Allowances for Credit Losses definition

Allowances for Credit Losses means those allowances or reserves established by Company or its Subsidiaries in arriving at installment contracts receivable, net or Leased Vehicles, as the case may be, on its Consolidated balance sheets, as specifically identified in such financial statements or as disclosed in the footnotes thereto; provided that Allowances for Credit Losses shall not include allowances or reserves attributable to retail installment contracts or leases which are not at such time "Installment Contracts" or "Leases," as the case may be, due to the proviso in the definition of such terms in this Agreement.

Allowances for Credit Losses means those allowances or reserves established by Company or its Subsidiaries in arriving at installment contracts receivable, net, on its Consolidated balance sheets, as specifically identified in such financial statements or as disclosed in the footnotes thereto; provided that Allowances for Credit Losses shall not include allowances or reserves attributable to retail installment contracts which are not at such time "Installment Contracts", due to the proviso in the definition of such term in this Agreement.

Examples of Allowances for Credit Losses in a sentence

• Allowance for Loan and Lease Losses (ALLL) or Allowances for Credit Losses (ACLs).17 Examiners should review an institution’s methodology for calculating the ALLL or ACLs, as applicable.18 In assessing whether the ALLL or ACLs are appropriate, examiners will assess whether management has considered relevant available information about the collectability of the institution’s loan portfolio, along with any changes to the institution’s lending practices and economic conditions as a result of the pandemic.

• For a discussion on the factors impacting the loss experience in the preceding period and comparison of the estimates to actual outcomes over the longer term, see Note 2 (Significant Accounting policies) and Note 10 (Loans, Lending Commitments and Related Allowances for Credit Losses) to the consolidated financial statements in part II, Item 8 of the 2021 Form 10-K.

• Schedules 11c (Total Amount), 11c1 (Peso Accounts), 11c2 (Foreign Regular) and 11c3 (FCDU/EFCDU) - Loans and Receivables-Others – Movements in Allowances for Credit Losses Report the movement in the allowances for credit losses on loan accounts.

• Allowances for Credit Losses - Loans and Advances to Customers: Specific impairment for credit losses is determined by assessing each case individually.

• Institutions that have not adopted ASC Topic 326 should continue to refer to the Glossary entry for “Allowance for Loan and Lease Losses.” For more information on the allowance for credit losses (ACL), institutions should also refer to the Interagency Policy Statement on Allowances for Credit Losses issued in May 2020.

• For a discussion on the factors impacting the loss experience in the preceding period and comparison of the estimates to actual outcomes over the longer term, see Note 2 (Significant Accounting policies) and Note 10 (Loans, Lending Commitments and Related Allowances for Credit Losses) to the consolidated financial statements in part II, Item 8 of the 2022 Form 10-K.

• A Noteholder may communicate under Section 312(b) of the TIA with other Noteholders about their rights under this Indenture or under the Notes.

• Allowances for Credit Losses – Financing Facilities: Specific impairment for credit losses is determined by assessing each case individually.

• Allowances for Credit Losses: The collective assessment is based on a ratio determined by the Groups’ managements of the total outstanding cardholders’ receivable.

• Commenters should refer to the Interagency Policy Statement on Allowances for Credit Losses 17 regarding how credit risk review can facilitate the loss estimation process.