Wednesday, October 12, 2005
DATE: May 22, 1996
TO: Jim Austin
FROM: Aline Creed
RE: Request for Agreements
Jim, I need your help in preparing two agreements. One agreement would be between the bank and an organization that will be referring commercial loan customers to us. We have decided to pay the organization 1% of the principal loan amount up to $5,000 per transaction for business applicants brought to us by the organization and for whom a loan request is granted and closed. I want to be sure the agreement is clear on the following points:
I. We will not pay if the applicant is an existing customer or comes to us directly without introduction by the organization.
II. We will only pay for closed loans, not for applications or approvals not booked. I am concerned about a loan that might pay off immediately, so we may want to say the payment is for the first loan granted, but does not include subsequent extensions or renewals.
III. We also want to be sure the applicant knows the organization’s role in that they are to help prepare the loan proposal and assist the borrower with the process – services for which they will be paid.
The desire for this kind of disclosure to the ultimate borrower and the need to protect the bank regarding financial privacy issues leads to the need for a second agreement. This second agreement would be between the borrower and the organization acknowledging the fee and permitting the sharing of the borrower’s financial information between the bank and the organization. If the organization is to operate as planned, they would be obtaining financials, working up proposals and negotiating with the bank on behalf of the applicant. I want to be sure we are covered for both commercial situations and those that may wind up more consumer oriented, so we can pull a credit bureau, discuss the request, begin valuation of collateral, etc with the organization as well as the applicant. We also want to make sure the applicant knows the organization is not doing him a favor that it is in fact being paid.
We have two or three requests for credit under this arrangement currently in process, so it is important that we get the first agreement worked up relatively soon, preferably in the next two weeks. Please let me know if this is not possible, so I can make arrangement with outside counsel. If you’ve got any questions please call me, Chuck Beard or Nathan Thornton. Thanks for your help.
(UAAD received this fax on 5/25/96 @ 10:57 a.m. from 504-332-7295 Gen Bank Group/Premier Bank Marketing – Compliance)
TO: Jim Austin
FROM: Aline Creed
RE: Request for Agreements
Jim, I need your help in preparing two agreements. One agreement would be between the bank and an organization that will be referring commercial loan customers to us. We have decided to pay the organization 1% of the principal loan amount up to $5,000 per transaction for business applicants brought to us by the organization and for whom a loan request is granted and closed. I want to be sure the agreement is clear on the following points:
I. We will not pay if the applicant is an existing customer or comes to us directly without introduction by the organization.
II. We will only pay for closed loans, not for applications or approvals not booked. I am concerned about a loan that might pay off immediately, so we may want to say the payment is for the first loan granted, but does not include subsequent extensions or renewals.
III. We also want to be sure the applicant knows the organization’s role in that they are to help prepare the loan proposal and assist the borrower with the process – services for which they will be paid.
The desire for this kind of disclosure to the ultimate borrower and the need to protect the bank regarding financial privacy issues leads to the need for a second agreement. This second agreement would be between the borrower and the organization acknowledging the fee and permitting the sharing of the borrower’s financial information between the bank and the organization. If the organization is to operate as planned, they would be obtaining financials, working up proposals and negotiating with the bank on behalf of the applicant. I want to be sure we are covered for both commercial situations and those that may wind up more consumer oriented, so we can pull a credit bureau, discuss the request, begin valuation of collateral, etc with the organization as well as the applicant. We also want to make sure the applicant knows the organization is not doing him a favor that it is in fact being paid.
We have two or three requests for credit under this arrangement currently in process, so it is important that we get the first agreement worked up relatively soon, preferably in the next two weeks. Please let me know if this is not possible, so I can make arrangement with outside counsel. If you’ve got any questions please call me, Chuck Beard or Nathan Thornton. Thanks for your help.
(UAAD received this fax on 5/25/96 @ 10:57 a.m. from 504-332-7295 Gen Bank Group/Premier Bank Marketing – Compliance)
# posted by walter @ 10:49 AM 
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IN 1996 WORKING WITH REV. ALEXANDER A LOUISIANA STATE REPRESENATIVE, IN AN ATTEMPT TO PROVIDE LOW INTEREST LOANS TO THE CITIZENS OF NEW ORLEANS, OUR EFFORTS FAILED DUE TO BAD FAITH NEGOTIATIONS ON THE PART OF BANK ONE. HAD THESE NEGOTIATIONS BEEN IN GOOD FAITH MANY OF THOSE WHO HAVE DIED AND SUFFER, WILL CONTINUE TO DO SO WITHOUT ASSISTANCE FROM A BANK SUCH AS CHASE. UAAD/UEDC'S GOALS WERE AND IS TO ASSIST CHASE BANK TO WORK WITH THIS COMMUNITY ORGANIZAION(S) IN ORDER THAT TOGETHER WE CAN BEGAN TO ELEMINATE THE POVERTY, AND CREATE ECONOMIC PARITY FOR ALL OUR CITIZENS, REGARDLESS OF RACE CREED OR COLOR.
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