In the German tax law relating to the sale of receivables, a distinction is made between distressed and non-distressed receivables. According to the tax authorities, a receivable is regarded as distressed, if, insofar as it is due, it has not been settled in full, or has only been settled to a minimal amount, for more than 90 days. A receivable is also distressed if the contractual arrangement has been terminated or the conditions for termination exist. In the banking sector distressed receivables are also referred to as non-performing loans (NPL). If these circumstances do not apply to the default the receivables are called non-distressed receivables or performing loans (PL).