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The neg am interest IS booked as a receivable. They should defer those earnings for the loans if it is not reasonable to expect interest and principal to be repaid as agreed. I would also think it prudent to segregate those credits and perhaps apply a higher loan loss reserve allocation. However, that being said, for those loans that pay as agreed, do you want them to earn only when paid in full?
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David
1972 911T/S MFI Survivor
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