nonperforming asset

Definition

A loan or lease that is not meeting its stated principal and interest payments. Banks usually classify as nonperforming assets any commercial loans which are more than 90 days overdue and any consumer loans which are more than 180 days overdue. More generally, an asset which is not producing income.

Use nonperforming asset in a sentence

A default in one's mortgage payment is considered a nonperforming asset and could force the borrower to liquidate any pledged assets as part of the debt agreement.

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non-payment non-performing loan