Banks manage problem loans through loan workouts. Loan workouts can take a number of forms: simple renewal or extension of the loan terms; extension of additional credit; formal restructuring of the loan terms with or without concessions; or, in some cases, foreclosure on underlying collateral. Banks should choose the alternative that will maximize the recovery and minimize the risk on each troubled loan.
Guidelines for Collateral Evaluation and Classification of Troubled Energy Loans (Supplement 1) (EC 223-S1, June 1986)
Guidelines for Collateral Evaluation and Classification of Troubled Oil and/or Gas Reserve-Based Loans (EC 223, August 1984), Guidance
Prudent Commercial Real Estate Loan Workouts (OCC 2009-32, October 2009), Policy Statement
Troubled Loan Workouts and Loans to Borrowers in Troubled Industries (BC 255, July 1991)