5.6 Transferring Memo Interest to FAS91 Fee
When the status of a loan contract status changes from non-performing to performing, the system performs FAS91 fee liquidation for the commitment contract after processing status change for the underlying loan contract. Fee Liquidation (FELR) event is registered at the commitment contract for the deferred interest component with effective date as status change date. The fee liquidation amount that is moved from the Memo GLs to the Real GLs during status change is tracked as the deferred interest amount for FELR event.
Oracle Lending processes fee liquidation as under for batch and online status change:
As mentioned before, in case of manual status change, FELR event is registered at the commitment contract level individually for each loan contract, when the status change happens.
In case of automatic status change for a loan contract wherein Propagate Status to loan box is not checked for the linked commitment, FELR event is registered at the commitment contract level individually for each loan contract, when the status change happens during the day. If there is a systematic status change during end of day batch process for multiple loans under a commitment contract, then one single consolidated FELR event is registered at the commitment contract by summing up the memo interest across all the loans under a commitment that were changed from non-performing to performing.
If Propagate Status to Loan check box is selected for the commitment and its status is changed to Performing, then all underlying loan contracts which are in Non-performing status is systematically moved to Performing status during End of Day. For such status change for the loan contracts, one single consolidated FELR event is registered at the commitment contract by summing up the memo interest across all the loans that have changed from Non-performing to Performing. If loans under the commitment are booked with multiple currencies, then memo interest for foreign currency loans are converted into commitment currency.