10.7.2.3 Devolvement and Recovery

Behavior Sub Type = Sight Devolvement, Sight Recovery, Usance Devolvement, and Usance Recovery (from Behavior Pattern).

Instrument data should contain the behavior subtype as Sight (Code: 306) or Usance (Code: 305). The sub-type code is used by the engine to generate the devolvement or recovery events.

• If sub-type =Sight and Devolvement Status is “No” (both from the instrument record), then all the Sight Devolvement events from the Behavior Pattern will be processed. Finally, all the Sight Recovery Events will be processed.
• If subtype = Sight and Devolvement Status is “Yes” (both from the instrument record), then all the Sight Recovery events available in the Behavior Pattern will be processed.

Any unrecovered balances will be written off on the maturity date. Similarly, Usance events will be processed.

One Behavior pattern can contain a mix of Sight and Usance events but the Engine will process the events based on the Behavior Type Code of the instrument. No interest cash flows will be generated.

Next Payment Date: This will need to be after As of Date of the process run. Suggested to be the same as Maturity Date since no interest payment is expected to happen.

Maturity Date: This will need to be after As of Date of the process run. Any outstanding balance after all the Recovery events from the pattern definition are processed will be written off on the maturity date.

Compounding Basis, Accrual Basis, Remaining Number of Payments, Current Payments, Current Net Rate, Adjustable Type Code: Since the interest cash flow will not be generated, these can be the default values.