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.

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

History

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).