bank Secrecy Act Policy Template – Comprehensive Version.
Commercial Loan Policy Template
Small Business Administration Loan Policy Template
The update to these products is in response to the following SBA Procedural Notices:
- 5000-846991 – Implementation of Removal of the Loan Authorization. This notice implements the removal of the requirement for a Loan Authorization in accordance with the Final Rule on Small Business Lending Company (SBLC) Moratorium Rescission and Removal of the Requirement for a Loan Authorization (88 FR 21890, effective May 12, 2023) (Rule) in the 7(a) and 504 Loan Programs. In accordance with the Rule, SBA is revising policies and procedures in Standard Operating Procedure (SOP) 50 10 6, to be effective to all applications received by SBA on or after May 12, 2023.
SBA is removing the requirement for a Loan Authorization and will instead rely on the use of the terms and conditions of the loan application as submitted by the SBA Lender into E-Tran. SBA no longer requires the National Authorization Boilerplate (“the Boilerplate”) for 7(a) and 504 loans.
The 7(a) and 504 Loan Programs will use the terms and conditions entered in E-Tran as the agreement between SBA and the SBA Lender stating the terms and conditions under which SBA will guarantee a business loan or issue a debenture.
Effective May 12, 2023, all references to a Loan Authorization in SOP 50 10 6 should be disregarded and the new procedures should be used instead.
- 5000-846607 – Implementation of the Final Rule of Affiliation and Lending Criteria for the SBA Business Loan Programs. This notice addresses the implementation of SBA’s Final Rule on Affiliation and Lending Criteria for the SBA Business Loan Programs (88 FR 21074, effective May 11, 2023) (Rule) in the 7(a) and 504 Loan Programs. In accordance with the Rule, SBA is revising certain policies and procedures in Standard Operating Procedure (SOP) 50 10 6, to be effective to all applications received by SBA on or after May 11, 2023.
For any applications that were declined and that would benefit by being reconsidered under these new procedures, and for those applications that have already been submitted for non-delegated processing but have not yet been decisioned and that would benefit by the new procedures, beginning May 11, 2023, the SBA Lender may ask the appropriate SBA loan processing center for a reconsideration under the new procedures.
Additionally, effective May 11, 2023, the maximum loan amount for a 7(a) Small loan is $500,000, an increase from $350,000 or less.
Unfair, Deceptive, or Abusive Acts or Practices Policy Template
The update to this product is in response to the CFPB Consumer Financial Protection Circular 2023-02 entitled ”Reopening Deposit Accounts That Consumers Previously Closed” dated 05/10/23 that addresses the subject of reopening deposit accounts that were previously closed by consumers in order to process a debit (i.e., withdrawal, ACH transaction, check) or deposit, which can constitute an unfair act or practice under the Consumer Financial Protection Act (CFPA).
Agricultural Loan Policy Template
Asset-Based Loans and Formula Lines of Credit Policy
Commercial Loan Policy Template
Commercial Real Estate Loan Policy Template
Concentrations of Credit Policy Template
Lease Financing Policy Template
Leveraged Financing Policy Template
Loan Grading and Review Policy Template
Mortgage Fraud Policy Template
Non-Accrual and Charged-Off Loan Policy Template
Oil and Gas Industry Loan Policy Template
Other Real Estate Owned Policy Template
Risk Management of Home Equity Lending Policy Template
Risk Management of Non-Traditional Mortgage Loan Products Policy Template
Risk Management of Subprime Mortgage Lending Policy Template
The update to these products eliminates references to allowance for lease and loan losses (ALLL) which was replaced by current expected credit losses (CECL).
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