Note 2-4

4 Incidentally, the purchase price by the Cooperative Credit Purchasing Co. was about 22% of principals from April 1997 to March 2001. Some banks make partial direct write-offs (with regard to collateralized or guaranteed loans to borrowers in legal bankruptcy or effectively bankrupt, the amount unable to recover by collateral, etc. is directly written off, instead of making specific allowance for loan losses). Since the collateral is not disposed of in such a case, the estimate of the recovery amount does not include partial direct write-offs.