Variable Loan Early Termination Process
Purpose
To calculate the termination amount and post the
transactions required to terminate (settle) the account.
Timing
Termination
of the loan should occur after the client has paid the termination amount due,
and these funds have been cleared by the bank.
The
current ledger will have a credit balance equal to the termination amount. If
they are not equal a write off may be required.
Access
- Variable Loan Browse |
for the required account |
|
Process
Field | Explanation |
Termination Reason | [F2] to display and If these have been constructed well, then valuable reporting around the reasons for Early Terminations of loans and Write Off's can be generated |
Early Terminate Date | Defaults to todays date - can be changed up to the next interest posting date |
Write Off Principal | If principal balance is to be written off, enter the amount here The amount will be entered as a positive |
Write Off Interest | If interest is to be written off, enter the amount here The amount will be entered as a positive A negative amount will increase the interest rate |
Facility Fee Write Off | If the facility fee is to be written off, enter the amount here The amount will be entered as a positive |
Default Interest Write Off | If
default interest is to be written off, enter the amount here The amount will be entered as a positive A negative amount will increate the default interest charge |
Insurance Premium Rebate | Displays the calculated rebate amount for Financed Insurance that requires rebate on early termination |
Insurance Commission | Displays the calculated commission rebate amount for Financed Insurance that required a rebate on Early Termination |
Fees | Client on |
Communication Type | Not Required |
Insurer Communication Type | Not Used |
Mark Comm as Printed | Not Required |
Total Due | Display Only Field This should be a 0.00 figure if it is expected that the account will close on early termintion If the amount is not 0.00, write off values may need to be entered or amended |
Once the termination amount
is finalised:
Confirm the Early
Termination of the loan by pressing 
or cancel by
pressing 
Result
The Termination process will
post the future balance to the current balance, post accrued interest and
process any fees or write-off transactions to the account.
If the total due was 0.00,
then the account will automatically be closed.
Reversing the Early Termination
It is recommended that the termination is not performed
until funds received are cleared, as it is a manual reversal process that
requires setup changes.
In the event that an Early Termination reversal needs to be
completed, please contact Argos Support, who can assist you with this process.
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