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The following table sets out the outstanding amounts that we have classified as impaired and the related allowances: 

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Included in impaired loans are other real estate owned and securities received from customers in satisfaction of their loans totalling $13 as at October 31, 2002 ($13 in 2001). 

Fully secured loans with past due amounts between 90 and 180 days that we have not classified as impaired totalled $49 as at October 31, 2002 ($36 in 2001). 

Our average gross impaired loans and acceptances were $2,150 for the year ended October 31, 2002 ($1,657 in 2001). Our average impaired loans, net of the specific allowance, were $1,351 for the year ended October 31, 2002 ($1,198 in 2001). 

During the years ended October 31, 2002, 2001 and 2000, we would ha ve recorded interest income of $172, $126 and $103, respecti vely, if we had not classified any loans as impaired. 

The following table sets out the continuity of our allowance for credit losses: 

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(1) We did not have any impaired loans to designated countries as at October 31, 2002 and 2001. 

## NOTE 5 Other Credit Instruments 

We use other off-balance sheet credit instruments as a method of meeting the financial needs of our customers. Summarized below are the types of instruments that we use: 

b Guarantees and standby letters of credit represent our obligation to make payments to third parties on behalf of our customers if our customers are unable to make the required payments or meet other contractual requirements; 

b Securities lending represents our credit exposure when we lend our securities, or our customers’ securities, to third parties should the securities borrower default on their redelivery obligation; 

b Documentary and commercial letters of credit represent our agreement to honour drafts presented by a third party upon com- pletion of specific activities; and 

b Commitments to extend credit represents our commitment to our customers to grant them credit in the form of loans or other financings for specific amounts and maturities, subject to meeting certain conditions. 

Summarized below is information related to various commitments. 

The contractual amount of our other credit instruments represents the maximum undiscounted potential credit risk if the counter- party does not perform according to the terms of the contract before any amounts that could possibly be recovered under recourse or collateralization provisions. A large majority of these commitments expire without being drawn upon. As a result, the total contractual amounts are not representative of the Bank’s likely credit exposure or liquidity requirements for these commitments. 

The risk-weighted equivalent values of our other credit instruments are based on the rules for capital adequacy of the Superintendent of Financial Institutions Canada. The risk-weighted equivalent value is used in the ongoing assessment of our capital adequacy ratios. 

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Commitments to extend credit in respect of consumer instalment and credit card loans are excluded as the lines are revocable at our discretion. 

