Legal Question in Banking Law in Georgia

National Bank & Documenting Financial Distress

At what time does a national bank, once it has knowledge that a customer of the bank is in financial distress and cannot make its loan payments and more importantly can not pay its balloon payment obligations or any of its obligations for that matter, when they become due within just a short period of time of the bank finding out that the company cannot meet any of its obligations? The reason for this question is that it is my understanding that with National banks, their is a special hotline phone no. that they are required to call and put the OCC on notice, and then follow up with the proper documenting on the file to insure both accure up to date financial information of the bank with the OCC and its investors, but it also should have in its files any and all documented proof that such a phone call was made, been provided with a file number and the proper forms and documents to show it is in compliance with this specific rule of the OCC and the ABA as a national bank.

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