Okla. Admin. Code § 660:11-3-23

Current through Vol. 41, No. 19, June 17, 2024

Section 660:11-3-23 - Reserve against bad debts

(a)Requirement to maintain reserve. Each investment certificate issuer shall at all times maintain a reserve against bad debts, that is, an Allowance for Loan Losses, in an amount equal to two percent (2%) of the total loans outstanding.

(b)Determination of amount of reserve. As of the end of each quarter, the management of each investment certificate issuer shall evaluate the collectibility of the loan portfolio to bring the Allowance, by means of a charge or credit, to a level adequate to absorb anticipated loan losses. Any recoveries during the reporting period should be credited to the Allowance, and any charge-offs should be charged to the Allowance. With respect to those loans classified as "doubtful" in accordance with 660:11-3-21, the Allowance shall be increased by an amount equal to fifty percent (50%) of the amounts classified as "doubtful." With respect to those loans classified as "substandard" in accordance with 660:11-3-21, the Allowance shall be increased by ten percent (10%) of the amounts of the outstanding loans classified as "substandard."

Added at 21 Ok Reg 2532, eff 7-1-04