Doubtful Clause Samples
The 'Doubtful' clause is designed to address situations where there is uncertainty or ambiguity regarding the interpretation or application of a contract term. In practice, this clause typically outlines how disputes over unclear language should be resolved, such as by favoring one party's interpretation or referring to established legal principles. Its core function is to provide a predetermined method for resolving ambiguities, thereby reducing the risk of prolonged disputes and ensuring greater contractual certainty.
Doubtful. The loans have all the weaknesses of loans classified as subnormal, with the additional characteristic that the facts, conditions and values make full recovery unlikely. Even if the possibility of loss is significant, there may be certain specific factors of importance which work in favour of the strengthening of the asset. If a risk is classified as doubtful the interest must not be recognised and the obligation must be treated as though interest were not accruing.
Doubtful. Loans grouped in this category are generally transactions in respect of which recovery is very unlikely, given that the debtor shows a financial and economic position which has worsened significantly and usually legal proceedings have begun, as its sources of income, guarantees created or assets mean that the Bank would only be able to recover part of the resources lent. In order to classify a loan in this category, the Bank must take into account whether the debtor:
a. Has an operating cash flow which is continually shown to be inadequate to cover the debt servicing payments on the terms originally agreed; or
b. Defaults on payment for more than ninety (90) days, but less than three hundred and sixty (360) days; or
c. Has guarantees which do not cover the outstanding debt in full. The Bank must also consider:
d. If there is a breach of the policies and procedures for the administration of the credit risk and whether there are inherent weaknesses in the granting, administration and collection of the loan;
e. If there are adverse conditions which could affect the recovery of the loan such as variations in the economic cycle within the country, specific unforeseeable events such as fires, changes in technology, political changes and others which are outside the control of the debtor.
Doubtful. These loans have all the weaknesses of a substandard loan with the added detriment that full collection at collateral liquidation is highly questionable and improbable on the basis of currently known facts, conditions, and values. Loss: These loans are deemed uncollectable and have, at best, nominal value. Maintaining these loans on the books, without establishment of specific valuation allowances, is not warranted. Loans considered doubtful or loss are normally charged-off upon such determination and hence, no balances apply to these categories. Heritage Bancorporation, Inc. and Subsidiary Notes to Consolidated Financial Statements
Doubtful. Loans whose instalment payments are in arrears by more than ninety (90) days but less than one hundred and eighty (180) days; in the case of loans with guarantees in rem the period shall be extended to three hundred and sixty (360) days.
Doubtful. You have not made any payment 121 – 180 calendar days after the Due Date. Under this status, we will impose interest and fees applicable, collect the outstanding amount, collect the outstanding amount and block the Card.