Table of Contents IndexTop

 

SECTION 6 INSTALLMENT LOAN SYSTEM

 

6.1 INTRODUCTION

The Installment Loan system provides an accounting method for maintaining installment loans. Each installation is responsible for establishing its own schedule of accounting procedures to be used in system operation. In general, each bank will define daily, weekly, monthly, and annual operations. 

On a daily basis, the bank will enter installment loan data. This includes entering new customers, new loans, transactions, and changes to any existing customers or loans. 

The Installment Loan system requires that the Transaction Journal be run once a day as an update. This advances the Installment Loan system date and performs the necessary interest and insurance calculations. 

On a weekly basis, each installation should review the available space in the Installment Loan file and the Installment Loan Transaction file. If either of the files is nearly full, paid loan data and paid loan history data can be deleted. Other weekly procedures might include the printing of past due reports and past due notices. 

On a monthly basis, reports are generated. Monthly reports will include earnings, delinquency, and new and paid out loan reports. 

On an annual basis, annual interest notices must be generated. This operation generates notices to be sent to the customers and also zeros the year-to-date interest fields in the Installment Loan file.

 

Function Selection

 

When the Installment Loan system is selected from the BANCADO main menu, the following screen is displayed:

 

6.2 INSTALLMENT LOAN FILE

The Installment Loan file contains one record for each loan processed by the bank. A loan record consists of 36 data items designed to describe a loan. The fields and the valid contents of each data item are as follows: 

This field contains the customer number. This is a ten-character alphanumeric field.

This field is a maximum of six digits and contains the loan number. Loan records are stored according to this number.

This is a two-digit field that contains the office or branch number.

This is a two-digit field that describes the type of loan as determined by the bank.

This is a two-digit field and contains the dealer number only if this is a dealer loan. If this is not a dealer loan, the field is blank.

This is a two-digit field and contains the code assigned for this loan as determined by the bank.

This is a numeric field and contains the total amount of this loan. The total loan amount includes any precomputed charges. The maximum value of this amount is 99999999.99.

This is a one-digit field and contains a code that describes the type of interest calculation. Valid values are:

1 = Precomputed 78ths

2 = Precomputed Actuarial

3 = Simple Interest (Daily Interest Bearing)

4 = Straight Line 

This is a numeric field and contains the annual interest rate as a percentage. The format for this field is 99.9999.

This is a numeric field and contains the net discount amount only for a precomputed interest type. For a simple interest type, this field is blank. The maximum value for this field is 9999999.99.

This is a one-digit field and contains a code that describes the dealer interest type. Valid values are:

0 = No Dealer Interest

1 = Precomputed 78ths

2 = Precomputed Actuarial

3 = Daily Interest Bearing 

When entering a loan record, pressing RETURN in this field indicates that there is no dealer interest and automatically causes a zero to be entered in the field.

This is a numeric field and contains the interest rate charged by the dealer. The format for this field is 99.9999.

When entering a loan record, this field is requested only if dealer interest is specified.

This is a numeric field and contains the precomputed dealer reserve amount. The maximum value for this field is 9999999.99.

When entering a loan record, this field is requested only if the dealer interest type is precomputed.

This is a one-digit field and contains a code that describes the accident and sickness insurance type. Valid codes are:

0 = No Insurance

1 = Precomputed 78ths

2 = Precomputed Actuarial

3 = Daily Charge 

When entering a loan record, pressing RETURN in this field indicates that there is no accident and sickness insurance and automatically causes a zero to be entered in the field.

This is a numeric field and contains the insurance rate. The format for this field is 99.9999.

When entering a loan record, this field is requested only if an accident and sickness insurance type is specified.

This is a numeric field and contains the precomputed amount charged for accident and sickness insurance. The maximum value for this field is 9999999.99.

When entering a loan record, this field is requested only if the accident and sickness insurance type is precomputed.

This is a one-digit field and contains a code that describes the credit life insurance type. Valid codes are:

0 = No Insurance

1 = Precomputed 78ths

2 = Precomputed Actuarial

3 = Daily Charge 

When entering a loan record, pressing RETURN in this field indicates that there is no credit life insurance and automatically causes a zero to be entered in this field.

This is a numeric field and contains the insurance rate. The format for this field is 99.9999.

When entering a loan record, this field is requested only if a credit life insurance type is specified.

This is a numeric field and contains the precomputed amount charged for credit life insurance. The maximum value is 9999999.99.

When entering a loan record, this field is requested only if the credit life insurance type is precomputed.

This is a one-digit field and contains a code that describes any other life insurance type. Valid codes are:

0 = No Insurance

1 = Precomputed 78ths

2 = Precomputed Actuarial

3 = Daily Charge 

When entering a loan record, pressing RETURN in this field indicates that there is no other life insurance and automatically causes a zero to be entered in this field.

This is a numeric field and contains the insurance rate. The format for this field is 99.9999.

When entering a loan record, this field is requested only if a credit life insurance type is specified.

This field is a numeric field and contains the charge for filing a lien against this loan or for the filing of a financing statement. The maximum value is 99.99.

This field is a numeric field and contains the amount of any other non-rebatable charges. The maximum value is 9999.99. This field can be blank.

This is not a field in the file, but a check to insure the entries are correct. This is the total loan amount less any net discount, dealer reserve, accident and sickness total charge, credit life total charge, other insurance total charge, filing fee, and other non-relatable charges.

This is a four-digit field and contains the length of the loan term in number of months.

This is a 10-character field and contains the date that the loan was dated.

When entering a loan record, the current date is displayed. Pressing RETURN only accepts the current date as the loan date. To enter an earlier date, backspace to the beginning of the field and enter the correct date. If the loan is interest bearing and an earlier loan date is entered, extra interest will be accrued.

This is a 10-character field and contains the first due date for this loan. The date is entered in MM/DD/YYYY format.

This field is first determined by the First Due Date field. It can be changed to coincide with the day of the month desired. If the payment is due on the last day of the month, enter a 31.

This is a two-digit field and contains a code that indicates whether notices and/or charges are generated for late payments. Valid values are:

First Digit: 0 = print advance notices

1 = do not print advance notices

Second Digit 0 = Notices are sent and late charges are applied.

1 = Notices are sent and no late charges are applied.

2 = No notices are sent and no late charges are applied.

 

When entering a loan record, pressing RETURN causes a zero to be entered in this field.

This is a one-character field and contains a code that indicates the frequency with which payments are to be made. Valid values are:

P = Single Payments

B = Bi-weekly Payments

W = Weekly Payments

M = Monthly Payments

Q = Quarterly Payments

S = Semiannual Payments

A = Annual Payments

This is a one-character field and contains a code that indicates whether a loan paymenbt is to be automatically charged to the customer=s checking or savings account. Valid values are:

Y = Yes, Charge Automatically

N = No

This is a one-character field and contains a code that indicates whether the automatic payment is to be charged to a checking or savings account. Valid values are:

C = Checking

S = Savings

When entering a loan record, this field is requested only if the automatic payment response is yes. The system requests this field with the prompt:

Checking or Savings (C/S: [ ] 

This is a six-digit field and contains the number of the account that is charged for automatic payments.

When entering a loan record, this field is requested only for automatic payments.

This is a five-character alphanumeric field and contains the Federal Reserve Call Code (Line Number).

This is a 20-character alphnumeric field and contains a description of the item used for collateral for this loan.

This is a 20-character alphanumeric field and contains the name of any co-maker. If there is no co-maker, this field is left blank.

This portion of the loan record contains from one to eleven payment schedule segments that indicate the number of payments to be made at a certain amount. Each payment schedule segment is defined by two fields:

Payments in Segment

This is a two-digit field and contains the number of payments in this segment.

Amount in Segment

This is a numeric field and contains the amount of each payment in this segment. The maximum value in this field is 999999999.99.

During loan record entry, the system displays the following prompts for entry of the payment schedule segment:

PAYMENTS AT AMOUNT PAYMENTS AT AMOUNT PAYMENTS AMOUNT PAYMENTS AT AMOUNT 

After the final payment schedule segment has been entered, press RETURN to record the loan in the Installment Loan file. If the payment schedule entered will not pay off the loan amount, the entire schedule will be rejected by the system. In this case, you must reenter the payment schedule.

The TRW Type is assigned by credit reporting agencies and is used only during the creation of the credit bureau reporting file. Your credit reporting agency may use different codes. The valid standard codes are:

00

Auto

01

Unsecured

02

Secured

03

Partially Secured

04

Home Improvement

05

FHA Home Improvement

06

Installment Sales Contract

07

Charge Account

08

Real Estate Specific Type Unknown

10

Business

11

Recreational Merchandise

12

Educational

13

Lease

15

Check Credit or Line of Credit

17

Mobile Home

18

Credit Card

19

FHA Real Estate Mortgage

25

VA Real Estate Mortgage

26

Conventional Real Estate Mortgage

27

Real Estate Mortgage with or without other collateral

29

Rental Agreement

30

Summary of accounts with same status

31

Unknown

37

Combined Credit Plan

43

Debit Card

47

Credit Line Secured

65

Unsecured Guaranteed Loan

66

Secured Guaranteed Loan

67

Unsecured Direct Loan

68

Secured Direct Loan

77

Returned Check

78

Installment Loan

 

Marital Status is used during the creation of the credit bureau reporting file. The valid standard codes are:

M

Married

U

Unmarried

X

Separated

 

The Association Code is used during the creation of the credit bureau reporting file. The valid standard codes are:

0

Undesignated account

1

Individual Account

2

Joint Contractual Responsibility

3

Authorized User Spouse

4

Joint Account

5

Co-maker Account

6

"On behalf of" Account

7

Maker Account

 

The credit bureau reporting programs are written so that loans can be reported on a cycled basis. You may choose to submit a single cycle of active accounts on a regular basis, but new and paid accounts are reported regardless of cycle. Many small users simply enter zero for the cycle and report all loans on a regular basis.

The Residence Code is used during the creation of the credit bureau reporting file. The valid standard codes are:

O

Owns

R

Rents

 

The credit limit as entered here in even dollars only is used only for credit bureau reporting.

Type of Account is used during the creation of the credit bureau reporting file. The valid standard codes are:

O

Open

R

Revolving

I

Installment

 

The Name Sequence Code is used during the creation of the credit bureau reporting file. The valid standard codes are:

F

Fully Structured Name

P

Partially Structured

U

Unstructured

 

The Loan Rate Type is used during the creation of the credit bureau reporting file. The valid standard codes are:

F

Fixed

V

Variable

 

The appraised value of the collateral is entered here in even dollars.

The total amount of any prior liens on the collateral is entered here.

 

6.3 INSTALLMENT LOAN ACTIVITY

 

The Installment Loan Activity procedures provide functions to: 

 

Function Selection

 

Throughout this section, you will be asked to select a particular function from the ACTIVITY portion of the Installment Loan menu. The following is an example of the ACTIVITY portion of the menu:

 

INSTALLMENT LOAN ACTIVITY

New Loan

Change Loan

Transaction

Activity Summary

Change Accrual Date

Earnings Maintenance

 

6.3.1 NEW LOAN

This procedure is used to enter new loans into the system.

From the Installment Loan menu, enter 9 for New Loan. The system displays the prompt:

Customer Number: [ ] 

Enter the customer number and press RETURN.

The system displays the customer information and lists all the customer=s loans. The following sample illustrates this display.

PUT IN SCREEN

 

The system then prompts:

Loan Number: [ ] 

Enter the new loan number. The system then displays the customer information and loan fields, as follows:

 

 

 

Enter data in each field of the loan record according to the definitions given in Section 6.2. Table 6.1 summarizes the data in each installment loan record.

After entering the data in each field, press RETURN to proceed to the next prompt. To skip an optional field, press RETURN only. 

After a co-maker name has been entered, enter each payment schedule segment. Press RETRUN after each entry. When all segments have been entered, press RETURN only in the PAYMENTS column.

If the payment schedule entered will pay off the loan, the system then clears the screen and redisplays the entire loan record. The following is an example of the information that will be displayed on the screen.

SAMPLE OF LOAN INFO TO BE ENTERED HERE

At this point, the system allows you to enter a transaction. The customer information and loan information are displayed as well as the prompt:

Transaction Code: [ ] 

To change customers, press RETURN only. To return to this customer=s CIF display, enter 99 and press RETURN. To enter a transaction, refer to Section 6.3.3 for a description of transaction entry.

 

6.3.2 CHANGE LOAN

This procedure is used to change information for an existing installment loan. This procedure can also be used to simply view the data defined for a loan.

This procedure displays the loan record in several screens. When each screen is displayed, you have three options:

To change an item on the screen.

To display the next screen.

To display another loan.

From the Installment Loan menu, select 10 for Change Loan. The system displays the Loan Change Form, as follows:

BANCADO INSTALLMENT LOAN CHANGE FORM

 

CUSTOMER: LOAN: NAME:

FIELD

DESCRIPTION

DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Enter the customer number and press RETURN. If you do not know the customer number, press RETURN only; the system positions to the LOAN prompt.

Enter the loan number. The system displays the customer name and the first portion of the loan record. The following screen is a sample of the display.

PUT IN A SAMPLE OF THE INSTALLMENT LOAN CHANGE FORM

 

 

 

 

 

To change an item on the screen, enter the corresponding field number and press RETURN. The system positions to the DATA portion of that field. Backspace to the beginning of the field, enter the correct data, and press RETURN. The system returns to the ENTER prompt.

To display the next portion of the loan record, enter 0 and press RETURN. The next screen is displayed with the cursor positioned to the ENTER prompt. The following screen is a sample of the display.

ANOTHER INSTALLMENT LOAN CHANGE FORM PLEASE

 

 

 

 

To display a different loan, enter 99 and press RETURN. The system clears the screen and displays the loan change form.

To terminate the procedure, perform an ESCAPE. The system returns to the Installment Loan menu.

 

6.3.3 TRANSACTION

This procedure is used to post transactions that are stored in the Transaction file. The Transaction file is then used to print the Transaction Journal and to prepare the Customer Ledger.

This procedure performs a variety of functions based on the specified transaction code. The Installment Loan transactions are:

 

Code

Transaction

Code

Transaction

11

Advance

40

Payment

20

New Note Reversal

41

Miscellaneous Credit

21

Advance Reversal

43

Interest Payment

30

Payment Reversal

44

Interest Waiver

31

Miscellaneous Debit

45

Late Fee Payment

33

Interest Payment Reversal

46

Payment

34

Additional Interest Charge

47

Payment

36

Payment Reversal

48

Payment

37

Payment Reversal

49

Payment

38

Payment Reversal

50

Extension

39

Payment Reversal

55

Late Fee Waiver

 

From the Installment Loan menu, enter 11 for Transaction. The system displays:

Customer Number: [ ] 

Enter the customer number and press RETURN. You can press RETURN only to enter the transaction by loan number.

When a customer number is entered, the system displays the customer information. The following screen is a sample of the display.

PUT IN A SCREEN HERE

 

 

 

The system then displays the prompt:

Loan Number: [ ] 

Enter the loan number and press RETURN. The system displays the loan information. The following is a sample of the display.

ENTER A SAMPLE SCREEN

 

 

 

The system then displays the prompt:

Transaction Code: [ ] 

Enter the desired transaction code and press RETURN. After the transaction code is specified, the system displays a series of prompts. The prompts that are displayed depend on the specified transaction code.

At this point, two other options are available:

To enter a transaction for a different loan for this customer enter 99 and press RETURN. The system returns to the customer display and requests another loan number.

To enter a transaction for another customer, press RETURN only. The system clears the screen and displays the Customer Number prompt.

 

6.3.4 ACTIVITY SUMMARY

This procedure is used to review the current status of installment loan activity. This procedure displays a list of all the various transaction types and shows the number and amount of each transaction type entered thus far today and for the previous day. Also, the display shows the loan balance as of the last transaction and as of the last close of business.

From the Installment Loan menu, enter 12 for Activity Summary. The system automatically displays the activity summary on the screen, as follows:

 

PUT IN AN ACTIVITY SUMMARY HERE

  

 

 

 

 

 

After viewing the Activity Summary screen, press RETURN to return to the Installment Loan menu.

6.3.5 CHANGE ACCRUAL DATE

The Change Accrual Date procedure changes the accrual dates in the system control record. This procedure is only used at installation time prior to entering loans and transactions for first day processing.

CAUTION: Changing the accrual dates can affect the bank accruals. Therefore, only use this procedure as directed.

 

From the Installment Loan menu, enter 13 for Change Accrual Date. The system displays:

LAST ACCRUE DATE: MM/DD/YYYY [ ]

 

NEXT ACCRUE DATE: MM/DD/YYYY

 

The dates that are displayed are the current dates that exist in the system control record.

To change the last accrue date, perform a DELETE to position to the beginning of the field. Then enter the correct date in MM/DD/YYYY format.

To change the next accrue date, perform a DELETE again to position to the beginning of the field. Then enter the correct date in MM/DD/YYYY format.

The system displays the prompt:

ARE YOU SURE? [ ]

If your entries are correct, enter YES and press RETURN. The system displays the message CHANGED momentarily and then returns to the Installment Loan menu.

NOTE: This procedure only changes the dates in the control record, not the current active date in the system. To change the active system date, you must return to the BANCADO main menu (selection 99) and then return to the Installment Loan menu.

To terminate the procedure without changing the dates, press RETURN only. The system returns to the Installment Loan menu.

6.3.6 EARNINGS MAINTENANCE

This procedure is used to access records in the Earnings file. The Earnings file is automatically maintained by the system, and records in the file are used to print performance reports.

This procedure allows you to view and/or modify records that exist in the Earnings file. Also, when installing the Installment Loan system, you can create records of historical data to be added to the Earnings file.

From the Installment Loan menu, enter 14 for Earnings Maintenance. The system displays the following screen:

ENTER MONTHLY EARNINGS RECORD MAINTENANCE SCREEN HERE

 

 

 

 

 

Enter the Office, Type, Dealer, Code, Year, and Month of the record. After you key each field and press RETURN, the system positions for entry of the next field.

Deleting or Modifying a Record

If the record exists, the system displays the data stored in the record and then displays the prompt:

DELETE? (Y/N) : [ ]

 

To delete the record, enter Y and press RETURN. The system returns to the Office field for entry of another earnings record.

To modify the record, enter N and press RETURN. The system positions to each field in the record for corrections. To skip a correct field, press RETURN only. After the last field is processed, the system returns to the Office field for entry of another earnings record.

NOTE: If you CANCEL or ESCAPE before the last field has been processed, the record is not changed on disk.

If the record was requested for inquiry only, perform a CANCEL after viewing the record. The system returns to the Office prompt for entry of another earnings record.

At any time, perform an ESCAPE to terminate the procedure. The system displays the Installment Loan menu.

Creating a Record

If the specified record does not exist, the system positions to each field for entry of the detail figures. Enter the correct amount and press RETURN. After yoiu key each amount and press RETURN, the system positions to the next field.

At anytime, you can perform a CANCEL and the system returns to the Office prompt without creating the earnings record.

Perform an ESCAPE to terminate the procedure. The system displays the Installment Loan menu.

 

6.4 INSTALLMENT LOAN REPORTS

The Installment Loan system produces a variety of reports. Most reports can be generated on an optional basis, with the exception of the Transaction Journal. The Transaction Journal must be generated as an update run at the end of each day after all activity has been entered. When this report is generated as an update, the system date is advanced and the necessary interest and insurance calculations are made.

 

 

Function Selection

 

Throughout this section you will be asked to select a particular function from the REPORTS portion of the Installment Loan menu. The following is an example of this portion of the menu.

 

REPORTS

Transaction Journal

Trial Balance

Payoff Forecast

Past Due Report

Paid Out Report

New & Extended Report

Performance Reports

Call Report

Allocation Report

Delinquency Report

Delinquent Earnings

 

6.4.1 TRANSACTION JOURNAL

This report is a journal of the transactions entered for the current day. Optionally, this procedure updates the interest accrual for the day in the Installment Loan file.

Normally, a Transaction Journal is printed once each day, and at lease one update run per day is required for proper interest accrual. Because the file update portion of the procedure is optional, a Transaction Journal can be produced without the update option at any time during the day to indicate the current status of transaction activity for the day.

From the Installment Loan menu, enter 20 for Transaction Journal. If the system date is not the same as the next scheduled accrual date, the system starts to print the Transaction Journal and displays the Installment Loan menu.

When the system date is the correct accrual date, the system displays the prompt:

Is this an update run? (Y/N): [ ]

 

Update run

To update the interest accrued for the day, enter YES and press RETURN. The system displays the prompt:

Today is mm/dd/yyyy. Enter next working date: [ ] 

Enter the next date that the bank will be open. The system then determines the number of days for which interest is to be accrued.

To cut off a month, quarter, or year in the middle of a weekend, you can run a separate update for the portion of the weekend after the cutoff in order to obtain an accurate cutoff on accruals.

After the date is specified, the system prints the Transaction Journal.

CAUTION: If, if some reason, the report does not complete, you must not restart the procedure. You must reload backup files and start the procedure from the beginning.

 

Print-Only Run

To print the Transaction Journal without updating the accrual date, enter NO in response to the Is This An Update Run? prompt.

The system starts to print the report and displays the Installment Loan menu.

PUT AN INSTALLMENT LOAN TRANSACTION JOURNAL HERE

 

6.4.2 TRIAL BALANCE

This report prints a Trial Balance of all outstanding installment loans. The Trial Balanmce can be generated in the following sequences:

Bank totals are printed at the end of the report. For reports that are printed in customer number or name sequence, totals are printed for each customer.

Normally, a trial balance is printed after the Transaction Journal procedure performs an update. Thus, the Trial Balance is run at the close of business each day, and the report can be saved for bank records.

Because the Trial Balance procedure does not update any disk files, the report can be printed at any time during the day. When the procedure is run prior to the Transaction Journal update run, the principal balances shown on the report are current as of the time of the run, but the interest balances are current as of the close of the preceding business day.

From the Installment Loan menu, enter 21 for Trial Balance. After selection of 21, the system requests the sequence in which to print the report, as follows:

ENTER SEQUENCE: [ ]

Active Loans by Name

Active Loans by Customer Number

Active Loans by Loan Number

Active Loans by Name with Dealer

Active Loans by Customer Number within Dealer

Active Loans by Loan within Dealer

All Loans by Name

All Loans by Customer Number

All Loans by Loan Number

All Loans by Name within Dealer

All Loans by Customer Number within Dealer

All Loans by Loan Number within Dealer

Enter the number of the desired sequence and press RETURN.

The system starts to print the Trial Balance in the specified sequence and displays the Installment Loan menu.

PUT A COPY OF THE INSTALLMENT LOAN TRIAL BALANCE HERE

 

6.4.3 PAYOFF FORECAST

The Payoff Forecast is a listing of all precomputed interest loans. This report shows the current balance and payoff, and the new payoff after the anniversary date of the loan.

Normally, the Payoff Forecast is printed on a monthly basis. The report is used as a reference for inquiries about early loan payoff.

From the Installment Loan menu, enter 22 for Payoff Forecast. After selection of 22, the system requests the sequence in which to print the report, as follows:

PAYOFF FORECAST SEQUENCE: [ ]

Customer Sort Key

Loan Number

Customer Number

Enter the number of the desired sequence and press RETURN.

The system starts to print the report and displays the Installment Loan menu.

PUT A PAYOFF FORECAST HERE

 

6.4.4 PAST DUE REPORT

This report lists all loans that are past due according to a specified date. The operator specifies the past due date. The report can be prepared in alphabetical order including all past due loans or just new past due loans, or it can be printed by dealer.

If a customer has more than one loan past due, the customer=s totals are shown and bank past due totals are printed at the end of the report.

Loans and totals are printed in the following categories:

From the Installment Loan menu, enter 23 for Past Due Report. After selection of 23, the system requests the type of report to be printed as follows:

Alphabetic Delinquency List

Dealer Delinquency List

New Delinquency List

[ ]

 

Enter the number of the desired sort sequence and press RETURN. If report type 1 or 3 is requested, the system displays the prompt:

Spread B-Balances or P-Payments: [ ]

Enter a B or a P depending on the type of past due spread desired and press RETURN.

If report type 1 or 2 is requested, the system displays the prompt:

Delinquent loans were due prior to: [ ]

Enter the appropriate date in the form MM/DD/YYY. The system begins printing the report and then displays the Installment Loan menu.

If report type 3 is requested, the system displays the prompt:

New Delinquencies were due between [ ]

Enter the appropriate date in the form MM/DD/YYYY and press RETURN. The system displays:

and [ ]

Enter the last date of the time period desired in the form MM/DD/YYYY and press RETURN. The system begins printing the report and displays the Installment Loan menu.

I/L PAST DUE REPORT HERE

 

6.4.5 PAID OUT REPORT

This report lists all loans that were paid off either today or so far this month. The operator selects which payoff period is to be printed.

This report can be printed at any time. Normally, it is printed at the end of each business day and at the end of each month.

From the Installment Loan menu, enter 24 for Paid Out Report. After selection of 24, the system requests which period is to be reported, as follows:

DAILY OR MONTHLY REPORT? (D OR M) [ ]

Enter D to list all loans paid off today; enter M to list all loans paid off this month. Press RETURN.

The system starts to print the report and displays the Installment Loan menu.

PUT PAID OUT REPORT HERE

 

6.4.6 NEW AND EXTENDED REPORT

This report lists all loans that were entered and/or extended either today or so far this month. The operator selects which period is to be printed. The report shows all new loans, all extended loans, and all rewritten loans.

This report can be printed at any time. Normally, it is printed at the end of each business day and at the end of each month.

From the Installment Loan menu, enter 25 for New and Extended Report. After selection of 25, the system requests which period is to be reported, as follows:

DO YOU WANT A DAILY OR MONTHLY REPORT?

ENTER D OR M: [ ]

 

Enter D to list all new, extended, and rewritten loans that were processed today. Enter M for all new, extended, and rewritten loans processed so far this month. Press RETURN.

The system begins printing the report and displays the Installment Loan menu.

PUT MONTHLY NEW AND EXTENDED REPORT HERE

PUT MORE NEW AND EXTENDED REPORT HERE

 

6.4.7 PERFORMANCE REPORTS

This report prints information from the earnings records stored in the Earnings file. These earnings records summarize loan data and are categorized by office or branch, loan type, dealer, and user-assigned code. These records are used by the system to track new loans, earnings, and rebates.

The Performance Reports print the summarized data from the Earnings file for any specified time period. The time period is defined by a range of dates.

Normally, Performance Reports are generated on a monthly basis. Because any range of months can be specified by the operator, the reports can also be generated for monthly, quarterly, semi-annual, and annual periods.

From the Installment Loan menu, enter 26 for Perforrmance Reports. After selection of 26, the system requests the type of information to be reported, as follows:

ENTER REPORT CODE: [ ]

New Loans

Earnings

Rebates

Enter the number of the desired data and press RETURN. The system request the time period to be reported:

Include loan earnings from [ ] (mm/yy) through (mm/yy) inclusive

Enter the first month to be included in the report in MM/YY format; press RETURN. Enter the last month to be included in the report in MM/YY format; press RETURN.

The system begins to print the report and displays the Installment Loan menu.

PUT SAMPLE PERFORMANCE REPORTS HERE

 

6.4.8 CALL REPORT

This report lists all loan totals sorted by Federal Reserve call code. The report includes the past due totals for the following categories:

    • 1 to 30 days past due
    • 31 to 60 days past due
    • 61 to 90 days past due
    • 91 to 120 days past due
    • Over 120 days past due

The Call Code report can be generated whenever a request is made for the information.

From the Installment Loan menu, enter 27 for Call Report. After selection of 27, the system begins printing the Call Report and displays the Installment Loan menu.

PUT A COPY OF THE CALL REPORT HERE. ALSO, I THINK THERE ARE ADJUSTMENTS TO THIS

 

6.4.9 ALLOCATION REPORT

This report lists all loans sorted by dealer and customer. The report lists the terms and amount of each customer=s loan and the total and monthly allocation figures.

From the Installment Loan menu, enter 28 for Allocation Report. The system displays the prompt:

Enter Report Sequence, Month, Year:

Customer Sort Key Within Dealer

Customer Number Within Dealer

Enter 1 or 2 for the desired report sequence, month (MM), year (YYYY).

 

The system starts to print the report and displays the Installment Loan menu.

PUT ALLOCATION REPORT HERE

 

6.4.10 DELINQUENCY REPORT

The Delinquency Report is a summary listing of loans that are delinquent. The loans are sorted by office and dealer.

From the Installment Loan menu, enter 29 for Delinquency Report. The system starts to print the report and displays the Installment Loan menu.

PUT DELINQUENCY REPORT HERE

 

6.4.11 DELINQUENT EARNINGS

The Delinquent Earnings report lists the amount of loans delinquent over a period of six months. The report is sorted by office and dealer.

From the Installment Loan menu, enter 30 for Delinquent Earnings. The system starts to print the report and displays the Installment Loan menu.

PUT DELINQUENT EARNINGS REPORT HERE

 

6.5 CUSTOMER NOTICES

The Installment Loan system produces customer notices that are sent directly to the customer. Four types of notices are generated:

 

Advance Notices

Late Notices

Delinquency Notices

Annual Interest Notices

Advance, Late, and Delinquency notices are normally produced once a week. The Annual Interest Notices are normally generated once a year, at the end of the year.

 

 

Function Selection

 

Throughout this section you will be asked to select a particular function from the CUSTOMER NOTICES portion of the Installment Loan menu. The following is an example of this portion of the menu:

 

CUSTOMER NOTICES 

Advance Notices

Late Notices

Delinquency Notices

Annual Interest Notices

6.5.1 ADVANCE NOTICES

This procedure prints notices of loan payments coming due. These notices can be mailed directly to the customer. You can print notices each day for a single date in the future, or you can print notices on a weekly basis for mailing in batches. Advance Notices will not be printed for loans with payments due monthly or weekly.

The system does not control the scheduling of advance notices. Therefore, it is recommended that you keep a chart showing the notices that have been printed and mailed. The following is an example of a usable chart:

From (Date)

Through (Date)

Printed On

By

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From the Installment Loan menu, enter 40 for Advance Notices. After selection of 40, the system displays the prompt:

PRINT ADVANCE NOTICES FOR PAYMENTS DUE BETWEEN: [ ]

Enter the dates of the time period for which notices of payments coming due are to be printed. Enter the first date in MM/DD/YYYY format and press RETURN. The system displays:

AND [ ] 

Enter the second date in MM/DD/YYYY format and press RETURN. The system displays the message:

INCLUSIVE 

The system begins printing the notices and displays the Installment Loan menu.

 

PUT IN A COPY OF A NOTICE

 

6.5.2 LATE NOTICES

This procedure prints notices of past due payments. First and second late notices are prepared by this procedure and normally are generated on a weekly basis. These notices can be mailed directly to the customer.

The system does not control the scheduling of late notices. Therefore, it is recommended that you keep a chart showing the notices that have been printed and mailed. The following is an example of a usable chart:

First Notice Second Notice

From

(Date)

Through

(Date)

From

(Date)

Through

(Date)

Printed

(Date)

By

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From the Installment Loan menu, enter 41 for Late Notices. After selection of 41, the system displays the prompt:

Print Late Notices for Payments due Between: [ ]

 

Enter the dates of the time period for payments due which late notices are to be printed. Enter the first date in MM/DD/YYYY form and press RETURN. The system displays the prompt:

AND [ ]

 

Enter the last date in MM/DD/YYYY form and press RETURN. The system displays the message:

INCLUSIVE

 

The system prints a sample notice on the printer for form alignment and displays the prompt:

IS THE FORM ALIGNED? (Y/N): [ ]

Enter Y to start the printing of the late notices. Enter N to re-align the forms.

The system begins printing the late notices and displays the Installment Loan menu.

PUT IN SAMPLE LOAN NOTICE

 

6.5.3 DELINQUENCY NOTICES

This procedure prints notices of delinquent payments and calculates delinquency charges. The notices are normally generatedf on a weekly basis. These notices can be mailed directly to the customer.

The system does not control the scheduling of delinquency notices. Therefore, it is recommended that you keep a chart showing the notices that have been printed and mailed. The following is an example of a usable chart:

Delinquency Notices

From (Date)

Through (Date)

Printed On

By

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From the Installment Loan menu, enter 42 for Delinquency Notices. After selection of 42, the system displays the following prompt:

LOAN DELINQUENCY NOTICES

Print Notices and access late fees for payments due between ________ and ________ Inclusive. 

Late Charge Rate: Minimum Charge:

Maximum Charge: Post Charges (Y/N): [ ]

Enter the dates of the time priod for which delinquency notices are to be printed in MM/DD/YYYY format and press RETURN.

Enter the late charge rate, minimum charge, and maximum charge to be accessed. Press RETURN only if a charge is not required.

In response to the Post Charges prompt, enter Y if the late charges are to be posted to the delinquent accounts. Otherwise, enter N.

The system prints a sample notice on the printer for form alignment and displays the prompt:

IS THE FORM ALIGNED? (Y/N): [ ]

Enter Y to start printing the notices. Enter N to re-align the form.

The system begins printing the delinquency notices and displays the Installment Loan menu.

PUT SAMPLE HERE

 

6.5.4 ANNUAL INTEREST NOTICES

This procedure prints notices of the annual interst paid by a customer. The notices can be mailed to the customer at the end of each year. This procedure should be performed after all transactions for the year have been processed.

From the Installment Loan menu, enter 43 for Annual Interest Notices. After selection of 43, the system displays the following prompt:

Is nnnn the year for the report?

 

Where nnnn represents the current system year.

If the year is correct, type YES. If the year is incorrect, type NO.

When a no response is entered, the system displays the prompt:

What is the year? [ ]

 

Enter the correct year in YYYY form.

The system begins printing the Annual Interest Notices and displays the Installment Loan menu.

PUT SAMPLE HERE

6.6 FILE INQUIRIES

The Installment Loan system provides the following functions for file inquiries. 

 

 

Function Selection

 

Throughout this section you will be asked to select a particular function from the INQUIRIES portion of the Installment Loan menu. The following example illustrates the INQUIRIES portion of the Installment Loan menu.

 

INQUIRIES

Customer/Loan Inquiry

Customer Ledger

 

6.6.1 CUSTOMER/LOAN INQUIRY

The Customer/Loan Inquiry displays a specific customer. The system displays customer information, numbers, and balances for requested customer accounts.

Inquiries are made by specifying the customer number of the desired customer. If the request is made using customer number, the system then requests whether data for a specific loan is to be displayed.

NOTE: This procedure is exactly the same as the Inquiry procedure which is selected as option number 2 from the CIF portion of the Installment Loan menu.

From the Installment Loan menu, enter 5 for Customer/Loan Inquiry. After selection of 5, the system displays the prompt:

Customer Number? [ ]

Enter the number of the customer to be displayed. The system displays the information from the customer record. The following screen is a sample of the information displayed.

PUT SAMPLE OF SCREEN

 

 

 

 

 

 

The system then requests whether the detail for a particular installment loan is to be displayed. The system prompts:

Loan Number: [ ]

 

This procedure also allows you to process a transaction against the specified loan. After the loan information is displayed, the system displays the prompt:

Transaction Code: [ ]

 

To change customers, press RETURN only. To return to this customer=s CIF display, enter 99 and press RETURN. To enter a new transaction, refer to Section 6.3.3 for a description of transaction entry.

When all inquires have been made, perform an ESCAPE operation to return to the Installment Loan menu.

 

6.6.2 CUSTOMER LEDGER

The Customer Ledger procedure prints a report showing account activity for a particular customer.

From the Installment Loan menu, enter 6 for Customer Ledger. After selection of 6, the system displays the prompt:

Enter 1 for entire customer or 2 for single loan.

 

Enter the number for the type of ledger required and press RETURN. The system displays the prompt:

Enter 1 for print or 2 for display.

 

Enter the number of the type you desire and press RETURN. The system then displays:

Customer Number: [ ]

 

Enter the number of the customer to be reported. If you requested a single loan, the system prompts:

Loan Number: [ ]

 

Enter the number for the loan to be reported and press RETURN.

If you requested that the ledger be displayed on the screen, press RETURN. The system displays the ledger on the screen. The following screen is an example of the information displayed:

PUT SAMPLE OF SCREEN HERE

 

  

After viewing the data, press RETURN to return to the Customer Ledger prompts. If you requested the ledger be printed, the system prints the requested customer ledger and returns to the Installment Loan menu.

PUT SAMPLE OF CUST LEDGER HERE

 

6.7 UTILITIES

The Installment Loan system includes a set of utility procedures that are used to maintain the system files. These utility programs include procedures to: 

This section describes the steps necessary to complete the above functions.

 

 

 

Function Selection

 

Throughout this section you will be asked to select a particular function from the BANCADO UTILITIES menu. The BANCADO UTILITIES menu is selected from the UTILITIES portion of the Installment Loan menu. The following is an example of the UTILITIES portion of the Installment Loan menu:

 

UTILITIES

Utilities

JUST ASK II

Change Applications

This section describes selection 96. Selection 98 calls up the JUST ASK II system, which is used to generate reports; the JUST ASK II system is documented in the CADO JUST ASK II User=s Manual. Selection 99 causes the system to display the BANCADO main menu.

 

The following is a sample of the BANCADO UTILITIES menu:

 

BANCADO UTILITIES

  1. Display File Status
  2. Compress File
  3. Edit Control Records
  4. Delete Old Earnings Records
  5. Delete Paid Loans
  6. Print and Purge Old History
  7. Build Lookup File
  8. Just Ask II
  9. Change Applications

 

 

Selection 8 and 9 are the same as selections 98 and 99 from the UTILITIES portion of the Installment Loan menu. Selection 8 call up the JUST ASK II system; selection 9 causes the system to display the BANCADO Main menu.

6.7.1 DISPLAY FILE STATUS

This utility produces a display of information about any desired data file. This information can be used to learn whether the file needs to be compressed or resized. In exceptional cases, the information may also indicate that data records have been lost.

A file status table, with sample figures, is shown in Figure 6.19.

PUT SAMPLE HERE

The DEFINED section of the table lists numbers that were specified when the file was defined, as follows:

# RECORDS Maximum number of record keys in the file.

KEY LENGTH Search key length.

AV REC LENGTH Average record length.

FILE START File start location (drive and track).

FILE END File end location (drive and track).

The ACTUAL section of the table indicates the current condition of the file as follows:

NORMAL Number of normal records in the file, the number of data bytes used by these records, and the average data length of the records in the file.

OVERFLOWED Number of overflowed and overflow records, the number of data bytes

OVERFLOW used by overflowed records, and the average record length of overflowed records.

DELETED Number of records deleted and amount of data spaces in bytes rendered unusable by record deletion and updating.

AVAILABLE Amount of space available in the file, including the number of available record keys (COUNT) and number of available bytes. AVG is the average number of bytes in each record if the total number of available records keys are defined in the available space.

Note that the ACTUAL figures for a sort file are meaningless; in any case, a sort file should never require maintenance.

The ACTUAL data in the File Status report is used to determine whether or not a file needs compression, is approaching full capacity, or contains damaged data. A file needs compression if the numbers OVERFLOWED and/or DELETED bytes are large compared to the AVAILABLE bytes.

A file is approaching full capacity if, immediately after compressing the file, the AVAILABLE count and bytes are small compared to the NORMAL count and bytes. The AVAILABLE count gives the maximum number of records that can still be added to the file.

An overflow occurs when an attempt is made to write a record on a track and there is room for the key portion, but there is not room for the data portion of the record. The kye, which is marked as an OVERFLOW record, points to the OVERFLOWED record, which is placed on the next track with room for both the key and data portions of the record.

A file contains data that has been damaged if the OVERFLOWED and OVERFLOW counts are not equal. If these counts are unequal, data has probably been lost from the file.

From the Installment Loan menu, enter 96 for Utilities. From the BANCADO UTILITIES menu, enter 1 for Display File Status.

The screen displays a blank file status table and waits for you to enter a file number. Enter the number of the desired file, as follows:

0 System Control File

1 Customer Information File

2 Commercial Loan File

3 Installment Loan File

4 Installment Loan Earnings File

5 Certificates of Deposit File

6 Deposit Account File

7 Transaction File

8 Name Lookup File

9 Lookup File

The system fills in the file status table for the specified file. If the system completes only the upper half of the table, the data diskette that contains the file is not mounted correctly.

After viewing the file status, press RETURN to request the status of another file, or perform an ESCAPE to return to the Installment Loan menu.

 

6.7.2 COMPRESS FILE

Routine file editing procedures, such as deleting records or changing record lengths, can create temporarily unusable storage area in a data file. As a consequence, the time required to retrieve records and the likelihood of overflowing the file are increased. The Compress File utility rearranges data space, reclaiming most of the unusable area.

The Display File Status utility is available to indicate whether a file needs compression. However, there is no harm in compressing a file which does not actually need it, and compression is generally run as a routine maintenance procedure. Some application programs may compress files automatically.

File compression is one of the operations that can damage data if interrupted by the operator or by hardwar failure. It is best to obtain a backup immediately before compressing a file.

NOTE: The Sort file, File 9, cannot be compressed.

From the BANCADO UTILITIES menu, enter 2 for Compress File. The system displays:

FILE COMPRESSION

 

ENTER FILE NO. [ ]

 

Enter the number of the desired file. The system compresses the file. Upon completion, the system displays:

DONE 

Press RETURN to use this utility again or perform an ESCAPE to return to the Installment Loan menu.

 

6.7.3 EDIT CONTROL RECORDS

This utility is used only by your CADO representative during system installation and during program updates. This utility is used to create and/or update special control records. These special control records store bank control information, such as bank totals and transaction totals.

The special control records are maintained in the Transaction file, File 7.

From the BANCADO UTILITIES menu, enter 3 for Edit Control Records. The system displays the current bank totals. For each total, press RETURN to accept the value or enter a new value. The following screen is a sample of the display:

CURRENT INTEREST DUE INTEREST BEARING:

YESTERDAY=S INTEREST DUE INTEREST BEARING:

CURRENT BALANCE:

YESTERDAY=S BALANCE:

 

The system displays the transaction codes and descriptions. For each item, press RETURN to accept the code or enter a new code. The following screen is a sample of the display:

TC: 40

DESCRIPTION: Payments:

 

When all modifications are complete, enter a transaction code of 0. The system displays the Installment Loan menu.

 

6.7.4 DELETE OLD EARNINGS RECORD

This utility deletes monthly earnings records. Because the user is responsible for determing the amount of time that earnings are to reemain on file, the system does not automatically delete earnings records. Earnings are deleted by date; that is, all monthly earnings records prior to a specified date are deleted.

From the BANCADO UTILITIES menu, enter 4 for Delete Old Earnings Records. The system displays the prompt:

6/23/1997 MONTHLY EARNINGS RECORD DELETION

 

Delete Monthly Earnings Records Prior To: [ ]

 

Enter the date of the most recent monthly earnings records to be deleted from the file. The system automatically deletes all monthly earnings records prior to the specified date.

Upon completion, the system prints a message on the printer showing the number of original earnings records in the file, less the number of records deleted, as well as the message:

PLEASE COMPRESS FILE 4

 

The system then displays the Installment Loan menu.

 

6.7.5 DELETE PAID LOANS

This utility deletes paid loans. Because the user is responsible for determining the amount of time that a loan is to remain on file, the system does not automatically delete paid loans. Loans are deleted by date; that is, all loans that were paid prior to a specified date are deleted. The Delete Paid Loans program only deletes zero-balance loans after the interest for the current year is zeroed. Thus, annual interest notices are always accurate.

Note that deleting paid loans does not affect the preparation of a customer ledger. The customer ledger is prepared using the customer transactions only.

From the BANCADO UTILITIES menu, enter 5 for Delete Paid Loans. The system displays the prompt:

DELETE LOANS PAID OUT ON OR BEFORE: [ ]

 

Enter the date of the newest paid loan to be deleted from the file. The system automatically deletes all loans that were paid prior to the specified date.

The system then automatically compresses the Installment Loan fiel. The system displays the number of loans deleted followed by the current date.

Press RETURN to display the Installment Loan menu.

 

6.7.6 PRINT AND PURGE OLD HISTORY

This utility is used to delete transactions from the Transaction file. All transactions for paid out or deleted loans are deleted.

The system first prints a list of all transactions that will be deleted by this utility. You then have the option of deleting the transactions or terminating the procedure.

Depending on available disk space and file size, transactions can be retained for several years prior to deletion.

From the BANCADO UTILITIES menu, enter 6 for Print and Purge Old History. After selection of 6, the system displays the following prompt:

Date of Report: MM/DD/YYYY [ ]

 

Press RETURN to accept the displayed date as the date of the oldest transaction history to be retained on the file or enter the correct date in MM/DD/YYYY form. The system briefly displays the message:

Sorting

 

followed by the message:

Merging

 

and then the message:

Printing History

 

The system prints the history to be deleted and displays the prompt:

Do you want to delete the printed transactions? (Y/N): [ ]

Enter Y to delete the transaction history, enter N to retain the transaction on the file. When a yes response is entered, the system deletes the specified transactions and reorganizes the remaining transactions in the file. As the system performs the deleting and reorganizing, the following messages are displayed on the screen:

Deleting Paid History

 

Rebuilding Transaction Lists

 

Upon completion, the system automatically displays the Installment Loan menu.

CAUTION: In the event of error or power failure, this utility must not be restarted until after recovery from backup.

6.7.7 BUILD LOOKUP FILE

This utility is used to initialize and reconstruct the Lookup files, Files 8 and 9. This utility is used only if the size of a Lookup file is increased.

The Lookup files contain records for each customer and each account. The records in the files are sorted by customer number and account number.

From the BANCADO UTILITIES menu, enter 7 for Build Lookup File. The system automatically initializes and rebuilds the files.

Upon completion, the system returns to the Installment Loan menu.

CAUTION: If this program is terminated due to file error or power failure prior to normal completion, the utility must be restarted and completed before any customer or account lookup can be performed.. 

END OF INSTALLMENT LOAN SECTION

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