1. Cash Flow Engine Reference Guide
  2. Cash Flow Dictionary
  3. Cash Flow Columns
  4. Maturity Date (MATURITY_DATE)
  5. Module Usage

8.2.81.2 Module Usage

For both Oracle ALM and Funds Transfer Pricing, MATURITY_DATE defines the final date of payment for the record. The MATURITY_DATE signals the end of processing for a given record.

Oracle ALM

  1. As described in the NEXT_PAYMENT_DATE section, the Cash Flow Engine processes a record until the MATURITY_DATE has been reached. This occurs in one of two ways:
    • The PMT_FREQ is rolled until it finally reaches the MATURITY_DATE.
    • The REMAIN_NO_PMTS_C is reduced to 1, in which case, the record immediately moves to its MATURITY_DATE.
  2. MATURITY_DATE is considered the final payment date. Any remaining principal balance that was not reduced by a scheduled payment date is paid on the MATURITY_DATE (regularly scheduled principal runoff is financial element 190 or 192 and maturity principal runoff is financial element 195 or 197). Therefore, at the MATURITY_DATE, the record's balance is reduced to 0.
  3. If the record has a balloon amortization, the maturity payment includes the balloon or large final payment.
  4. User-Defined Payment Schedules are an exception. Payment Schedules make their final payment on the last day as defined in the PAYMENT_SCHEDULE table. MATURITY_DATE is not referenced.
  5. User-Defined Payment Patterns reference the MATURITY_DATE as the Final Payment Date. Also, to calculate the remaining number of payments, if the payment pattern is split or if the balance is a new business record, Oracle ALM references the payment pattern payment frequencies and counts the number of payments from the AS_OF_DATE to the MATURITY_DATE (new business records reference the future date of origination rather than the AS_OF_DATE).

Transfer Pricing

  1. MATURITY_DATE is referenced for fixed-rate straight term Transfer Pricing Methodologies. When defining the record's transfer pricing term, FTP subtracts the ORIGINATION_DATE from the MATURITY_DATE. The term is then matched to the relevant Interest Rate Code (IRC) in Rate Management. The derived rate is applied to the record as the TRANSFER_RATE.
  2. MATURITY_DATE is referenced by Cash Flow Transfer Pricing Methodologies for both adjustable and fixed-rate records. For adjustable records, FTP transfer prices all Cash Flows on payment dates within the LAST_REPRICE_DATE and NEXT_REPRICE_DATE. The MATURITY_DATE is used to determine the last payment of a record. Its use is the same as described in the following, for Oracle ALM Records.
  3. The MATURITY_DATE is also referenced to determine the remaining number of payments for user-defined payment pattern records. FTP references the payment pattern payment frequencies and counts the number of payments from the ORIGINATION_DATE to the MATURITY_DATE.