Non-Performing Assets are loans or advances that have defaulted or are past due. When principal or interest is due or is not, debt is past due. When the lender anticipates that the loan will be terminated and the borrower won’t be able to fulfill their commitments, the loan is said to be in default. The balance sheet of a bank or other financial organization shows risk assets. The lender will have the borrower liquidate all assets promised in the loan contract after a protracted period of insolvency. The lender may write off the assets as uncollectible and then sell them at a discount to a collection agency if no assets have been pledged.… Read more