We recently found out that a commercial customer that leases two store fronts held as collateral for our loan, has a new tenant that does sell CBD products and THC products that are below the 0.3 threshold. At the time the loan closed, this was not the case. We are now looking at whether or not this is a TIER III customer, as our policy states that we may consider a TIER III level customer.

I am not sure how to look at this for TIER III. Should I be concerned with the percentage of revenue the store receives from MRB, or just our customer the land lord, or both?

The tiers are not a universal system and legality depends on state. How your policy defines the tiers would dictate what you do with this and if your policy isn't prescriptive/descriptive enough to guide you, then a rewrite of your interpretation of tiers may be in order.

Here in WA, I would simply note that the stores are licensed to sell what they sell and go on with my day. If the store is selling something illegal and gets shut down, your customer will find another tenant, so I don't see any risk.

If they're only selling hemp derived cannabinoids, under the THC threshold for marijuana, then they're not a marijuana related business, they're a hemp related business. With that said, I agree with pnwAML that there are no real standards around Tiers and how you define them might include hemp businesses. The examiner will be looking to see if you're following your policy, however. you define it.

Like I always say, your policy should be able to answer any questions that come up and tell you how to work a particular situation. If it doesn't, your policy needs an update with more clarity.