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 |
| 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 |
| 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 |
| 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 |
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