Restructure Rules
The Restructure Rules Property Class allows the customer or bank to restructure an existing loan based on the customer’s request. When a customer is unable to repay his loans, either the debt management advisor or the bank is allowed to approach the court to restructure the outstanding debt. The actual restructuring takes place based on the court’s order.
Product Lines
The following Product Line uses the Restructure Rules Property Class:
- Lending
Property Class Type
The Restructure Rules Property Class uses the following Property Class Types:
- Dated
- Tracking
Property Type
The Restructure Rules Property Class is not associated with any Property Type.
Balance Prefix and Suffix
The Restructure Rules Property Class is not associated with any balance prefix and Suffix.
Attributes
The following attributes are associated with Restructure Rules Property Class:
Rule Status Type
Allows to perform restructuring activities based on different status types that can be chosen. Only Restructure Status type is supported now.
Rule Status
Accepts a valid restructure code from the AA.RESTRUCTURE.STATUS table. The choice of suppressing and/or resuming the accrual of properties are set for each of these restructure code stages.
Property Class
For each restructure status, it is possible to suppress or resume accruals based on the property classes or properties. The option to choose the property classes for which the suppress or resume rule applies are defined in this attribute. The following are the property classes that can be suppressed or resumed.
- Interest
- Charge
- Periodic Charges
Property
The suppress or resume rule for different properties on the respective restructure status, can be defined in this field. It is also possible that one or more properties of a same property class can have different suppress and resume treatments. For example, penalty interest may resume from the suppressed date and principal interest may resume from the activity date.
Rule Action
The choice of SUPPRESS or RESUME action to take place on properties and property classes can be defined under this attribute.
Effective Date
The effective date for suppression or resumption of properties’ accruals can be either on the Activity date or Suppress date.
- ACTIVITY.DATE: If the action is SUPPRESS, the default Effective Date is ACTIVITY.DATE that is, the date on which a specific restructure activity is triggered. In case the action is Resume, accruals are resumed effective from the date on which a specific restructure activity is triggered.
- SUPPRESS.DATE: The effective date of the Resume action can also be the suppress date. This means property accruals can be resumed, effective from the date it was suppressed
Add Restructure Rules Property to Existing Arrangements
The financial institutions can add the Restructure Rules property to the existing arrangements of the Lending product line using the Add New Property, New Prop Avl, and New Prop Avl Date fields in AA.PRODUCT.MANAGER.
Read Add New Property for more information on the configuration.
Periodic Attribute Classes
The Restructure Rules Property Class is not associated with any periodic attribute class.
Actions
Individual AA.PROPERTY.CLASS.ACTION records control the Product Line it’s associated with. The Restructure Rules Property Class performs the following actions:
| Action Name | Description |
|---|---|
| MAINTAIN | Maintains action for restructure rules |
| UPDATE | Allows the user to change any of the Restructure Rules attributes. The system manually initiates the UPDATE action |
Accounting Events
There are no new Accounting events released for the Restructure Rules Property Class.
Limits
The Restructure Rules Property Class does not perform any actions that impact the limits system.
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