Navigation:  Loan Screens > Account Information Screen Group > Additional Loan Fields Screen > Valuation/Billing tab > Troubled Debt field group > Special Charge-Off Processing

Entry: System, checkbox

F/M: No

Mnemonic: LNSCOP

Screen: Loans > Account Information > Additional Loan Fields > Valuation/Billing tab

 

The Special Charge-off Processing option is set if your institution uses COOP option 5. When accounts are charged-off using the Loans > Transactions > Charge-off Transaction screen, and your institution has COOP option 5 set up, the system will:

 

•Change the Payment Application field to 1274 (any overpayment goes first to principal, then interest, then fees, then late charges).

 

•Set the Special Charge-off Processing option on the Loans > Account Information > Additional Loan Fields screen, Valuation/Billing tab so all principal is paid first, then interest, then fees, late charges, etc.

 

See the Charge-off Description topic for COOP 5 for more information.

 

Note: If your institution uses the Use Spread Payments option, this option cannot be used. See the Use Spread Payments option on the Loans > Account Detail > Account Information screen > Payment Detail tab.