Credit Line Detail

The information for a specific credit line is contained in that line’s credit line detail.

To view the detail of a credit line, query a line of credit loan and select the View > Loan Setup menuclick the Loan tab on the ribbon bar and click Loan Setup or add a new loan of the appropriate loan type then click …… to the right of the credit line field. Click …… to the right of the credit line column.

The specific data for the credit line is configured on the tabs.

Main

The Main tab of the credit line detail contains data regarding how much can be drawn against that credit line and in what increments.


Figure - Credit Line detail dialog. Some fields described below are context sensitive and may not appear on all dialogs.

Name The name given to identify the specific credit line reserve
Description A description of what the reserve is to be used for
Transaction Code The indicated transaction code, when run against the loan will automatically draw from this particular credit line reserve. The same transaction code can not be designated for multiple reserves on the same loan. For more information regarding setting up transaction codes for different kinds of draws on reserves, see Linking Transaction Codes for Draws to Specific Credit Lines.
Credit Line Limit The amount of credit earmarked for this particular reserve
Draw Limit The maximum total draw available for this particular reserve
Max Draw Amount The maximum amount which may be taken as a draw in a single transaction
Min Draw Amount The minimum amount which may be taken as a draw in a single transaction
Max # of Draws The number of times a draw transaction for this credit line may be run. A value of zero indicates no specific limit.
# of Draws The number of times that a draw transaction for this credit line has been run.
Draw until
Type Not Applicable: no duration limit to credit line reserve.
From Origination Date: sets the draw limit from the origination date of the loan.
From First Draw: sets the draw limit from the date of the first draw on the loan.
Fixed Date: use a fixed date.
# of Periods The number of periods from the origination date or the first draw after which the credit reserve expires and no additional draws may be made.
Period The period designation for the number of periods.
Day Value Set the day number of the month on which to expire the credit reserve.
Date The fixed date after which the credit line reserve expires and no additional draws may be made.
Use Payoff for Availability Calc

When selected, the maximum amount that can be drafted will be limited by the credit line limit minus the current payoff amount which may include outstanding interests and fees. When not selected, the account can be drafted up to the credit line limit regardless of outstanding interests or fees.

Example

With a 10,000 credit line, 5,000 principal, and 500 interest:
With option selected: the maximum that can be drawn will be 4,500.
Without option selected: the maximum that can be drawn will be 5,000.

Overdraw

The Overdraw tab of the credit line reserve contains configuration that controls how the loan will respond to an advance which exceeds the amount in the reserve.


Overdraw Threshold

The overdraw threshold controls how much over the credit limit a draw is allowed to go and still allow the advance to take place

Attribute
Greater The threshold is the greater of a fixed amount or designated percentage of the credit line
Lesser The threshold is the lesser of a fixed amount or designated percentage of the credit line
Both The threshold is the sum of a fixed amount and a designated percentage of the credit line
Amount The fixed amount specified by the user
Percentage A percentage of the specific credit line reserve
Overdraw Fee

The overdraw fee controls how much to charge in the event that the credit line reserve is over-drawn. The threshold allows the advance to take place, but a fee may be imposed.

Attribute
Greater The fee is the greater of a fixed amount or designated percentage of the amount by which the credit line is over-drawn
Lesser The fee is the lesser of a fixed amount of designated percentage of the amount by which the credit line is over-drawn
Both The fee is the sum of a fixed amount and a designated percentage of the amount by which the credit line is over-drawn
Amount The fixed amount specified by the user
Percentage A percentage of the amount by which the credit line has been over-drawn
Transaction code The transaction code to be used in assessing the fee. TC 154 is the standard transaction code designed for this purpose, but a manual transaction code could also be configured.

Fee

The Fee tab of the credit line reserve setup is used to set a fee that is assessed for all draws.


Attribute
Greater Fee is the greater of a specified amount or a percentage of the amount of the draw
Lesser Fee is the lesser of a specified amount or a percentage of the amount of the draw
Both Fee is the sum of a specified amount or a percentage of the amount of the draw
Amount The specified fixed amount of the fee
Percentage The percentage of the amount of the draw
Transaction Code The transaction code to be used in assessing the draw fee. TC 152 - Credit Line Advance Fee is a standard transaction code designed for this purpose, though other transaction codes could be configured.

Options

The Options tab contains several options flags for controlling functions of a credit line reserve.


Include Draw in “Last 3 Draws” In general, the last three draws for the entire credit line are shown on the credit line information screen in loan query. This option allows the draws from a specific credit line reserve to be either included or excluded from that list.
Expired reserve added back to the Main Credit Limit If a particular credit line reserve reaches its draw until date, any portion that has not been drawn is allocated back to the main credit line.
Act as interest reserve, offset interest billings The reserve account will be used to offset the interest billing if there is enough funds in the reserve account.