Navigation:  Loans > Loan Screens > Account Information Screen Group > Consumer Line-of-Credit Screen > Payment Schedule tab > Payment Application field group

Use this field group to view and edit payment application information for the customer line-of-credit (LOC) loan account (mnemonic P5APPL). Use this field group if your institution wants one standard payment application for the life of the loan, rather than designating Multiple Payment Applications.

 

 

To learn more about how LOC loans function, see the Line-of-Credit Loan Information help page.

 

Use the checkboxes in this field group to indicate how you want loan payments to be applied on the payment schedule being created. Mark the applications your institution wants to use.

 

The order of disbursement is reflected by the checkbox order in this field group. For example, if the Late Charges checkbox appears at the top of this field group (and is marked), late charges will be paid first. The checkbox fields can be dragged up or down to change their order in this field group, but there are a few rules that the system follows:

 

•Interest must be paid first and principal second, regardless of the list order.

•However, for LOC loans, the system allows late charges to be paid before interest.

•The money remaining in the loan payment will then be spread to the other marked checkbox fields in the listed order.

•Payments coming in from a lockbox bank are checked for extra funds. If extra funds are paid, the system will do one of the following:

 

2. If more funds are remitted, in addition to the first payment plus late charges, the system will post the payment first, then the late charges. The extra funds will be treated as a curtailment (principal decrease).