We have a non accrual loan secured by property that had been repossessed. A portion of the property (machinery) was given back to the borrower after a payment of $5,000 was received. The balance of the loan is $17,000 and will probably not be collected. The loan officer applied the $5000 received to fees related to the repossession, interest, late charges and principal. I know the payment can't be applied to the interest and late charges, but can the fees related to the repossession be collected or should the entire $5000 go to principal?