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

Since the mortgage on John's home had not had any payments on the account in more than 180 days, it was classified as an nonperforming asset by the bank.

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Becky was no happy about the broken sink in her kitchen because the nonperforming asset was not in the lease agreement of her apartment that she was renting

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My department manager ordered me to write off the lease we had on the office park near Detroit as a nonperforming asset after we were unable to get anyone to sublet our property.

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non-payment non-performing loan