I'm looking at a RLOC that is coded as 4a; however, it is is secured by a UCC filing and an SFR. The credit write-up indicates "Subject RLOC is fully secured by 1st position pledged collateral with 44.20% LTV." The purpose of the line is to support the company's operation and provide working capital for construction projects. Borrower is a real estate development consulting company.

What Call Code should be assigned to this loan? I'm thinking 1a2 - RE Construction and Land Loan.

Bump anyone? We are stumped on this one.

I wanted to add that in this case the borrower is an LLC. The property is vested in the names of three individuals. The SFR is collateral for the loan - not the guarantee. Again, purpose is for working capital - no specific property was identified for the loan proceeds. Write-up indicates, "To provide revolving line of credit to support company's daily operation and working capital for newly assigned construction projects.

• Value of RE collateral ($905k) is greater than 50% of the original loan balance (50% of $400k = $200k)

• The RE is central to the extension of credit. It is not an abundance of caution.

IMHO it cannot be 4a or 1a2 if secured by a SFR. What are they plan on constructing? It would be report under 1c and appropriate subcategories.

Ok. Thanks Randy. I will take another look at the write-up. I may need to contact the account officer to obtain more information. But glad you agree it's not a 4a.