Survey of Terms of Bank Lending to Farmers

Board of Governors of the Federal Reserve System

Instructions for Preparation of

Survey of Terms of Bank Lending to Farmers

Reporting Form FR 2028B
Effective August 2012

General Instructions

Purpose
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.

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.
‘‘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.
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.

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

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the prime rate for the day of the takedown plus 50
basis points.

Column number:
1.

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.

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

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.
2.

Enter
0
1
2
4
12
24
52
360 or 365

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.

3.

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

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if interest is compounded or paid:
Only at maturity
Annually
Semiannually
Quarterly
Monthly
Semimonthly
Weekly
Daily

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.

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

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.

5.

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.
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.
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
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recalculated every 30 days relative to the prime rate),
enter the date on which the interest rate can first be
recalculated.

of principal over the term of the loan. Exclude
interest-only payments.
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.

If the interest rate is fixed for the life of the loan,
enter the loan’s date of maturity, as reported in
column 6.
If the interest rate is fixed and the loan has no stated
date of maturity, enter ‘‘0.’’
6.

For loans with a single scheduled repayment of
principal, enter ‘‘1.’’

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.
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.
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.
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) 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).
(b) 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.’’

8.

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Number of scheduled repayments over term of
loan. Include the number of scheduled repayments

If repayments are not explicitly scheduled, enter
‘‘0.’’
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.
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.
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 loan was not insured by an
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agency or department of the U.S. government, check
‘‘Not insured by U.S. agencies or departments (column 10.c).’’
11. Security status. Check the appropriate space.
(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.
12. Syndication or participation status. The terms
‘‘syndication’’ and ‘‘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. 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 Syndicated or Participated.’’
13. Primary purpose of loan. Check the appropriate
space to indicate the one classification which best
describes the borrower’s primary use of the loan
funds.
(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).
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August 2012

(d) ‘‘Farm machinery and equipment’’ applies when
a loan is used primarily to finance purchase of
tractors, trucks, machinery, and other farm equipment, such as irrigation equipment and equipment for structural facilities (for example, automated feeding equipment).
(e) ‘‘Farm real estate’’ applies when a loan is used
primarily to purchase or improve farm real estate.
(f) ‘‘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.
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.
If your institution rates loans, but a particular loan is
unrated, or not yet rated, enter ‘‘0’’ for that loan.
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.
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.
The risk rating categories provided here are not
intended to establish a supervisory standard for the
maintenance or reporting of internal risk rating systems.
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:
• 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.
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• The customer has an AA or higher public debt rating.

• The customer has limited access to the capital markets.

• The customer has excellent access to alternative sources
of finance at favorable terms.

• The customer has some access to alternative sources of
finance at reasonable terms.

• The customer has excellent access to alternative sources
of finance at favorable terms.

• The firm has good management in important positions.

• 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.
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:

• 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.
• The guarantor, if required, would achieve approximately this rating if borrowing from your institution.
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:

• The customer has an excellent credit history.

• The customer has only a fair credit rating but no recent
credit problems.

• The customer’s cash flow is steady and comfortably
exceeds required debt repayments plus other fixed
charges.

• 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 has a BBB or higher public debt rating.

• The customer does not have access to the capital
markets.

• The customer has good access to alternative sources of
finance at favorable terms.

• The customer has some limited access to alternative
sources of finance possibly at unfavorable terms.

• The management is of high quality and has unquestioned character.

• Some management weakness exists.

• 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.

• 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 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 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.
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• 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.
15. Location of Borrower. Enter the two character state
abbreviation where the borrower is located.
For a complete list of state abbreviations, please
see
the
Federal
Information
Processing
Standards Publication 5-2 (FIPS 5-2) at
www.itl.nist.gov/fipspubs/fip5-2.htm. If the location
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of the borrower is unknown or the loan was made
under syndication or participation, leave as blank.

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Questions and Answers

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. 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.
(2) It is burdensome to eliminate loans of less than
$3,000 from our report. May we include them?
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.
(4) Should we report farm loans disbursed under
overdraft facilities?
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
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August 2012

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.
(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 survey week rather
than loans that are disbursed during the survey
week?
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.
Column 1: Date made
(6) Can we report the date the loan is posted rather
than the date the loan was disbursed?
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.
Column 3: Nominal rate of interest
(7) Our institution calculates an effective loan rate
for internal purposes. Should we simply report
that rate?
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Questions and Answers

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.
Column 4: Frequency with which interest is
compounded or paid
(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?
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 frequency with which interest is accrued
in the receivables account. If interest is not charged
on the account balance, then report the frequency
with which the borrower pays the accrued interest.
Column 5: Next date on which the loan rate may be
recalculated

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, such automatic resetting of loan terms does
not constitute calling or renegotiating the loan.
(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.’’
(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 can earn over the same period by
investing the amount of the prepayment. Does
this arrangement constitute a prepayment fee?
A. Yes, such a loan should be reported as having a
prepayment fee.

(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?

Column 9: Commitment 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.

A. In this case, enter ‘‘no.’’.

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. Yes, for the purposes of the survey, a loan is
callable if the lender can call or renegotiate the
Q&A-2

(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?

Column 11: Security status
(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?
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
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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. No, you may use your institution’s definition of
whether or not a loan is collateralized.
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?
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.
(18) Our institutions’ internal rating system does not
match the ratings provided in the instructions.
Can we report our institutions’ internal ratings?
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.
(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?
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.
(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. It should not be necessary to exercise any
judgment when preparing the report. An employee
of your institution familiar with your internal riskrating system should prepare a correspondence, or
mapping, from your internal risk ratings to the
ratings defined in the instructions. With that correFR 2028B
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August 2012

spondence, 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.
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?
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).
(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. 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.
(23) Our institution’s ratings are limited to pass or
not pass. How should we map these ratings into
the common ratings?
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?
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.
(25) Our institution’s internal risk ratings are for
borrowers rather than for loans, and so do not
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Questions and Answers

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.

Q&A-4

(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. 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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FR 2028B
August 2012

Risk Rating Worksheet

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.
Respondent Rating(s)

Equivalent FR 2028B Rating1
1 Minimal Risk - Loans in this category have virtually no
change 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.

1. The complete definitions of the rating categories are provided in the instructions.
FR 2028B
Risk Rating Worksheet

August 2012

RRW-1