Section 30.402 - Charge-Offs of Obligations(a)(1) A credit union shall charge off each of the following types of obligations: (A) An obligation repayable monthly on which no full monthly contractual payments have been made within the past 180 days, unless the obligor has filed a petition under either Chapter 11 or Chapter 13 of the Bankruptcy Code (Title 11 of the United States Code) and the obligor's confirmed reorganization or debt adjustment plan provides for payment of the account.(B) An obligation repayable by other than monthly payments or repayable in a single payment on which no full contractual payment has been made within 180 days from the due date of the first past due and unpaid installment.(C) An obligation which the board of directors or the Commissioner has determined as uncollectable.(D) An obligation on which payments received during the past 180 days have not been sufficient to reduce the principal balance of the obligation, unless the contract creating the obligation does not require a reduction in the principal balance of the obligation but provides for the principal balance to be paid off at the time the obligation matures.(2) Paragraph (1) of this Subdivision is not an exclusive list of the types of obligations that a credit union is required to charge off.(b) A credit union shall review its obligations at least once each month and shall, within 30 days after the review, charge off any obligation that is found on the basis of the review to be required to be charged off under Subdivision (a) of this Section.(c) If, instead of charging off an obligation in full as required by this Section, a credit union writes off less than the full amount of the obligation, the credit union shall not be deemed to be in violation of this Section if the Commissioner finds that use of the lesser amount fairly states the credit union's financial condition.Cal. Code Regs. Tit. 10, § 30.402
1. Change without regulatory effect renumbering and amending former section 937 to new section 30.402 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
2. Repealer and new section filed 2-27-2003; operative 3-29-2003 (Register 2003, No. 9). Note: Authority cited: Section 14201, Financial Code. Reference: Section 14703, Financial Code.
1. Change without regulatory effect renumbering and amending former section 937 to new section 30.402 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
2. Repealer and new section filed 2-27-2003; operative 3-29-2003 (Register 2003, No. 9).