RAK Bank has Gross Loans of $80 million with an allowance for loan loss (ALL) account of $4 million. Two years ago the bank made a loan for $5 million to finance Borooj Building. Two million dollars in principal was repaid before the borrowers defaulted on the loan. The Loan Committee at RAK Bank believes the Borooj Building will sell at auction for $1.6 million and they want to charge off the remainder immediately.

What is the net loans amount after the charge-off?