The system can automatically close a commercial/consumer loan at maturity if all monetary balances are zero. The close transaction is a file maintenance tran code 22 to field 999. At the same time, the system will update the date of the last transaction and the payoff date. The loan will automatically close on the night of the maturity date. If the maturity date is on a weekend or holiday, the loan will close on the night of the first business day following the maturity date.

Once the loan is closed, it will appear on the Closed Loan Report (FPSRP024) with an "@" next to the Principal Balance column. (This lets you know that the loan has been "automatically" closed so you can pull your loan file and return the documents, etc.)

Monetary balances that must be zero are: principal balance, reserve balance, partial payments, miscellaneous funds, late charges, loan fees, accrued interest, accrued interest on reserves, and accrued interest on negative reserves. In addition, the loan cannot have an LIP method code greater than zero.

To use this feature, you must have Institution Option CLZB set up and function 78 set to "daily." WARNING: When Institution Option CLZB is enabled, any loans that have maturity dates in the past will automatically close.