Statutes, codes, and regulations
Washington Administrative Code
Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460)
Chapter 208-460 - Member business loans
Section 208-460-120 - How much must I reserve for potential losses?

Wash. Admin. Code § 208-460-120

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Current through Register Vol. 24-18, September 15, 2024
Section 208-460-120 - How much must I reserve for potential losses?

The following schedule sets the minimum amount you must reserve for classified member business loans:

Classification

Amount Required

Substandard

10% of outstanding balance unless other factors (for example, history of such loans at the credit union) indicate a greater or lesser amount is appropriate.

Doubtful

50% of the outstanding balance.

Loss

100% of the outstanding balance.

Wash. Admin. Code § 208-460-120

Statutory Authority: RCW 31.12.426(1), 31.12.516(2), 43.320.040. 01-10-084, § 208-460-120, filed 5/1/01, effective 6/1/01.