Extract to table

Overview of Commercial Bank Forbearance Practices A forbearance agreement in the commercial banking context is a formal arrangement between a lender and a borrower in default pursuant to which the lender agrees to temporarily suspend or refrain from exercising its contractual remedies for a defined period of time

Regulatory and Prudential Considerations BRB's decision to accelerate must be understood in the context of the regulatory environment in which a nationally chartered commercial bank operates

Against this regulatory backdrop, the internal memorandum dated August 22, 2023 from Philip Aaronson, EVP and Chief Credit Officer, directing SAG to "pursue a structured exit from the Triton Harbor relationship within 120 days" and stating that "further extensions of credit are not contemplated under any workout scenario," must be understood as a reasonable and prudent exercise of credit judgment by BRB's senior credit officer

They are an essential part of the workout dynamic: the lender must understand the borrower's needs and capabilities in order to evaluate the feasibility of a workout, and the borrower must understand the lender's willingness to consider various alternatives in order to formulate a viable restructuring plan