2808.03.03  UNCOLLECTIBLE LOANS

The short-term loan policies and procedures should provide for a method of 
bad-debt write-off for uncollectible loans.  The institution may choose to 
retain the defaulted short-term loan borrower's name on the withholding of 
services listing for possible future collections.  Annual submission to the 
Franchise Tax Board will often yield sufficient funds to warrant reinstating 
the debt and retiring it again through payment rather than write-off.