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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

221

:
ORGANIZATION AND MANAGEMENT OF CREDIT UNION






Subchapter

005
:
NET WORTH; RESERVES; DIVIDENDS










 

§

31503. Allowance for loan and lease loss

(a) An allowance

for loan and lease loss account shall be established and maintained in an

amount that represents the current estimated loss on loans and leases. The

allowance for loan and lease loss account requirement shall be computed and

adjusted through the provision for loan and lease loss expense account prior to

the payment of dividends. This account shall be calculated in accordance with

standards established by the Commissioner, as the same may be amended from time

to time.

(b) Any sums

recovered on items previously charged to allowance for loan and lease loss

account shall be credited to the allowance for loan and lease loss account.

(Added 2005, No. 16, § 1, eff. July 1, 2005.)