Navigation:  Loan Screens > Payoff Screen > Balances tab > Payoff Fields field group > Accelerated Balance

Entry: System, numeric

F/M: No

Mnemonic: POACBL

Screen: Loans > Payoff > Balances tab

 

This field indicates whether the system uses an accelerated rate of calculation to compute any precomputed interest due back to the customer at the time the payoff transaction is processed. This field is only used for precomputed loans (payment method 3).

 

When marked, this field will change the precomputed interest refund from a normal calculation (such as Rule of 78 or Actuarial) to the following:

 

Original Interest divided by Original Term times Remaining Term (calculated).

 

The Remaining Term is computed using fields on the Loans > Account Information > Precomputed Loans screen. The system looks at the Rebate Rule Days and whether the Use Anniversary of 1st Due Date field or the Use Anniversary of Date Opened field is marked. If the Use Anniversary of 1st Due Date field is marked, the system calculates the rebate according to the following rules:

 

1.The first period for amortization is the period between the Date Opened and the First Due Date.

 

2.For the following months, each period is calculated from Due Date to Due Date.

 

3.The Rebate Rule Days field is also used. For instance, if the Due Date is the 5th of a specified month and the Rebate Rule Days field is set to 15, then at payoff the system compares the Due Date day to the Payoff Date on this screen. If the remainder (number of days) is within the Rebate Rule Days (15 or less), the system will not take any interest for the payoff month. If the number of days is 16 or more, interest is earned for the whole month.

 

4.If the Renewal/Pro-Rate field on this screen is marked, the interest is pro-rated based on the actual number of days during the period from the Date Opened to the First Due Date. After the First Due Date, the number of days is based on a 30-day month.

 

If the Rebate Rule Days field is zero or blank and the Use Anniversary of Date Opened field is marked instead of the Use Anniversary of 1st Due Date field, then the remaining term is determined from the Date Opened to the anniversary of the Date Opened until the Payoff Date is reached.

 

The rebate amount, if any, will be displayed on the Adjustments tab.