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Loss asset definition

Loss asset means:
Loss asset means a borrowal account which has remained a Non-performing asset for more than three years or where in the opinion of the Board, a shortfall in the recovery of the loan account is expected because the documents executed may become invalid if subjected to legal process or for any other reason.
Loss asset means (a) an asset which has been identified as loss asset by the applicable NBFC or its internal or external auditor or by the RBI during the inspection of the applicable NBFC, to the extent it is not written off by the applicable NBFC; and (b) an asset which is adversely affected by a potential threat of non-recoverability due to either erosion in the value of security or non- availability of security or due to any fraudulent act or omission on the part of the borrower.Provisioning: The NBFC would make provisions in the non performing accounts (NPAs) based on the guidelines issued by RBI.Every applicable NBFC shall, after taking into account the time lag between an account becoming non- performing, its recognition as such, the realisation of the security and the erosion over time in the value of security charged, make provision against sub-standard assets, doubtful assets and loss assets as provided hereunder:-The provisioning requirement in respect of loans, advances and other credit facilities including bills purchased and discounted shall be as under:i. Standard asset - Every applicable NBFC shall make provisions for standard assets at 0.40 per cent of the outstanding, which shall not be reckoned for arriving at net NPAs.ii. Sub-standard assets - A general provision of 15 percent of total outstanding shall be made.iii. Doubtful Assets –

Examples of Loss asset in a sentence

  • Loss asset has certain characteristics, for example, the lease payments have been overdue for more than 270 days.

  • Except as otherwise provided herein, responsibility for all losses, liabilities and expenses incurred by the Partnership shall, as among the Partners, be allocated among the Partners in accordance with the procedures for allocating Net Income (Loss), asset forth in Section 6.1.

  • AUCA is also included for structured review, as recovery efforts in these accounts may not have been fully exhausted.(ii) Further, there may be accounts which have deteriorated to Doubtful / Loss asset category due to mere passage of time and not due to deterioration of security and are still viable.


More Definitions of Loss asset

Loss asset means an Asset which has been classified as NPA as per norms and has completed seasoning of six months as NPA OR any asset which has been identified as Loss Asset by the delegated authority of the NBFC and for which NBFC has initiated the process of repossession of asset/legal action against the borrower.
Loss asset means an Asset at any time: (i) which arises under a ------------ Lease with respect to which more than the greater of (A) ten percent (10%) of any individual payment thereunder, or (B) $10.00 remains unpaid for more than one hundred and eighty (180) days from the original due date for such payment (regardless of whether such Asset becomes current at some future date), (ii) as to which the Obligor thereof has taken any action, or suffered any event to occur, of the type described in Section 7.01(f), (iii) as to which foreclosure proceedings have been initiated and are continuing, or (iv) which, consistent with the Credit and Collection Policy, has been or should be written off as uncollectible; provided, that neither the Servicer nor the Seller shall be required to include an Asset which becomes a Loss Asset during a given calendar month as a "Loss Asset" for the purposes of this Agreement until the earlier of (x) the date on which the Asset Report in respect of such month is required to be delivered pursuant to Section 2.06(a) and (y) the date on which such Asset Report is actually delivered to the Deal Agent.
Loss asset means -(i) an asset which has been identified as loss asset by the housing finance company or its internal or external auditor or by the National Housing Bank, to the extent it is not written off by the housing finance company; and(ii) an asset which is adversely affected by a potential threat of non recoverability due to any one of the following, namely:- (a) non-availability of security, either primary or collateral, in case of secured loans and advances;(b) erosion in value of security, either primary or collateral, is established;(c) insurance claim, if any, has been denied or settled in part;(d) fraudulent act or omission on the part of the borrower;(e) the debt becoming time barred under Limitation Act, 1963 (36 of 1963);(f) inchoate or defective documentation.Explanation- For the removal of doubt, it is clarified that mere right of the housing finance company to file suit against the borrower/guarantor for recovery of dues does not debar the National Housing Bank or the auditors to consider the asset or part thereof as loss asset due to aforesaid reasons;(s) “net asset value” means the latest declared net asset value by the concerned mutual fund in respect of that particular scheme;(t) “net book value” means -(i) in the case of hire purchase asset, the aggregate of overdue and future installments receivable as reduced by the balance of the unmatured finance charges and further reduced by the provisions made as per paragraph 24(2)(i) of these directions;(ii) in the case of leased assets, aggregate of capital portion of overdue lease rentals accounted as receivable and depreciated book value of the lease asset as adjusted by the balance of lease adjustment account; (u) “net owned fund” means net owned fund as defined under section 29A of the National Housing Bank Act, 1987 including paid up preference shares which are compulsorily convertible into equity capital. (v) “non-performing asset” (referred to in these directions as “NPA”) means:-(i) a loan asset, in respect of which, interest has remained past due for six months;(ii) a term loan (other than the one granted to an agriculturist or to a person whose income is dependent on the harvest of crops) inclusive of unpaid interest, when the installment is overdue for more than six months or on which interest amount remained past due for six months;(iii) a bill of exchange which remains over due for six months;(iv) the interest in respect of a debt or the income on a receivable under the headother curr...

Related to Loss asset

  • Shared-Loss Assets means Shared-Loss Loans, Other Real Estate purchased by the Assuming Institution, Additional ORE, Shared-Loss Subsidiaries, and Capitalized Expenditures, but does not include Shared-Loss Securities.

  • Gross Assets means the total of fixed assets and current assets;

  • Business Assets means all tangible and intangible property and assets owned (either directly or indirectly), leased, licensed, loaned, operated or used, including all real property, fixed assets, facilities, equipment, inventories and accounts receivable, by the Corporation and the Subsidiaries in connection with the Business;

  • Purchased Asset means (i) with respect to any Transaction, the Eligible Asset sold by Seller to Buyer in such Transaction and (ii) with respect to the Transactions in general, all Eligible Assets sold by Seller to Buyer (other than Purchased Assets that have been repurchased by Seller).

  • Mortgage Loan Group Either Group I or Group II. References herein to the related Class of Class A Certificates, when used with respect to a Mortgage Loan Group, shall mean (A) in the case of Group I, the Class A-1 Certificates and (B) in the case of Group II, the Class A-2 Certificates.

  • Servicer Mortgage Loan File As defined in each of the Servicing Agreements.

  • Gross Asset Value means, with respect to any asset, the asset's adjusted basis for federal income tax purposes, except as follows:

  • Class P Mortgage Loan Any of the Class I-P, Class II-P or Class III-P Mortgage Loans.

  • Underlying Asset means the object or underlying asset in a CFD which may be Currency Pairs (for FX Contracts), Equity Indices, base or precious Metals, Forwards, Commodities, Stocks, Shares Indices and Futures. It is understood that the list is subject to change and Clients must refer each time on the Trading Platform.

  • Mortgage Loan File for inclusion in the Mortgage Loan File (to the extent such documents are in the possession of the Special Servicer) and copies of any additional related Mortgage Loan information, including correspondence with the Borrower Related Parties, and the Special Servicer shall promptly provide copies of all of the foregoing to the Servicer as well as copies of any analysis or internal review prepared by or for the benefit of the Special Servicer, provided that, such materials shall not include any Privileged Information.

  • Underlying Assets With respect to a Loan, any property or other assets designated and pledged as collateral to secure repayment of such Loan, including, without limitation, to the extent provided for in the relevant Underlying Instruments, a pledge of the stock, membership or other ownership interests in the related Obligor and all Proceeds from any sale or other disposition of such property or other assets.

  • Portfolio Asset means an asset of an investment fund;

  • Group 4 Mortgage Loan Each Mortgage Loan listed on Exhibit D-4 hereto.

  • Owner Mortgage Loan File A file maintained by the Custodian for each Mortgage Loan that contains the documents specified in Section 2.01(a) and any additional documents required to be added to the Owner Mortgage Loan File pursuant to this Agreement.

  • Group 2 Mortgage Loan Each Mortgage Loan listed on Exhibit D-2 hereto.

  • Other Servicer Mortgage Loan Any of the Mortgage Loans, if any, identified in Exhibit F-2 hereto, as such Exhibit may be amended from time to time in connection with a substitution pursuant to Sections 2.02 or 2.06, which Mortgage Loan is serviced under an Other Servicing Agreement.

  • Assumed Servicing Liability means any Liabilities with respect to any Serviced Appointments (or Serviced Corporate Trust Contracts) that arise out of or relate to facts, circumstances, actions, omissions and/or events occurring from and after the Closing and prior to the applicable Succession Time for such Serviced Appointment; provided that Assumed Servicing Liability shall not include any Liabilities that arise out of or relate to facts, circumstances, actions, omissions and/or events with respect to any Retained Duties or any matters for which Seller or any of its Affiliates is responsible pursuant to Section 3.9.

  • Buydown Mortgage Loan Any Mortgage Loan as to which a specified amount of interest is paid out of related Buydown Funds in accordance with a related buydown agreement.

  • Group II Mortgage Loan A Mortgage Loan assigned to Loan Group II with a principal balance at origination that may or may not conform to Freddie Mac and Fannie Mae loxx xxxxts.

  • Group I Mortgage Loan A Mortgage Loan assigned to Loan Group I. All Group I Mortgage Loans have a principal balance at origination that conforms to Xxxxxxx Mac loan limits.

  • Group II Mortgage Loans The Mortgage Loans identified on the Mortgage Loan Schedule as Group II Mortgage Loans.

  • REO Asset means, with respect to any Collateral Obligation, any real property that is Related Property that has been foreclosed on or repossessed from the current Obligor by the Servicer, and is being managed by the Servicer on behalf of, and in the name of, any REO Asset Owner, for the benefit of the Secured Parties and any other equity holder of such REO Asset Owner.

  • Group 1 Mortgage Loan Each Mortgage Loan listed on Exhibit D-1 hereto.

  • Wet-Ink Mortgage Loan means a Mortgage Loan which Seller is selling to Buyer simultaneously with the origination thereof.

  • Group I Mortgage Loans The Mortgage Loans identified on the Mortgage Loan Schedule as Group I Mortgage Loans.

  • Group 2 Mortgage Loans Those Mortgage Loans identified on the Mortgage Loan Schedule as Group 2 Mortgage Loans.