Common use of Charge-Offs Clause in Contracts

Charge-Offs. It is the responsibility of the collection officer to diligently pursue any and all deficiencies which result from problem accounts. All avenues of potential collection will be pursued, ranging from cash settlements to amortized deficiency notes to judgment and garnishment. A complete list of all charge offs will be maintained. The list will be categorized into "active" and "dead" accounts. A brief action plan will be shown for each active account. Accounts will only be designated as "dead" with the recommendation of the collection officer and approval of the Executive Vice President. The "dead" designation will only be granted for those accounts which hold no potential for recovery (e.g., discharged Chapter 7). Active charge off action plans will be presented at least monthly to the Executive Vice President. Decisions regarding pursuit of legal action and incurring potential legal fees will need prior approval by the Executive Vice President.