Order of Repayment and Funding

In the Funding Options dialog box, the “Apply Cash Surplus to” and “Fund Cash Deficit with” areas enable you to specify the order of account use, in the event of cash surpluses or deficits. To reorder, click and drag accounts to different positions in the list.

Order	Apply Cash Surplus to...	Order	Fund Cash Deficits with...
First	L-T Debt: Excess	First	Excess Mktable Securities
Next	Other Selected Surplus Accounts	Next	Other Selected Deficit Accounts
Last	Excess Marketable Securities	Last	L-T Debt: Excess

With a cash surplus, by default, Long-Term Debt: Excess is reduced first if a balance exists. Funds remaining, after reducing other surplus accounts selected, accumulate in Excess Marketable Securities. With a cash deficit, by default, Excess Marketable Securities is used as funding first. If there is still a cash deficit after other selected funding accounts are used up to their forecasted limits. Long-Term Debt: Excess funds the remaining cash deficit in its entirety.

Note:

Excess Marketable Securities is last in the Apply Cash Surplus to... order and by default is first in the Fund Cash Deficit with... order. Long-Term Debt: Excess is by default first in the Apply Cash Surplus to... order and last in the Fund Cash Deficits with ... order.