TCCP - AAL - AA LOANS/LENDING

AAL - AA Loans Question and Answers

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Question: For certain loan products, a bank defines a Product Condition with a fixed amount ("S" interest day basis) in AA.PRD.DES.INTEREST. Which of the following is then True?

Answer: A specific interest amount should be manually entered on the payment schedule of the Arrangement for Interest property

Question: For their loan products, a bank wants to compound interest every two weeks. What value should a user specify in the COMPOUND.TYPE field in AA.PRD.DES.INTEREST?

Answer: WEEK2

Question: A Bank wants to charge a fixed interest of 6% on loan balance outstanding upto 25,000 and a floating interest of LIBOR plus 3% on the portion of amounts beyond. Is this possible to be set up?

Answer: Yes. The interest rate tier type should be set as Band

Question: A bank wants to define a Product Condition for Personal loans such that a customer may redraw the loan but only up to any amount that has been pre-paid before becoming due. How can this be defined in Term Amount ?

Answer: The REVOLVING field should have a default value of Prepayment

Question: The system date is 15th August 2010. A bank wants to define "Special Loans" whose arrangements mature on or before 15th August 2012. How can a suitable Product Condition be defined in AA.PRD.DES.TERM.AMOUNT?

Answer: This can be accomplished only through a Negotiation rule

Question: For "Car Loans" a bank wants to prohibit partial disbursements. The customer must withdraw the full amount of commitment during drawdown. How can this be specified in Term Amount ?

Answer: Periodic rule could be set for suitable Periodic attribute with a Break result of Error

Question: A bank is offering "Personal Loans" with a Non-Negotiable Term of 3 years. An arrangement is created on 01 Feb 2011 with the first drawdown on 12 Feb 2011 and the final drawdown on 20 Feb 2011. What will be the maturity date for these loans if BASE.DATE.TYPE is set as "AGREEMENT".

Answer: 1st Feb 2014

Question: A bank wishes to allow the committed Amount of an arrangement to be increased or decreased at any time as long as it is within a pre-defined percentage of the original commitment. How should it go about setting this condition in AA.PRD.DES.TERM.AMOUNT?

Answer: Appropriate Amount Increase Tolerance and Amount Decrease Tolerance Periodic Rules should be configured

Question: A bank would like to offer Term loans which base their interest rate on an index specified in PERIODIC.INTEREST. If there is no exact match corresponding to the term on the loan, then the Arrangement should choose the rate corresponding to the next higher period. How can this be indicated in Interest?

Answer: PERIODIC.METHOD should be set as NEXT

Question: A bank wants to compound interest once every 7 days for Loans. What should be the setup in COMPOUND.TYPE field?

Answer: WEEK1

Question: If a Bank opts for Negative rates in loans in AA, what will be the effect?

Answer: The Bank will receive interest if there is credit balance in loan account

Question: A US branch of a British bank wants to check that payments are due only on business days of both the US and GB for its Euro currency "Car" loans. Can this be configured in AA.PRD.DES.ACCOUNT ?

Answer: Yes. AA can be configured to check business days of any number of countries and regions by multi- valuing the BUS.DAY.CENTRES field

Question: A bank pays salary to its employees on the last working day of every month. It wants to set a condition that repayment of consumer loans given to its employees should be due on the salary date. How should it set the repayment frequency for these loans in AA.PRD.DES.PAYMENT.SCHEDULE?

Answer: Payment Frequency should be set as the Last day of every month. In addition, the Date Convention in AA.PRD.DES.ACCOUNT should be set as Backward

Question: A bank pays salary to its employees on the last Friday of every month. If that is a holiday, the salary is paid on the next working day. It wants to set a condition that repayment of consumer loans given to its employees should be due on the salary date. How should it set the repayment frequency for these loans in AA.PRD.DES.PAYMENT.SCHEDULE?

Answer: Payment frequency should be set as the Last Friday of every month. In addition, the Date Convention in AA.PRD.DES.ACCOUNT should be set as Forward

Question: A bank offers a loan product with a non-negotiable term of 3 years. For an arrangement created on 01 Feb 2008 with a first drawdown/disbursement on 12 Feb 2008 and a final drawdown/disbursement on 20 Feb 2008, what will be the Maturity Date?

Answer: 1st Feb 2011

Question: For "Car" loans a bank wants to establish a payment rule whereby a payment is always applied to the entire outstanding amount of bills in the following order; oldest to most recent. How should it define the condition in AA.PRD.DES.PAYMENT.RULES?

Answer: Application Type should be set to BILL.DATE and Application Order should be set to OLDEST.FIRST

Question: A bank has agreed to provide a customer with a Limit of USD 30,000 to cover two of his "Personal" loan arrangements. How should this be configured?

Answer: The bank should create one limit for USD 30,000. Using the Limit Property of each arrangement, it should set the SINGLE.LIMIT field to "No" and attach the Limit to each arrangement through the LIMIT.REF field

Question: A bank wishes to restrict the changing of Primary Owner to one of the other Owners of an arrangement. How can this be achieved?

Answer: This is not possible

Question: Which of the following is not true about an Activity Mapping Property?

Answer: It does not allow merging of Product Conditions between a child and parent product during proofing and publishing

Question: A bank wishes to apply any excess payment (amount received above any due amounts) to any bills which have been created but are not yet due. How can this be configured?

Answer: Yes, this is possible by setting the MAKE.BILL.DUE field of the appropriate Payment Rule Property to YES

Question: Once a bill ages and reaches a specific Overdue status, the bank desires to send notices to customers on a periodic basis. How can this be configured through the Overdue Property in AA?

Answer: Setup NOTICE.DAYS and NOTICE.FREQ fields to specify when the first notice is to be sent and how frequently to send a follow-up notice

Question: A bank does not want to age bills which have outstanding amounts of USD 50 and less. How can this be configured through the Overdue Property?

Answer: TOL.AMOUNT should be set to 50 and TOL.CCY field should be set to USD

Question: A bank does not want to age bills as long as the customer has repaid at least 95% of the due amount. How can this be configured through the Overdue Property?

Answer: The PAY.TOLERANCE field should be set to 5

Question: A bank has configured a Charge Product Condition with FREE.AMOUNT set to 50 and CALC.TYPE set to UNIT. The charge amount calculated for a customer is 75. What will be the final charge amount?

Answer: 25

Question: A bank has configured a Charge Product Condition with FREE.AMOUNT set to 50. The charge amount calculated for a customer is 25. What will be the final charge amount applied to the customer?

Answer: 0

Question: On which of the following occassions can charges be levied on an arrangement:

Answer: All of the above

Question: A bank would like to restrict repayments to 5 per year and disbursements to be permitted only in multiples of 100. Can this be configured?

Answer: This can be achieved by linking periodic rules to ACTIVITY.RESTRICTION product conditions

Question: For which of the following Activities, can a charge be configured, to be raised automatically?

Answer: All of the above

Question: Which of the following is true?

Answer: Activity Charges can be raised for non-transaction based Activities e.g. Change Payment Schedule

Question: Which of the following Activities should not be mapped to a Transaction Code?

Answer: LENDING-CALCULATE-PAYOFF

Question: The bank wishes to send out a notice whenever the CHASERFEE charge is raised. What do they link the advice to?

Answer: Issue Bill Activity for CHASERFEE

Question: A consultant has attempted to set up a new Activity Charge for a particular transaction code. Which of the following is not a part of the procedure?

Answer: Define a Payment Type for the Charge

Question: Overdue processing involves the concept of aging over time. What is the fundamental data entity that ages?

Answer: Bill

Question: Which of the following varieties of Payment Type requires multiple Properties to be specified for that payment type in the Payment Schedule?

Answer: Constant

Question: A bank desires that whenever a change in Payment Schedule results in installments exceeding the maturity date, the maturity date, should be reset automatically. How can this be achieved?

Answer: In the Payment Schedule Product Condition, set up the Activity in the ON.ACTIVITY field and set RECALCULATE to TERM

Question: What do you link in AA in order to specify a mandate for a Direct Debit?

Answer: Payment Type to DD Mandate

Question: A bank has set up various activity charges for a Product, e.g. Overdue fee, disbursement fee, etc. It wishes to allow customers to pay each type of charge using a different direct debit mandate, so that one mandate settles the overdue fee, and another settles the disbursement fee. What configuration ensures this?

Answer: This is not possible in AA. All Activity Charges must be settled using the same DD Mandate

Question: How do you extend the term of a loan after it is authorised

Answer: With LENDING-CHANGE.TERM-TERM.AMOUNT activity modify Term and do not clear Maturity Date

Question: A "Product.Only" Activity Charge property is configured to collect a fixed charge of 100 for New arrangement activity. What happens when the new arrangement is input?

Answer: Charge of 100 is billed

Question: An arrangement is in suspend status, a new bill ages from "DUE" status to "OD1" and the interest associated with the bill is 1000. What happens to the suspended interest amount?

Answer: Suspended amount moves to "OD1PROPERTYSP" balance from "DUEPROPERTYSP" balance

Question: For an annuity (constant) calculation type Arrangement, if the interest amount for a certain period is greater than annuity amount, which of the following is true?

Answer: Interest amount equal to the annuity amount calculated is made due for the period

Question: Payment Schedule for an Arrangement is setup as follows, PAYMENT.TYPE.1 - Interest.Only, PAYMENT.FREQ.1 - Every month 31, Property.1 - LoanInterest, PAYMENT.TYPE.2 - Interest.Spread, PAYMENT.FREQ.2 - Every month 31, PROPERTY.2 - LoanInterest. Arrangement start date is 01 Jan 2010:

Answer: An error message is produced for the definition

Question: When RESIDUAL.AMOUNT field in Payment Schedule is set as 10,000, the final amount to be repaid for an Annuity type of Arrangement will be:

Answer: Outstanding principal amount, plus the interest amount

Question: When NUM.PAYMENTS field is set to 3, START.DATE field is set to 31 Mar 2010 and the PAYMENT.FREQ field to Every month in a payment schedule and Arrangement value date is set to 28 Jan 2010, what will be the payment dates assuming DATE.CONVENTION field is set to "CALENDAR"?

Answer: 31 Mar 2010, 30 Apr 2010, 31 May 2010

Question: An arrangement is input on 01 Jan 2010. A Bill is issued on 15 Jan 2010 for the due date of 31 Jan 2010. PAYMENT.FREQ set to "Every Month End" is changed to "Every Week" on 15 Jan 2010. What happens to the bill issued?

Answer: Bill issued is not canceled and made due on 31 Jan 2010

Question: When a bill in OD1 AGING.STATUS is repaid in full, what will be the new aging status in AA.BILL.DETAILS:

Answer: SETTLED

Question: An arrangement is input on 15 Jan 2010 having TERM field - 6M in Term Amount and PAYMENT.FREQ field - Every month end in Payment Schedule. What will be the MATURITY.DATE and final payment date for the Arrangement?

Answer: 15 Jul 2010 and 30 Jun 2010

Question: An arrangement is input on 15 Jan 2010 having TERM - 6M in Term Amount, PAYMENT.FREQ - Every Month in Payment Schedule and DATE.CONVENTION set to "FORWARD" and DATE.ADJUSTMENT set to "PERIOD" in Account property. With 15th Feb, 16th Feb and 15th Mar as the only holidays, what will be the first 3 payment dates?

Answer: 17 Feb 2010, 16 Mar 2010, 15 Apr 2010

Question: When system does accruals, what is the effect on AA.ACTIVITY.HISTORY?

Answer: Accrual activity is not recorded in AA.ACTIVITY.HISTORY

Question: A bank wants to calculate charge amount based on the scheduled principal (Account) repayment amount, how should the charges be setup?

Answer: A user Charge calculation routine can only be used

Question: A bank wants to automatically settle the charges made due if there is any credit balance for the Arrangement in UNC Account balance type. A charge is setup to be collected when a "Periodic Rule" is broken, and be made due on the same day. What setup should be done to auto repay the charge made due?

Answer: Cannot be setup in AA

Question: A Bank wishes to adjust the Overdue Account balance to 0. Which activity (class) should be used to achieve this?

Answer: LENDING-ADJUST.BILL-BALANCE.MAINTENANCE

Question: Arrangement is configured to use Account sweep to settle dues. For a period, the payment amount due was 2000 which was settled through sweep. Interest rate of the Arrangement is changed to 12.5% from 10% from the VALUE.DATE of the Arrangement, which results in the due amount recalculated to 4000 and made-due. Assuming the funding account has 10000 credit balance what due amount will be settled?

Answer: Only 2000 would be repaid

Question: An Arrangement is linked to DD, what happens when the DD claim is rejected by the correspondent bank?

Answer: The associated repayment is reversed in AA

Question: A customer is issued with a payoff statement effective 30 Jun 2010 for an Arrangement schedule to mature on 31 Dec 2010. What happens when a new payoff statement is requested for 31 Jul 2010?

Answer: 30 Jun 2010 bill is deleted and a new payoff bill is created for 31 Jul 2010

Question: A bank wants to age any new bill based on the delinquency status of the Arrangement. How can this be setup?

Answer: Set AGE.ALL.BILLS to "YES" for all OVERDUE.STATUS in OVERDUE product condition

Question: An arrangement has unallocated credit balance of 1000 in UNC Account balance type. When a pay-off is requested what happens to UNC balance?

Answer: The pay-off amount will be calculated considering the credit balance

Question: A bank wants to adjust the outstanding amounts of an Arrangement that has CurAccount of 10000 NAB Account of 90000 to CurAccount as100000 and NAB Account as 0, how can this be achieved?

Answer: Use LENDING-ADJUST.ALL-BALANCE.MAINTENANCE to adjust the balances

Question: A bank wants to migrate the suspended interest amount of a bill in the legacy system into AA. Which activity should be used to capture this?

Answer: LENDING-CAPTURE.BILL-BALANCE.MAINTENANCE

Question: A bank wants to recalculate the payment amount on a predefined cycle what setup should be done to achieve this?

Answer: Set RECALC.FREQUENCY field in PAYMENT.SCHEDULE to the desired frequency and Set ON.ACTIVITY as LENDING-CALCULATE-PAYMENT.SCHEDULE and RECALCULATE as PAYMENT

Question: A bank wants to migrate existing loans into AA. Which of the following is not a recommended procedure?

Answer: Both 3 and 4

Question: A bank wants to simulate a pay-off which is effective after 3 instalments. The arrangement has delinquent bills, the customer wants to know the pay-off amount assuming the next 3 instalments as paid. What happens when "SETTLE.DUES" field is set to "YES" in Payoff?

Answer: Pay-off amount is calculated based on the settlement rules

Question: If CHANGE.PERIOD - 3M in CHANGE.PRODUCT, AMORTISATION.TERM - 25Y in PAYMENT.SCHEDULE, TERM - 5Y in TERM.AMOUNT what will be the value of PERIODIC.PERIOD in Interest property?

Answer: 3M

Question: What is the default SYSTEM.ID updated in STMT.ENTRY, CATEG.ENTRY, RE.CONSOL.SPEC.ENTRY for an AA transaction?

Answer: AAAA

Question: If Overdue is not setup to age Activity Charges, what will be the aging status of an Activity Charge type Bill

Answer: NULL

Question: What is true about LENDING-ACCRUE-INTEREST activity, assuming accruals are set to run daily?

Answer: Reuses a unique id for accruals created on AAA

Question: A Bank wants to levy a payoff charge ONLY when the actual payoff is done. How can this be done?

Answer: Attach an activity charge to LENDING-SETTLE-PAYOFF activity

Question: Bank ABC wants to provide penalty interest free period of 10 days (GRA overdue status) from the due date, and if the due is not settled within this period wants to charge interest rate from the due date for the overdue amount. How can this be achieved?

Answer: Setup EFFECTIVE.DATE as DUE for GRA status in OVERDUE

Question: An Arrangement has accrued until 31 Jan 2010 with first day accrual. Current system date is 05 Feb 2010, last payment date (make-due) date was 20 Jan 2010. If the interest is changed from 10% to 12.5% effective 01 Jan 2010, until what date accruals would have processed after reverse & replay processing?

Answer: 40209

Question: A Bank has captured accrual balance of 100 for LOANINTEREST property, the interest amount accrued from the period excluding the captured balance is 200 and the PAYMENT.AMOUNT is 300 for a CONSTANT type Arrangement. How much principal and interest would be made due on the payment date?

Answer: 300 Interest and 0 Account(Principal)

Question: What is true about BILLS.COMBINED field in PAYMENT.SCHEDULE?

Answer: Bills would be combined if PAYMENT.DATE, BILL.TYPE, BILL.DATE matches

Question: A bank wants to settle the current interest accruals before settling the overdue bills. How can this be configured?

Answer: Both 1 and 2

Question: Assume the following as the events on an arrangement which has daily accruals: 01-Jan - NEW arrangement 01-Jan - Disbursement 31-Jan - IssueBill for scheduled Payment - $1000 31-Jan - MakeDue for scheduled Payment - $1000 05-Feb - Ageing to OD1 10-Feb - Ageing to OD2 Current system date : 12-Feb When a repayment of $1000 is made effective 31-Jan, what happens in the system?

Answer: System will not replay the 05-Feb and 10-Feb activities after the payment is applied

Question: If a partial repayment of dues need to be simulated, where should the required repayment amount be specified?

Answer: In AA.SIMULATION.RUNNER for the ApplyPayment activity in Transaction amount

Question: For a Lending Arrangement, a Bank wants to debit the Savings Account for Principal amount due and Current Account for interest amount due. Is it possible to configure this in AA ?

Answer: Yes, it is possible to specify the settlement accounts of Current and Savings account in Settlement arrangement condition.

Question: For a lending arrangement, settlement account is specified in the settlement arrangement condition and the PAYIN.AC.DB.RULE (payin rule) is set as PARTIAL. The available balance in the settlement account is USD 7,000. However, an installment amount of USD 8,500 is due for the lending arrangement today. Now, what will happen to the due amount after COB in AA ?

Answer: USD 7000 would be debited and 1500 would be overdue

Question: For a lending arrangement, settlement account is specified in the settlement arrangement condition and the PAYIN.AC.DB.RULE (payin rule) is set as FULL. The available balance in the settlement account is USD 7,000. However, an installment amount of USD 8,500 is due for the lending arrangement today. Now, what will happen to the due amount after COB in AA ?

Answer: Entire installment amount USD 8,500 will be debited

Question: For a lending arrangement, settlement account is specified in the settlement arrangement condition and the PAYIN.AC.DB.RULE (payin rule) is set as NONE. The available balance in the settlement account is USD 7,000. However, an installment amount of USD 8,500 is due for the lending arrangement today. Now, what will happen to the due amount after COB in AA ?

Answer: Entire installment amount USD 8,500 will be overdue

Question: For a lending arrangement, settlement account is specified in the settlement arrangement condition and the PAYIN.AC.DB.RULE (Payin rule) is set as FULL and PAYIN.SETTLEMENT (Active Y/N?) is specified as NO. The available balance in the settlement account is USD 7,000 whereas the installment amount is due for USD 8,500 today. Now, what will happen to the due amount after COB in AA?

Answer: In this case, NO settlement will happen. The entire installment amount will be made as overdue.

Question: A Bank wants to change the primary owner of a Lending arrangement from Customer A to Customer B. Is it possible to achieve this in AA ?

Answer: Yes, it is possible to change the primary owner of a loan by triggering the activity Change Primary Customer.

Question: A Bank wants to create a special lending product leaving all fields in all the product conditions (whose property is not set as "product only"). as negotiable. Is it possible to configure such a lending product in AA?

Answer: Yes, it is possible by setting the value Yes in Default Negotiable field in all the product conditions of the lending product

Question: A Customer has both Deposit and Lending Arrangements in a Bank. Bank wants to link the deposit arrangement to fund the dues of Lending arrangement. Is it possible to achieve this in Arrangement ?

Answer: Deposit Account should be setup as settlement account for Loan in Settlement property

Question: Customer has a Savings Account in GBP currency in a Bank. Also, the Customer has taken a loan from the Bank in USD currency (lending arrangement). Customer now wants to use the GBP Savings Account as settlement account for repaying the loan. Is this possible in AA ?

Answer: Possible by setting up GBP account as settlement account in Settlement

Question: A Bank would like to set up a lending product with 7% interest for 70% of the loan amount and 9% for the remaining loan amount. Is it possible to configure this in AA ?

Answer: Yes, it is possible to configure this by appropriate set up in interest product condition (AA.PRD.DES.INTEREST)

Question: A Bank would like to set up a lending product with 4% interest for 75,000 of the loan amount and 6% for the remaining loan amount. Is it possible to configure this in AA?

Answer: Yes, it is possible to configure this by appropriate set up in interest product condition (AA.PRD.DES.INTEREST)

Question: A Customer has Current account, Savings account and Lending Arrangement. He always wants to use the Current account as the settlement account and only when it does not have sufficient funds, then the savings account should be used for settling the dues of the loan. Is it possible to configure this in AA ?

Answer: Yes, it is possible to configure this by appropriate input in Settlement property

Question: A Bank has booked an arrangement and also the commitment amount has been disbursed fully. The loan start date is 1 January 2011 and the maturity date is 1 January 2012. The bank wants the repayment of the loan to start four months from the loan maturity date. Is it possible to achieve this in AA ?

Answer: Yes, it is possible achieve this by appropriate input in RELOPTIONS, RELOFFSET AND RELDURATION in START.DATE in Payment schedule arrangement condition.

Question: A bank wants to report their loans based on their renewal periods, and not on the maturity date. Is this possible and how?

Answer: Use REPORT.END.DATE as part of the consol key along with VALUE.DATE

Question: A bank wants to start their regular loan payments of Annuity amount, 2 months after Disbursement of loan, what should be the ideal PAYMENT.SCHEDULE setup

Answer: Use DatePlus control and set START.DATE as START plus 2M

Question: A bank wants to debit an internal account rather than debiting PL category when the bill made due in their legacy system is taken over and suspended how could this be achieved

Answer: Setup AC.ALLOCATION.RULE to debit internal account for INTEREST-SUSPEND-DUE-TAKE.OVER AC.EVENT

Question: When a limit reference with REDUCING.LIMIT set to Y is linked to Arrangement where REVOLVING flag is set to "PAYMENT" and UPDATE.COMMT.AMT is set to YES, what will be COMM.AMT.AVAIL in LIMIT record after LENDING-NEW-ARRANGEMENT

Answer: An error message is raised

Question: When a limit reference with REDUCING.LIMIT set to Y is linked to Arrangement where REVOLVING flag is set to "PAYMENT" and UPDATE.COMMT.AMT is set to NULL, what happens to COMM.AMT.AVAIL in LIMIT record after LENDING-NEW-ARRANGEMENT

Answer: Zero

Question: When a limit reference with REDUCING.LIMIT set to N is linked to Arrangement where REVOLVING flag is set to "NO" and UPDATE.COMMT.AMT is set to YES, what happens to COMM.AMT.AVAIL in LIMIT record after LENDING-NEW-ARRANGEMENT

Answer: An error message is raised

Question: When the calculated Interest amount & billed Interest amount differ if the interest for the next period to be calculated on the outstanding principal and the difference between calculated & billed Interest amounts for all the previous periods. Is this possible without the requirement of local routine?

Answer: Yes. The Source balance for the Interest property should be mentioned as CUR;(for Principal) and RES;(for carried forward interest). The Interest property should have "RESIDUAL.ACCRUAL" option set in the file AA.PROPERTY.

Question: For a Loan Arrangement interest is being suspended and the interest is scheduled to capitalise. On capitalisation date what would happen to the suspended interest amount

Answer: Would be debited and posted to PL

Question: A Bank wants to calculate a Charge on oustanding Loan amount and collect it every month. And it requires the Charge accrual to be posted Daily to PL. How can this be setup in AA

Answer: Charge accrual not supported in AA

Question: A Bank wants to calculate a Charge on oustanding Loan amount and collect it every month. And it requires the Charge amount to be amortized until maturity of the Arrangement. How can this be setup in AA

Answer: Setup ACCRUE.AMORT to AMORT and ACCRUE.PERIOD as MATURITY for the Charge property

Question: In a Loan Arrangement with VALUE.DATE as 01 Jan 2011 and MATURITY.DATE as 01 Jun 2011, Charge amount due is amortized for 2M from 01 Feb 2011. Due to early repayment maturity date is changed as 15 Feb 2011. What would be END.DATE updated in EB.ACCRUAL for the Charge

Answer: 40589

Question: Which Balance type cannot be adjusted using LENDING-ADJUST.BALANCE-BALANCE.MAINTENANCE activity class ?

Answer: DUE

Question: A Bank desires that Activity charges should not be collected immediately when the activity occurs - but should be collected along with the next schedule. How can this be achieved?

Answer: By choosing DEFER option in the APP.METHOD and configuring PERIODIC.CHARGES property

Question: If the scheduled payment amount needs to be increased by a X% on each payment date, what setup is required in PaymentSchedule

Answer: Capture the required % in PROG.PAY.PERC and set RECALCULATE to PROGRESSIVE.PAYMENT for MAKE.DUE activity

Question: A bank does not know when the disbursement will happen but wants to recalculate the Periodic rate of the loan when the first disbursement happens so that accruals begin with the exact rate. How can this be achieved?

Answer: This can be achieved by setting ON.ACTIVITY, RECALCULATE options in INTEREST property

Question: A bank wants to state a savings account of the customer as an account from which normal loan schedules have to be repaid. How can this be achieved through SETTLEMENT property

Answer: State the required details and state the Account in PAYIN .ACCOUNT field

Question: A bank wants to debit the settlement account only when there is sufficient balance to settle the due amount for the schedule date, what option should be kept in the SETTLEMENT property to achieve this?

Answer: Pay in Debit Rule (PAYIN.AC.DB.RULE) set as FULL

Question: What is the use of PAYIN.SETTLE.ACTIVITY in Settlement property?

Answer: Used to state the Activity which is used to Settle the dues - generally an Apply payment activity

Question: A bank has stated settlement instructions on a Loan payment from a savings account. The customer wants to stop the auto settlement temporarily but wants to continue with the same instruction after some period. Which is the optimal way to achieve this?

Answer: Set the PAYIN.SETTLEMENT field in SETTLEMENT property for the loan payment types to NO. Switch it back to YES when the customer says so

Question: If a schedule needs to be processed on the maturity date for a loan contract, what is the best possible setup required in PaymentSchedule

Answer: START.DATE as R_MATURITY

Question: What happens when RECALCULATE is set as PROGRESSIVE.PAYMENT and ON.ACTIVITY is set as MAKE.DUE activity

Answer: Increases/Decreases payment amount based on the progressive pay percentage on every payment date

Question: What is the use of PAYIN.ACTIVITY field in Settlement property?

Answer: Used to state the Activity to be used to take the funds out of an Arrangement - if the settlement source is also an Arrangement

Question: When CLOSURE.TYPE is stated as MATURITY what does it mean for a Loan arrangement?

Answer: It means the contract would initiate a closure only on the maturity date even if the balances are cleared out before

Question: In an existing Bill, INTEREST amount has to be modified, which activity should be used to achieve this?

Answer: LENDING-ADJUST.BILL-BALANCE.MAINTENANCE

Question: If an existing CURLOAN (ACCOUNT property) amount has to be modified, which activity should be used to achieve this?

Answer: LENDING-ADJUST.BALANCE-BALANCE.MAINTENANCE

Question: A bank wants to settle the balances in the following order: Overdue Principal and Overdue interest through one payment rule setup. The Overdue components have to be settled from the oldest and completely settle the bill on a particular date before taking the next bill. How can this achieved through PAYMENT.RULES setup?

Answer: Set the APPLICATION.TYPE to BILL.DATE and APPLICATION.ORDER to OLDEST.FIRST and state Principal and Interest in sequence

Question: A bank wants to settle current accrued Penalty interest (ACCPENALTYINT) balance before settling overdue Loan Interest and Overdue Principal. How can this be achieved?

Answer: Setup allocation by BILL.PROPERTY and BALANCE as ACCPENALTYINT and PROP.APPL.TYPE as BALANCES as the first sequence of settlement

Question: A bank uses an exclusive transaction code for Payoff and wants to know which activity should be mapped to this code. Which of the following is the most efficient,assuming there might be cases where excess amounts may be available in UNC balance?

Answer: LENDING-SETTLE-PAYOFF

Question: There is a requirement to amend the already accrued interest in the system. Assuming the property is PENALTYINTEREST, which of the following can achieve the requirement?

Answer: Use ADJUST.BALANCE-BALANCE.MAINTENANCE activity and amend ACCPENALTYINTEREST balance

Question: A bank desires to amend the suspended amount in the system(ACCPENALTYINTERESTSP) balance for internal reasons. Which is the best way to achieve this?

Answer: System does not allow amendment of SP balance directly. So, amend the ACCPENALTYINTEREST which will automatically hit the SP balance

Question: A Bank wants to charge prepayment fee (2%) as penalty, based on the amount that is prepaid. What calc type should this point to for this property in AA.PRODUCT.DESIGNER?

Answer: TXN.AMOUNT

Question: When an interest property has to calculate interest on a specific balance amount(like CUR), the definition in AA.PRODUCT.DESIGNER for this Interest property, in CALC.PROPERTY Field should point to which type of AA.SOURCE.CALC.TYPE?

Answer: BALANCE

Question: A bank wants to restrict principal increases on loan commitment amount to 10,000 per year - but wants to invoke this rule only after the arrangement is disbursed. Can this be achieved?

Answer: Yes. Set the RULE.START in the AA.PERIODIC.ATTRIBUTE rule to START

Question: A loan product has two payment types - Interest Only, Principal Only, and both have different payment dates/frequency definitions. Bank wants to setup different aging rules for overdue amounts, if any, for these two payment types, how can this be achieved?

Answer: Setup different bill types for the payment types, and setup different aging rules for the bill types

Question: A bank wants to setup different bill types for the Payment types defined in Payment Schedule so that different aging rules may be setup for Payment types. Is it possible to create user bill types?

Answer: User bill types can be defined in AA.BILL.TYPE

Question: A bank wants to setup different aging rules for each of the properties defined in PaymentSchedule that have different payment types. InterestOnly and PrincipalOnly are the payment types and respective properties are Interest and Account. But the bank wants arrangement overdue status to be based on PrincipalOnly type of bills that are aged. How can this be achieved?

Answer: Define bill type used for PrincipalOnly as ARR.BILL.TYPE in Overdue

Question: There are 3 bills outstanding - Bill1 - "Activity Charge" type bill, Bill2 and Bill3 are "payment" type bills, and the respective outstanding amounts are 100, 200 and 300. In overdue definition, BILL.SETTLEMENT is set as BILL.TOTAL. A repayment of 200 is made that settles Bill1 fully, and Bill2 partially. What would be the aging status of Bill2?

Answer: Will not change after repayment

Question: There are 3 bills outstanding - Bill1 - "Activity Charge" type bill, Bill2 and Bill3 are "payment" type bills, and the respective outstanding amounts are 100, 200 and 300. In overdue definition, BILL.SETTLEMENT is set as BILL.TOTAL. A repayment of 300 is made that settles Bill1 fully, and Bill2 and Bill3 partially. What would be the aging status of Bill2?

Answer: SETTLED

Question: There are 3 bills outstanding - Bill1 - "Activity Charge" type bill, Bill2 and Bill3 are "payment" type bills, and the respective outstanding amounts are 100, 200 and 300. In overdue definition, BILL.SETTLEMENT is set as BILL.TOTAL. A repayment of 300 is made that settles Bill1 fully, and Bill2 and Bill3 partially. What would be the bill status of Bill2?

Answer: DUE

Question: A bank wants to setup PAY.TOLERANCE as 100 with TOL.ACTION as REMAIN for payment type InterestOnly and 200 and REMAIN for PrincipalOnly. How should this be setup?

Answer: Cannot be configured

Question: An Arrangement is already suspended. If LENDING-SUSPEND-ARRANGEMENT activity is input again, what would be happen?

Answer: System would raise an error message and reject the activity

Question: A condition is input for Overdue. If BILL.TYPE is left blank, what happens when the condition is validated?

Answer: BILL.TYPE would be defaulted as PAYMENT

Question: A bank wants Progressive payment type to be increased by a specified Progressive Percentage after every schedule date. Does this require any special setup?

Answer: CALC.TYPE in AA.PAYMENT.TYPE need to be set as PROGRESSIVE and Payment Schedule condition should contain ON.ACTIVITY with a valid activity of the class LENDING-MAKEDUE-PAYMENT.SCHEDULE whose RECALCULATE option is set as PROGRESSIVE.PAYMENT

Question: A bank has a Loan peoduct, for which, interest amount is lesser than calculated interest amount for the initial periods and higher than calculated interest amount towards end of the period (by attaching local routine) ensuring no net to net difference . The bank wishes the difference in interest amounts in turn to yield additional interest. Can this be achieved?

Answer: Yes. The Source Balance of Interest should point to a virtual balance that also contains RES balance type. The Interest property should contain RESIDUAL.ACCRUAL type.

Question: In an arrangement total accrued amount is 50 upto due date and of this 10 is repaid. Assuming arrangement is in suspended status from the start of the interest period, what would be due amount and suspense amount updated in bill details?

Answer: 40 and 40

Question: In an arrangement total accrued amount is 50, if accrual amount is adjusted by 10 using ADJUST.BALANCE activity which of the following statements is true

Answer: TOT.ACCR.AMT in AA.INTEREST.ACCRUALS would be updated as 40

Question: Which of the following is not system bill type

Answer: SCHEDULED

Question: Which of the folowing bill types cannot be defined in Overdue

Answer: INFO

Question: In an arrangement, total accrued amount is 50 upto due date and of this 50 is repaid. Assuming the schedule is Interest only and no other payments are scheduled for the due date, what will be the due amount in bill details on the due date?

Answer: Bill will not be produced

Question: In an arrangement total accrued amount is 50 upto due date and of this 50 is adjusted. On the due date assuming there is no other Payment types scheduled except for this Interest payment, what will be the due amount in bill details?

Answer: Bill will not be produced

Question: An activity charge(NEWARRFEE) is attached to Lending-New-Arrangement,while committing the arrangement system throws error as ENTRY.TYPE missing for DUENEWARRFEE, What could be the reason?

Answer: Entry type missing in AC.BALANCE.TYPE

Question: A user likes to define the NARRATIVE field in stmt,categ,spec entries for AA, based on their requirement. Suggest the procedure to achieve this.

Answer: By defining in VALUE.SOURCE field in the AC.POSTING.DETAIL application and attaching it in AC.ALLOCATION.RULE

Question: Bank wants accruals to happen for certain interest property on quarterly basis. How can this be achieved?

Answer: Set the AA.ACCRUAL.FREQUENCY for interest property to quarterly

Question: Which of the following Balance types are for system internal purpose

Answer: AASUSPENSE

Question: If a bank wishes to define additional aging status where should it be defined

Answer: EB.LOOKUP with AA.OVERDUE.STATUS

Question: Which activity will not reset the conditions of an arrangement provided DEFAULT.ATTR.OPTION set as 'RESETTING'?

Answer: LENDING-ROLLOVER-ARRANGEMENT

Question: A bank wants to make the entire principal amount to be due on the final payment date and does not want to explicitly state this in PaymentSchedule. How can this be achieved?

Answer: By default system would make the outstanding principal due on the final payment date

Question: A bank wants to know all the movements related to aging, i.e. amount movements, status movements, etc for a custom enquiry, where are these details stored

Answer: AA.OVERDUE.STATS

Question: Overdue condition has BILL.SETTLEMENT as 'BILL.TOTAL' and AGE.BILLS as 'BILL.STATUS'. What does this signify?

Answer: If the repayment amount is equal to or greater than a single OS bill then the oldest bill will be considered as settled.

Question: In an arrangement there are 4 outstanding bills with $100 outstanding each ($75 principal + $25interest). Assume BILL.TOTAL is set in BILL.SETTLEMENT in Overdue. A repayment for $100 was made and to be settled by property, system settled $25 interest in each bill. What will be the total outstanding delinquency amount in all the 4 bills?

Answer: 300

Question: When the interest rate in BASIC.INTEREST table is changed with effective date in the past, which of the statement is true

Answer: System will automatically change the interest for all arrangements from the effective date of change in BASIC.INTEREST

Question: While doing a repayment for due charge bill i.e NEWARRFEE, system credited UNC balance even when the payment rules setup is defined with this charge property, why?

Answer: BILL.TYPE is not defined with ACT.CHARGE in AA.PAYMENT.RULE.TYPE

Question: When ACCRUAL.BY.BILLS is set for an Interest property, how is interest calculated and updated

Answer: Interest amount would be calculated for each bill and updated within the bill

Question: What does REFER.LIMIT denotes in LENDING product line?

Answer: Not Valid for the product line

TCCP - LIMIT

LIMIT Question and Answers

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Question: A customer's Limit has to be temporarily withdrawn because of risk worries. How can this be achieved ?

Answer: AVAILABLE.MARKER field in LIMIT should be set as "N"

Question: When is the override "No match with LIMIT.PARAMETER" generated ?

Answer: When Limit reference on the contract is not in accordance with that set in LIMIT.PARAMETER table

Question: How can we stop a customer of a group from enjoying a Limit granted to the Liability customer when limits are NOT set at individual customer level?

Answer: By using RESTRICTED.CUST field in the limit granted to Liability customer

Question: A Bank has defined two limit products 100 and 200 of LIMIT.REFERENCE as risks associated with Loans of Category code 21051 in LIMIT.PARAMETER table. When such a loan is input, which of these risk products would be associated if the Bank has not opted for reporting multiple limit products?

Answer: The first LIMIT.REFERENCE record indicated in LIMIT.PARAMETER for Category code 21051

Question: Which of the following is a valid Id for LIMIT.REFERENCE to define a GLOBAL product ?

Answer: 10000

Question: How many levels of sub products can be defined through LIMIT.REFERENCE?

Answer: Maximum of 10 levels

Question: Which exchange rate is used for revaluation of Limits?

Answer: Rate setup in LIMIT.REFERENCE. Default will be Midrate if no rate is set.

Question: How is a Customer removed from a Customer Liability group ?

Answer: By using LIMIT.CHANGE

Question: In LIMIT.REFERENCE, which could be defined as a valid sub product of a product 4000?

Answer: 4010

Question: Which of the following could be defined as a sub-product at Level 2 in LIMIT.REFERENCE ?

Answer: 4011

Question: What is a FIXED Limit ?

Answer: A Limit with a fixed value, which does not change with change in value of Security.

Question: Where is a risk product linked to a business product in T24?

Answer: LIMIT.PARAMETER

Question: A customer has two accounts enjoying a single limit of USD 50,000. Bank wants to offset credit balance of USD 20,000 of the first account against a possible debit balance on the second account. What is the maximum debit balance that could be allowed in second account?

Answer: USD 70,000

Question: A Customer is engaged in constructing bridges. A Bank wants to give three limits to this customer to cover three bridge construction projects and direct its lending accordingly. Is this possible in T24?

Answer: Yes. Upto 99 different limits can be given to the same customer for the same limit product

Question: Which of the following can be amended using LIMIT.CHANGE?

Answer: Currency of a Limit line

Question: A Bank wants to schedule reduction of USD 50,000 every month to a Limit sanctioned to one of its Customers. How can this be done?

Answer: By using Repay related fields in the Limit sanctioned

Question: How can we cancel a limit that is not needed any more?

Answer: Expiry date can be set to current date and mark available marker as 'No'

Question: If LIMIT.REFERENCE for FX is 300 how should the first FX limit record be defined for customer 77777 who is part of the liability group of customer 56578 ?

Answer: 56578.300.01.77777

Question: What is the purpose of the field INTERNAL.AMOUNT in a LIMIT record?

Answer: Specifies the maximum exposure that the Bank is prepared to take under a limit line.

Question: Customer 100126 has a global product line of 100126.0010000.01. What would be the correct sub product limit for sub-product 117?

Answer: 100126.0010117.01

Question: In LIMIT.REFERENCE table, a product has been classified as DP in FX.OR.TIME.BAND field. Will this trigger any overrides if a Customer has not been sanctioned due limits for this product?

Answer: No. This is only for information purpose and overrides will not be triggered

Question: In the LIMIT.REFERENCE table, the FX.OR.TIME.BAND field has been left blank for a Product. Which of the following statements is true?

Answer: This is a non-forex or non-time banded product

Question: A Variable limit of USD 25,000 is set to need 200% of underlying collateral. How much of this limit could be used when the collateral value is (a) USD 10,000 and (b) USD 60,000

Answer: (a) USD 5,000 and (b) USD 25,000

Question: What is the purpose of using contingent accounts in the case of Limits?

Answer: Utilised or Unutilised portion of a limit can be shadowed using accounting entries on a contingent account that directs calculated interest and charges to a non-contingent of customer

Question: A Bank wants to set LIMIT.PERCENTAGE field as 110% in LIMIT.REFERENCE for a loan risk product. Is this possible?

Answer: No. Maximum value allowed is only 100. This should be at the lowest level of Product and sub-products.

Question: A 400 million limit is time banded into 250M maturing within 3 months, 100M within 6 months and 50M within 12 months. The 3 months and 12 months portions have been fully utilised. Into which other time band can the 6 months portion be used?

Answer: Into 3 months band

Question: While defining Risk product 100 in LIMIT.REFERENCE, a Bank has not defined any value in GET.SUB.ALLOC field . Later it wants to sub allocate USD 50,000 from the limit of Customer A for product 100 to limit of Customer B for product 200. Will this be allowed?

Answer: Override will be generated. On due approval, sub allocation will happen

Question: A Bank has not set Limit for Loan product for its Customer. When it gives loans, T24 generates override to this effect and Bank duly approves the override. At what level will the System generated limit be created?

Answer: At Product and Sub product.

Question: A Bank has set 10% as underlying risks for Derivative products in LIMIT.PERCENTAGE field in LIMIT.REFERENCE table. Due to market uncertainties, it would now like to revise this rule as 20%. How can this be done?

Answer: Can change this through LIMIT.CHANGE application

Question: A Bank wants to take charges on the limit amount utilised by its customers. Is this possible?

Answer: The utilised / unutilised portion of a limit can be shadowed using a Contingent account, charges and interest can be calculated

Question: How can you link limit amounts into the Asset and Liability consolidation reporting?

Answer: Set the LIMIT.TO.TAKE field of CONSOLIDATE.COND table

Question: When limit is in GBP and utilisation is in EUR, how is revaluation done? USD is local currency

Answer: Depending on setting in LIMIT.PARAMETER, either mid rate is used or rate combination mentioned in LIMIT.REFERENCE is used

Question: When are currency exposure reports produced?

Answer: Produced as per choice indicated in LIMIT.PARAMETER

Question: All Credit Risk Facility Granted by the Bank are set to expire at the Month End. For Some of the Limits Bank wants to extend the grant by a maximum period of 7 days. How is this possible to Set in Limits?

Answer: It can be extended by entering a date in ADM.EXTENSION.DATE field in LIMIT application

Question: A Bank has not set limit for loans for its Customer. When it gives loans, T24 generates override to this effect and Bank duly approves the override. In which currency would the System generated limit be created?

Answer: Currency defined in LIMIT.PARAMETER

Question: A Bank has not set limit for Account overdrafts for its Customer. When it allows to overdraw the Account , T24 generates override to this effect and Bank duly approves the override. In which currency would the System generated limit be created?

Answer: Default limit will not be created by System for unauthorised overdrafts

Question: While sanctioning Limit to a Customer for loans, a Bank wants to allow USD and GBP and restrict EUR from using SGD limits. Is this possible?

Answer: Either allowed currencies or restricted currencies can be indicated and not both

Question: A customer has several LIMITs which can be used to cover LD deals at the clients discretion. Instead of T24 defaulting the first line that matches, Bank wants its user to select from a list of valid Limits for the deal and client during input. How can this be achieved in T24 ?

Answer: Yes, the FILTER field and it's related fields in LIMIT.PARAMETER can be set to check for valid LIMIT records to match the deals being entered and show only those that match as possible inputs

Question: Can a bank add their own criteria to change the filter process that provides lists of LIMIT records to be used by a deal?

Answer: Yes, the FILTER field allows the use of field names from LIMIT and matching criteria for those fields can be used

Question: Market regulations are increasingly looking at currency risk based on geographic regions. Instead of the bank entering a list of CURRENCY records every time can they create groupings to be used within LIMITs?

Answer: Yes, LIMIT.RANGE can be used to create suitable groupings

Question: A user tries to input a value in field ADM.EXTENSION.DATE in LIMIT application, but is not allowed. What could be the reason for this?

Answer: The field ADM.EXTENSION.DAYS in LIMIT.PARAMETER has been left blank

Question: At setup the LIMIT.PARAMETER field has a value of 31 entered in the field ADM.EXTENSION.DAYS. What effect does this have on the LIMIT?

Answer: This prevents LIMITs from having an extension of expiry date greater than 31 days

Question: When Cross limit structure on a LIMIT has been authorised which of the following will automatically happen?

Answer: The sub product limit records will be produced in INAU status and the LIMITS.MODIFIED field in LIMIT for the product will be updated with the sub product limit ids

Question: If the id of LIMIT.CROSS.PARAMETER is 5000 and the number in the field TOP.CROSS.REF is 5029, how many cross limits will be allowed for this product?

Answer: 29

Question: A Bank desires that while inputting a transaction for a customer in T24, the user should be provided with a list of existing multiple limit references of the customer. Which field in LIMIT.PARAMETER can be used to enable this feature?

Answer: REPORT.MULTIPLE

Question: A Bank desires to put through a transaction that has its value date as 31/10/09. The Field LAST.DRAW.DATE in LIMIT application for this transaction is 15/10/2009. How will T24 handle this?

Answer: An override will be generated at the time of committing the contract

Question: Which of the following statements is true with regard to Field TOP.CROSS.REF in LIMIT.CROSS.PARAM ?

Answer: It specifies the maximum value of a CROSS Limit Reference that could be used under the PRODUCT. Limit Reference specified in the Id

Question: Which application needs to be set first to create a Cross Limit?

Answer: LIMIT.CROSS.PARAM

Question: When a CROSS Limit Reference is being estbalished in LIMIT.REFERENCE, the field CROSS.LIMIT is automatically updated with which value?

Answer: PROD

Question: A Bank has set AUTO.RESTORE.ALLOC field to 'N' in LIMIT.SUB.ALLOC application.What effect will this have on the sub allocation?

Answer: The sub-allocation will be allowed until the expiry or until the outstandings are reduced on the receiving Limit so that returning the sub-allocation does not create an excess on the receiving Limit

Question: The field EXPIRY.DATE in the application LIMIT.SUB.ALLOC has been entered with a date that is after the EXPIRY.DATE of the LIMIT, which is being transfered from. What will T24 do?

Answer: T24 will throw error as the Sub Allocation Expiry is Greater then the Limit Expiry.

Question: A Limit is created for a customer in a shared customer set up. Limit currency is USD. A Deal is input for the customer in a Company with Deal currency as GBP which is the local currency. From which company will T24 pick the exchange rates?

Answer: From Customer Company

Question: A Bank wants a setup wherein credit risk monitoring percentages for contracts maturing within 5 years should be 100% and for contracts maturing > 5 years should be 90%. Can this be set in T24?

Answer: Can be set in LIMIT.REFERENCE application

Question: When does T24 do the Currency rate Revaluation of Limits?

Answer: During COB only

Question: A Bank has granted an overdraft credit Limit of 10M for a group concern, wherein customer A (100200) is liable for customer B (100300). Bank wants to Limit customer A to only 7M. How can this be set in T24?

Answer: By setting Limit amount in 100200.100.01.100200

Question: A customer has 3 Accounts which are linked to one Overdraft Limit and he wants that the overdraft amount be calculated based on net total balance of all 3 accounts. How can this be set?

Answer: It needs to be set in respective Account and Limit

Question: In which company will system defaulted Limits be created?

Answer: In the Customer Company

Question: A Customer has been set an Overdraft Limit of 10M at Global level. A user at Bank wants to check how much is utilised. Which is the correct process to get this information?

Answer: By running LIAB enquiry

Question: A customer has a non revolving Loan Limit, a revolving Overdraft and a Forex Limit. These limits have to be monitored for exposure at Global Level. How can this be set in T24?

Answer: Setting 2 global limits, one to monitor the Loan and the other to monitor the rest

Question: A Customer B (100300) has a Sub product Loan Limit. This customer is in a Liability group in which Customer A (100200) is the main customer. What will be the parent record for limit 100200.2010.01.100300?

Answer: 100200.2000.01.100300

Question: What is the purpose of LINK.TO.LIMIT setup in ACCOUNT application?

Answer: To define debit interest rates depending on overdraft Limit amount

Question: A Loan Limit is set for a customer for 10M. A Loan is input for 8M with a Value date of 10 days Future. The Limit is set to sweep the unutilised portion for interest charging purpose. What will be the Amount swept on the date of input of Loan?

Answer: 2M

Question: For a Customer, a Bank wants to automatically increase the Limit amount of a product on a monthly basis by 20,000 for six months. Is this possible to be effected in T24 Limit ?

Answer: Yes, it is possible to increase the limit amount automatically by appropriate input in fields INCREASING.TYPE, INCREASE.FREQ, INCREASE.AMOUNT and INCR.END.DATE in Limit application

Question: A limit is set up for 2 years from Jan 5, 2010. However, Bank wants the Customer to utilize the limit amount before Mar 5, 2010. How can this be achieved in T24 Limit ?

Answer: Possible to achieve with appropriate input in field LAST.DRAW.DATE in LIMIT application

Question: A Bank wants to enquire on contracts which have hit a particular limit product for a Customer. Is this possible in T24 Limits?

Answer: It is possible to view all contracts that hit a limit product using the enquiry LIM.TXN

Question: Customer A is the liability customer of Customer B. Is it possible to change the Customer Liability of B to himself from Customer A online ?

Answer: It is possible to change the customer liability of Customer B from A to himself online using LIMIT.CHANGE application

Question: Customer A (123456) is the liability Customer of Customer B (654321) and Customer C (123123). A Bank desires to set up an overall revolving overdraft Limit (assume the limit reference is 100) of USD 300,000 for the entire group. However, it would like to set the maximum limit of 200,000 each for Customers A, B and C. In that case, what will be limit id for setting a limit of 200,000 for Customer A ?

Answer: 123456.100.1.123456

Question: A Bank desires to have a local reference field as part of Limit product set up in LIMIT.PARAMETER. Is this possible in T24?

Answer: Yes, it is possible to have local reference fields as part of Limit product set up in LIMIT.PARAMETER

Question: Which of the following statetments is correct with respect to LIMIT.CHANGE application?

Answer: Using LIMIT.CHANGE, it is possible to change the Currency of existing Limit line.

Question: A Bank wants to update the Limit Online for the Cash type collaterals like Accounts, Deposits, securities and fiduciaries. Which of the following statements is correct on Online updation of Limit ?

Answer: It is possible to update the limit online provided the field ONLINE.UPDATE is set as YES in LIMIT, COLLATERAL.PARAMETER and COLLATERAL.TYPE applications

Question: A bank wants to charge 1% for the undrawn portion of a limit. What is the best way to set this up in Limits?

Answer: Setup a contigent account in UNUTIL.ACCT field in the limit record and setup interest on the account

Question: Where would you find the amount that a limit was originally granted for on a reducing limit facility?

Answer: Check the LIMIT record

Question: A bank desires to give a customer a 3M credit limit, but wants only 1M used for short term loans and the rest used only for long term loans. How can this be achieved?

Answer: Use the time band feature on the limit record

Question: A bank has sub-allocated 100K from a loan limit allocated to one of its customers to cover his overdrafts for the period of one year. The bank wants to ensure that the sub-allocation is not reversed if the overdraft has been utilized. How can the bank configure the system to ensure this?

Answer: AUTO.RESTORE.ALLOC field in LIMIT.SUB.ALLOC has to be set to 'Y'

Question: A bank wants to monitor a limit from being utilized for any new transactions beyond the end of the month. How does the bank set this up?

Answer: Setup LAST.DRAW.DATE field to month end date in the LIMIT record

Question: Which of the following statements is true with respect to field ONLINE.UPDATE in the LIMIT record?

Answer: Collaterals are revalued Online when the limit is utilized, subject to settings in COLLATERAL.PARAMETER, COLLATERAL.TYPE and the LIMIT record

Question: What type of account is opened for consolidating customer wise utilised and unutilised portion of limits?

Answer: Contingent Internal account using Category code defined in ACCOUNT.CLASS

Question: What is the valid structure for a sub product under a global limit? Where G = Global, P = Product, S= Subproduct

Answer: GGGPPSS

Question: Which field in Limit is used to specify the time sub-divisions of a LIMIT?

Answer: TIME.CODE

Question: Which of the following is not an accepted value in the field FX.OR.TIME.BAND in LIMIT.REFERENCE?

Answer: AC

Question: Limit records are not expired even after expiry date, what might be the reason?

Answer: All of the above

Question: Limit is sanctioned for 100T & loan is granted for 60T, reducing limit is set to "Y". What is the available limit?

Answer: 40T is available after approving the loan

Question: Bank wants to know all limit lines attached to a customer, which file you will refer to?

Answer: LIMIT.LIABILITY

Question: Bank wants to know the child limit & parent limit structure of all lines, which file you will refer to?

Answer: LIMIT.LINES

Question: Bank defined a global line for 100M, under which two sub products are defined with a limit of 75T & 50T.Is it possible to use this type of defintion of valid?

Answer: Yes, this is valid defintion

Question: Bank wants to Grant a Limit to a set of Customers who is not a part of any Liability group. How is this possible in T24?

Answer: Group can be formed by setting up LIMIT.SHARING.GROUP

Question: Bank Wants to Create a Limit for a Customer and give an Additional Limit for a Group of Customer. Is is a possible to set in T24?

Answer: Yes .This is possible by Setting up a Limit sharing Group.

Question: Which application is used for setting up Group Customer Limits.

Answer: LIMIT.SHARING.GROUP

Question: Bank Wants to set a Global Limit with a Reducing Product and a Non Reducing Product. How will they set the GLOBAL Limit?

Answer: Non Reducing Global

Question: Bank wants to set Priority between Individual and Group Limits in utilisation. Where can we set in T24?

Answer: Set in LI.LIMIT.DEFINE.PRIORITY

Question: Bank wants to produce a Report for Group Limit Utilisation. Where will they get the information?

Answer: LI.LIMIT.GROUP.ALLOCATION

Question: Bank has setup a Customer Limit for Account, Loans and Forex exposures. It wants to get addition Limit for the Customer for the Overdraft and Lending products alone. Is this posssible.

Answer: Yes. By setting a Group Limit for Overdraft and Lending.

Question: What is the Product Limit in a CROSS Limit Structure Called?

Answer: PROD

Question: On reaching the EXPIRY.DATE set in limit record, Which of the conditions need to satisfied for the Limit to move to history in COB?

Answer: All of the above

Question: Apart from excess override based on ONLINE.LIMIT amount, bank needs a separate override based on INTERNAL.AMOUNT also. How can we achieve it?

Answer: Bank has to setup field ADDITIONAL.VAL in LIMIT.PARAMETER to INTERNAL.

Question: Is it possible to monitor the country exposure during online through overrides or enquiry?

Answer: Country exposure can be monitored only using the cob report “LIMIT.COUNTRY.EXPOSURE

Question: How can a bank have separate FX limit netting setup for each counterparty?

Answer: By setting LIMIT.NETTING.PARAM record with id as counterparty customer id.

Question: A bank wants to update the outstanding in limit for LD contracts based on a setup in local table. How can we achieve it?

Answer: Bank has to develop a local routine with logic to refer the local table and decide the outstanding amount and link this routine in the field LIMIT.SUBROUTINE in corresponding LIMIT.REFERERNCE record for LD contracts.

Question: A customer is part of three groups M000000001, M000000002 and M000000003 and groups are created in the same order. Also this customer is having his own limit. Allocation priority is set in the order OWN, M000000001, M000000002 and M000000003. On inputting a transaction, which limit system will utilize?

Answer: OWN

Question: Which application can be used to define allocation priority for a customer in LIMIT.SHARING.GROUP?

Answer: LI.LIMIT.DEFINE.PRIORITY

Question: Which statement is correct regarding LIMIT.SHARING.GROUP application id?

Answer: Both A and B

Question: For a customer already allocation priority has been set as OWN and M000000001. Which application can be used to change this allocation priority as M000000001 and OWN.

Answer: LIMIT.CHANGE

Question: A customer is part of LIMIT.SHARING.GROUP M000000001. Allocation priority is set as M000000001 only. Limit available at own limit and group. But group limit doesn’t have enough limit amounts for the transaction. Then on inputting the transaction how will system utilize the limit?

Answer: full transaction amount will be utilized from the own limit.

Question: User wants to create a MAIN group with multiple products. Which value given below can be inputted in the field CREDIT.LINE in LIMIT.SHARING.GROUP.

Answer: 10000

Question: Which statement regarding LIMIT.SHARING.GROUP is more correct?

Answer: LIMIT.SHARING.GROUP can be set for more customers and more products

Question: Bank has Set a Customer Limit for 10M and a Group Level Limit for 15M. Customer has an Exposure of 15 M. How will T24 Limits will be Utilised by Default?

Answer: Customer Limit 10M and Group Limit 5M

Question: Bank has a Non Reducing Product Limit of 10M under a Non Reducing Global Limit of 15M. It Utilises 10M and Repays 8M. What will be a Available Limit at Global Level.

Answer: 15M

Question: Bank has a Reducing Product Limit of 8M under a Non Reducing Global Limit of 15M. It Utilises 8M and Repays 6M. What will be a Available Limit at Product Level.

Answer: 0M

TCCP - AAD - AA Deposits

AAD - AA Despoits Question and Answers

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Question: For their Deposit products, a bank wants to compound interest two times a month. What value should a user specify in the COMPOUND.TYPE field in Interest Product Condition?

Answer: TWMTH

Question: Which of the following statements is not true with respect to TAX product condition?

Answer: Tax can be scheduled as an independent property

Question: A Bank has defined 'Special Deposit product' with Closure product condition as follows: CLOSURE.TYPE field as BALANCE; CLOSURE.PERIOD field as 10D; CLOSURE.METHOD as AUTOMATIC. A Deposit arrangement under this product has all balances as zero on 31st July 2010. When will the closure activity be scheduled?

Answer: 10 calendar days from 31st July 2010

Question: A Primary owner (12345) with a term deposit arrangement of USD 500,000, maturing in another 6 months, is deceased. His son is another owner (54321) in the arrangement. The bank wants to amend the Deposit name by changing the Primary Owner from 12345 to 54321. Please advice the Bank suitably.

Answer: Keep the primary Owner field as 'Negotiable' at the product level and modify the field at Arrangement using CHANGE.PRIMARY activity for this case.

Question: A Bank has input 'MAINTAIN' in PAYMENT.METHOD Field of Payment Schedule product condition. What does this indicate?

Answer: Specifies the actual amount to be maintained for rollover purpose

Question: A Bank desires to define Periodic Charges and wants it to be collected at yearly frequency. Where would you set the Yearly frequency?

Answer: Can be set in Payment Schedule condition

Question: A Bank wants to apply an interest rate picked from PERIODIC.INTEREST on its Corporate Deposits with a spread of 0.25 percent. Further, it wants to indicate a Floor and Cap in the form of Minimum and Maximum rates as 5% and 7%. Can all these be defined in the Interest product condition?

Answer: Yes. All these conditions can be defined

Question: A Bank opts for Negative rates in Deposits in AA, what will be the effect?

Answer: The Bank will receive interest if there is credit balance in deposit account

Question: A Bank would like to define that if the full commitment amount of deposit is not paid by the Customer within 5 days, the deposit arrangement should stand cancelled. How can this be set?

Answer: CANCEL.PERIOD field in Term Amount product condition can be set suitably

Question: A Bank has defined 5 days as the period within which the full committed deposit amount is to be paid by the customer. A customer has remitted only 25,000 against the committed amount of 50,000. What happens on the expiry of 5 days?

Answer: 25,000 is reverted and credited to UNC

Question: A bank wishes to restrict the changing of Primary Owner to one of the other Owners of an arrangement. How can this be achieved?

Answer: This cannot be restricted using existing system functionality. Primary owner can be changed with any other T24 Customer

Question: A bank wants to produce- a) an Override for arrangements breaking a Posting Restriction on 'Credits' b) an Error for breaking Posting Restrictions on 'Debits' or 'All' transactions. How can this be set in the Account condition ?

Answer: For b, it is not possible to simply define the posting restriction code within the Account condition because Posting Restrictions can only produce Overrides. Further steps need to be taken in other T24 applications

Question: A user would like to create a new Property for use in a product. Where should the user first add this Property?

Answer: Product Group

Question: What are Periodic Rules?

Answer: Rules placed on attributes that have a time element

Question: The bank would like to create a number of products which are very similar but differ only in a few aspects. What should you advise?

Answer: Create a single parent product and multiple child products. Properties with unique conditions should be input into the child products

Question: The Arrangement Overview displays the full Payment Schedule for an Arrangement. In which table is the data for this stored?

Answer: It is not stored, it is calculated when required using a NOFILE enquiry

Question: A bank would like to restrict Deposit payments to be permitted only in multiples of 100. Can this be configured?

Answer: This can be achieved by linking periodic rules to ACTIVITY.RESTRICTION product condition

Question: A Bank desires to define DEPADMINFEE charge property as a Deferred Charge to be made due later and collected as part of regular quarterly charges. Where can this be set?

Answer: The property may be defined as part of PERIODIC.CHARGES condition and linked as a quarterly schedule through payment schedule condition

Question: Interest condition in a product is set to "NON.TRACKING" and the interest rate is changed to 20% at Arrangement level with the product level condition set to 10%. AA.PRODUCT.DESIGNER is configured to switch to a new product which carries 12.5%. Assuming all conditions have DEFAULT.ATTR.OPTION set to "RESETTING" what will be the rate after the 3 months?

Answer: Interest rate resets to 12.5%

Question: What happens as a result of a Primary Officer being added to an Arrangement?

Answer: The officer's ID also gets copied onto the underlying account record

Question: Which of the following varieties of Payment Type requires multiple Properties to be specified for that payment type in the Payment Schedule?

Answer: Constant

Question: A Bank desires that for deposit renewal activities, product conditions should have the option of values remaining unchanged at the arrangement level or values to be reset according to the prevailing product conditions. How can this be built in the product design?

Answer: Field DEFAULT.ATTR.OPTION for respective product conditions should be set as 'RESETTING' or 'NON-RESETTING'

Question: A bank wishes to create a 'what-if' view for a customer by extending the term of an existing Deposit, and showing the customer the potential payment schedule. How can this be effected?

Answer: The user creates a Simulation Capture, runs the simulation, and views the simulated Arrangement Overview

Question: How do you extend the term of a Deposit before the creation of the Arrangement has been authorised?

Answer: Edit the New Arrangement Activity, leave the Maturity Date blank and enter the new term in TERM field

Question: How do you extend the term of a Deposit after the creation of Arrangement has been authorised?

Answer: Run the DEPOSITS-CHANGE.TERM-COMMITMENT Activity for the Arrangement

Question: A "Product.Only" Activity Charge property is configured to collect a fixed charge of 100, when a new arrangement is taken out. What happens when the new arrangement is input?

Answer: Charge of 100 is billed

Question: Which of the following balance types would not be supported in AA Deposits, where ANNUALFEE is charge property, DEPOSITINT is interest property and ACCOUNT is Account property?

Answer: EXPANNUALFEE

Question: In AA what does the Change Product functionality allow you to do?

Answer: Change the Product for an existing Arrangement

Question: A Deposit arrangement is input on 15 Jan 2010 having TERM - 6M in Term Amount, Interest PAYMENT.FREQ - Every Month in Payment Schedule and DATE.CONVENTION set to "FORWARD" and DATE.ADJUSTMENT set to "PERIOD" in Account property. With 15th Feb, 16th Feb and 15th Mar as the only holidays, what will be the first 3 Interest payment dates?

Answer: 17 Feb 2010, 16 Mar 2010, 15 Apr 2010

Question: When system does accruals, what is the effect on AA.ACTIVITY.HISTORY?

Answer: Accrual activity is not recorded in AA.ACTIVITY.HISTORY

Question: A customer is issued with a payout balance(scheduled) effective 30 Jun 2010 for a Deposit Arrangement set to mature on 31 Dec 2010. What happens when the next schedule happens and the next payout bill is produced for 31 Jul 2010?

Answer: 30 Jun 2010 bill is not disturbed and a new payout bill is created for 31 Jul 2010

Question: A bank wants to setup interest condition as follows - COMPOUND.TYPE Field-M06, RATE.TIER.TYPE Field- BAND, with the banded rates as 1% for 10000, 2% for 20000, 3% for rest, assuming the interest period as 01 Jan 2010 and 31 Jan 2010 with "A" basis and a Principal of 15000. Which of the following is a true reflection of the above issue?

Answer: Compounding would not be supported for bands. So, this definition cannot be accommodated in interest condition

Question: A Bank has defined an Activity charge of USD 100 when customer takes the funds out (assuming it is a payout activity through FT) of deposits before maturity date. For a privileged customer, the Bank wants to reduce this charge to USD 50. Where can this be set?

Answer: Charges configured to be collected during FT cannot be modified / waived. However, it is possible to update the charge amount in the charge condition first before performing the pre-closure

Question: For the setup - CHANGE.PERIOD - 3M in CHANGE.PRODUCT, AMORTISATION.TERM - 25Y in PAYMENT.SCHEDULE, TERM - 5Y in TERM.AMOUNT what will be the value of PERIODIC.PERIOD in Interest property?

Answer: 3M

Question: When a Term deposit is created with effective date as TODAY with Term amount populated for 10000, what balance would be created at the end of the NEW arrangement activity(assuming Settlement instruction is set and active. Assume the settlement account has enough funds to fund this deposit and the account property on the arrangement is ACCOUNT)

Answer: CURACCOUNT for 10000

Question: What is true about DEPOSITS-ACCRUE-DEPOSITINT activity, assuming accruals are set to run daily?

Answer: Reuses a unique id for accruals created on AAA

Question: The bank uses Charge Override condition for a product, a Bank has defined charge property as DEPADMINFEE, Charge amount is computed as 500 and Charge actual amount is negotiated as 0. How much would the customer be charged?

Answer: The customer would be charged 0 for this instance

Question: A bank wants to collect a fixed charge of 10USD when a deposit is rolled over, how can this be achieved efficiently

Answer: Options 1, 3 may be used

Question: In a Deposit Arrangement Tax is calculated on Interest payable. If the interest amount calculated is 100USD and Tax is 10USD, when the payment date is reached how much will be available in PAY Interest balance and how much would be available in DUE tax balance

Answer: 90 USD and there would be no DUE tax balance.

Question: In a Deposit Arrangement, Tax is calculated on Interest payable. Which Activity Class does Tax pay processing belong to ?

Answer: DEPOSITS-MAKEDUE-PAYMENT.SCHEDULE

Question: A Deposit Arrangement has a charge which is deferred and scheduled to be made due in a few days. Now the Deposit Arrangement is fully redeemed, what happens to the deferred charge

Answer: Made due

Question: A Deposit Arrangement is input with VALUE.DATE as 1 Jan 2011 and MATURITY.DATE as 31 Jan 2011. On 15th Jan 2011 it is fully redeemed, What would be INTEREST period start and end dates recorded in AA.INTEREST.ACCRUALS ?

Answer: 01 Jan 2011 and 15 Jan 2011

Question: A Bank wants to send prenotification advice for cancellation of deposit in case of partial funding or non funding of Deposit. Is it possible to send this advice in AA ?

Answer: Yes, it is possible to send prenotification advice in case of partial funding or non funding of deposits through appropriate input in Activity Messaging condition

Question: A Bank would like to collect charge while doing a partial withdrawal. Is it possible to collect charges during partial withdrawal ?

Answer: Yes, it is possible to collect charge during partial withdrawal by linking the appropriate activity to Activity charges property and allocating a charge property to it.

Question: A Bank wants to change the primary owner of a Deposit from Customer A to Customer B. Is it possible to achieve this in Arrangement ?

Answer: Yes, it is possible to change the primary owner of a deposit by triggering the activity Change Primary Customer.

Question: A Bank wants to create a new deposit product by making all the fields in all the product conditions (whose property is not set as "product only"). as inputtable. Is it possible to configure such a deposit product in Arrangement ?

Answer: Yes, it is possible to configure such deposit product by setting the value Yes in Default Negotiable field in all the production conditions of the product.

Question: A Bank would like to collect charge while doing a partial withdrawal only when the partial withdrawal amount exceeds 40% of the outstanding deposit amount. Is it possible to collect charges during partial withdrawal ?

Answer: Yes, it is possible to collect charge during partial withdrawal by defining an appropriate periodic attribute and activity restriction condition.

Question: Customer has a Savings Account in EUR currency in a Bank. However, he wants to book a deposit in USD. Is it possible to use EUR currency Savings account to fund USD Deposit account ?

Answer: Yes, it is possible to use the funding account in a different currency from that of deposit currency by defining the EUR currency savings account in Settlement arrangement condition.

Question: A Bank wants to reverse the accrued interest amount, in case the Customer precloses the deposit within a specified period from the date of booking a deposit. Is it possible to achieve this in T24 ?

Answer: Yes, it is possible to achieve this through appropriate set up in term amount product condition.

Question: A Bank for one of its deposit product wants to use a floating key with a negative spread. Assume the Floating key always returns a positive rate. However, the resultant net interest rate should not go into negative rate (Floating rate minus spread). Is it possible to achieve this in AA deposits?

Answer: In interest product condition, NEGATIVE.RATE field should be set as BLOCK.MARGIN

Question: A Bank wishes to set the negative rates for one of its deposit products. However, it would like to disregard negative margin rate if the interest is already less than 0. Is it possible to set up a interest condition like this ?

Answer: In Interest product condition, NEGATIVE.RATE field should be set as BLOCK MARGIN.

Question: A Bank would like to set up a deposit product with 5% interest for 70% of the principal amount and 6% for the remaining principal amount. Is it possible to configure this in AA ?

Answer: Yes, it is possible to configure this by appropriate set up in interest product condition (AA.PRD.DES.INTEREST)

Question: A Bank would like to set up a deposit product with 5% interest for 75,000 of principal amount and 7% for the remaining principal amount. Is it possible to configure this in AA?

Answer: Yes, it is possible to configure this by appropriate set up in interest product condition (AA.PRD.DES.INTEREST)

Question: While booking a deposit for USD 12,000 a settlement account is specified. The available balance in the settlement account is USD 8,000. In the settlement arrangement condition the field PAYIN.AC.DB.RULE (payin rule) is set as PARTIAL. Now, how much amount would have been funded in the deposit arrangement ?

Answer: In this case, the deposit would have funded to the extent of USD 8,000 and the balance amount of USD 4,0000 would be sitting in EXPACCOUNT.

Question: While booking a deposit for USD 12,000 a settlement account is specified. The available balance in the settlement account is USD 8,000. In the settlement arrangement condition the field PAYIN.AC.DB.RULE (payin rule) is set as FULL. Now, how much amount would have been funded in the deposit arrangement ?

Answer: In this case, the entire amount of USD 12,000 would be funded whereby the settlement account would have gone into a debit balance of USD 4,000.

Question: While booking a deposit for USD 12,000 a settlement account is specified. The available balance in the settlement account is USD 8,000. In the settlement arrangement condition the field PAYIN.AC.DB.RULE (payin rule) is set as NONE. Now, how much amount would have been funded in the deposit arrangement ?

Answer: In this case, since the deposit amount is greater than the available amount in the settlement account, NO amount would have been funded. The entire deposit amount of USD 12,000 would be sitting in EXPACCOUNT

Question: While booking a deposit for USD 12,000 a settlement account is specified. The available balance in the settlement account is USD 8,000. In the settlement arrangement condition the field PAYIN.AC.DB.RULE (payin rule) is set as NONE and PAYIN.SETTLEMENT (Active Y/N?) is set as NO. Now, how much amount would have been funded in the deposit arrangement ?

Answer: In this case, no funding would have happened. The entire deposit amount would be sitting in EXPACCOUNT.

Question: When a NEW Deposit arrangment is created, what kind of bill is created for the Principal amount?

Answer: EXP bill

Question: The bank wants to do the following: When the customer walks into the bank and opens a deposit for 1Y, the bank would only want to give the customer 10 days to fund all the money he committed. If he fails to fund it fully, the deposit should no longer be active. What should the consultant do to achieve this?

Answer: Set CANCEL.PERIOD to 10D

Question: The bank wants to do the following: When the customer paysin a deposit, he is given 10 days to change his mind and could get back the deposit without any penalties. The bank would not pay any interest for this period though. How can this be achieved in AA

Answer: Set COOLING.PERIOD to 10D

Question: When Cooling period is set as 10D for a 1Y term deposit arrangement and the customer withdraws the money on the 8th day after he paysin the deposit amount, what would happen in the system?

Answer: Bank would not pay any interest for the 8 days

Question: When a deposit has to be paid in(deposit of funds), how is this generally achieved?

Answer: You need a Payment rules property which settles the expected bill

Question: A deposit exists with a bank and the customer wants to withdraw a part of funds from the deposited amount. Can this be achieved?

Answer: Yes - by configuring the PAYOUT.RULES property

Question: A bank wants to indicate a customer's savings account to which deposit interest is to be paid. How can this be achieved through SETTLEMENT condition in the deposit arrangement?

Answer: State the required details and state the Account in PAYOUT.ACCOUNT field

Question: A bank has stated settlement instructions for deposit interest to be credited to a specific account. The customer wants to stop the auto settlement temporarily but wants to continue with the same instruction after this period. Which is the optimal way to achieve this?

Answer: In the arrangement, set the PAYOUT.SETTLEMENT field in SETTLEMENT property for the deposit interest property to NO. Switch it back to YES when the customer wants auto settlement to resume

Question: DEPOSITS-REDEEM-ARRANGEMENT - When should this activity be used?

Answer: When the deposit is to be completely withdrawn before the maturity date

Question: A bank wants to collect tax on interest whenever interest is to be paidout to the customer. How can this be achieved?

Answer: Just define the TAX property for the Interest property and define the associated tax code. Tax would automatically get applied when this property is included in the product.

Question: Tax has been defined for deposit interest. Where can we find information regarding the tax amount ?

Answer: In the AA.BILL.DETAILS table

Question: When tax is defined on the Deposit Interest which is scheduled to pay out, will the total interest amount paid to customer be a 'net of tax' amount ?

Answer: Yes. The total deposit interest amount paid will a 'net of tax' amount

Question: A bank wants to 'pay' a nominal bonus to the customer every 6 months for depositing with the bank. Can this be defined?

Answer: Charges can be paid out by stating PAY in PAYMENT.METHOD field the Payment schedule and defining a charge property there in

Question: In the CLOSURE condition, what does it mean to state a value in CLOSURE.PERIOD for a deposit?

Answer: The moment that arrangement is flagged for PENDING.CLOSURE, it uses this period to derive when the status of the arrangement will become CLOSE

Question: Which of the following is False about PAYOUT.RULES property?

Answer: Payout rules are used during the funding of a deposit

Question: When PAY option is chosen for INTEREST on a deposit payment schedule, what does it mean?

Answer: It only parks the amount to PAY balance on scheduled date. Other components such as FT or Settlement are required for customer to receive the funds

Question: What is the purpose of SETTLEMENT property for AA Deposit ?

Answer: All A, B and C

Question: A customer is issued with a scheduled PAY bill effective 30 Jun 2011 for a Deposit Arrangement set to mature on 31 Oct 2011. What happens when a new PAY statement is issued for 31 Jul 2011?

Answer: 30 Jun 2011 bill remains and a new pay bill is created for 31 Jul 2011

Question: A customer has redeemed a deposit effective 30 Jun 2012 for a which is set to mature on 31 Aug 2012. What happens when a new redemption is attempted effective 31 Jul 2012?

Answer: Another redemption on 31-Jul would not be allowed

Question: A Bank has defined 'Special Deposit product' with Closure product condition as follows: CLOSURE.TYPE field as BALANCE; CLOSURE.PERIOD field as 1D. CLOSURE.METHOD as AUTOMATIC. A Deposit arrangement under this product has all balances as zero on 31st July 2012. When will the closure activity be scheduled?

Answer: 1st August 2012

Question: A Bank has defined 5 days as the period within which the full committed deposit amount is to be paid by the customer. A customer has remitted only 50,000 against the committed amount of 75,000. What happens on the expiry of 5 days?

Answer: 50,000 is reverted and credited to UNC

Question: A bank wants to configure a Charge Product Condition with CURRENCY set to USD, TIER.TYPE set to LEVEL, CALC.TYPE set to FLAT and CHG.AMOUNT set to 100. The Bank wants to also set a minimum charge of USD 50 and a maximum charge of USD 150 for this tier (i.e. using the fields TIER.MIN.CHARGE and TIER.MAX.CHARGE respectively) . Is this possible?

Answer: This is not possible if CALC.TYPE specified as FLAT

Question: A Deposit Arrangement is input with VALUE.DATE as 1 Jan 2011 and MATURITY.DATE as 31 Jan 2011. On 15th Jan 2011 it is fully redeemed, What would be INTEREST period start and end dates indicated on its AA.INTEREST.ACCRUALS file ?

Answer: 01 Jan 2011 and 15 Jan 2011

Question: A Deposit Arrangement is input with VALUE.DATE as 1 Mar 2011 and MATURITY.DATE as 31 Mar 2011. The deposit is funded on 15th Mar 2011. What would be INTEREST period start and end dates indicated on its AA.INTEREST.ACCRUALS file ?

Answer: 01 Mar 2011 and 31 Mar 2011

Question: A Deposit Arrangement is input with VALUE.DATE as 1 Oct 2011 and MATURITY.DATE as 31 Oct 2011. The deposit had a CANCEL.PERIOD as 10 days and it was not fully funded till 10 Oct and system had triggered a CANCEL arrangement on this deposit. What would be the interest start and end date on its AA.INTEREST.ACCRUALS file ?

Answer: 01 Oct 2011 and 01 Oct 2011

Question: What would be Renewal date for an Arrangement contract with VALUE.DATE 01 Jan 2011, CHANGE.PERIOD - 7M, DATE.CONVENTION - FORWARD, TERM - 5Y and 1st August 2011 and 2nd August 2011 being holidays

Answer: 40758

Question: A customer pays an amount of USD 75,000 against a Deposit arrangement of USD 50,000. Assume 'ACCOUNT' is the Account property. How is the excess amount handled in T24?

Answer: Parked in UNCACCOUNT

Question: A bank allows its customers to fund their deposit arrangements in full at one go rather than in multiple tranches. The consultant knows that AA.PERIODIC.ATTRIBUTE.CLASS - FULL.DEPOSIT could be used for this purpose. What value can the consultant state in PR.VALUE field, when he defines the full funding periodic rule?

Answer: YES

Question: A bank offers a deposit product with non-negotiable Activity charges and a negotiable cooling period. This product attracts initial DEPOSITFEE for document processing. If the customer wanted to withdraw within the cooling period, then the DEPOSITFEE will be waived. If the customer does not withdraw within cooling period then the DEPOSITFEE has to be applied. The activity for withdraw is DEPOSITS-APPLYPAYMENT-WITHDRAW. What should be the appropriate setup?

Answer: In ACTIVITY.RESTRICTION attach trigger activity as DEPOSITS-APPLYPAYMENT-WITHDRAW and rule evaluation activity as DEPOSITS-APPLYPAYMENT-WITHDRAW. Attach the periodic attribute TXN.AMT.MAX with RULE.START as COOLING-OFF and PR.VALUE as zero. Attach DEPOSITFEE charge to WITHDRAW activity. This will ensure that DEPOSITFEE is applied when WITHDRAW activity is run after cooling period

Question: A charge is defined in PaymentSchedule set to capitalize in a deposit type product. Activity restriction is setup for this property to waive the charge if rule is broken. What will happen on the payment date assuming the rule is broken

Answer: A bill will be produced for the charge amount, and OS.PROP.AMOUNT for the property would be zero, and WAIVE.PROP.AMOUNT will hold the charge amount signifying the amount is waived

Question: Deposit arrangement is created and awaiting for funding. A bill with BILL.TYPE as "EXPECTED" is made due on 24 Dec 2011 and ages to GRA after 3 days since funding did not arrive. On 31 Dec 2011, a charge is scheduled to be paid as a bonus amount. Based on the product rules, there is a restriction to the bonus payment. The bonus will only be paid when expected funding bill is settled on time. Funding only arrived on 31-Dec-2011. What would have been the status of this bonus?

Answer: The bonus would not be paid since the expected bill is overdue

Question: Deposit has not been funded. A bill with BILL.TYPE as "EXPECTED" is made due on 24 Dec 2011 and set to age to GRA after 3 days. On 31 Dec 2011, Bonus is scheduled to be paid. A rule is defined in Activity Restriction condition where the rule value is 5 and is based on maximum aging days of the Expected bill. If the rule is broken, bonus will be 'waived'. On system date (31 Dec 2011), a full funding is made with value date 28 Dec 2011. What happens to the Bonus now ?

Answer: The Bonus would be either paid or capitalised based on Payment Method and not waived as the number of overdue days is 2 and it is within the rule definition

Question: What is the activity name within the Activity Class DEPOSITS-AGE-OVERDUE for the Bill Type EXPECTED and overdue status GRA

Answer: DEPOSITS-AGE-OVERDUE*GRA*EXPECTED

Question: A bank wants to setup a savings plan product, where an agreed amount has to be funded by the customer on a defined frequency. On maturity date, a bonus would be paid if the scheduled funding were received within the tolerance defined. Auto settlement has been set up for all arrangements. Looking at the payment schedule, the Bank observed that the first funding only commence 1 month later. They prefer the first initial funding to commence as soon as arrangement is created. What can they do ?

Answer: Capture the initial amount in ACT.AMOUNT field in PAYMENT.SCHEDULE

Question: An arrangement under Deposits product line has TERM as 12M and AMOUNT as 0. What happens when this new arrangement is committed?

Answer: System will commit the activity without any override or error and simply record the activity

Question: An arrangement under Deposits product line has TERM as 12M, AMOUNT as 0 and CANCEL.PERIOD as 10D. Which of the following statements is true?

Answer: System would not schedule the cancel arrangement activity

Question: A bank wants to define a product where a customer could save regularly by depositing a certain amount at regular frequency, is this possible?

Answer: Can be defined under Deposits product line using Bill Type as EXPECTED in Payment Schedule

Question: What are the property classes involved in Auto Funding a deposit?

Answer: Settlement

Question: The Bank would like to send an advance notice to a customer pertaining to the cancel period set in the arrangement. Is it possible ?

Answer: This can be set up in ACTIVITY.MESSAGING

Question: Client wanted to cancel a deposit if it is not funded within 10 days of deposit creation. What do you need to do to make sure it happens?

Answer: All the above

Question: What will be the date of processing in the below case? 28th Feb 2013 is the system date, 1st & 2nd March are holidays. We have a bill scheduled on 1st March and COB runs on 28th Feb. When will the bill get generated for 1st March?

Answer: During AA.SOD.PROCESS of 3rd March

Question: Withholding tax is defined in the deposit product condition. When will this tax be calculated ?

Answer: Whenever interest is paid or capitalised

Question: What should user do to increase deposit commitment amount ?

Answer: No way to increase deposit commitment amount

Question: The Bank's requirement is that they allow customers to open the 6 months deposit with the option to fund the deposit within the first 5 days from opening date. If funding arrives on the 3rd day, the maturity date should be recalculated based on the funding date. However, the duration of the deposit needs to remain as 6 months. What can the Bank do ?

Answer: In Account condition, define START as the Base Date Type

Question: A deposit was opened for USD 100,000 early this year and the system reflects that the renewal date 10 May 2014. On 10 May 2014 at 2pm, customer called the Bank to request for an increase in the deposit amount by 25,000 for the rollover on 10 May 2014. User quickly update the deposit schedule as MAINTAIN 125,000 and the Start Date as R_RENEWAL. What will happen?

Answer: The increased deposit amount will only be effective on the next rollover date (not 10 May 2014)

Question: Customer has a USD 300,000 deposit. He has given instructions to the Bank to reduce his deposit principal by 50,000 during rollover. What should the user do to effect this instruction in the system?

Answer: Update the deposit schedule arrangement condition. Indicate SPECIAL as the payment type, MAINTAIN as the payment method, 250,000 as the actual amount, R_RENEWAL as the start date and 'payment' as the bill type

Question: Bank wants to be able to remind their customers 5 days in advance before deposits mature. Is it possible to do this?

Answer: In Activity Messaging condition, define pre-notification period for deposit maturity activity

Question: Bank offers to pay out a bonus (in lump sum) to customer in order to encourage more new deposit opening within this promotional period. However, the Bank is concerned that the big bonus payout will result in a drastic accounting entry in their P&L books. As such, the Bank would prefer to 'even out' the accounting entries. Is there anything they can do ?

Answer: Define amortisation period in Accounting condition for this type of bonus

Question: Bank wants to charge a fee upon new deposit creation. The standard fee amount is USD 100. However, on exceptional situations, user is given the authority to 'waive' the fee amount fully or partially at the very moment of deposit creation. The typical P&L used for this type of fee is 52100. However, the Bank wants to be able to book the 'waiver' portion to a different P&L. Is this possible ?

Answer: Yes, it is possible by defining the 'waiver' P&L category in Accounting product condition

Question: Deposit has been created and authorised. However, this deposit has not been funded at all even after the product's defined 5 cancellation days. What is the status of this deposit now?

Answer: Cancelled

Question: The Bank wants deposits to mature only on working days. If there is a non working day, the maturity date will need to fall on the next working day even if this means a slight increase in the deposit duration. What can they do ?

Answer: At the new deposit creation stage, override message will be generated if maturity date is not a working day. User to manually change the maturity date to the next working date

Question: The Bank wants system to automatically pick the respective interest rates for the deposit depending on the deposit duration. What should they do ?

Answer: In Interest product condition, define a periodic interest key

Question: The Bank does not want to provide customers with a choice to fund their deposit partially. If the customer agrees to a 100,000 deposit arrangement, they should not be funding 80,000 today and 20,000 tomorrow etc. Users should be given a warning message if they accidentally perform such transaction. Is this possible to achieve this by using current system functionality ?

Answer: We can define a periodic attribute based on FULL.DEPOSIT periodic class and attach to the ACCOUNT product condition

Question: A deposit was opened 3 years ago. The deposit was funded 2 days after the opening date. Every 6 months, the deposit will automatically rollover. The Bank user found values in BASE.DATE as well as RENEWAL.DATE in AA.ACCOUNT.DETAILS file. She presumed that RENEWAL.DATE represents the upcoming deposit rollover date. However, what does BASE.DATE represent ?

Answer: The arrangement last rollover date

Question: The Bank makes use of the periodic interest table to determine interest rate for their deposit arrangements. However, they do not want to be subjected to free fluctuations in the underlying periodic rate. If the underlying periodic rate becomes too high, system should automatically apply a maximum 'ceiling' rate. For example, the ceiling rate is 3%. If the underlying periodic rate reads 3.2% today, the system should only apply 3% to the deposit. Is this possible ?

Answer: Define an appropriate periodic attribute and rule in Interest product condition. Define CAP as the break result

Question: Bank defined 5D as Cooling Period. What is the implication ?

Answer: If customer decides to fully redeem the deposit within 5 days from deposit creation date, any interest accrued will not be paid to customer

Question: The AA Deposit arrangement has been pledged as collateral in T24 Collateral application. Which of the following deposit balance will be used for calculating the collateral amount ?

Answer: CURACCOUNT

Question: The deposit has tax WHT defined. Out of the 5 customers' arrangements, it has been discovered that 1 of the customer's arrangement did not have tax deducted. What could be the reason ?

Answer: TAX.TYPE.CONDITION for this customer group has not been defined

Question: The Bank wants to be able to schedule a change in the principal amount for the upcoming rollover. What are the considerations to be taken in order to select the correct 'Payment Type' on the payment schedule condition ?

Answer: The AA.PAYMENT.TYPE record must have a 'Manual' TYPE

Question: For the upcoming deposit rollover, the customer wants to have 20% of the accrued deposit interest paid out to him and remaining 80% of the accrued deposit interest to be capitalised. What can the Bank do ?

Answer: No, it is not available in current system

Question: Deposit is set to rollover and interest is payable at every rollover. Bank allows customer to increase the deposit amount for rollover without the need to create a new deposit arrangement. However, the increase amount cannot be more than 20% of the amount in the current deposit term. TEMENOS recommends a local development to achieve this. What are the values we should use in order to measure the 20% difference?

Answer: Compare the CURACCOUNT balance with the value in ACTUAL.AMT in Payment Schedule condition

Question: The Bank user created a deposit arrangement which has a fixed term of 18 months. In the interest condition, interest has been defined to capitalise yearly. After authorising the arrangement, the user checked the payment schedule and discovered that the schedule shows a scheduled interest capitalisation on the 2nd year, even though the deposit has only 18 months term. What should they do to make the interest pay out on the 18th month maturity ?

Answer: On the same row where interest has been defined as 'Capitalise' in Payment Schedule condition, define R_MATURITY as the end date

Question: A cooling period of 7D has been defined for this deposit arrangement. On the 10th day, the customer decides to fully redeem this arrangement. How much accrued interest will be paid to customer ?

Answer: Interest accrued for the 10 days (subjected to accrual rules definition)

Question: In order to encourage customers to continue their deposit placements with the Bank, the Bank offers to pay a bonus for each deposit rollover. The bonus is 0.2% of the total rolled over amount, which is to be automatically calculated when system performs the rollover. In this case, what should we define as the calculation source for this type of bonus ?

Answer: CURACCOUNT

Question: The Bank wants to offer notice deposit products. They clarified that for this type of deposit, customer will place them for an indefinite term. For any withdrawals (partially or fully), customer has to provide 3 days advance notice. How can we achieve this within the deposit product line ?

Answer: Not possible

Question: The Bank's range of deposit products typically commence as a fixed term deposit. If there is no further instruction received from customer, the deposit will mature. However, if the customer provides instruction to the Bank at least 1 day prior to maturity, the deposit will automatically rollover. Customers are given the choice to have the deposit in any duration. However, each deposit duration must not be lower than 1 month. What can we do to ensure this ?

Answer: In Term Amount condition, define a minimum negotiable rule for TERM. In addition, define a minimum negotiable rule for CHANGE.PERIOD in Change Product condition

Question: In case of situations where auto settlement was not set up, the Bank will perform manual operations to credit the scheduled deposit interest payment to customer. The interest payment activity is DEPOSITS-APPLYPAYMENT-PO.DEPOSIT. The Bank is using FT.TXN.TYPE.CONDITION 'ACDP' to perform the manual operation. In this FT.TXN.TYPE.CONDITION record, the Credit Transaction Code (TXN.CODE.CR) is 820 and Debit Transaction Code (TXN.CODE.DR) is 821. Within the Activity Mapping condition, which transaction code is to be mapped to the DEPOSITS-APPLYPAYMENT-PO.DEPOSIT activity ?

Answer: 821

Question: The Bank said that whenever there is a payment into the deposit, the Activity Log on the Arrangement Overview displays "Applypayment Activity for Pr Deposit". The Bank is not happy about it as this narrative is non intuitive and not user friendly. They want simpler narratives such as "Deposit Funding" etc. Is there anything we can do about this ?

Answer: Yes, we can change the description of the AA.ACTIVITY

Question: The Bank performs automatic payouts for their deposit products. They realised that whether it is paying out scheduled interest or paying out bonus, the activity log always show "Applypayment Activity for Po Withdrawal" as the narrative. The Bank wants more intuitive narratives to appear e.g. "Pay out Interest" and "Pay out Bonus". Is this possible to achieve this ?

Answer: Yes, create 2 copies of activities linking to existing payout activity and provide appropriate descriptions to these activities. Then, multi-value the payout property class (PAYOUT.PPTY.CLASS) field in SETTLEMENT condition with each property class linking to the appropriate activity in payout settlement activity (PAYOUT.SETTLE.ACTIVITY) field

Question: With regards to the Eligibility functionality, the Bank is happy to know that system can generate an error message if the customer fails eligibility during deposit opening. However, they are not happy that the system is currently forcing them to change their customer's deposits to a default product whenever customer fails eligibility during the life of the arrangement. They only want to be aware that customer fails eligibility but system must not automatically change the deposit to a different product

Answer: Change the FAILURE.ACTION to IGNORE

Question: There are 2 deposit products in the Bank's product catalog. Today, the Bank user created an arrangement for the first product and performed a full funding immediately. Upon checking the Arrangement Overview, he was happy to see the interest amount on the payment schedule. He proceeded to create an arrangement for the second product and funded it fully at once. He was shocked to see that interest amount reflected as zero on the payment schedule. What could have happened ?

Answer: In Product Designer, source balance for deposit interest was defined to ACCDEPOSITINT

Question: Deposit interest has been scheduled to capitalise upon rollover. Customer's settlement account has been closed recently, leaving no active settlement account for this deposit. In what balance type will this interest amount be parked in so that the user can manually transfer this interest amount to customer ?

Answer: None of the above

Question: The Bank wants automated funding to take place whenever deposit is created. However, they do not want their customer's accounts to be overdrawn as a result of funding. What should they do ?

Answer: Define 'None' as the settlement condition rule

Question: A new deposit arrangement has been created. However, it has not been funded yet. What will be the Bill status of the bill which would be funded?

Answer: Due

Question: The Bank has defined 'increase amount' instructions for the upcoming rollover. However, on the rollover date, the deposit did not rollover with a higher amount. What could be the reason ?

Answer: The relevant PAYMENT.TYPE in SETTLEMENT condition has not been defined

Question: The Bank defined interest condition where 20% is based on fixed rate and 80% is based on periodic rate. How will system calculate interest for the deposit?

Answer: Everyday when system updates the AA.INTEREST.ACCRUALS file, it will calculate the accrued interest based on the summation of both. That is, the result of 20% of deposit principal calculated based on the fixed rate plus the result of 80% of deposit principal calculated based on periodic rate

Question: The Bank was told by TEMENOS that the deposit will mature at Start of Day. Being the nation's favourite Bank, the Bank promised to pay customer interest including the interest calculated for the maturity date. Is it possible?

Answer: Set Accrual Rule to 'Both'

Question: The Bank has a requirement for deposits. The deposit arrangement must be opened with an initial amount of at least USD 100,000. For subsequent rollovers, the amount that the user inputs in the rollover instructions must not be lower than USD 80,000. What can they do ?

Answer: Define negotiation rule for ACTUAL.AMT in Payment Schedule condition

Question: For newly created deposit arrangements, the Bank wants a way to identify the number of days that the deposit has not been funded. Is it possible ?

Answer: Define Overdue condition where 'Expected' is the Bill Type

Question: The Bank has set a Cancel Period of '5D' for their deposit products. In view that the deposit has not been funded after the 5 days, the user reported to TEMENOS that the status of the deposit is now 'Pending Closure'. The Bank wants to know when will the deposit status become 'Close'

Answer: Depends on the Closure condition

Question: The standard interest rate of the deposit product is LIBOR - 0.5%. However, on exceptional cases, the Bank wants to be able to offer an additional margin rate of + 0.3%, on top of the standard LIBOR - 0.5%. The Bank wants to be able to capture the 3 interest components in separate fields so that they can design reports or advices to explicitly show that the interest applied to the deposit is LIBOR - 0.5% + 0.3% and not LIBOR - 0.2%. Is this possible ?

Answer: Multi value the MARGIN.TYPE field in INTEREST condition

Question: Deposit is for one year. Tax has been defined for deposit interest. On the payment schedule, only deposit interest has been scheduled to pay out every month. The Bank learns that on every interest payout date, a bill will be generated. What property artefacts will be recorded in this bill ?

Answer: DEPOSITINT and DEPOSITINT-TAX

Question: The Bank wishes to make use of AA Deposit module to introduce an investment type of deposit. This deposit will yield higher interest rates than standard fixed deposit. For instance, for a 1-month investment deposit products, it will use 6 month's LIBOR rate. For 3-month investment deposit, it will use 12 month's LIBOR rate. The Bank would like to store such LIBOR rates in an interest reference table. Can we design this product in AA Deposit module ?

Answer: Possible. Define LIBOR rates in Periodic Interest table. Bank can create the various investment products based on the duration. In their respective interest condition, define the periodic interest key. Furthermore, in the PERIODIC.PERIOD field, specify the actual duration tier that the interest rate is to be derived from the periodic interest table

Question: The Bank defines their LIBOR rates in the Periodic Interest table where rates are downloaded from Reuters. Reuters have term rates for 1 month, 6 month, 12 months and 18 months. Past data has shown that rates are always higher for longer duration compared to the shorter duration. The Bank's policy is such that they will always pay at the lower tiered rate if the requested deposit duration do not have an exact match with the durations mentioned on the periodic table. For example, if a customer wants a 2 months deposit, the system will need to retrieve the 1 month's rate. Is this possible to achieve this requirement in AA ?

Answer: Yes, we can define PREVIOUS as the PERIODIC.METHOD in Interest condition

Question: The Bank wants to have IBAN number generated automatically for AA deposits. How can we set this up in AA ?

Answer: In ACCOUNT condition, define YES for GENERATE.IBAN attribute

Question: The Bank informed TEMENOS that in the event that their relationship managers use the Charge Override functionality to waive fees (fully or partially) at the arrangement level, the net chargeable amount will be booked to the defined charge P&L category. This is the default setting for all fees. However, if the waiver is for a particular 'CHGINTRATE' fee, the system needs to book the original fee amount and the waiver amount to separate P&L categories. Hence, 2 separate accounting entries

Answer: Possible. In ACCOUNTING conditon, define 'NET' as the value for DEF.CHG.OVR.METHOD attribute. Then, define 'CHGINTRATE' as the CHG.OVR.PROPERTY with the CHG.OVR.METHOD mentioned as 'ITEMISED'

Question: The Bank informed TEMENOS that they allow customers to partially withdraw from a particular deposit product but customer has to pay a fee. For the first withdrawal, they charge USD 100. For the second withdrawal, they charge USD 200. For any subsequent withdrawals, they charge USD 500 each time. Is it possible to create this type of product ?

Answer: Yes possible. Define tier counts in charge condition and 'count' as the source type for this fee