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https://issues.apache.org/jira/browse/FINERACT-2279?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Adam Saghy updated FINERACT-2279:
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Fix Version/s: 1.12.0
> 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
> Priority: Major
> Fix For: 1.12.0
>
>
> 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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