Section .0400 ‑ Loans

Link to law: http://reports.oah.state.nc.us/ncac/title 04 - commerce/chapter 06 - credit union division/subchapter c/04 ncac 06c .0401.html
Published: 2015

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SECTION .0400 ‑ LOANS

 

04 NCAC 06C .0401          DELINQUENT LOANS AND LOAN LOSSES

(a)  Monthly Schedule of Delinquent Loans.  Each credit

union shall, at the end of each month, prepare and review a schedule of

delinquent loans which shall list in columnar form the account number, names of

borrowers, date of loan, date of last payment, original amount of loan and

outstanding balance of loan at date of schedule, together with space to note

current action or status.

The unpaid balance of loans shall be set apart in columns

of the schedule of delinquent loans which will indicate the extent of

delinquency as determined by the delinquent installments according to the note

contract, as follows:

(1)        Loans on which the delinquent installments are

two months but less than six months past due;

(2)        Loans on which the delinquent installments are

six months but less than 12 months past due;

(3)        Loans on which the delinquent installments are

past due 12 months or more.

(b)  Allowance for Loan Losses.

(1)        Each credit union shall establish and maintain

such reserves as may be required by the Act or by regulation, or in special

cases by the Administrator.  All Credit Unions shall establish an Allowance for

Loan Losses Account.  The Allowance for Loan Losses Account is not an addition

to but a part of the Regular Reserve as required by statute.

(2)        The maintenance of a valuation Allowance for

Loan Losses Account shall not eliminate the requirement for transferring a

percentage of gross income before the payment of each dividend to the Regular

Reserve as required by the Credit Union Laws.

(3)        As a minimum, adjustments to the valuation

Allowance for Loan Losses shall be made prior to the distribution or posting of

any dividend to the accounts of all the members so that the valuation allowance

established fairly presents the value of loans and anticipated losses.

(4)        Adjustments to the valuation Allowance for Loan

Losses will be recorded in the expense account "Provision for Loan

Losses."

(5)        Dividends shall not exceed the amount available

for that purpose after provisions have been made for the statutory transfer to

the Regular Reserve Account and the removal of any deficit in the Regular

Reserve Account.

 

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

54‑109.86; 54‑109.87;

Eff. February 1, 1976;

Readopted Eff. April 4, 1978;

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

1, 1983; March 1, 1982.