Intrest Rate Change On The Contract

Interest rate change can be done manually on the change copy or by using the interest rate change wizard (REFI code).

Interest rate manual change

Changing the interest rate is not possible on an active contract, the change can only be made on a change copy/variant. To create a change copy, select Action – Change Contract The wizard opens the Change Contract wizard.

• In the first step of this wizard, the user selects a general change in the "Change Type Code" field with the Wizard Object No. equal to 0. The "Change Contract" wizard is described in detail in chapter Contract Changes - Change Copies/Variants. After completing this wizard, the contract will remain in the change copy, where it is already possible to change the interest rate.

• In the Contract Calculation Parameters tab, the user changes the calculation interest rate or REFI code. If the user needs to change the REFI code to a different Interest Rate Type, then he must first change the value in the "Interest Rate Type" field.

• Subsequently, the user must recalculate the contract to adjust the amount in the contract payment calendar. This is done from the contract using the "Calculator lines" and then "Finish" button.

• Finally, the user transfers the change copy to the original.

Interest rate change by wizard

Changing the interest rate is not possible on an active contract, the change can only be made on a change copy/variant. To create a change copy, select Action – Change Contract The wizard opens the Change Contract wizard.

In the first step of this wizard, the user selects an interest rate change in the "Change Type Code" field with the Wizard Object No. equal to 4046866. The "Change Contract" wizard is described in detail in chapter 3.2.1.2. When you complete this wizard, the contract will remain in the change copy.

• Before opening the first step of the special wizard, the system checks the contract to see if it is in the automatic extension mode (contract Extension=Y flag). If it is, it displays a message and does not run the wizard – no recalculation of the payment schedule is allowed in this contract mode: "Contract Extension is Y, change is not possible."

• If the contract is not in automatic extension mode (i.e. Contract extension=N), it continues and opens the first step of the wizard.

Step 1/3 of the wizard:

• Annuity (LCY)

  • Displays the value of the annuity, when clicked, the financial calculator opens

• New REFI Code

  • The user can select a new REFI code from the active REFI as of the effective date of the change

  • It is possible to select a REFI code with a different Interest Rate Type than it was originally. Upon completion, the system will change the Interest Rate Type according to the REFI code.

• Change Date

  • Completes the system automatically, "Date To" from the last posted and non-credited payment period.

Once confirmed, it proceeds to the next step:

Step 2/3:

• New Calculation Interest Rate % (p.a.)

  • Calculate OC while maintaining Interest Margin %

• Annuity after change

  • Calculates the OC using the new calculation interest.

Once confirmed, it proceeds to the next step:

Step 3/3

• Annuity after change

  • After clicking on the OC, it opens the financial calculator with the already recalculated installments.

After confirming the Finish button, the wizard closes, the system recalculates the contract and leaves the user on the change copy. If the user does not make any changes to the contract with an impact on installments, then he will transfer the contract to the original.