Delinquent Loan

From Open Risk Manual

Definition

Delinquent Loan. A loan which is an active loan (in Repayment phase), which is in default.


Issues and Challenges

Possible outcomes including settlement where the loan is not paid off in full but a settlement is arrived at in which this is considered to be closed. Legal Proceedings may undertaken be in relation to Loan Defaults. Default versus Arrears? There are states within the space of being in arrears where it is not yet in default unless the borrower has not paid within a given period of time. For instance a decision is made after e.g. 3 months, when it is decided they are in default - a "Notice of Default" is then served, leading into the set of legal events we see in the Loan Default Proceedings.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.

Contributors to this article

» Wiki admin