| Bookmark Name | Actions |
|---|
Restructure Rules
The Restructure Rules Property Class allows the customer or bank to restructure an existing loan. When a customer is unable to repay his loans, either the debt management advisor or the bank is allowed to approach the court to restructure the outstanding debt. The actual restructuring happens based on the court’s order.
Product Lines
The following Product Line uses the Restructure Rules Property Class:
- Lending
Property Class Type
The Restructure Rules Property Class uses the following Property Class Types:
- Dated
- Tracking
Property Type
The Restructure Rules Property Class is not associated with any Property Type
Balance Prefix and Suffix
The Restructure Rules Property Class is not associated with any Balance prefix and Suffix
Attributes
Attaching Restructure Rules Property Class to a Lending product enables it for restructuring existing loan arrangements when the customer is unable to repay the loan.
The following is an illustration of Restructure Rules Product Condition for a Personal Loan:
Rule Status Type
Indicates the type of the loan status that is considered for differentiating the behaviors of the suppress/resume functionality.
Rule Status
It provides with the ability to make the choice of the Restructuring Code (a valid status defined in AA.RESTRUCTURE.STATUS table), based on which the suppress / resume of the properties’ accruals are triggered.
Property Class
It provides with the option to choose the Property classes for which the suppress or resume rules shall apply. The following property classes are applicable for suppression or resuming:
- Interest
- Charge
- Activity Charges (For Suppression Alone)
- Periodic Charges
Property
It provides the user with the ability to set up different suppress or resume behaviours for the different properties under the respective Property Class.
Rule Action
The system can Resume / Suppress different properties as per different dates, that is,. some properties as per SUPPRESS.DATE and some as per ACTIVITY.DATE.
When the arrangement satisfies the rule status type defined in Restructure Rules property class, the corresponding action i.e. SUPRESS or RESUME is applied on the respective property specified such as Interest, Charge, etc. The system provides for storing the details of the properties which have been suppressed / resumed, the effective date on which the action has been applied and the status type based on which the rule has been applied.
NOTE: Currently for migrated contracts, for which the suppression of the property has commenced in the Legacy system, the retrospective resume will be possible only considered from the date of the Migration of the arrangement (not prior to it).
Effective Date
The user can make the choice for the type of suppression that needs to come into effect, using this field. The following two choices are available:
- ACTIVITY.DATE - The resume of the accruals will be triggered on the date when the actual restructure activity has been triggered.
- SUPPRESS.DATE - The resume of the accruals will be triggered retrospectively, with a back-value date equal to the date on which the SUPPRESS has been applied.
If the action is SUPPRESS then the Effective Date is always defaulted as ACTIVITY.DATE.
Periodic Attribute Classes
The Restructure Rules Property Class is not associated with any periodic attribute class.
Actions
Individual AA.PROPERTY.CLASS.ACTION records control which Product Line it’s associated with. The Restructure Rules Property Class performs the following actions:
| Action Name | Description |
|---|---|
| MAINTAIN | Maintains Action for Restructure rules |
| UPDATE | The system manually initiates the UPDATE action. It allows the user to change any of the Restructure Rules attributes |
Accounting Events
There are no new Accounting events released for the Restructure Rules Property Class.
Limits
The Restructure Rules Property Class does not perform any actions that impact the limits system.
Add Bookmark
save your best linksView Bookmarks
Visit your best links
BACK
Are you sure you want to log-off?