Closure

This field is used to define the list of property classes that should be waived during closure. The options allowed are Interest, Charge and Periodic charge.

• Interest –Waives all accrued interest during account closure.
• Charge –Waives all scheduled charges, activity charges and rule break charges that are collected or paid during account closure.
• Periodic charge –Waives all periodic charges that are collected or paid during account closure.

This field is used to define the list of interest, charge or periodic charge properties that should be waived during closure. The properties defined in this field should be a valid Interest, Charge or Periodic Charge property that are defined in the product.

The Cooling Date Adj field allows user to choose whether the date should be adjusted to the next working day in case the Cooling Date falls on a holiday.

While setting this field to the option FORWARD, the Cooling date is adjusted to the next working day if the calculated date falls on a holiday. A NULL value is treated as NO and results in no adjustment to a calculated cooling date.

The Cooling Period field is used to specify the cooling period of the contract within which the bank can opt to waive the accrued interest or billed charges. It is mutually exclusive with COOLING.PERIOD in Term Amount Property Class. It is an associated multi-value field for Waive Class, Waive Prop and Waive Bill Type. If Cooling Period field is populated, then either Cooling Waive Class or Cooling Waive Prop has to be mandatorily updated along with Cooling Bill Type.

Waive Class

The Waive Class field is used to define the property classes for which waive or refund has to be opted. The options available are:

• To waive accrued interest.
• To waive billed charges. The settled charges are refunded too.

Waive Prop

The Waive Prop field is used to define the list of charges or interest Property to be defined in order to choose waive option at property level. The applicable charges or interest property must have a valid entry in AA.PROPERTY; and the associated property should belong to Interest or Charge Property Class.

Waive Bill Type

The Waive Bill Type field is used to specify if the current, billed or all the components of Charge or Interest are to be waived.

The Cooling Convention field indicates if the calendar days or working days should be considered while arriving at the cooling date for a loan contract.

The field has the following two options:

• Working Days - Only working days are considered while calculating the cooling date.
• Blank - This is the default option. It considers all the days. Both holidays and working days are considered while calculating the cooling date.

When loan maturity is defined as 90 days and Defer Closure Period is defined as 120 days.

Status:

1. When loan is fully repaid by Day 90, the Current status is maintained until Day 119 and turns to Pending Closure on day 120
2. When loan is not paid by Day 90, the Expired status is maintained until Day 119 and remains in Expired status on day 120
3. When loan fully repaid
   1. On Day 105, the status changes to Current and remains in status until Day 119. On Day 120 the status moves to Pending Closure
   2. On Day 125, the status changes to Pending Closure from Expired

When loan maturity is defined as 120 days and Defer Closure Period is defined as 90 days.

Status:

1. When loan is fully repaid by Day 120, the Current status is maintained until Day 120 and turns to Pending Closure on day 121
2. When loan is not paid by Day 120, the Expired status is maintained until Day 120 and remains in Expired status on day 121
3. When loan is fully repaid by Day 60, the Current status is maintained until Day 89 and remains in Current status until Day 120 (since loan maturity is 120 days). On Day 121, the status moves to Pending Closure

• The base date for calculating Defer Closure Period calculation is based on the configuration in the ACCOUNT Product Condition Base Date Type field.
  • Agreement - Denotes start of Defer Period from Arrangement Creation date.
  • Start - Denotes start of Defer Period from Arrangement First Disbursement date.
  • Blank - Denotes start of Defer Period from Arrangement Creation date.
• The final Deferred Maturity Date scheduled on Mature-Arrangement Activity is identified taking into consideration the Date Convention definition in Account Product Condition along with the definition in Base Date Type field, when the Defer Closure Period defined falls on a holiday. The following are the options available in Date Convention field within Account Product Condition
  • Backward - Denotes the Deferred Maturity Date moves backward to previous working day.
  • Forward - Denotes the Deferred Maturity Date moves forward to next working day.
  • Forward same month – Denotes the Deferred Maturity Date moves forward to next working day within same month. If it is not within the same month, then it moves backward to the previous working day.
  • Calendar – Denotes the Deferred Maturity Date will not move regardless of it falling on a holiday.
• The Defer Closure Period is a no-change field after initial authorisation of the arrangement. Thus, if the bank needs to perform regular transactions and static changes for 180 days for example, then it is recommended to capture the Defer Closure Period as 181 days on the arrangement.