Rollover
Purpose
The Rollover function automatically adjusts loan conditions at the end of the current fixed period. It also manages and monitors loan transactions coming up for renewal. The function also allows you to adjust conditions at any time during the term of the loan.
You can only roll over loans taken with the individual rollover function. (Rollover ® Individual rollover).
No differentiation is made between scheduled condition adjustments (at the end of the fixed interest period) or unscheduled condition adjustments (which may be made at any time).
Process Flow
When a Rollover is made, the system generates a new condition header and new entries for the fields to be changed in the condition items. This means that the original values can be documented in the condition history. The other fields (contract master data) are not affected by the rollover and continue to appear in the condition items. At the same time, the system makes some automatic adjustments, such as deleting conditions which have expired.
The various condition headers that can be created by the rollover function are defined as follows:
|
Type of condition header |
Definition | |
Offer |
20 |
Document that would be used for the rollover containing the new conditions for the next fixed interest period. The borrower can accept the offers (which are not yet legally binding) by phone or letter. |
Contract Offer: |
21 |
An offer which has been signed by the borrower and therefore legally binding. In other words, the borrower has concluded a new contract with the lender. The lender had signed the contract offer in advance. |
Contract |
01 |
Contract entered directly or generated on the basis of an offer accepted by the borrower. This documents becomes legally binding when both parties have signed. |
Rollover contract |
03 |
Contract generated by the rollover function and signed by the lender before it is sent to the borrower. |
Fixed contract |
02 |
Contract that is legally binding upon creation and does not require the signature or approval of the borrower. |
The condition header type identifies the kind of condition header and is assigned by the system.
The above condition header types were defined when the system was originally developed. At present, the system only recognizes offers and contracts. The procedures for processing are based on this distinction.
Rollover is performed for one company code at a time.
You can use the individual rollover function to roll over loans with specific conditions and to roll over loans taken.
Rollover comprises the activities involved in automatically renewing contracts prior to or upon expiry of contractual conditions. Automatic rollover allows you to automatically renew a large number of expiry contracts at one time. The rollover function also generates offers which are automatically dispatched to customers.
Automatic rollover covers the following areas:
Within the rollover function, you can change, create and display both tables and files.