Bharath Gowda created FINERACT-2279:
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Summary: Contract Termination Feature
Key: FINERACT-2279
URL: https://issues.apache.org/jira/browse/FINERACT-2279
Project: Apache Fineract
Issue Type: New Feature
Reporter: Bharath Gowda
h3. Background and Details
A Loan is considered ‘In Default’ when they fail to repay their loan as
scheduled by the terms outlined in their contractual agreement, those types of
loans are eligible and would under go Contract Termination and Fineract should
have a capability to do Contract Termination to Support this Scenario.
h3. Requirement Details
# User with permission should be able to do Contract Termination on a active
loan through API
# Contract Termination can be done only as of Current date, no backdated
termination required
# All Installments will be accelerated and become due as of Contract
Terminated Date
## Interest till the Contract Terminated Date and the Principal outstanding
balance will be the due amount
# Maturity date will be updated as the Contract Terminated Date
# Delinquency bucketing will continue as per the new accelerated schedule
# Charge-off is allowed on the Terminated loan accounts
# Charge-backs is allowed on Terminated loan accounts
# N+1 Installment will not have any Impact from Contract Termination.
# Accrual and Accrual Activity will stop after the termination.
## I believe this happens automatically as we the schedule is accelerated
# Account Changed event to be triggered during the Contract Termination
activity
# No Accounting entry Activity for Contract Termination
# If contract Termination is done after the maturity date
## Existing Installments and maturity date remains as is
## Interest calculation will be done only till maturity date (not till
contract termination date)
# Backdated payments and Reversals to be allowed after contract termination
## Contract termination will be reversed-replayed and adjusted accordingly
# Contract termination can be undone/reversed
## Schedule will be recalculated and reapplied accordingly
Example UCs are here
https://docs.google.com/spreadsheets/d/1vFvry9rVEIvHuHvXeQ3zhEIevtLsGWAGUmRxI4cIjpE/edit?usp=sharing
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