1. User Guide
  2. Business Rules Administration
  3. Break Identification Process
  4. Full Breaks

3.20.1 Full Breaks

The following accounts are considered as full breaks, fully repaid, or terminated:

  • The Instrument is present in the instrument table on the prior period date but does not exist in the current period and the maturity date of the prior period record is greater than the current period as of the date.
  • The Instrument record exists in both the prior period data and current data and the CUR_PAR_BAL of the current instrument is 0 and the account open flag is NO.

For the above scenarios, the Break Identification Process populates the source and Break Funding Charges instrument tables with the following:

  • BREAKAGE_FLG = 2 (*Source record only) (External break will populate flag=1)
  • BREAKAGE_TYPE_CD = 1
  • BREAKAGE_AMOUNT = CUR_PAR_BAL (prior period)

Additionally, the FSI_D_BREAK_FUNDING_CHARGES table is populated as follows:

  • • If Prior record NEXT_PRIN_PAYMENT_DATE > Current AS_OF_DATE then:
    • CUR_PAR_BAL = Prior Period CUR_PAR_BAL
    • CUR_BOOK_BAL = Prior Period CUR_BOOK_BAL
  • If Prior record NEXT_PRIN_PAYMENT_DATE <= Current AS_OF_DATE then:
    • IF AFTER_PAYMENT_BALANCE is Not Null

      CUR_PAR_BAL = AFTER_PAYMENT_BALANCE

      CUR_BOOK_BAL = AFTER_PAYMENT_BALANCE

    • IF AFTER_PAYMENT_BALANCE is Null

      CUR_PAR_BAL = Prior Period CUR_PAR_BAL

      CUR_BOOK_BAL = Prior Period CUR_BOOK_BAL

  • AS_OF_DATE = AS_OF_DATE defined in Application Preferences
  • BREAKAGE_AMOUNT = Prior Period CUR_PAR_BAL
  • BREAKAGE_TYPE_CD = 1
  • All additional fields are carried forward from the prior period record.

For Full Breaks, the Next Principle/Interest Payment Date gets rolled forward till the Maturity Date. Break record has AS_OF_DATE = NEXT_PRIN_PAYMENT_DATE.

If NEXT_PRIN_PAYMENT_DATE <= AS_OF_DATE, then Next Principle Payment Date = Next Principle Payment Date + Payment Frequency/Multiplier. This should not exceed the Maturity Date.

If NEXT_PRIN_PAYMENT_DATE <= AS_OF_DATE for the current period, then Break Amount = AFTER_PAYMENT_BAL from the prior record. This is used when you do not want to pay a break charge against the current period's scheduled principal payment.