We have impaired loans - loans where we do not anticipate receiving all amounts due according to the contractual terms of the loan agreement, including interest and principal.

Under SCRA, when we "drop" interest to 6%, would this type of loan be exempt as being impaired.

I don't believe so. This isn't a distressed loan in that you doubt repayment. I am more familiar with classified loans but they sound similar, just to different degrees. So it wouldn't be classified because of this. You will be paid what the law allows. The contract is required to change by law and not because of, as an example, bankruptcy.

The way your question is phrased I think the answer is "Yes" these loans would be exempt from your impaired loan list.

I believe Andy is saying the same thing.

Thanks Don. You read my reply in the context intended as I went beyond the basic question in my answer. I don't believe it would be impaired.

These loans definitely are NOT impaired. The change in original terms is required by law. They are not "doubtful", which would accompany an impairment.

That's what I thought. We had such a long discussion at our bank, I was beginning to doubt myself.