Loans > Loan Screens > Payoff Screen > Balances tab > Payoff Fields field group

Use the Legal Payoff field to indicate whether the payoff should be processed using the following rules:

•	No insurance premiums will be refunded. This includes all refunds calculated from premiums set up on the Loans > Insurance > Policy Detail screen; e.g., Life, A&H, etc.

•	No pre-payment penalties will be charged.

•	If the account has precomputed interest (payment method 3), then interest will be refunded using a pro rata formula:

"	Original Interest X Remaining Term / Loan Term = Unearned Interest.

"	To determine the start of the elapsed time period, you must take into consideration the following options if they are set on the Loans > Account Information > Precomputed Loans:

§	Rebate Rule Days

§	Use Anniversary of 1st Due Date

§	Use Anniversary of Date Opened

"	The elapsed time is calculated using the following schedules:

Example 1:

Original Interest = 2744.96

Original Term = 48

Open Date = 06-20-10

First Due Date = 07-25-10

Rule Days = 0

Use Anniversary of Date Open = Y

Earning/Refund table

Month

Dates Refund

0	06-20-10 thru 07-19-10 2744.96

1	07-20-10 thru 07-20-10 2687.77

2	07-21-10 thru 08-20-10 2630.59

3	08-21-10 thru 09-20-10 2573.40, etc.

Example 2:

Original Interest = 2744.96

Original Term = 48

Open Date = 06-20-10

First Due Date = 07-25-10

Rule Days = 0

Use Anniversary of 1st Due = Y

Earning/Refund table

Month

Dates Refund

0	06-20-10 thru 07-19-10 2744.96

1	07-20-10 thru 07-25-10 2687.77

2	07-26-10 thru 08-25-10 2630.59

3	08-26-10 thru 09-25-10 2573.40, etc.

Example 3:

Original Interest = 2744.96

Original Term = 48

Open Date = 06-20-10

First Due Date = 07-25-10

Rule Days = 15

Use Anniversary of 1st Due = Y

Earning/Refund table

Month

Dates Refund

0	06-20-10 thru 07-19-10 2744.96

1	07-20-10 thru 08-09-10 2687.77

2	08-10-10 thru 09-09-10 2630.59

3	09-10-10 thru 10-10-10 2573.40

4	10-11-10 thru 11-09-10 2516.21