Troubled Debt Restructuring and Loan Workout Policy
This Troubled Debt Restructuring and Loan Workout Policy Template addresses how a bank, credit union, fintech company, or other type of financial institution renegotiates loan terms to assist borrowers who are unable to meet the original terms of their loans, and maximize recovery of loans to these borrowers.
Table of Contents
- Purpose and Contents – Topic 1
- Policy Statement – Topic 2
- TDR Impairment Measurement Guidelines – Topic 3
- General Appraisal and Collateral Considerations – Topic 4
- Interest Income – Topic 5
- Commercial Real Estate Loan Workout Program – Topic 6
- Agricultural Loan Workout Program – Topic 7
- Residential Real Estate Loan Workout Program – Topic 8
- Accounting Considerations – Topic 9
- Loans to One Borrower – Topic 10
- Classification – Topic 11
- Coronavirus Pandemic Applicability – Topic 12
- Audit Policy – Topic 13
- Staff Training – Topic 14
- Retention of Documentation – Topic 15
Recent updates to this product:
07/17/23 Update
Joint Press Release – Agencies Finalize Policy Statement on Commercial Real Estate Loan Accommodations and Workouts
06/01/23 Update
Eliminate references to allowance for lease and loan losses (ALLL) which was replaced by current expected credit losses (CECL).
09/01/22 Update
OCC Bulletin 2022-20 – Accounting: Bank Advisory Series Updated – Accounting Standards Update (ASU) 2022-02 – “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures”
This Troubled Debt Restructuring and Loan Workout Policy Template (approximately 38 pages) is available to purchase from BankPolicies.com in Microsoft® Word format.
NOTE: The complete contents of this product are also included in the Non-Accrual and Charged-Off Loan Policy Template.
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