Credit Union Annual Report 2022 - Flipbook - Page 68
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2022
5. Mortgages and personal loans (continued)
Repossession of collateral
As at July 31, 2022, the Credit Union does not hold repossessed collaterals (2021: $403,316). During the year ended
July 31, 2022, repossessed property held of $403,316 as of July 2021, was sold for $388,963 resulting in a loss on sale of
$14,353 which is recorded in the Statement of Comprehensive Income.
Loans written off
During the year ended July 31, 2022, the Board approved to write off $1,038,827 (2021: $564,262) of loans which related
to loans due from 156 (2021: 65) members. These loans were written off after careful consideration by the Board of
Directors because they had been delinquent for a significant period of time, and all efforts to secure repayment were
exhausted and proved unsuccessful. The members involved have been recorded in the Register of Loans Written Off, and
these members may not avail of future lending facilities of the Credit Union, until such time as their previously outstanding
indebtedness is repaid.
Loans renegotiated that would otherwise be past due or impaired
Loans may be renegotiated at the request of the Credit Union or the member for commercial purposes, where there is
evidence of the continuing ability of the member to meet renegotiated payment obligations. The Credit Union will
generally only issue a new loan to a member if the previous indebtedness has been cleared and the member can present
sufficient collateral in accordance with the standard terms and considerations in line with the established credit policy.
Members who are in arrears are not eligible to avail of additional lending facilities until the passage of specified period
of time during which the member must have demonstrated his repayment capacity and fulfilled his obligations in line
with the contractual agreement. It is not the practice of the Credit Union to extend credit to members where the
repayment capacity is in doubt. Notwithstanding this, the Credit Union, in limited circumstances may agree to temporarily
revised repayment schedules on loans which are past due. Where loans that are past due or impaired are renegotiated, it
is the Credit Union’s standard practice to retain these loans in the past due or impaired classifications until the member
has brought his account up to date.
Limitations on lending to one borrower and significant loans
The maximum amount that the Credit Union may lend to one single member/borrower may not exceed a 3% of the Credit
Union’s total gross loans to all members; currently 3% is a maximum of $10,851,017. As at July 31, 2022, gross carrying
value of the largest loan issued to a member is $2,085,518 (2021: $2,092,000). The total value of loans held by members
who hold total loans in excess of $300,000 as at July 31, 2022, is $107,376,710 in 423 loans (2021: $71,066,154 in 288
loans).
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