Description
Policy for modifying troubled loans. Covers: payment suspensions, temporary reductions and interest rate reductions; documentation as material changes; assessment questions for alteration requests; full rewrites with new agreements, capitalized arrears and longer amortization; limiting rewrites to temporary setbacks; controls against using rewrites to hide delinquency; preference risk on new security taken shortly before bankruptcy under the Bankruptcy and Insolvency Act; six rewrite assessment questions; approval authority; and monitoring after a rewrite.
