GILA Refunds |
  
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GILA Refunds |
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5% GILA Refund for Precomputed Loans
Based on Georgia GILA regulations, there is no refund of the 8%/4% fee unless earnings exceed 5% per month. The maximum allowable earnings are 5% per month (calculated on total of payments minus finance charge) based on months elapsed from date of loan. Monthly maintenance fees are also excluded when calculating the 5% maximum earned.
Requirements
The following criteria need to be met in order for the 5% GILA refund to calculate:
LN78GA (Georgia Bit), F1PYOF (Include in Payoff), and F1PNTY (Include in Penalty) = Yes
LNPMTH (Payment Method) = 3
OTPC8A (8% Amount), OTPC4A (4% Amount), OTPC8D (8% Difference), and OTPC4D (4% Difference) <> 0.00
Formulas
Below are the formulas to calculate the GILA refund:
Same Day
If LNOPND = LNCLDT, then refund entire amount of 8% 4% Fee
1st Month (Greater than 1 day up to 1st Anniversary of Open Date)
LN78OI – Interest Rebate + Original 8%/4% Fee (F1FORG for F1FEEC 1 on 1FFC) = AMT1
LN78OP * 5% = AMT2
AMT1 – AMT2 = 1st Month Refund
2nd Month (Greater than 1st Anniversary of Open Date)
LNPICN – Original Maintenance Fee (F1FORG for F1FEEC = 2/LNTRMO) – AMT2 = AMT3
LN78OP – AMT3 = AMT4
AMT4 * 5% = AMT5
AMT1 – AMT2 - AMT5 = 2nd Month Refund
3rd Month (Greater than 2nd Anniversary of Open Date)
LNPICN – Original Maintenance Fee (F1FORG for F1FEEC = 2/LNTRMO) – AMT5 = AMT6
AMT4 – AMT6 = AMT7
AMT7 * 5% = AMT8
AMT1 – AMT2 - AMT5 - AMT8 = 3rd Month Refund
If the refund amount is less than 0.00, then the refund amount is 0.00.
GILA Examples
Example 1:
8%/4% Fee |
LNOPND |
LNCLDT |
36.00 |
5/10/2007 |
05/10/2007 |
LNCLDT = 05/10/07 (LNCLDT = LNOPND)
Interest Rebate = 33.75
Refund = 36.00
Example 2:
LN78OP |
LN78O |
8%/4% Fee |
Maintenance Fee |
LNTRMO |
LNOPND |
380.25 |
33.75 |
36.00 |
27.00 |
9 |
5/10/2007 |
LNOPIC |
LNCLDT |
|---|---|
53.00 |
05/11/07 |
Interest Rebate = 27.00
33.75 – 27.00 + 36.00 = 42.75 (AMT1)
380.25 * 5% = 19.01 (AMT2)
42.75 (AMT1) – 19.01 (AMT2) = 23.74 Refund
Example 3:
LN78OP |
LN78OI |
8%/4% Fee |
Maintenance Fee |
LNTRMO |
LNOPND |
380.25 |
33.75 |
36.00 |
27.00 |
9 |
5/10/2007 |
LNOPIC |
LNCLDT |
53.00 |
06/12/07 |
Interest Rebate = 27.00
53.00 – (27.00/9) – 19.01 (AMT2) = 30.99 (AMT3)
380.25 – 30.99 (AMT3) = 349.26 (AMT4)
349.26 (AMT4) * 5% = 17.46 (AMT5)
42.75 (AMT1) – 19.01 (AMT2) - 17.46 (AMT5) = 6.28 Refund
Example 4:
LN78OP |
LN78OI |
8%/4% Fee |
Maintenance Fee |
LNTRMO |
LNOPND |
380.25 |
33.75 |
36.00 |
27.00 |
9 |
5/10/2007 |
LNOPIC |
LNCLDT |
53.00 |
07/11/07 |
Interest Rebate = 15.75
53.00 – (27.00/9) – 17.46 (AMT5) = 32.54 (AMT6)
349.26 (AMT4) – 32.54 (AMT6) = 316.72 (AMT7)
316.72 (AMT7) * 5% = 15.84 (AMT8)
54.00 (AMT1) – 19.01 (AMT2) - 17.46 (AMT5) – 15.84 (AMT8) = 1.69 Refund