Nevertheless, it is recognized that there are instances, particularly where significant amounts are involved, that may warrant exceptions to the formula in order to recognize individual situations where the bank being examined can clearly demonstrate that repayment will occur irrespective of delinquency status. General Classification Policy Examiners will adhere to the following general classification policy during examinations of commercial banks. The following definitions are intended to provide guidance in application of the general classification policy. Refer to such instructions for information on any loan where there is doubt as to whether it is covered by the general classification policy. Loans in arrears two monthly payments are considered 30 days delinquent.
Banks generally treat open end credit differently than closed end credit in computing delinquency.
A bank credit card customer generally has 25 days in which to pay billings before the loan is considered delinquent. If no payment is made between two billing cycles, the balance is considered 5 days delinquent. Refer to the following charts which illustrate delinquency computation. Loans delinquent seven monthly payments, or seven billing cycles, are considered 180 days, or six months, past due and will be considered statutory bad debts, unless they are well secured and in the process of collection. No Payment 180 Loss 1999 Office of Banks and Real Estate - State of Illinois.