21.20.825 - Debenture companies -- Bad debts.

Debenture companies — Bad debts.

(1) Any debt due a debenture company on which interest is one year or more past due and unpaid shall be considered a bad debt and shall be charged off the books of the debenture company unless:

     (a) Such debt is well-secured and in the course of collection by legal process or probate proceedings; or

     (b) Such debt is represented or secured by bonds having a determinable market value currently quoted on a national securities exchange, provided that in such case, such bonds shall be carried on the books of the debenture company at such value as the director may from time to time direct, but in no event may such carrying value exceed the market value thereof.

     (2) A final judgment held by a debenture company shall not be considered an asset of the debenture company after two years from the date of its entry excluding any time for appeal unless extended by the director in writing for a specified period.

[1988 c 244 § 10.]

Notes: Severability -- Effective date -- Implementation -- Application -- 1988 c 244: See notes following RCW 21.20.700.