Navigation:  Loan Screens > Account Information Screen Group > Precomputed Loans Screen > Options field group > Acquisition Charge Code

Entry: User, drop-down

F/M: Yes

Mnemonic: LN78AC

Screen: Loans > Account Information > Precomputed Loans screen

 

This field is used to select the code that will be used in the calculation of the interest rebate for precomputed loans during the payoff quote. The following codes are available.

 

01—Full Term

This acquisition charge will be applied to the cash payoff if the ?Renewal/ProRate field on the Loans > Payoff screen is not checked. The acquisition charge is charged if the payoff occurs before the end of the term (LNTERM).

 

02—First 1/2 of Term

This acquisition charge will be applied to the cash payoff if the ?Renewal/ProRate field on the Payoff screen is not checked. The acquisition charge is only charged if the payoff occurs in the first half of the term (LNTERM / 2).

 

03—1/2 of Term x 90%

The following calculation is used to calculate the rebated interest if the payoff occurs within the first half of the loan term:

 

(Original Interest (LN78OI) - Acquisition Charge Amount) X 90%, then amortize amount at rule of 78s. If the payoff occurs within the last half of the loan term, the following calculation is used for the rebated interest:

 

Original Interest (LN78OI) X 90%, then amortize amount at rule of 78s. If the acquisition charge is greater than the original finance charge, there is no refund.

 

Example:

a. Term = 12 months.

b. Original interest = 100.00.

c. Date opened = 12/01/04.

d. Payoff date = 06/03/05.

e. Acquisition charge = $25.00.

f. Calculated amount to amortize refund is (100.00 - 25.00) x 90% = $67.50.

g. Calculated refund is $67.50, amortized at rule of 78s.

 

Earned is $67.50 - g.

 

04—Full Term X 10%

Contact GOLDPoint Systems for information concerning this code.