Navigation:  Teller System > Transactions > Loan Transactions > Loan Transaction Codes > Tran Code 850, Pay Loan Fee (Automatic)

This transaction code is displayed in Loans > History any time a miscellaneous fee (also known as "extended fee") is paid with the loan payment. Loan Fees must be a selection on the Payment Application field. If it's in the first order, funds for loan payments will go first toward paying off any miscellaneous fees before any additional funds are applied toward interest, principal, or late charges, as shown below:

 

 

Using the example above, if a loan payment was made for $100 and outstanding loan fees totaled $30, then $30 of the payment would first go toward loan fees, and then the remaining $70 would go toward interest and principal (and if there are still some remaining funds, the rest will go to late charges).

 

History is read and used when correcting a loan payment. This will reverse all the processing that took place with the payment transaction. The following is an example of how the Pay Loan Fee transaction appears on the Loans > History screen:

 

 

Notice that the fee descriptions in the example above changed slightly. Two have the description of "PAY LEGAL FEE" and the other has the description of "PAY NSF FEE." The system uses the description of the fee that was paid.

 

If you want to manually pay loan fees, see tran code 2850. Also see tran code 660 for information on assessing loan fees.

 

Note: You can also manually assess loan fees using tran code 850 in CIM GOLDTeller. But it is nearly identical to tran code 2850.