Loans > Loan Screens > Account Information Screen Group > Account Detail Screen > Account tab

The LOC Information field group displays information concerning line-of-credit loans (payment method 5). The following fields are found in this field group on the Account tab of the Loans > Account Information > Account Detail screen.

The fields in this field group are as follows:

Field

Description

LOC Limit

Mnemonic: LNRLCL

This field contains the total amount of the line-of-credit and is used as a ceiling for the principal balance. The principal cannot be increased above this limit. The system returns an error message if a transaction attempts to increase the principal over this limit. This is only for line-of-credit loans (payment method 5). See below for more information.

If this is not a line-of-credit loan, the field displays the maximum balance this loan can be increased. Most likely this will be the original balance of the loan, if the loan is not a line-of-credit. If the account is secured against a deposit account, then the lower amount of the original balance or the calculated security pledge becomes the ceiling for the principal. See the Secured by Floating Pledge? field on the Loans > Line of Credit screen.

	Note: The loan can be a line-of-credit, but not a revolving line-of-credit.

GOLDWriter mnemonic LNUNDISB can be used to display the undisbursed balance for either LIP or line-of-credit loans (payment method 5). This mnemonic gives you the ability to display the undisbursed amounts for both LIP or line-of-credit loans in the same column. For LIP loans, the mnemonic will display the LIP undisbursed balance. The LIP Method Code must be greater than 0.

This field is also used in the calculation for the Maximum Combined LTV field on the Loans > Account Information > Additional Loan Fields screen.

For payment method 5 loans, the undisbursed/available amounts are calculated as follows:

•For revolving line-of-credit loans: Line Of Credit Limit - Principal Balance = Remaining Line (Undisbursed Balance).

•For non-revolving line-of-credit loans: Line Of Credit Limit - Total Amount Used = Remaining Line (Undisbursed Balance).

	WARNING: If a loan has been set up to be both a payment method 5 and an LIP, the payment method 5 calculations will be displayed.

Security Acct

Mnemonic: LNSECA, LNSECC, LNSECO

This is the account number of the deposit account by which this loan is secured. If the loan account is not secured against a deposit account, this field will display zeros. See the Secured by Floating Pledge? field on the Loans > Line of Credit screen.

The length of this field will vary from institution to institution depending on the account number lengths selected by each institution. Before a closed loan is dropped, the system checks if it is an overdraft account or a security account in the Deposit system. If it is, the loan number is removed from the deposit account, and history is written for the deposit account.

Transfer Acct

Mnemonic: LNXFRO, LNXFRA, LNXFRC

This is the account number of the savings account that is used as a transfer account for purposes of overdraft protection or automatic loan repayment. The length of this field will vary from institution to institution depending on the account number lengths selected by each institution.

You can draft loan payments from deposit accounts that have overdraft protection. The system will post the payment and pull the funds from the overdraft account if necessary. The "available balance" is used in the calculation to determine if sufficient funds are available. The overdraft can be advanced from either the same loan for which the payment is being posted, or from another account, based on your institution options. Before a closed loan is dropped, the system checks if it is an overdraft account or a security account in the Deposit system. If it is, the loan number is removed from the deposit account, and history is written for the deposit account.