12 C.F.R. § 621.9 Reinstatement to accrual status.
Title 12 - Banks and Banking
A loan may be reinstated to accrual status, when each of the following criteria are met: (a) All contractual principal and interest due on the loan is paid and the loan is current; (b) Prior chargeoffs are recovered, except for troubled debt restructures; (c) No reasonable doubt remains regarding the willingness and ability of the borrower to perform in accordance with the contractual terms of the loan agreement; and (d) Reinstatement is supported by a period of sustained performance in accordance with the contractual terms of the note and/or loan agreement. Sustained performance will generally be demonstrated by 6 consecutive monthly payments, 4 consecutive quarterly payments, 3 consecutive semi-annual payments, or 2 consecutive annual payments.
Title 12: Banks and Banking
PART 621—ACCOUNTING AND REPORTING REQUIREMENTS
Subpart C—Loan Performance and Valuation Assessment
§ 621.9 Reinstatement to accrual status.