9.2.2.2 Interest Refund Required
This check box is selected if the bank intends to pass the interest benefit of certain events to the borrower.
Following are instances of such events.
- VAMI - Interest decrease, Maturity date is advanced.
- Prepayments including full prepayments leading to contract closure.
If you have opted for ECA, then the refund adjustment amount (BADJ) is considered for ECA check. When netting is opted, the Principal / Interst to be paid subjected to the BADJ amount is validated for ECA.
Parent topic: Modifying Maturity Date