04 NCAC 06C .0402. CHARGE‑OFF OF UNCOLLECTIBLE LOANS

(a)  All losses resulting from uncollectible loans shall be charged against the Allowance for Loan Losses or any special reserve required by the Administrator.

(b)  A record shall be maintained of all loans charged off.  Such record shall contain the following information:  account number, name, original date, amount of original loan, security, balance at time of charge‑off, efforts made to collect, and what if any, recovery has been made on the security.  This record shall be kept current and made available to the examiners at each examination.

(c)  Any loans delinquent 12 months or more, unless there is a high probability of no loss, will be charged off in accordance with Paragraph (a) of this Rule.

(d)  Any recovery of charged‑off loans shall be credited to the Allowance for Loan Losses.

 

History Note:        Authority G.S. 54‑109.12; 54‑109.17;

Eff. February 1, 1976;

Readopted Eff. April 4, 1978;

Amended Eff. February 1, 1992; January 1, 1983.