Update Mini-Contract/Group Var Rate Loan Terms
This screen appears when you select Variable Rate Loan on the first Miscellaneous Loan Maintenance screen or on the Loan Creation screen. This screen is only used when the loan has a Group variable rate type that uses the “Update by Loan Terms (Mini-Contract)” update type.
This screen is used to set up the rate change caps for this specific loan account. The default caps from the variable rate code will be pulled in automatically, but you can change them as needed for this individual loan.
Use Calculate (F10) to recalculate the ceiling and floor rates shown at the bottom of the screen, to make sure the caps you enter will behave as expected. (These are the highest and lowest rate that could ever be used for this loan account.)
The First change effective date lets you set the first date on which a rate change could take place on this account. The Original loan rate will remain in place until that date, even if other changes are made to the variable rate code in the meantime. In effect, this lets you set an introductory period for the initial loan rate. After this date is past, the next change that is scheduled for the variable rate code will take effect for this loan.
When done, use Enter to save and exit the screen.
For a complete discussion on setting up and maintaining variable rate products, and a description of all of the fields and buttons available on the three maintenance screens, see the CU*BASE Variable Loan Products booklet.