Section 208-512-070. Nonbankable assets.

In determining whether an asset of a bank, mutual savings bank or trust company is bankable all of the circumstances of the asset shall be weighed, including but not limited to the following:

(1) Character of the borrower

(2) Capacity of the borrower

(3) Capital of the borrower

(4) Collateral, sufficiency of

(5) Economic conditions pertaining to the type of business in which the borrower is engaged

(6) Conformance to general banking standards as then currently practiced in the banking industry.

If, in the examination of a bank, mutual savings bank or trust company, an examiner finds an asset which in his opinion, after weighing all the circumstances of the asset, is nonbankable, the director may require that such asset be charged off the books of the bank, mutual savings bank or trust company.

Within fifteen days following the next meeting of the board of directors following receipt of written notice from the director to charge off such asset, but in no event more than forty-five days following receipt of such written notice, the bank, mutual savings bank or trust company, shall write the same off as an asset or file a written statement with the director explaining why, in its opinion, the asset should not be so treated. After considering such written statement and within ten days after receipt thereof, the director will notify the bank in writing of his decision as to the treatment of the asset.

[Statutory Authority: RCW 30.04.030 and 43.320.040. WSR 00-17-141, amended and recodified as § 208-512-070, filed 8/22/00, effective 9/22/00; Order 9, § 50-12-070, filed 5/9/72.]

RCW 30.04.030 and 43.320.040. WSR 00-17-141, amended and recodified as § 208-512-070, filed 8/22/00, effective 9/22/00; Order 9, § 50-12-070, filed 5/9/72.