Example: Payment Plan Change
A main master contract, MC #1, contains two fully-disbursed participant loan accounts operating under the Planned Payment Principle:
LO #1 with a committed limit of EUR 100,000
LO #2 with a committed limit of EUR 70,000
Customizing
The master contract is based on a product in which the Facilities feature is active and which is customized as follows:
Facility Control
Attributes |
Value |
Credit Clearing Mode |
1 —Debit Balance The utilization balance of a master contract is the sum of all negative balances of the participants in this master contract. Positive balances are not taken into account. |
Clearing Mode for Currency Translation |
1 — Clearing After Currency Translation |
Utilization Calculation
The Master Contract
The nominal utilization is to be checked against the global external limit. The effective utilization is to be checked against the global internal limit.
Participant Loan Accounts
The utilization calculation base relevant for nominal utilization is Nominal Capital. The utilization calculation base for effective utilization is Effective Capital plus Prenotes.
Master Contract and Account Processing
MC #1 has a committed limit of EUR 170,000 and no tolerated overdraft limit.
When you execute a payment plan change on LO #2, increasing the monthly installment from EUR 1,000 to EUR 1,500, the system checks the utilization of the facility.
With a nominal utilization calculation base, the outstanding capital of LO #1 and LO #2 combined minus the repayment on both loans does not exceed the global external limit (EUR 170,000) and the payment plan change is executed.
With an effective utilization calculation base, the outstanding loan capital of LO #1 and LO #2 combined does not exceed the global internal limit (EUR 170,000) and the payment plan change is executed
The Open Nominal Utilization of MC #1 increases by the value of the combined incoming payments.
Calculation of the Nominal Utilization after payment plan change:
Participants |
Global External Limit |
Nominally Utilized Amount |
Non-Utilized Amount |
MC #1 |
170,000 |
–170,000 + repayment 1 + repayment 2 |
0 + repayment + repayment 2 |
LO #1 |
–100,000 + repayment 1 |
||
LO #2 |
–70,000 + repayment 2 |
Calculation of the Effective Utilization after payment plan change:
Participants |
Global Internal Limit |
Effectively Utilized Amount |
Non-Utilized Amount |
MC #1 |
170,000 |
0 |
0 |
LO #1 |
–100,000 |
||
LO #2 |
–70,000 |