4.3.4 Re-compute Late Payment Charges Online

The latest value of the Basis Component, Grace Days or Fixed Rate/Flat Amount of late payment charge are used while re-computing late payment charges. System re-computes the late payment charges online in the following scenarios:

Table 4-18 Re-computing Late Payment Charges Online

Event	Scenario	Processing
Amendment of past schedules (CAMD)	User revises past schedules where schedule is not settled and therefore late payment charges have been computed.	System re-computes late payment charges based on the newly defined schedules.
Back value dated change in Interest Rate/Principal (VAMI)	VAMI for back value dated change made to Interest rate or principal amount that affects the basis for fixed rate late payment charge.	System re-computes late payment charges based on the new basis amount.
Reversal of Value Dated Amendment (VAMC)	Reversal of a VAMI done earlier for principal/interest change.	System re-computes the late payment charges based on the value of basis amount prior to this VAMI.
Current dated Value Dated Amendment (VAMI)	VAMI for change in special penalty component rate/flat amount.	No effect. System uses the new updated rate/flat amount for future schedules only.
Reversal of Value Dated Amendment (VAMC)	Reversal of VAMI done earlier for Late payment fixed rate/flat amount change	System re-computes the late payment charges based on the penalty rate/flat amount prior to this VAMI.
Reversal of payment (REVP)	Payment done within grace period, Payment reversal done after grace period.	System computes late payment charges as part of payment reversal since grace period has expired
Back Value dated Payment (LIQD)	Payment done after grace period (back value date for payment is within grace period)	Late payment charge initially be computed on grace period expiry, and is treated as unsettled unless late payment charges are paid/ waived.
Reversal of Special Penalty Waiver (RSPW)	Late payment charge is waived and waiver reversed at a later date by user.	Late payment charges recalculated on waiver reversal using the latest values of basis component, grace days, and late payment charge fixed rate/flat amount.