We became aware that a business customer sold his business and assets a year ago (which were collateral for our bank loan) when the buyer called to ask for a deferment last month. The loan was put into default and demand letters were sent.
What amount would you enter in Part II #29 Amount involved in this report?
This loan was originated for $1,100,000 in October 2016. The approximate balance of the loan on the date of the unauthorized transfer of assets in May 2019 was $769,968. The bank exercised it's right to setoff when notified of the unauthorized sale and transfer of collateral by applying the full balance of an assigned CD with a balance of approximately $205,844. The current balance of the loan as of June 2019 is approximately $412,455.
This one caused me to pause as I'm questioning which amount is the one most appropriate for Part II #29. Any insight would be appreciated!