Substantial Loss [Banks & Banking] Law and Legal Definition

According to 12 CFR 347.202 [Title 12 -- Banks and Banking; Chapter III -- Federal Deposit Insurance Corporation; Subchapter B -- Regulations and Statements of General Policy; Part 347 -- International Banking; Subpart B -- Foreign Banks], substantial loss means:

“(1) An obligation that is delinquent for ninety (90) or more days and on which there remains an outstanding balance of more than $ 50,000;

(2) An unpaid final judgment in excess of $ 50,000 regardless of whether it becomes forgiven in whole or in part in a bankruptcy proceeding;

(3) A deficiency balance following a foreclosure of collateral in excess of $ 50,000, regardless of whether it becomes forgiven in whole or in part in a bankruptcy proceeding;

(4) Any loss in excess of $ 50,000 evidenced by an IRS Form 1099-C (Information Reporting for Discharge of Indebtedness).”