PDFWAC 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. |
[Statutory Authority: RCW 31.12.426(1), 31.12.516(2), 43.320.040. WSR 01-10-084, ยง 208-460-120, filed 5/1/01, effective 6/1/01.]