§ 7-217

(a) (1) A credit union share guaranty corporation shall establish reserves for guaranty losses on an incurred basis in accordance with generally accepted accounting principles during the period in which the losses become evident.

(2) The reserves shall provide for:

(i) Losses reported to the credit union share guaranty corporation;

(ii) Losses incurred but not previously reported; and

(iii) Estimated losses on the collection of notes and other guarantees to participating credit unions.

(b) The reserves shall be maintained until the losses for which the reserves were established have been satisfied.