NAC677.410. Chargeoffs.

Receivables must be charged to the allowance for losses when the receivables fall within any one of the following classifications:

     1. Accounts on which no full contractual payment has been made within the past 90 days or 90 days from the due date of the first installment that is past due and unpaid. Before an account is charged to the allowance for losses pursuant to this subsection, the balance may be reduced by:

     (a) The amount of any applicable insurance claim which is pending if the claim is verified in writing by the insurance company.

     (b) The recoverable value of any collateral, other than real property, which has been repossessed by the licensee if he disposes of the collateral within 90 days after it is repossessed.

     2. Accounts on which six contractual payments, due within the preceding 12 months, are past due and unpaid.

     3. The debtor is deceased, his estate is without known assets and his obligation is not covered by credit life insurance.

     4. The debtor has filed for a discharge in bankruptcy, but the account may be considered renewed or revised if at least three contractual payments have been received after the debtor has reaffirmed his obligation or if one or more contractual payments have been received after he has filed under Chapter XIII of the Bankruptcy Act.

     5. The location of the debtor is unknown after a conscientious effort has been made to locate the debtor.

     6. Accounts on which any balance is due after sale of repossessed collateral unless one or more contractual payments have been received after such sale.

     7. Any balance due is uncollectible for any other reason.

     [Dep’t of Commerce, Thrift Companies Reg. § 16 subsec. 16.1, eff. 5-20-76; A 1-4-78; Renumbered as § 15 subsec. 15.1, 12-14-78]—(NAC A by Admstr. of Financial Institutions, eff. 7-2-84)