A.1.25 Convert a Precomputed (PC) Line of credit into a Simple Interest (SI) Line of credit
When converting a precomputed Line of credit into a simple interest Line of credit, Oracle Financial Services Lending and Leasing assumes the following default values:
- Accrual Calculation Method - interest bearing (simple interest)
- Maturity Date - Computed from the term and next payment due date
- Monthly Payment Amount - Computed from the interest rate, new principal balance, accrual start date, and term.
- All balances other than the Note balance are carried over to simple interest Line of credit.
The resulting new simple interest Line of credit will have the same account number with details entered/computed above.
CAUTION: The converting a precomputed Line of credit into a simple interest Line of credit transaction can be performed only by closing the nonperforming condition.
Table A-47 To reschedule precomputed Line of credit to interest bearing Line of credit
| Transaction | Parameters |
|---|---|
| Reschedule Pre-Compute Line of credit to Interest Bearing Line of credit | Txn Date |
| Reschedule Payment Start Date | |
| Amount | |
| Rate | |
| Term |
Parent topic: Monetary Transactions