Co-Operative Societies Act 2008
29. Overdue Loans
1. The loss exposure on overdue loans at the end of the fiscal year, shall be calculated in accordance with Schedule.
|Duration of period of Overdue Loans||Percentage of Outstanding Loans Balance that is Deemed Loss Exposure|
|2 months but less than 6 months||25 percent|
|6 months but less than 9 months||50 percent|
|9 months but less than 12 months||75 percent|
|12 months and over||100 percent|
2. For the purpose of these Regulations, “overdue loan” means a personal, mortgage or other type of loan on which the member is in default for more than 60 days on a payment or payments of principal or interest according to any agreement he has with the credit union.