Credit Evaluation School - May 2023

Internal Use Only

Well Secured? An asset is “well secured” if it is secured by collateral in the form or liens or pledges or real or personal property, including securities, that have a reliable value sufficient to discharge the debt (including accrued interest) in full or by the guarantee of a financially responsible party.

Internal Use Only

In process of collection? An asset is “in the process of collection” if collection of the asset is proceeding in due course either through legal action, including judgment enforcement procedures or, in appropriate circumstances, through collection efforts not involving legal action which are reasonably expected to result in repayment of the debt or in its restoration to a current status in the near future.