### Question
What is the definition of nonperforming loan?


### Answer
The definition of **nonperforming loan** is as follows in *26 U.S.C. § 585*:

> any loan which is considered to be nonperforming by the primary Federal regulatory agency with respect to the bank

#### Citation:
  - *26 U.S.C. § 585*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter H-Banking Institutions > PART I-RULES OF GENERAL APPLICATION TO BANKING INSTITUTIONS**

