Categorizing high-risk loans and other property owned.

CFR · 2024-01-01 · US · Title 12

Each institution must employ the practices of this section when categorizing high-risk loans and loan-related assets. A loan must not be put into more than one performance category. (a) (1) The loan may or may not be past due, but the institution has determined collection of the outstanding principal and interest, plus future interest accruals, over the full term of the loan is not expected because of a documented deterioration in the financial condition of the borrower; (2) The loan is 90 days or more past due and is not otherwise eligible for categorization under paragraph (c) of this section; or (3) Legal action, including foreclosure or other forms of collateral conveyance, has been initiated to collect the outstanding principal and interest. (b) (c) (d)

official document · source cfr-2024 · id 12:§ 621.6