The Main tab contains the most frequently used setup options such as the Loan Type, interest rate settings, payment period settings, and term information. At the bottom of this tab are checkboxes to enable the optional Loan Template setup tabs: Custom Payment Schedule, Recurring Transactions, Beginning Interest Only Period, and Lock Fields During Add Loan.

Loan Type

This sets the type of loan to be added and the available settings are: Term, Revolving, Non Revolving, Commitments, and Pool.

TermRevolving/Non-RevolvingCommitmentsShadow LoanPool

Loan Type	Description
Term	The loan has a specifically defined origination and maturity date as well as a defined schedule of payments.
Revolving	The loan has a credit line which can be drawn out up to a set limit, and repaid principal may be drawn out again. The term may be indefinite for this type of loan. If the user selects Revolving as the Loan Type, the field Credit Line and an options button for the field will be added to the Main tab.
Non Revolving	The loan has a credit line which can be drawn out up to a set limit, but repaid principal cannot be redrawn. The term is limited by the inability of the borrower to keep drawing funds. If the user selects Non Revolving as the Loan Type, the field Credit Line and an options button for the field will be added to the Main tab.
Commitments	A Commitment is an agreement by a lender to grant a loan or loans for a specified amount of money at a future date. The holder of the commitment may pay a fee to reserve the funds, but is not required to pay interest on the money unless it is actually borrowed.
Shadow Loan	Available with the Multi-book Accounting Module.
Pool	A Pool is an aggregation of the loans of different borrowers, which have been combined for a specific purpose, such as to be resold into the secondary market.

Interest Method

Interest Method sets the procedures that the system follow to calculate daily accruals. The available methods are: Simple Interest, Average Daily Balance, Fixed Amortization, Fixed Amortization (Beginning), Rule of 78s (add-on), and Rule of 78s (simple). It is important to note that certain interest methods may not be available depending on the Loan Type chosen for the template.

Interest Method Types

Interest Method	Description
Simple Interest	The loan will always accrue daily on the current principal balance.
Average Daily Balance	Interest is accrued daily on the current principal balance to an average daily balance interest balance, then on the billing cycle, the average daily balance interest is moved to the current interest balance. During a billing cycle, the average daily balance interest balance becomes part of the payoff, not the full billing cycle amount.
Fixed Amortization	Interest is accrued daily on the amount of principal specified in the amortization schedule. Early or late payments do not affect the accrual. Principal reduction transactions will cause the schedule to re-amortize. The interest is non compounding and it is usually calculated on a 360/360 interest year.
Fixed Amortization (Beginning)	The first payment can be due on the origination date of the loan, and the interest charged in that first payment is that which is expected to accrue in the upcoming period. The loan accrues according to an amortization schedule, but this schedule is based on interest paid in advance of the payment period rather than in arrears.
Rule of 78s – Add On	Also referred to as Add-On Interest Method. Please refer to the Appendix for detailed documentation of this interest method.
Rule of 78s – Simple	This type of loan accrues as a simple interest loan, however the interest portion of the payment is determined by applying the Rule of 78s to the total projected interest amount for the life of the loan. For more information about the Rule of 78s see the Appendix.

Additional Options

Clicking located to the right of the Interest Method selector will open up the Accrual dialog which allows the user to set advanced options for interest accruals. Note that some or all of these options are not available when certain Interest Methods are selected.

Option	Description
First or Last Day Accrual	Controls the behavior of the daily accruals at the beginning and end of the loan. First Day Accrue interest on the origination date of the loan but not on the payoff date. If the remaining billing balance is equal to the per diem and the last payment was a payoff, the billing will be considered satisfied.5.23+ Last Day Interest will not be accrued on the origination date but one day’s accruals will be added to a payoff if the interest for that day has not yet been accrued at the time of the payoff transaction. Both Days Accrue interest on the origination date and one day’s accrual will be added to a payoff if the interest for that day has not yet been accrued at the time of the payoff transaction.
Beginning or Ending Day	Sets the behavior of accruals with respect to transaction processing. Beginning of Day Accrual Accruals on the loan are run each day before any transactions are entered. If a transaction is entered when accruals are not up to date, the accruals on the loan will be brought through the current date before the transaction is applied. End of Day Accrual Accruals on the loan are run at the end of each day after the day’s transactions have been entered. Once the accruals are run, no more transactions may be run on the loan until the next day. If a transaction is entered when accruals are not up to date, the accruals on the loan will be brought up through the previous day before the transaction is applied.
Interest Method	This is a mirror of the Interest Method field in the Main tab. It is locked in the Accrual dialog and is presented for reference only. Any changes to this field must be made through the Main tab.
Interest Grace on Payoff	Available for Average Daily Balance. When selected, the ADB interest is not included in the payoff balance. When unselected, the ADB interest is added to the payoff balance.
Interest Year	Allows the user to set the interest year calculation for interest accruals. See the Appendix for more information.
Interest Free Method	Same as Cash Same as Cash period may be defined with a period type and number of periods. For example, three months and 90 days are similar, but not precisely identical. When this feature is enabled, any time a payment is made during the same as cash period, the system will calculate an amount required to payoff the loan if all previous interest payments had been applied to principal. Any payment in excess of this amount will cause those interest payments to credit the principal so that the loan may be paid off interest free. Max Days Past Due allows any payment during the period to be up to the specified number of days past due for the loan to remain as a same as cash loan. Set to 0 (zero) for unlimited number of days. Payoff Grace allows any payoff to be up to the specified number of days past the end of the same as cash period for the loan to remain as a same as cash loan. NLS 5.4 and later Past Dues Allowed sets the number of times a billing can be missed for the loan to remain eligible for SAC. If set at 2 then the loan will no longer be eligible for SAC after the third missed billing. NLS 5.20 and later SAC Expire Based On specifies the date from which the SAC expiration date is calculated. The SAC period begins on the loan’s origination date and by default the origination date is used to calculate the expiration date. By setting this option to Manual Input, the SAC expiration date can be set to be calculated from a date other than the origination date. Revolving Grace Revolving Grace period refers to the period of time the customer may pay off the outstanding balance from the close of a billing cycle to receive no additional finance charge for that period. Revolving Grace - Continuous5.4.4+ Available for average daily balance interest method and allows for multiple principal advances. Must be a No Term loan as payoff option is not available. Any principal advance made after the current billing cutoff is not included in the payoff amount of the current billing cycle.
U.S. Rule (no compounding)	When selected, outstanding interest is not included in the interest calculation.
Treat Long First Period as Standard Period or Treat Long First Period as Standard (R78, Actuarial & Payment)5.35.21+	Available for Rule of 78. When selected, the long first period will be treated as a standard period in its interest calculation. Example If a loan’s origination date is 1/15, first payment on 3/1, and the term is 12 months — first month’s interest calculation will use 12 as the numerator and 78 as the denominator instead of breaking down the first month into multiple parts to derive the numerator and denominator.
Treat Long First Period as Standard (R78 Only)5.35.21+	Available for Rule of 78. When selected, the long first period will be treated as a standard period in only the rule of 78 interest calculation. Treat Long First Period as Standard (R78, Actuarial & and Payment) and Treat Long First Period as Standard (R78 Only) are mutually exclusive.
Minimum Accrual Balance	Sets a minimum principal balance for the purpose of accruing interest. If the principal balance of the loan drops below this value, interest will be accrued on this value as long as the loan remains open and active.
Max Total Interest Accrued5.24+	Available for Simple Interest. Maximum amount of total interest that can be accrued on a loan over the life of the loan. This value is imposed during accruals, backdated payment/reversal, and backdated interest rate change. Interest adjustments are not affected and may exceed this value. 0 denotes no maximum value and interest will continue to accrue accordingly.
Keep Final Pmt Constant	Available for Fixed Amortization. Keep final payment constant. The final payment on a Fixed Amortized loan is generally adjusted slightly upward or downward to reflect whatever amount is left at the time that the final payment is due. Selecting this option will result in the final payment being the same amount as all of the other payments. The interest accrual in the final period will be adjusted to achieve this final payment amount.
Pre-Compute5.4+	Available for Fixed Amortization. When selected, a transcode 110 is recorded for the pre-computed interest. Add-on Interest and Loan Remaining fields are available in the loan's Main view. Remaining add-on interest is reduced as interest accrues on a loan. When a loan is paid off, a transcode 308 "Unearned Addon Interest Reduction" is recorded to zero out the remaining add-on interest balance.

Payment Period

Payment Period sets the length of the payment cycle and its options are: Days, Weekly, Bi-Weekly, Semi-Monthly, Semi-Monthly (14 day), 28 Day, Monthly, Bi-Monthly, Quarterly, Semi-Annually, Annually, and Maturity. Click to open the Payment Determination dialog.

Payment Determination

The Payment Determination dialog sets advanced options for payments such as minimum and maximum payment amounts, the amortization method used to determine payment amounts, and other options.

Option	Description
Accrual Cutoff	This value is added to the Next Interest Due Date to determine the date through which interest will be billed. example If the next interest payment is due on September 1st, and the Accrual Cutoff is -1, the September 1st payment will include all interest through August 31st. Accrual Cutoff is not applicable to loans with Fixed Amortization or Rule of 78s interest.
Min Payment Amount	Sets the minimum payment for the loan. If the total balance of the loan is greater than the Min Payment Amount, the program will always bill at least the amount set in this field, no matter what the calculated payment is. If the balance of the loan is less than the minimum, the remaining balance will be billed.
Max Payment Amount	Sets the maximum amount the loan will bill for. If the calculated payment is more than the maximum, the payment will be lowered to the maximum amount.
Amort Method	Determines how the payments are calculated. Not Applicable The loan does not use an amortized payment but instead uses the settings in the Interest payment and Principal payment sections of the dialog to calculate principal and interest billings. Amortize Based on 360/360 Uses the standard amortizing equation to determine the payment amount. Amortize Based on Actual Interest Year Derives interest and principal billings from an amortization calculation, which is modified to account for the difference in interest accrued by an interest year other than 360/360. Total Payment Combined Creates a single payment, that combines the principal and interest, based on the criteria specified in the Principal payment section. Total Payment Separated Makes separate principal and interest receivables by subtracting the full period worth of interest from the total based on the criteria specified in the Principal payment section.
Interest	Used when amortization method is set to Not Applicable to calculate the interest receivable on a payment. Period Determines the dates and frequency of interest billings. This supersedes the setting of Payment Period on the main tab for the interest portion of the payment, but otherwise functions the same. Payment Method Sets the calculation method for the interest receivable. A setting of Not Applicable will disable interest billing for the loan. All Interest Due at payment less accrual cutoff will bill interest by projecting the interest accruals forward to the due date, then taking off a number of days of interest equal to the accrual cutoff.
Principal	Used when the amortization method is set to Not Applicable, Total Payment Combined, or Total Payment Separated to determine the principal billing. Period Determines the dates and frequency of billings. This supersedes the setting of Payment Period on the main tab, but otherwise functions the same. If amortization method is Total Payment Combined or Total Payment Separated, the interest amount is calculated as if All Interest Due at payment less accrual cutoff is selected. Payment Method Sets the calculation method for the principal receivable. Not Applicable Will disable principal billing for the loan. If amortization method is set to either of the Total Payment settings, this will disable interest billing as well. Fixed Principal Payment Bills the amount of principal specified in the Fixed Amount field for each payment. Percentage of Principal Will bill a percentage, as defined by the Percentage field, of the principal balance (total principal minus total billed principal) at the time of billing. Outstanding Principal Divided by Remaining Term Bills an amount of principal equal to the principal remaining, less any principal billed but unpaid, divided by the number of payments remaining in the term. Percentage of Principal & Interest Bills a percentage, as defined by the Percentage field, of the total principal plus next interest to be billed. Should only be used when amortization method is Total Payment Combined or Total Payment Separated.
Continue Billing After Maturity	If selected, the regular payment will continue to bill every period until the loan is paid off.
Do not Bill Principal Balloon	This option is only available if Continue Billing After Maturity is selected. If selected, no balloon payment will bill and the loan will continue to bill its regular monthly payment until paid off. In effect, the term of the loan is governed by the payments.

Advanced Options

Option	Description
Re-Amortization Options	Re-Amortize payment… - The payment amount is recalculated using the amortization equations, with the current principal, interest rate, and remaining term. Re-Amortize loan… - On Fixed Amortized Loans only: the amount accrued on is re-indexed in the amortization schedule, resulting in the accrual and the interest to principal breakdown of future payments being adjusted to reflect the previous principal advances and reductions. The payment and the loan (accrual) may be re-amortized independently.
Calculate Payment Inclusion Of	For those loans where the payment is a fixed amount and the distribution is defined at the moment of payment (interest first / remainder to principal), any of the loan balances selected here will be included along with the interest for the purpose of determining, after the interest and these balances have been paid, how much of the required payment remains to be applied to principal.
Payment Due Date Rule	Only available for certain loan types. Allows a payment which will be due on a weekend or holiday to be shifted to the previous or next business day. If the rule for holidays is invoked, you may select from a List of Holidays. NLS 5.13 and later Canadian holidays are classified by province.
Rebate Rule	This functionality is supported under both Rule of 78 (Sum of digits) and fixed amortized loans. Rule - When set to Proportional, the interest is not rebated and is proportionally charged to the payoff date in the period. This is the default for fixed amortized loans. When set to Through End of Period an additional option—Cutoff Days— will become available. Setting cutoff days to 15 will result in no interest earned in the period if the payoff is prior to the 15th of the period and will earn the entire period of interest after the 15th day of the period. NLS 5.13 and later When set to Through End of Period from Origination Date the refund is calculated from the origination date instead of just the current payment due date period. This can be used for loans with a long first payment period. When set to Nearest to Payment Date, no interest is charged if the payment date falls within the first half of the month. Full interest is charged if the payment date falls within the second half of the month. Refund Rule None   Through End of Period Per diem x number of days in the month. Proportional The interest is not rebated and is proportionally charged to the payoff date in the period. This is the default for fixed amortized loans. Nearest to Payment Period Divide the month by 2. No interest will be charged for first half, full interest will be charged for the second half. Refund of Interest; Prepayment in Full Before First Installment Due Date (Texas Rule 83.756) Select this option to apply the Texas Rule §83.756 Refund of Precomputed Interest for Subchapter F Loans; Prepayment in Full Before the First Installment Due Date. When a loan is paid off prior to its first due date, any residual amount over 1/30th of the interest that is scheduled to accrue for the entire first period for each day after the origination date is refunded back to the borrower. If this amount is less than what has accrued on the loan, the lender is entitled to accrue additional interest up to this amount resulting in the refund of capitalized interest to the borrower being less.   Through End of Period First Period = (Interest of whole month ÷ 30) x number of accrued days (excluding origination day). After First Period, it will follow Through End of Period. Through End of Period from Origination Date NLS 5.21 and later Payoff = (# Days ÷ 30) x Period’s Interest. If the payoff is before the first due date, “Refund of Interest…” will be activated and “Through End of Period from Origination Date” will be ignored. Proportional First Period = (interest of whole month ÷ 30) x number of accrued days (excluding origination day). After First Period, it will follow Proportional. Nearest to Payment Period First Period = (interest of whole month ÷ 30) x number of accrued days (excluding origination day). After First Period, it will follow Nearest to payment period. Example Loan amount of $1,480 at 44.756% interest with 12 payments using Rule of 78 - Addon interest: Booked on 8/26/2017 with first due date of 9/26/2017 and paid off on 8/27/2017 a. $3.28741 accrues at end of day on 8/26. b. If paid off on 8/27, then the entire $3.28741 that already accrued plus all unaccrued pre-compute interest is refunded back to the borrower. c. They cannot earn interest on the first/origination day when paid off prior to the first due date, so there is 0 days of interest earned. Booked on 8/26/2017 with first due date of 9/26/2017 and paid off on 8/29/2017 a. $3.28741 accrues at end of day on 8/26, 8/27, and 8/28. b. If paid off on 8/29, then only 2 days of interest is earned at $3.397/day (1/30th of total $101.91 for the first period). Since $9.86 of interest has accrued, then $3.07 ($9.86 – $6.79) plus all unaccrued pre-compute interest is refunded back to the borrower. c. They cannot earn interest on the first/origination day, so there is 2 days earned, which is 2/30th of total first period interest. Booked on 8/28/2017 with first due date of 10/1/2017 and paid off on 8/31/2017 a. $2.99735 accrues at end of day on 8/28, 8/29, and 8/30. b. If paid off on 8/31, then only 2 days of interest is earned at $3.397/day (1/30th of total $101.91 for the first period). Since $8.99 of interest has accrued, then $2.20 ($8.99 – $6.79) plus all unaccrued pre-compute interest is refunded back to the borrower. c. They cannot earn interest on the first/origination day, so there is 2 days earned in this example, which is 2/30th of total first period interest. Refund of All Interest on Payoff Before First Installment Due Date NLS 5.11 and later Select this option to refund 100% of the interest if the loan is paid in full prior to the first due date.   Through End of Period Refunds 100% of the interest if the loan is paid in full prior to the first due date. After First Period, it will follow Through End of Period. Proportional Refunds 100% of the interest if the loan is paid in full prior to the first due date. After First Period, it will follow Proportional. Nearest to Payment Period Refund 100% of the interest if the loan is paid in full prior to the first due date. After First Period, it will follow Nearest to Payment Period. Straight Line Interest   Through End of Period Total Interest ÷ 12 , take interest for entire period. Proportional ((Total Interest ÷ 12) ÷ Number of Days in the Month) x Number of Days Accrued. Nearest to Payment Period Divide the month by 2; No interest will be charged for first half , Total Interest ÷ 12 for the second half. After First Period, it will follow Nearest to Payment Period. South Carolina Minimum Interest Refund ($15 on Renewal; $1 on Payoff) NLS 5.15 and later Rebate is fixed at $15 on renewal and $1 on payoff. Mississippi Interest Refund (Add 20 calendar days) NLS 5.16 and later Effective date + 20 days. Georgia Industrial Loan Act (GILA) NLS 5.18 and later Available for rule of 78 loan only. Tracks the face value of a loan which can be viewed in the Payment Information dialog. The face value of a loan includes the precompute interest. Interest will be calculated based on the face value, not the loan amount. Tennessee Indirect Interest Refund NLS 5.20 and later Available for rule of 78 loan only. Calculates the payoff refund after deducting the specified Refund Amount. Louisiana Prepayment Charge Louisiana Statute §3532. Rebate upon prepayment — A. Upon prepayment in full of a precomputed consumer credit transaction, the extender of credit shall refund unearned loan finance charges or credit service charges and such refund shall represent at least as great a proportion of the loan finance charge or credit service charge after first deducting from such charge a prepayment charge of not more than twenty-five dollars as the sum of the monthly time balances beginning one month after the month in which prepayment is made, bears to the sum of all the monthly time balances under the schedule of payments in the contract; this method of rebate upon prepayment is commonly referred to as the “Rule of 78’s” or the “Sum of Digits” rebate method. If more than on-half of the term of the installment contract has elapsed, the rebate shall be computed without deducting a prepayment charge. For the purposes of rebate upon prepayment, deferral charges are not required to be rebated. No rebate less than one dollar, or to the extent provided for by federal law is required. NLS 5.31 and later Available for rule of 78 loan only. Applies the specified prepayment charge in calculating the rebate. The prepayment charge cannot exceed the precompute interest. No rebates less than one dollar. The default prepayment charge can be configured in Setup > Loan Setup > Defaults > Pre-Compute Interest > LA Prepayment Charge.
Deferment Options5.14+	Continue to Accrue Interest During Deferred Period Available for simple interest and average daily balance loans only. When selected, the deferred payment will continue to accrue interest. This option can be modified after the origination of a loan as long as the loan has no deferments.5.16+ Continue Impound During Deferred Period5.20+ Available for simple interest, average daily balance, and fixed amortization loans only. When selected, the impound billing will continue during a deferred period.
Irregular First Period Options (formerly REG Z)	Comply with REG Z 226.17 Tolerance - This option, when set, will take into account the rule of Reg Z with respect to the whole first period rule when the actual first period is short or long. The rule allows the creditor, when making calculations and disclosures, to disregard any irregularity in the first period following these rules: 1. For transactions in which the term is less than 1 year, a first period not more than 6 days shorter or 13 days longer than a regular period. 2. For transactions in which the term is at least 1 year and less than 10 years, a first period not more than 11 days shorter or 21 days longer than a regular period. 3. For transaction in which the term is at least 10 years, a first period shorter than or not more than 32 days longer than a regular period. When this checkbox is selected and the rules apply, NLS will calculate the first period as a regular period. For more information on this regulation, please refer to Reg Z Title 12 Part 226 Subpart C “Closed-End Credit” 226.17. This option is not available for Rule of 78 loans with the Treat Long Period as Standard Period option selected. Bill Actual Interest Accrued During Short First Period (30/360 & FA loan only) - This option is only applicable when interest period is Monthly, Bi-monthly, Quarterly, Semi-annually, or Annually. Amortization is calculated from a date prior to the origination date equal to the nominal period length.5.33 – 5.37 Bill Actual Interest Accrued During Short/Long First Period (30/360 & FA loan only) - This option is only applicable when interest period is Monthly, Bi-monthly, Quarterly, Semi-annually, or Annually. For long first period, the extra stub period interest is added to the first period.5.38+ Bill Actual Interest Accrued During Short/Long First Period (FA loan only) - This option is only applicable when interest period is Monthly, Bi-monthly, Quarterly, Semi-annually, or Annually. For long first period, the extra stub period interest is added to the first period.5.40.2+

Term

The term of the loan is defined by the Term Type, Term, and Term Due fields on the main tab.

Term Type defines how the length of the term is measured.

Term Type	Description
Days	The term of the loan is equal to the number of days specified in the Term field. The maturity date of the loan will be calculated by adding the appropriate number of days to the Origination Date.
Months	Defines the term of the loan as a specific number of months equal to the setting in the Term field.
Payments	Sets the length of the loan equal to a number of payments determined by Term. The actual length of the payment period is determined by the Payment Period and Payment Determination settings.
No Term	Used for revolving credit loans with an indefinite term, this type of loan will have no maturity date.

On Amortized Loans, the Amortization Term of the loan may be different from the actual term which defines the maturity date. One example of this would be a 30 year amortized loan where the loan must be repaid or re-amortized within five years. When the Term Due field contains a different value than the Term field, Term defines the amortization term of the loan, while Term Due defines the maturity date.

Checkboxes

The checkboxes at the bottom of the tab allow access to additional tabs used to set up advanced features. Selecting a checkbox will turn on its corresponding tab. Note that the Custom Payment Schedule and Beginning Interest Only Period tabs cannot be used at the same time.

Use Implicit Interest Rate

When selected, NLS will calculate the interest rate based on the configured custom payment schedule. The Interest Rate field cannot be edited.

This option only appears in the Add Loan dialog and is not configurable in Loan Template.

Only applies to fixed amortization interest method and when the Custom Payment Schedule option is selected.

The classification tab of the template contains default settings for loans that are to be added using that template for the following fields:

• Loan Portfolio
• Loan Group
• Loan Class 1
• Loan Class 2
• Loan Officer
• Collection Officer

See the respective topics on these fields for further information.

The Statements tab of the template contains default settings for loans that are to be added using that template for the following fields:

Option	Description
Billing Cutoff	The number of days prior to the due date of the next payment on which that payment will bill and a receivable will be created in the payments due tab. The billing date (which is also the next statement date if the loan uses a billing statement) is calculated by adding the Billing Cutoff (a negative number) to the due date.
Statement 1	Allows you to select a statement code to be assigned to the loans. This can be a billing statement code or a periodic statement.
Statement 2	Allows you to select a second statement code to be assigned to the loans. This is optional. It should be used for a loan that, for example, has a monthly billing statement and a quarterly periodic custom statement. If the same statement code is selected in both fields, you will get the same statement twice.
Late Fee Code	Allows you to select a late fee code for the loans that will be entered using this template. The late fee code defines the various late loan events (fees and notices).
Skip final pymt5.16+	When selected, a late fee will not be assessed on the final billing. This option will not prevent recurring transactions from billing late fees.
Make Timely	This functionality will test prior to assessing a late fee to see if the customer has made a whole payment during the current payment cycle that has been distributed to a previous period’s receivable. If Make Timely is enabled and the customer has made a full payment, no late fee will be assessed. This option can be set where the loan’s late fee is set up.
Req exact pymt	The Require Exact Payment option is only available when Make Timely is selected. When selected, the payment amount must be equal to the amount due for the make timely rule to take effect.
NSF Code	Allows for the selection of an NSF code for the loans that will be entered using this template. The NSF code defines any automatic NSF fee to be applied if a payment is reversed because of insufficient funds.

The Re-Payment tab contains the settings that control how the loan system processes payments. This includes re-amortization settings, payment distribution order, and pre-payment penalties.

Amortization Repayment Type controls what portion of a payment is applied to interest vs. principal. This field may be locked or restricted depending on the Interest Method selected in the Main tab. If the loan does not use an amortization schedule to determine the payment amount, Not Applicable is the proper setting. Repay Using Fixed Amortization Schedule determines the interest/principal breakdown using the amortization schedule, and is unaffected by the interest balance on the date that the payment is received. Repay Using Interest First Remainder to Principal applies funds to cover all of the outstanding interest on the loan at the time the payment is received, with the remainder of the payment being applied to principal. This results in more of the payment being applied to principal if the payment is received early, and less if the payment is received late.

Principal and Interest Recalc is not currently implemented.

Pre Payment Penalty Type is not currently implemented.

Payment Distribution

When a payment is made on a loan and if the user does not manually specify to which balances the payment is to be applied, the system will apply the funds in the order specified in the loan’s Payment Distribution setting.

To change the payment distribution order for the template, click located to the right of Payment Distribution to open the Payment Distribution dialog.

To change the default distribution order, click on a distribution Item in the list, and use the Up and Down buttons to set the order desired. Clicking the Reset button will set the distribution back to the system default.

Distribution Item Definitions

Item	Description
Past Due Interest	All interest billed and due for which the due date is prior to the current date.
Past Due Principal	All principal billed and due for which the due date is prior to the current date.
Past Due Late Fees	All late fees billed and due for which the due date is prior to the current date.
Past Due Fees	All other fees billed and due for which the due date is prior to the current date.
Current Interest Due	All interest which has been accrued and has been billed, but which is not past due.
Current Principal	All principal which has been billed, but is not past due.
Current Late Fees	All late fees which have been billed, but are not past due.
Current Fees	All other fees which have been billed, but are not past due.
Current Interest Accrued	Any interest which has been accrued but which has not been billed.
Unbilled Principal	All remaining principal on the loan after all of the billed payments and any outstanding interest have been satisfied.
Suspense	If this item is reached, any remaining portion of the payment will go to the suspense account.
Unbilled Late Fees	Any late fees for which there is a late fee balance, but no outstanding receivable.
Unbilled Fees	Any fee for which there is a fee balance, but no outstanding receivable.
Current Interest Through Effective Date	This selection will only be in effect if it is placed above Current Interest Accrued, because that selection will pick up all remaining interest. Current Interest Through Effective Date takes the Current Interest Balance and subtracts any accruals that were posted subsequent to the effective date of the payment.
Past Due User Def #1 – 10	The user-defined loan balances which have been billed and for which the due date is prior to the current date.
Current User Def #1 – 10	The user-defined loan balances which have been billed, but are not past due.
Unbilled User Def #1 – 10	The user-defined loan balances which have not been billed.
Past Due Deferred Interest	Any deferred interest for which there exists an outstanding receivable and for which the due date of that receivable is past.
Current Due Deferred Interest	Any deferred interest for which there exists an outstanding receivable and for which the due date of that receivable is the present of a future date.
Unbilled Deferred Interest	Any deferred interest for which there is a deferred interest balance, but no outstanding receivable.
P + I Inclusion User Def # 1 - #10	If these are moved above the past or current due interest, then the user-defined loan balance will be taken first as part of a P + I payment.
Past Due Impound	The amount of any impounds billed by the Escrow Module, which have a due date in the past.
Current Impound	The amount of any impounds billed by the Escrow Module, which have a due date in the present of future.
Unbilled Impound	Will apply against any monies disbursed from the Impound Account that are in excess of the amount collected when no impound billing exists. The impound account is a contra account and would have a negative balance in this case.
Apply Excess Principal as Future Payments	If selected, and the distribution reaches the Unbilled Principal level, the system will automatically bill the receivables for the next regularly scheduled payment, then the distribution will return to the top of the list. Limit to 1 future billing per payment / Limit future billing within n days(s) of date paid When selected, the number of future billing will be limited to a single future billing per payment. When the “future billing days within” threshold is set, any payment that is not within the threshold will be applied as principal reduction. Future billing will only be created if the payment date is within the specified days within threshold.5.24+ Remove future billings on reversal When selected, future billing created with the original payment is removed.
Interest Through Due Date (Zero Balance)	If selected, the system will calculate the amount of interest that was or will be (depending on if the payment is being made early or late) accrued as of the due date, and this is the amount of interest that is applied. If the payment is being made early, the principal portion of the payment will result in less interest being accrued for the remainder of the period, and this could result in negative interest as of the due date. The distribution will be corrected to prevent the negative balance (i.e. just enough interest and principal will be paid so that the balance will be zero as of the due date).
Interest Through Due Date (Negative Balance)	If selected, the system will calculate the amount of interest that was or will be (depending on if the payment is being made early or late) accrued as of the due date, and this is the amount of interest that is applied. If the payment is being made early, the principal portion of the payment will result in less interest being accrued for the remainder of the period, and this could result in negative interest as of the due date. The borrower will have paid extra interest for the period and this will result in less interest being charged in the following period.
Disable Suspense Bucket	Selecting this option disables suspense. When suspense is disabled the overpayment on a payoff will not go to suspense and suspense is ignored in the distribution order. When suspense is enabled the overpayment on a payoff will go to suspense.
Reject Partial Payments	Payments that do not fully satisfy the payment due will be rejected.
Suspend Partial Payments	Payments that do not fully satisfy the payment due will be held in suspense.
Disable auto-reversal of Late Fees on effective dated payments	Unless this is selected, the system will automatically reverse a late fee if a payment is back-dated to a date prior to the expiration of the grace period that caused the late fee to be executed.
Disable auto-application of reversed late fees on NSF and reversed payments	Unless this is selected, the system will automatically apply a late fee if a payment is reversed after the expiration of the grace period for that payment.
Disable re-application of payments during out of sequence payment reversal.	When selected, whenever a payment—which is not the last payment to have been entered—is reversed, the system will automatically reverse and then re-apply all subsequent payments as if the reversed payment was never entered.
Oldest Payment First	If selected, it acts as an override on the Past Due Interest/Past Due Principal distribution. When there are multiple payments past due, this override will force payment of principal on the first payment before allowing payment of interest on the second payment. Without the override, all past due interest would be paid before anything was paid to principal. Distribution to items placed above --INITIAL DISTRIBUTION ABOVE THIS LINE-- will occur prior to the “Oldest Payment First” override being applied.5.22- Distribution to items placed between the --APPLICATION OF OLDEST PAYMENT FIRST (PAST DUE)-- and --APPLICATION OF OLDEST PAYMENT FIRST (CURRENT DUE)-- lines will occur after the oldest past due P&I are satisfied and before the oldest currently due P&I. Distribution to items placed above --APPLICATION OF OLDEST PAYMENT FIRST (PAST DUE)-- will occur prior to the “Oldest Payment First” override being applied. 5.23+ Only valid when the payment amount is less than the Payoff amount. Cover Late Charges If selected, the late charges associated with a past due payment will be paid before funds are applied to the next payment. Cover Fees If selected, the fees associated with a past due payment will be paid before funds are applied to the next payment. Cover Impounds If selected, any billed impounds which have a due date that is the earliest due date of any other outstanding receivables will be covered before any later receivables. This acts as an override to the distribution order. Cover UDB # If selected, the user defined balance will be paid before funds are applied to the next payment.
Future payments follow all past due & current balances	When selected, all past dues and current balances are paid before funds are applied to the next payment. The distribution will apply “Oldest Payment First” to the past dues and current balances, then run through the distribution order, then distribute to future payment.
Earliest expiring SAC5.21+	When selected, payments are applied to loans whose SAC period will expire the earliest.
Enable secondary sort	Use oldest to newest (based on setup date) Use oldest to newest (based on origination date) Use lowest to highest original current due Use highest to lowest original current due Use earliest expiring SAC5.34+

NLS allows the user to set up complex or arbitrary payment options via the Custom Payment tab. In order to access the tab, the Custom Payment Schedule checkbox must be selected in the Main tab. Selecting custom payments will disable Payment Period and the field will be removed from Main tab.

The Custom Payment tab contains a toolbar and the Custom Payment Schedule grid. Click Add to open the Add Repayment Object dialog to create a new repayment object. Click Delete to delete the repayment object that is currently selected in the grid. Click Modify to open the Modify Payment dialog which mirrors the options in the Add Repayment Object dialog, except that the Repeat field is not present.

The grid displays the payment number, due date type, due date period, number of periods, day value, amount type, amount percent, fixed amount, and late fee schedule for each repayment object.

Add Repayment Object

The Add Repayment Object dialog contains all of the parameters necessary to create a new repayment object for the template.

Care should be taken when setting the parameters of a repayment object, as some settings are logically incompatible with each other and may produce unexpected results.

Payment Type

Payment Type determines what type(s) of receivable the custom payment object will generate.

Option	Description
Interest Only Payment	The repayment object will generate an interest receivable based on the Amount Type, Amount Percentage, and Amount Fixed settings.
Interest Only Payment Less Outstanding Billed Interest	Creates an interest receivable based on the Amount Type, Amount Percentage, and Amount Fixed settings, however all calculations for the amount of the receivable are carried out after any outstanding billed interest is deducted from the current interest amount of the loan.
Principal Only Payment	Creates a principal receivable based on the Amount Type, Amount Percentage, and Amount Fixed settings
Principal Only Payment Less Outstanding Billed Principal	Creates a principal receivable based on the Amount Type, Amount Percentage, and Amount Fixed settings, however all calculations for the amount of the receivable are carried out after any outstanding billed principal is deducted from the current principal amount of the loan.
Fixed Principal Payment Plus Accrued Interest	Creates a principal receivable based upon the setting of the Amount Fixed field and creates an interest receivable in the amount of the currently accrued interest at the time the receivable is generated.
Fixed payment amount covering all interest remainder to principal	Creates a single receivable in the amount of the Amount Fixed field, applying the payment to interest first then applying any remaining amount to principal.
Bill all interest due	Creates an interest receivable for all outstanding interest at the time of billing.
Bill all principal due	Creates a principal receivable for all outstanding principal at the time of billing.
Bill entire loan amount	Creates an interest receivable for all outstanding interest and a principal receivable for all outstanding principal for the loan at the time of billing.

Due Date Type

Due Date Type controls how the system calculates the due date of the repayment object. Relative from previous payment calculates the date starting from the billing date of the last payment, or the origination date if no previous payment exists. Relative from Origination Date calculates the date starting from the origination date of the loan.

The billing date is determined by stepping forward from the date determined by Due Date Type a number of periods (specified by Number of Periods) of length set by Due Date Period.

Due Date Day Value

Due Date Day Value will force the due date of the repayment object to the day specified in the field within the current month.

Amount Type

Amount Type specifies the method by which the amount of the receivable is calculated.

Option	Description
Not Applicable	Will result in no payment being generated, unless Payment Type has a specific method for calculating the payment amount. Example Fixed Principal Payment Plus Accrued Interest will use the amount set in the Amount Fixed field for the principal portion of the billing and the current interest amount for the interest billing, regardless of the setting of Amount Type.
% of Original Principal	Calculates the payment amount based on a percentage (set in the Amount Percentage field) of the original principal amount of the loan.
% of Current Principal	Calculates the payment amount based on a percentage (set in the Amount Percentage field) of the current principal amount of the loan.
% of Current Interest	Calculates the payment amount based on a percentage (set in the Amount Percentage field) of the current interest amount of the loan.
Fixed Amount	Bills the amount specified in the Amount Fixed field.
Percentage of Total Payment’s Base	Calculates the percentage (base x rate) of the base given the total amount and rate. Total Amount = Base + Percentage.

Amount Percentage

Amount Percentage specifies the percentage to be used to calculate the payment mount, where applicable.

Amount Fixed

Amount Fixed specifies the payment amount for Payment Types and Amount Types that use a fixed payment amount.

Late Fee Schedule

Late Fee Schedule allows the payment object to utilize any of the Late Loan Codes set up in the Late Loan Events tab of Loan Setup.

Repeat

Repeat allows the user to create multiple copies of the same repayment object for the purpose of easily setting up a custom periodic billing cycle. When the user clicks the OK button to add the repayment object, a number of copies equal to Repeat will be created. This setting should only be used when Due Date Type is set to Relative From Previous Payment.

Recurring Transactions allows the user to add custom transactions which re-executed at specified time to the template. The Recurring Transactions tab consists of the toolbar, the transaction list, and the settings tabs.

The toolbar has buttons (from left to right) to Add a new transaction, Delete a transaction, Move Up a transaction on the list, and Move Down a transaction on the list.

The transaction list displays a list of all the recurring transactions for the template. When a transaction is selected, its settings will load into the Event, Transaction, and Notes tabs to the right of the transaction list.

Event Tab

The Event tab holds the basic settings that determine when the transaction will occur and for how long it will repeat.

Option	Description
Description	Sets the name of the transaction in the transaction list.
Event	Controls whether the transaction is a Scheduled, Periodic, Billing, Daily Accrual, On Post Payment, or On Pre Payment transaction. Scheduled transaction is a single time event and will only occur once. Only a Start Date and a Statement Cutoff may be specified for a scheduled event. Periodic event may be run repeatedly until the Expire Date parameters are satisfied or until it has run for the length specified in #of Periods. Billing event will occur each time the loan bills a payment through its automated payment cycle. Daily Accrual event will execute every day, and be adjusted if the balance it is accrued on has a backdated change. On Post Payment event will occur whenever a payment is entered on the loan. On Pre Payment event will occur when a pre payment is entered on the loan.
Max Repeat	Sets the maximum number of times the event may run. This setting supersedes the settings for Expire Date and # of Periods.
Start Date	Determines when the transaction will first run. Clicking will open the Date Parameters dialog which contains the settings necessary to define the start date.
Expire Date	Determines when the transaction will end. Clicking will open the Date Parameters dialog which contains the settings necessary to define the expire date.
Period	For Periodic transactions, the length of time between transactions is specified as a # of Periods of length determined by the Period field.
Due Date Day	Will force the due date of the recurring transaction to the date specified within the current month. Example If the calculated date for the transaction was the 15th of June but Due Date Day value was set to 1 the actual due date would shift to the 1st of June.
Statement Cutoff	For recurring transactions that will use a trans code that is NOT a receivable, the statement cutoff should be set to zero. The transaction will actually execute on the transaction due date plus the Statement Cutoff. Note The Statement Cutoff is a negative number so the transaction will execute a number of days before the due date.
Execute Post Accrual	If this checkbox is selected, the recurring transaction will occur at the end of the accrual process, after the day’s interest has been accrued. Otherwise, it will occur earlier in the process, before the interest accrual. This can be critical if the transaction is set to execute for an amount equal to a percentage of the current interest balance.
Execute Beginning of Day	If this option is selected, the recurring transaction will occur at the beginning of the day. This option is mutually exclusive and cannot be selected along with the Execute Post Accrual option.
Execute Only During Payoff	Only available when event type is On Pre Payment. When selected, the recurring transaction will only execute if a payoff is triggered.

Date Parameters

The Date Parameters dialog is accessed by clicking in the Start Date and Expire Date fields.

Type defines the method by which the date of a recurring transaction is determined. If type is set to Relative From Origination Date, the transaction will occur when the duration defined by the Period and # of Periods fields has elapsed since the origination date of the loan. Relative From 1^st Principal Payment will cause the transaction to occur when the duration defined by the Period and # of Periods fields has elapsed since the first principal payment becomes due. Relative From 1^st Interest Payment will cause the transaction to occur when the duration defined by the Period and # of Periods fields has elapsed since the first interest payment becomes due. Although it is possible to set the Type to Fixed Date, doing so is not recommended for templates.

Day Value allows the loan to force a recurring transaction to a specific day of the month. N/A ignores the setting of day value, allowing the transaction to occur as defined by Period and # of Periods. Force Negative will cause the transaction to roll back to the date selected.

Force Positive will make the transaction jump forward to the selected day value.

Force Neutral will force the transaction to the selected day in the current month.

Date sets an absolute date for the transaction when Type is set to Fixed Date. While this setting is functional with loan templates, it is not recommended because of possible conflicts when the date selected on the template becomes earlier than the origination date of a loan added with the template. For loans that require a fixed date for a recurring transaction, we recommend entering the date information at loan input time instead of in the template.

Transaction Tab

The Transaction tab holds the settings that define the transaction.

Transaction Type

Option	Description
Transaction Code	The transaction code to be executed is selected from the Transaction Code drop down list.
Principal Due	In place of this selection, use Transaction Code, and set the Transaction Code number to 120.
Interest Due	In place of this selection, use Transaction Code, and set the Transaction Code number to 122.
Payment	The recurring transaction will automatically post a payment of the amount specified, according to the default distribution settings on the loan.
Servicing Fee	The transaction is a servicing fee, which can be defined as a fixed amount, a percentage, or a lookup table. A vendor may be specified for the receipt of the servicing fee, and the reconciliation of that fee can be by any one of the following three methods: Net from Cash - By Payment, Net from Cash - Total Outstanding, or Bill Lender.
Proportional Distribution5.22+	Calculates the percentage, based on the selected numerator and denominator, to be applied to the transaction.
Subsidization Settlement	This recurring transaction type is only available if the transaction is on a participant. The transaction will automatically create a voucher to allow for the billing of subsidized interest to the subsidizing participant.

Transaction Code

Select the transaction code to be executed by the recurring transaction.

Late Fee Schedule

If the transaction code selected is a receivable, a late fee schedule can be assigned to the receivable so that a late fee will automatically post if the receivable is not paid before the expiration of the grace period.

Amount Type

This allows you to select a Fixed Amount for the transaction or to define the transaction amount as a percentage of any loan balance.

Amount Percentage

If the transaction is to be for a fixed amount, enter that fixed amount here. If it is a percentage of a loan balance, enter the percentage here.

Amount Min

If the amount is a percentage and that calculated percentage is less than the amount entered in this field, the transaction will execute for the amount in this field.

Amount Max

If the amount is a percentage and that calculated percentage exceeds the amount entered in this field, the transaction will execute for the amount in this field. A value of zero in this field indicates no maximum (not a maximum of zero).

Notes Tab

The Notes tab allows the user to input notes about any recurring transactions included in the template.

This tab is visible only when the loan type is Shadow Loan. See Adding a Shadow Loan.

The Interest Only Term tab allows the user to set up a period in the beginning of the loan that only bills the interest accrued. The fields function in a similar manner to those in the Main tab, but apply only to the interest only term.

Term Type defines how the length of the interest only term is measured. When set to Days the interest only term is equal to the number of days specified in the Term field. Setting Term Type to Months defines the interest only term as a specific number of months equal to the setting in the Term field. A Term Type of Payments sets the length of the interest only term equal to a number of payments determined by Term. The actual length of the payment period is determined by the Period field.

It is possible for the interest only term to have a different interest year than the regular term of the loan which is set in the Interest Year field.

Lock Fields tab allows the template to prevent the user from changing certain settings while the loan is being added. When a user chooses the template in the add loan dialog, any of the areas that are selected will not be able to be changed.

Option	Description
Loan Setup	Will lock fields in the Main, Classification, Setup, and Re-Payment tabs. Exceptions are Net Loan Amount, Payment Amount, Interest Rate, and Origination Date in the Main tab, and Loan Officer and Collection Officer in the Setup tab.
Interest Rate	Will lock the interest rate and options for the loan, if applicable.
Recurring Transactions	Will lock all fields in the Recurring Transactions tab.
Credit Line	Will lock all changes to the Credit Line field and its options, if applicable.

Option	Description
Credit Bureau Header	Select from the Credit Bureau Headers that you have configured in the Credit Bureau section of Loan Setup.
Portfolio Type	Select the portfolio type to be reported (as defined by the credit bureau reporting agencies) which is to be used with the loans that are added with this template.
Account Type	Select the account type to be reported (as defined by the credit bureau reporting agencies) which is to be used with the loans that are added with this template.
Primary ECOA Code	Select the ECOA code to be reported (as defined by the credit bureau reporting agencies) which is to be used with the loans that are added with this template.
Enable Branch Credit Bureau Header5.15+	When selected, the Credit Bureau ID as defined for the branch (in the contact’s Branch Setup dialog) will be used for the loan. In the Branch Setup dialog, Enable Branch must be selected and a valid Credit Bureau ID must be selected. The Credit Bureau Header drop down will be disabled and must be set to NONE prior to selecting this option.
Do not report	Loans with this option selected are not included in credit bureau reports.