31.14 Mid-Period Repricing Computations

The Mid-Period Repricing option uses two columns in the Instrument Tables (Current- and Prior- Repricing Period Average Daily Balance: CUR_TP_PER_ADB, PRIOR_TP_PER_ADB) that are exclusively devoted to this option. These columns must be accurately populated for the Mid-Period Repricing results to be accurate.

The Mid-Period Repricing Computation process comprises the following steps:

1. Computation of transfer rate for the Current Repricing Period.
2. If the computed Last Repricing Date is less than (>) the beginning of the processing month, then roll back to the Prior Repricing Date.
3. Computation of Prior Period Transfer Rate.
4. Repetition of steps 2 and 3 as necessary.
5. Computation of the final transfer rate by weighting the results (from Current and previous Repricing Periods) by average balances and days.
6. Application of the final transfer rate to the instrument record.