Borrower Change: Basic Data
Use
You enter the important data for the Borrower Change on the Basic Data tab page, such as the main borrower, the reason for the borrower change and the transfer date.
For more information, see
Borrower Change.Procedure
You need to define the New Main Borrower, whose relationship with the loan begins on the specified transfer date. The Transfer Date is a required entry field, where you must enter the date on which the borrower change (the change in the assignment of the main borrower) takes place. Since the reasons for a borrower change are mostly events in the past and therefore the business operations deal with backdated operations or events in the present, the transfer date must not be after the current (today's) date.
You must also carry out collective processing for all of the loans in a finance project. If the loan is assigned to a finance project, the finance project number is displayed here. (The assignment is made in the contract in Basic Data on the tab strip Key Data.) This groups several loans for one main borrower together for the purposes of controlling incoming payment distribution and the dunning procedure.
If you enter or execute a borrower change for a loan that is assigned to a finance project, you must also enter or execute a borrower change for each of other loans that are in the finance project. The processing sequence of the other loans in the project is fixed. You have to process the loans in ascending order, when you reach the highest loan number you begin at the smallest loan number.
Note that you can only change both the data in the Business Operation Header and the data in the Basic Data area on the Key Data tab page in the loan from a finance project, that you have processed first using the borrower change function. This data is then transferred as standard for all of the other loans in the finance project.
The data in the Charges section of the Basic Data tab page on the other hand is not copied over from the first loan from finance project to be processed. Entries and changes can be made in every loan and only affect the loan in which they have been made.
The data in the Capital Amounts section of the Basic Data tab page is transferred to all of the loans in the finance project from the first loan to be processed. However, for each loan you can change the default settings that only affect the respective loan.
For further information see the F1 help in the Finance Project field.
You can also enter a reason for the borrower change, such as :
A loan partner has died. By accepting the inheritance, the benefactor enters into the existing contract, taking on the rights and obligations of the loan.
A borrower changes his/her legal form; the legal successor becomes the new borrower.
The borrower requests one or more borrowers to release him/ her from the debt liability. If the bank accepts the release from debt liability, the receivables and payables for the loan are transferred to the remaining borrower.
One or more persons (natural or legal) take on joint liability for the debt with the existing borrower.
Two or more companies join together to form a new company. The new company becomes the legal successor and takes over the existing receivables and payables for the loan. The existing commitment is combined.
The borrower is exchanged within the context of an error adjustment.
You define the reason for the borrower change in the Customizing activity Define Reason for Borrower Change.
Using the flow type(s) defined for the borrower change charges, the system posts the charges to the new main borrower when you execute the borrower change.
You define the relevant flow type(s) for the charges in Customizing under Define Flow Types. If just one flow type is defined, this is automatically selected using the F4 matchcode search.
If you have only entered one additional flow, you can remove this again before the borrower change is executed, using the button Delete.
Moreover, you can enter a standard Payment Method that is also valid for the additional flows. You can also change this for each additional flow on the Additional Flows tab page.
In the Interest Certificate field you determine whether or not an interest certificate is generated for the loan. You determine the correspondence control for the interest certificate in the loan on the Correspondence tab page. Consequently when the borrower change is executed the Interest Certificate indicator is passed on to the loan contract.
If you flag the Keep Authorized Drawer field, the existing authorized drawer remains after the borrower change.
For all the open items conditions, payment splitting data and planned records with an alternative payer you have the option of keeping the alternative payer and all of the related payment information (bank details and payment method), flagging the Keep Alternative Payer field. However if the alternative payer is also the new main borrower, the alternative payer is replaced even if this field is flagged.
Moreover, the system also displays details of the total receivables to be taken over by the new main borrower.
The total receivables of the borrower change comprise the remaining capital according to debit positions plus all of the current open receivables on the current date.