Loan status where income recognition ceases because full collection of principal and interest is no longer probable — typically when the borrower is more than 90 days past due or has defaulted on a material covenant. While on nonaccrual: (i) interest is recognized only when cash is actually received, (ii) the loan is typically marked at 40%–80% of par to reflect distressed pricing, and (iii) it is reported as nonaccrual on the BDC's 10-Q. Nonaccrual rate (nonaccrual fair value / total portfolio fair value) is a leading indicator of realized losses.