7.8.5 Repayment Schedule Date is a Holiday

You have specified that repayment schedules should be generated automatically once you indicate the frequency, number and the date of first repayment. When the system computes the repayment dates based on these values, there is a chance that one or more schedules fall due on a holiday. In such a case, you have two choices:

• Ignore the holiday and retain the schedule due date.
• Move it either backward or forward, by specifying

If you specify that holidays are to be ignored, the schedule dates are fixed without taking the holidays into account. In such a case, if a schedule date falls on a holiday, the processing of such a schedule is determined by your holiday handling specifications for automatic processes, in the Branch Parameters screen:

• If you have specified that processing has to be done on the previous working day for automatic events right up to the day before the next working day, the schedule falling on the holiday is liquidated during end of day processing on the previous working day.
• If you have specified that processing has to be done only up to the System Date, then only the events scheduled for the System Date will be processed. The events of the holiday are processed on the next working day during beginning of day processing.

Example

A monthly repayment schedule date for Taggart Iron and Steel’s loan for USD 100,000 (for one year at 16% interest) falls on 24th October, a holiday.

If you have said Ignore Holidays by clicking this field, the schedule date remains on 24th October when the schedules are fixed. The processing of this is determined by your holiday handling specifications in the Branch Parameters screen:

• If you specified that processing has to be done today (on System date) for automatic events up to the day before the next working day, then, on 23rd October itself, the schedule of 24th October is liquidated during the EOD run of the Automatic Contract Update function.
• If you have specified that processing has to be done only up to the System Date, then, on 23rd October, only the events scheduled for that date are processed. This means that since the schedule date is 24th October, which is a holiday, the schedule is processed on 26th October (the next working day), during the BOD run of the Automatic Contract Update function.

Note:

In the above scenario if schedule date falls on (End of month) 31 October, a holiday, then irrespective of processing option specified at branch param level, system processes the 31st October liquidation on 30 October itself.