4.15 Maintaining Escrow Account Details

You can link escrow accounts to a contract using the Escrow Account Maintenance screen.

Specify the User ID and Password, and login to Homepage.

From the Homepage, navigate to LB Tranche Contract Online screen.

1. From the LB Tranche Contract Online screen, click Escrow.
   The Escrow Account Maintenace screen is displayed.

   Figure 4-87 Escrow Account Maintenace

   
   

   
   Description of "Figure 4-87 Escrow Account Maintenace"

   
   
2. You can enter below details in this tab. For information on fields, refer to the field description table.

   Table 4-28 Escrow Account Maintenance

   Fields	Description
   Account Number	Select the account number of the customer from the adjoining option list.
   Account Desc	System displays the description of the account number.
   Escrow Type	System displays the Escrow type.
   Escrow Balance in LCY	System displays the available escrow balance in local currency.

   Note:

   You can select the escrow account from the option list, which lists all customer and GL accounts where Escrow Type UDF has been specified. Account Number is assumed to be unique across branches. System validates if the escrow account is a customer account (that is, Escrow Type UDF =ECS3). Such accounts can only be linked to a single loan contract. However, if the escrow account is a GL account, then it can be linked to multiple loan contracts.

   You can delink a previously linked escrow account using the contract amendment option. When you click Delete button, system validates that there is no balance in the account for this contract. When you perform contract liquidation or a reversal, system validates that there are no balances in linked escrow accounts. Rollover can be processed only if the balance in all the linked escrow accounts for the contract is zero. Thus during rollover, balances in the escrow account are not automatically transferred to the new contract. If escrow balances exist for the contract, then during rollover instruction input, system alerts the user. Rollover instructions can be captured even if escrow balances exist, however before rollover is processed you must ensure that all such balances are nullified. Rollover fails for a contract if the escrow balances are not nullified. If a contract is marked for auto rollover, and if there is pending balance in any of the linked escrow accounts, then the rollover of the contract fails. Escrow maintenances are not be copied to the rolledover contracts from the parent contract. However you can amend the rolled-over contract and capture the Escrow accounts to be linked.

   When you launch the sub-screen from the contract main screen, system fetches the EOD balance for the Contract Reference Number and Escrow Account combination for each linked Escrow Account. All entries posted during the day up to the time of the query are considered. Thus the balance displayed in Escrow Balance field for each Escrow Account is the current balance in real time for the contract.

   Impounding escrow components for tax and insurance are collected as per the payment schedule using the manual payment screen and liquidated into the escrow account mapped at the product level. Such Escrow accounts must be separately linked to the contract using Escrow Account Maintenance screen so that the balance of such escrow accounts are displayed at contract level along with other Escrow balances.

   Back date adjustment entries are considered only after linking escrow account at contract.

   Example

   01-Jan-2005: Adjustment entries are posted for contract (No Escrow Accounts)

   02-Jan-2005: Attached Escrow accounts for which adjustment entries are posted on 01-Jan- 2005, these entries are not considered.

   01-Jan-2005: Adjustment entries are posted with value date 01-Jan-2005 then this entries are considered.