(1) When the whole or part of a loan made by a credit union remains unpaid for a period of 24 months after the date fixed for repayment in full of the monies loaned and no payment on account of principal has been made after that date, the amount of the principal remaining unpaid, subject to the approval of the board, shall be charged to and paid from the statutory reserve fund less any money standing to the credit of the borrower on the books of the credit union in a share or deposit account and less the market value of any security held by the credit union in respect of the loan.
(2) The board may, with the Registrar's approval, reduce the period of 24 months under subregulation (1);
(3) Any monies subsequently recovered with respect to such loans shall be paid into the reserve fund.
(4) All interest which has been collected thereon during the current year shall be deducted from the loan before the write off is made.
(5) With the approval of the board, any collection fees or commissions, or legal charges incurred in the collection of the loan which are not reversible from the debtor may be added to the loan before the write off is made.