California Code of Regulations
Title 10 - Investment
Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 40 - Industrial Loans
Article 4 - Reserves
Section 40.404 - Restoration of Accounts Charged-off

Universal Citation: 10 CA Code of Regs 40.404
Current through Register 2024 Notice Reg. No. 38, September 20, 2024

A charged-off account may be restored as a corporate asset by refinance or otherwise only when at least three regular or revised monthly payments have been received within the preceding 90 days and there is evidence that the debtor will continue to adhere to the new terms of repayment. Any amount restored must be credited to the reserve for losses account and not recorded as gross income.

1. Change without regulatory effect renumbering former section 1145 to new section 40.404 and adding new NOTE filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).

Note: Authority cited: Section 18347, Financial Code. Reference: Section 18343, Financial Code.

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