4.4.1 Impact on CoC Balance

Based on the Transfer Amount and the overall commitment amount, the system computes the pro-rata amount for each of the following balances:

• Pro-rata reduction of write-off
• Pro-rata reduction of contra interest
• Pro-rata reduction of FAS 114 reserve
• Pro-rata reduction of FAS 91 fees, Asset Transfer Marks

Origination queue is updated for the CoC balances and automatically confirmed. Amort fee is reduced systematically on HFI commitment during internal HFI sell trade processing as part of HFS transfer. The balances computed as part of the internal trades are based on the HFS transfer amount. The amounts to be released for underlying commitment and loan/LC loan contracts in the Originations modules are computed as part of the actions (VAMI) performed on the actual contracts.

Accounting entries are posted for the prorate CoC balances for the internal sell deal.