The Automatic Contract Update function automatically rolls over a loan on its maturity date, if you have:

• Allowed rollover for the loan at the time of defining the product.
• Specified auto, in the Contract Details screen.

If you have marked a loan for auto liquidation and auto rollover, the system original loan and creates a new rolled-over loan on the Maturity date of the original loan. This is done by the Automatic Contract Update function during it Beginning of Day run.

If the Maturity Date falls on a holiday, then the liquidation and the rollover are processed as per your holiday handling specifications in the Branch Parameters screen:

• If you have specified that processing has to be done today (the last working day before the holiday), then the automatic events schedule falling on the holiday is liquidated during End of Day processing.
• If you have specified that processing has to be done only up to the System Date (today), then only the events scheduled for today (the last working day before the holiday) are processed. The events falling on the holiday are processed on the first working day after the holiday, during Beginning of Day processing.

If the holiday is a month end, then the liquidation and rollover does not cross the month. It is done in the same month, irrespective of the specifications in the Branch Parameters screen.

• Today’s date - 14 November 1997
• Next working date - 16 November 1997 (which means 15 November 1997 is a holiday)

During its BOD run, the Automatic Contract Update function rolls over loans with a maturity date of 14 November 1997.

The processing of the roll-over which falls due on a holiday depends on your holiday handling specifications in the Branch Parameters screen:

• You could have specified that automatic processes scheduled for the holiday(s) are to be carried out on the last working day before the holiday(s). In such a case, the contract is rolled over, during the EOD processing of the Automatic Contract Update function, on 14 November 1997. This function rolls over loans with an End Date of 15 November 1997.
• If you have not specified this, the rollover takes place during the BOD processing of the Automatic Contract Update function. This function rolls over contracts with an End Date of 15 November 1997, during its BOD run on the next working day that is 16 November 1997.

The Activity Journal for the day reports the details of loans that were rolled-over automatically during the day. If a loan that had to be rolled-over was not rolled-over for some reason, it is reported in the Exception Report for the day. The reason for the contract not being rolled-over is also reported in the Exception Report. This report is generated every day, by the Automatic Contract Update function, during its EOD run.