Contract Collection Terms |
  
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Navigation: Loans > Loan Screens > Contract Collections Screen >
Contract Collection Terms |
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Use this help page to learn more about the vocabulary used in help for the Loans > Contract Collections screen.
The Seller
The actual person or institution selling or renting the property. The seller will always be last in priority of payment and will receive a percentage of what is left after the money is disbursed to Recipients. If there are no listed recipients, the seller will receive all excess funds. There must be at least one seller on each contract collection loan.
Sellers are paid by the percent owned. If a seller owns 100 percent of a contract, he/she receives 100 percent of the money left after all Recipients have received their funds. The Percent Owned field determines the amount received by the seller.
The seller distribution cannot pay to another contract collection loan. However, the seller distribution can pay to another customer account. This other account can be set up for automatic payment via ACH. This other account cannot get its money on the same night the original seller distribution is made.
The Recipient
Any individual or institution receiving a portion of the Seller's proceeds. There can be any number of designated recipients on a contract. Recipients are paid a fixed amount indicated in the Fixed Principal/Interest Due field.
The list of the sequence of contract disbursements, with 1 being first and 99 being last. This designation is used to determine the order in which funds are disbursed to Recipients and Sellers when a payment is made to a contract collections account.
The list of the sequence of contract disbursements within each Priority level. For example, Seller A has a Priority number of 01 and a seller number of 01. Seller B has a Priority number of 01 and a seller number of 02. Both sellers are within the same priority level, but Seller A gets the first check and Seller B gets paid out of what is left (because Seller A has a higher seller number).
Service Fees
Fees levied by your institution for maintaining a contract collection loan.
Percentages
Each Seller owns a certain percentage of the contract collection loan. All owned percentages on a given loan must add up to 100%.