page 66 Bombardier Inc. Annual Report 2003-04 The allowance for credit losses is maintained at a level BC considers adequate to reflect the probable impairment in its portfolios attributa- ble to credit risk. A loan is considered impaired if it is probable that BC will be unable to collect all amounts due according to the contractual terms of the loan agreement. A loan may be evaluated for impairment due to its past-due status or deterioration in the creditworthiness of the borrower. BC gauges its requirements for the allowance for credit losses consider- ing both individual and collective loan balances. Loans at higher risk of default are evaluated individually for impairment by assessing the value of the collateral and the repayment  ability of the borrower, which may result in a specific reserve. All other loans are evaluated collectively by grouping similar loans into pools based on credit and other risk characteristics. Allowance for credit losses for loans evaluated collectively for impairment typically reflect his- torical charge-off experience, but are adjusted as necessary to reflect current conditions that could potentially influence near-term credit  loss estimates. Conditions that are considered include credit quality metrics, collateral values, industry performance and the impact of recent general economic conditions. Other revenues are generated from the sale of land to real estate developers, which involves the establishment of an urban residential  community with integrated commercial and service infrastructures on land adjacent  to the Bombardier Aerospace facilities in Montréal, Canada. Through Bombardier’s real estate services,  BC derives revenues from the development of Bombardier real estate assets earmarked for new uses, and from activities designed  to meet the real estate needs of other Bombardier businesses. Real estate services