New York Banking Law

Sec. § 459
Allowance for Loan Loss

An allowance for loan loss account shall be established and maintained in an amount that represents the current estimated loss on loans. The allowance for loan loss account requirement shall be computed and adjusted, through the provision for loan loss account, prior to the payment of dividends. The calculation of this account shall be in accordance with the rules established by the National Credit Union Administration.

Last accessed
Dec. 13, 2016