• HH:MMxx where HH = hours (01-12)
• MM = minutes (00-59)
• xx = "am", "AM", "pm", or "PM"
• HH:MM:SS where HH = hours (12 hour clock)
• MM= minutes
• SS = seconds

Note that this field can also be used for a second vendor contact. As this field and the VENDOR CONTACT field are informational only, they can be used for other purposes, e.g. BROKER CONTACT: 2nd vendor - John Smith.

Investor income participation should not be entered if the lease has a payment schedule of variable amounts. The schedule may have skip payments and/or multiple advance payments, but the payment amount must be the same throughout the lease term.

• M - Monthly
• S - Semi-Monthly
• B - Bi-Weekly
• W - Weekly

Terms of available rate plans are displayed and one may be selected for the application, if desired. If a vendor is tied to the application and a rate plan group is tied to the vendor, all rate plans from the rate plan group are displayed. Otherwise, all rate plans are displayed. Rate plans can be entered with the Application Rate Plan update [U0816]. Rate plans are grouped with the Application Rate Plan Group update [U0817]. Rate plan groups are tied to vendors with the Vendor update [U0201] field RATE PLAN GROUP. Vendors are tied to applications by entering the Vendor code on Tab 1 [U0801]. Rate plans which are valid for the current date (as determined by the START DATE and END DATE fields of the rate plan) are displayed.

• Automatic
Rate plans can be automatically determined at any time by clicking the Automatic button. If a vendor is tied to the application and a rate plan group is tied to the vendor, a rate plan may be automatically defaulted from one in the rate plan group by matching its values with the application values entered for the following fields:


• ACQUIS COST
• TERM
• ADVANCED PMTS BEG
• ADVANCED PMTS END
• PURCHASE OPTION
• MARKET CODE
• ACCOUNT CODE

If any of the above fields is blank on the rate plan, the application may have any value for that field and the rate plan will still be considered a match. However, if one of the above fields is entered on the rate plan but blank on the application, the rate plan does not match.

There is no guarantee a matching rate plan will be found among those in the rate plan group. If no match is found, no rate plan is automatically defaulted. Also, more than one rate plan in the group might match, in which case the first rate plan in the group that matches is used.

An automatically defaulted rate plan may be changed to another one, but further restrictions may apply during Status Transfer [U0801]. Refer to the advanced note below.

If a rate plan is determined automatically, the following values, if defined for the rate plan, default to the application, overriding any existing values:


• PAYMENT AMOUNT
  This field does not come directly from the rate plan, but is calculated and defaulted:
  
  
  • ACQUIS COST * RATE PLAN PAYMENT FACTOR (Where rate plan payment factor is entered in Application Rate Plan Update [U0816])
    
    

PAYMENT AMOUNT may be changed. If a payment amount variance has been established for the rate plan with the VARIANCE PERCENTAGE and VARIANCE AMOUNT fields of the Application Rate Plan update [U0816], PAYMENT AMOUNT is compared to the calculated amount and must be within the variance. For example, if the VARIANCE AMOUNT is $100, the entered payment amount must not be more than $100 greater or less than the calculated amount. If the payment amount is outside the valid range, a warning message is displayed: "Warning: PAYMENT AMOUNT should be XXXXXXXX.XX to YYYYYYYY.YY". Refer to the advanced note below for additional edit checks.

Note that this field is not defaulted if an irregular payment schedule is defined for the application.

• FREQUENCY
  Note that this field is not defaulted if irregular payment schedule is defined for the application.
  
  
• SECURITY DEP
  This field is always copied as a dollar amount. If the rate plan defines the security deposit as a percentage of the acquisition cost or as an amount equal to a number of monthly payments, the equivalent dollar amount is calculated and copied.
  
  
• COMPENSATION AMT
  This field is always copied as a dollar amount. If the rate plan defines the compensation amount as a percentage of the acquisition cost, the equivalent dollar amount is calculated and copied.
  
  
• PURCHASE OPT OWNR
  Rate plans are grouped with the Application Rate Plan Group update [U0817]. Rate plan groups are tied to vendors with the Vendor update [U0201]. Vendors are tied to applications with the first tab of New Application [U0801].
  
  
• MANUAL
  A rate plan code may be manually entered. Even if an automatic rate plan is determined, it may be manually changed to another one. If a rate plan is entered manually, the following values, if defined for the rate plan, are copied to the application, overriding any existing values:
  
  
  • MARKET CODE
  • ACCOUNT CODE
  • PAYMENT AMOUNT
    Note that this field is not defaulted if an irregular payment schedule is defined for the application.
• FREQUENCY
  Note that this field is not defaulted if an irregular payment schedule is defined for the application.
• ADVANCED PMTS BEG
  Note that this field is not defaulted if irregular payment schedule is defined for the application.
• ADVANCED PMTS END
  Note that this field is not defaulted if irregular payment schedule is defined for the application.
• PURCHASE OPTION
• SECURITY DEP
  (see above note in automatic rate plan defaults)
• COMPENSATION AMT
  (see above note in automatic rate plan defaults)
• PURCHASE OPT OWNR
  
  
• Whenever a rate plan is entered, a message is displayed: "Application values defaulted from rate plan: XXXX."

  Note: After the rate plan code is first entered, there is no restriction preventing it and its associated values from being modified. Therefore, to insure rate plan consistency, additional rate plan checks are imposed during Status Transfer if the user changing the status does not have rate plan edit check override privilege. This privilege is established with the OVERRIDE RATE PLAN field of the Application User Profile update [U0831]. These additional checks are:

  • The rate plan code must be in the rate plan group tied to the application's vendor, if a vendor is tied to the application and a rate plan group is tied to the vendor.
    
    
  • Fields on the application used to determine automatic rate plans (even if the rate plan code was entered manually) must agree with the values on the rate plan. Refer to the section above on AUTOMATIC rate plans for the specific fields.
    
    
  • Fields defaulted to the application from the rate plan must agree with the values on the rate plan. Refer to the section following the MANUAL rate plan description for the specific fields.
    
    
  • The PAYMENT AMOUNT must be within the variance of the calculated payment amount, if a VARIANCE PERCENTAGE or VARIANCE AMOUNT was entered on the rate plan.
    
    
  • The application must be booked during the effective dates of the rate plan for the rate plan to be valid. Refer to the START DATE and END DATE fields of the rate plan.

  These checks apply when changing the application to booked status.

This field will be available only when the Payment Schedule is blank. After the Payment Schedule has been populated, any and all changes to the Payment Schedule should be made in tab 8. All changes will automatically be carried over.

Note: This field will be available only when the Payment Schedule is blank. After the Payment Schedule has been populated, any and all changes to the Payment Schedule should be made in tab 8. All changes will automatically be carried over.

For operating leases, the amount in this field must instead equal the total inventoried value of the assets tied to the application at booking.

RESIDUAL % = (RESIDUAL AMT / ACQUIS COST) x 100

If RESIDUAL % is entered, RESIDUAL AMOUNT is calculated and displayed using the following formula:

RESIDUAL AMT = ACQUIS COST * (RESIDUAL% / 100)

LeasePak allows operating type assets to be booked with RESIDUAL that exceeds the ACQUISITION COST.

For example, given a lease with the following information:

36 MONTHLY PAYMENTS OF $300.00
RESIDUAL VALUE = $1,000.00, OF WHICH $800.00 IS GUARANTEED

The contract receivable is calculated as (36 times $300.00) plus $800.00, or $11,600.00, and would be stored in the Contract Receivable General Ledger account. The amount in the Unguaranteed Residual General Ledger account is $200.00.

• FINANCED Upfront sales tax is to be capitalized (i.e., added to the cost of the lease and financed by the lessor).
  
  
• PAID AT COMMENCEMENT Upfront sales tax is receivable at lease commencement and will be paid by the lessee.
  

When the application is booked, this field is required if upfront sales tax is entered. This field is informational only.

• There must be at least one entry that has a matching Product Type code and an effective date that is on or before the Lease Date. If no entries can be found that meet these criteria, the default rate is set to zero.
  
  
• Of the table's entries that match the lease's Product Type code, the one with the term which is equal to or greater than the lease term will be chosen. If the lease term is greater than the largest table term, then the rate for the longest term will be chosen.
  
  

Transfer price rate must be filled in if Product Type code is entered.

Highest Credit Limit for the month *Annual Line Fee%* 1/12

When the first drawdown occurs the line fee will be calculated one month after the commencement and every month thereafter. At termination, all outstanding principal and interest will be repaid. An assessment may be manually charged.

Once lease is booked, the user may view the Revolving Credit information on the Lease Inquiry [R0905] report under 'Terms of Lease' section.

• If the dealer received funds are more than the total advance payments:
  1. If the advance payment amounts to $300 and dealer receivable funds are $500 then LeasePak processes it regardless of the Client Receives Advance (R/I/A) option setting in Portfolio - New Lease Customizations [U0212], the overage amount will go to suspense if no unpaid invoices exist. If they do, the overage will apply to the next invoice.
  2. With the Dealer Payment Principal Write Down option selected, LeasePak applies overage to the principal exactly as it would in Batch Payments with Principal Write-Down.
• If dealer received funds are less than the advance payments:
  
  • If the advance payment is $800 and the dealer receivable is $500, then $500 will be deducted from the dealer receivables and $300 will be recorded as received (R) or invoiced (I).

If entered, the total of all DOLLAR% entries must equal 100%.

The total of all VOLUME% entries may exceed 100%.

Notes on specific late charge methods.For leases using 'GFT*' or 'GFL*' late charge methods, you must set grace days through the Lease Form [U0721]and override if needed at the application/lease level. For leases using late charge methods that assess only one late charge per invoice (such as 'PERC' and 'FIX'), LeasePak will assess the late charge only if both the following are true:

   1. Invoice due date + grace days < current accrued-to date
   2. Invoice due date + grace days >= current accrued-to date - one month

If the grace days are less than the accrual deferral days (specified at the portfolio level) and the invoice is paid in between these two dates, the late charges will be missed. LeasePak will assess the late charges according to the following equation:

Late charge applicable date = grace days + accrual deferral days

$1 Buyout
Defaults $1.00 into RESIDUAL AMT and into FIXED PRICE PURCHASE. Both these defaults may be changed, but cannot exceed $1.00.

10% Buyout
Defaults 10% into RESIDUAL%. Defaults 10% of the acquisition cost into FIXED PRICE PURCHASE. The RESIDUAL% default may not be changed, but the FIXED PRICE PURCHASE default may.

Fair Market Value
Defaults the FMV percentage matching the application TERM into RESIDUAL%. The FMV PERCENTAGE defaults are established with the Miscellaneous Customizations option of the Portfolio update [U0212]. The defaulted FMV percentage is multiplied by the acquisition cost and the result is used as a default in FIXED PRICE PURCHASE. Both these defaults may be changed.

Calculated Payoff
The purchase amount for the lease will be calculated according to the PAYOFF CALCULATION METHOD. A PAYOFF CALCULATION METHOD must be entered if this method is selected.

Percent of Original Cost
The payoff amount for the lease will be calculated as a percentage of the original cost. PERCENTAGE (ORIGINAL COST) must be entered if this method is selected.

Fixed Price
If this purchase option code is entered, a value is required in the FIXED PRICE PURCHASE field.

Payoff% of Blue Book
The payoff amount for the lease is the greater of the payoff amount as calculated according to the PAYOFF CALCULATION METHOD or a percentage of the blue book wholesale. This is used for vehicle leases.

None
No purchase option is available to the lessee for any leases written under this lease agreement.

Note: Selecting NONE is the same as leaving the purchase option field blank.

When a late charge is to be pyramiding,do not enter a value in this field.

The security for this field can be modified in Application Field Security [U0814]. By entering a Minimum Payment Amount, LeasePak will assess and process a late charge for an invoice if any of the following scenarios take place:

• An invoice is delinquent and a late charge has not been assessed automatically through EOP on the previous invoice.
• An invoice is delinquent, a late charge was assessed the prior month, and from the date of the prior months late charge assessment; the customer has not paid at least the Full Payment Amount.

The calculation will depend on the new "Previous Late Charge" flag (prev_ltch_s) being set to "Y" in the RLS table. The default value of the flag is set to "N" at the time of booking.

• A late charge will be assessed when, the most current invoice is delinquent, taking into account the Grace Days and the Previous Late Charge flag is 'N".
• The most current invoice is delinquent, taking in account grace days, Prev Late Charge flag is "Y" and sum of payments minus sum of payment reversals since the date the last late charge was assessed,and until today date does not cover full payment amount. The full payment amount (i.e. "Base Payment Amount") will be entered at the contract level and stored in database.

In both cases, the Prev Late Charge flag will be set to "Y" and the date that EOP automatically assessed the late charge will be stored on the contract. If late charge is not charged Prev Late Charge flag will be set to "N" by the next accrual.

• Suppressed Late Charges are not supported by Non-pyramiding Late Charges.
• Leases placed in Suspended Earnings [U0115] with "H" or "N" type status will have the "Prev Late Charge" flag set to "N".
• The Assessment [U0105] update will not be supported for Non-pyramiding Late Charges.

• ELEC - Lessee has an exemption certificate
• ELDP - Lessee has a direct pay certificate

When the Vehicle Finance module is purchased, LeasePak allows to attach additional IDC/IDR's to an application.

The percentage selected will be used to automatically calculate the amount billed based on the total acquisition cost of the asset(s) on the lease, if there are multiple assets on the lease, the percentage will be applied to the total acquisition cost of all the assets. The rate selected, is a monthly rate, therefore the Risk fee will be calculated as follows:

Monthly = Acquisition Cost x Rate
Quarterly = Acquisition Cost x Rate x 3
Semi-Annual = Acquisition Cost x Rate x 6
Annually = Acquisition Cost x Rate x 12

LeasePak will automatically assess the charges regardless of the number of days insurance coverage was missing, the full fee will be charged based on the monthly, quarterly, semi- annual, or annual payment frequency.

If the lease is backdated and an insurance risk fee percentage has been entered, LeasePak will not perform a 'catch- up' for the insurance risk fee.

When Insurance Risk Fee [U0428] is selected in the END OF PERIOD MODULES AND REPORTS screen, the module will run under Sequential updates [U0411]. When EOP processes are submitted for EOD, the Insurance Risk Fee will automatically be calculated on the lease. It will then be recorded to the G/L and appear on the following months invoice through another EOP with the Batch Assessment module on. Additional fee percentages may be added and maintained through the Custom Code update [U0722].

• INITIAL OUTFLOW

  The cash outflow is calculated as follows:

  ORIGINAL ACQUISITION COST
  + OTHER CHARGES
  + BROKER FEES
  - DOWN PAYMENT
  - SECURITY DEPOSIT
  - INTERIM RENT
  - ADVANCE PAYMENTS

  
  Interim rent is included only if it is also included in the yield calculation, as specified through the INTERIM RENT INCOME parameter on the New Lease option in the Portfolio update [U0212].

• FUTURE CASHFLOWS
  Each payment amount is reduced by an amount equal to the bad debt percentage times the payment amount.
  
  
• RESIDUAL
  The residual value less the security deposit is included in the final cash flow.

If the DOWN PAYMENT IS INFORMATIONAL ONLY switch in Miscellaneous Customization option of the Portfolio update is set to Y, this field may be informational only and have no impact on calculation of yields, payments, invoices or G/L transactions.

• Commencement Date is entered
• Contract Date is entered
• Contract Date is not after the Commencement Date
• Payment Due Day is entered
• Payment Due Day matches the day portion of the Commencement Date
• Acquisition Cost is entered
• Accrual Method is entered
• For fixed rate IBLs, the Fixed Rate is entered
• For floating rate IBLs, the Float Index is entered

PRINCIPAL BALANCE * INTEREST RATE * FUNDING DAYS
NUMBER OF DAYS IN YEAR

The parts of this calculation are derived as follows:

PRINCIPAL BALANCE
ORIGINAL ACQUISITION COST
+ OTHER CHARGES
+ DOCUMENTATION FEE
- DOWN PAYMENT
+ BROKER FEE (if broker payment method is 'PRIN')

INTEREST RATE
The interest rate depends on the lessor accrual method (refer to the LESSOR ACCRUAL METHOD field):

PRECOMPUTED ACCRUAL METHODS
The interest rate is the contract yield. This is the sum of the LESSOR YIELD, VENDOR YIELD, and INVESTOR YIELD.

SIMPLE ACCRUAL METHODS (FIXED)
The interest rate is the FIXED RATE entered in Tab 9.

SIMPLE ACCRUAL METHODS (FLOATING)
The interest rate is the sum of the ADD-ON RATE and the base rate on the earlier of the COMMENCEMENT DATE or DISBURSEMENT DATE. The base rate used is entered in the FLOAT INDEX field.

FUNDING DAYS
Refer to the FUND INT DAYS field below.

NUMBER OF DAYS IN YEAR
The number of days in the year is either 360 or 365, depending on the lessor accrual method.

NONE - No fee paid to broker for this lease.

No Broker - No broker for this lease.

Built In Principal - The broker fee is capitalized. The net investment for the lease is increased by the broker fee amount.

Built In Rate - The broker fee is not capitalized. The net investment for the lease is not increased by the broker fee amount. This method is invalid if the IDC ACCOUNTING METHOD parameter in the New Lease option of the Portfolio update [U0212] is set to AMOR. If initial direct costs are being amortized over the term of the lease, the broker fee is always included in IDC and capitalized.

The amount of the broker fee is recorded in the Commission Fees Payable account. This account is cleared only when a check is disbursed to the broker through the Disburse Check option of the New Lease update [U0101].

I: Individual - The individual invoice format is used if the lease is the only one billed on the invoice. The group invoice format is used if the lease is billed with other leases for the same lessee which are due on the same payment due day.

C: Coupon Books - Coupon books are used. Leases with this code do not have individual or group invoices produced by the system. The actual coupon books must be created outside of LeasePak.

F: Group Invoice - The group invoice format is used. This feature standardizes the billing format for individual and group invoices to the group invoice format. This means an invoice is produced according to the group format even if this lease is not actually part of a group billing.

N: No Invoice - Leases with this code do not have invoices produced by the system. Billing, if any, is outside of LeasePak.

C - Customer address will be used as the billing address. This address can be changed in the Customer update [U0205].

L - Lessee address is used as the billing address. This address can be changed on the Lessee update [U0203].

I - Individual billing address will be used as the billing address. This level can be entered only if no group is attached to the application. This address can be changed on Application Tab 10 or the Master Financial update [U0202]. Refer to Tab 10 for more information on lessee versus individual billing address.

IBL B Method users:LeasePak sets this field to 'N' and you cannot change it.

This field is not supported for use with interest bearing loan non-monthly accrual/billing cycle. For detailed description of non-monthly accrual/billing cycles, refer to Alternate Accrual/Billing Cycles overview document.

Users must set monthly accrual/billing cycle for asset focus contracts. Non-monthly accrual/billing cycles are not supported for asset payment schedule.

The Sum of Payments and Calc. Total Payment fields work in conjunction with the Verify Sum of Payments (Y/N) field in the Miscellaneous Customization option of the Portfolio [U0212] update. The field must be set to Y in order for LeasePak to perform the edit check.

Refer to Payment Schedule overview document for description of payment schedule grid columns and values.

• In the straight line method (AOSL, ROSL), an average monthly income is accrued with the difference from the actual monthly payment being recorded as unbilled income.
• In the payments method (AOPM, ROPM), the actual payment amount is recorded as income.
• In the variable rate method (AOVE, ROVE), combined principal and interest as entered on the original payment schedule, plus an interest adjustment each month based on a floating rate, is recorded.
  
  

Assets booked under operating leases must have a book depreciation method entered and must have the OPER book accounting method. Use the Change Depreciation option of the Change Asset update [U0120] to enter a book depreciation method or change the book accounting method. Likewise, assets booked under non-operating leases must have the FIN book accounting method.

Refer to the Calculations document for more information on lease accrual methods.

• BORR - Borrowings
• CSA - Conditional Sales
• FIN - Finance
• INSL - Instalment Loan
• LEVL - Leveraged Lease
• OPER - Operating
• SALT - Sales Type
• TPR - Third Party Reimburse

Changes made to data (i.e. change term, payments etc.) after running the FASB 13 test, may invalidate results. Mid-term Adjustments made to a booked lease may also invalidate results.

According to FASB Statement 13, a lease is considered a finance lease if it meets any one of the following criteria:

• The lease transfers ownership of the property to the lessee by the end of the lease term.
• The lease contains an option to purchase the leased property at a bargain price.
• The lease term is equal to or greater than 75% of the estimated life of the leased property (for example, the lease term is six years and the estimated life is eight years).
• The present value of rental and other minimum lease payments equals or exceeds 90% of the fair value of the leased property less any investment tax credit retained by the lessor (for example, the present value of the rental and other minimum lease payments equals $9,000 and the fair value is $10,000).

  The last two criteria are not applicable when the beginning of the lease term falls within the last 25% of the total estimated economic life of the leased property.

According to FASB Statement 13, a lease is considered an operating lease if it meets all of the following criteria:

• The lease does not transfer ownership of the property to the lessee by the end of the lease term.
  
• The lease does not contain an option to purchase the leased property at a bargain price.
  
• The lease term is less than 75% of the estimated life of the leased property (for example, the lease term is six years and the estimated life is eight years).
  
• The present value of rental and other minimum lease payments is less than 90% of the fair value of the leased property less any investment tax credit retained by the lessor (for example, the present value of the rental and other minimum lease payments equals $8,999 and the fair value is $10,000).

  The last two criteria are not applicable when the beginning of the lease term falls within the last 25% of the total estimated economic life of the leased property.

The following tests will be performed and the Date and Result will be stored in the RAPA table.

1. The Contract Type field on Tab 9 is validated.
   
   

   BORR - Borrowings	Continue next test
   CSA - Conditional Sales	Continue next test
   FIN - Finance	Continue next test
   INSL - Instalment Loan	Continue next test
   LEVL - Leverage Lease	Error Message – ‘Test cannot be performed’ and stop
   OPR - Operating	Continue next test
   SALT - Sales Type	Continue next test
   TPR - Third Party Reimburse	Error Message – ‘Test cannot be performed’ and stop

   
   
2. The Purchase Option field on Tab 5 is validated.
   
   

   1DOL - $1 Buyout	Pass - and stop
   BY10 - 10% Buyout	Unknown - Treated as Fail and continue
   FMV - Fair Market Value	Fail - and continue next test
   PFIX - Fixed Price	Unknown - Treated as Fail and continue
   NONE	Pass - for CSA contract type and stop Unknown - Treated as Fail and continue for other contract types
   (None)	Unknown – Treated as Fail and continue
   PAY - Calculated Payoff	Unknown – Treated as Fail and continue
   PER - % of Original Cost	Unknown – Treated as Fail and continue
   PKBB - Payoff/% of blue book	Unknown – Treated as Fail and continue

   
   
3. The FASB 13 Life field on assets Depreciation/Title File (Tab 6), is validated for each asset.

• The lease term for each asset is compared; if the term divided by life is greater than or equal to 75%, then Pass and stop.
  
• If the FASB 13 Life is '0', the result is Unknown - treated as Fail and continues.
  
• If an asset record is not tied to the application, the result is reated as Fail and continues.
  
  
4. The Present Value of the cash flow (standard calculation, including guaranteed residual) is validated based on the IRR Use In FASB 13 Test (A/B/C) field in Miscellaneous Customizations [U0212].

If the Present Value of the cash flow divided by the total acquisition cost is greater than or equal to 90%, then the test passes.

The cash flow used for defining minimum lease payment shall consist of the following:

• Interim Rent
• Down Payment
• Lease Payments from the payment schedule
• Guaranteed Residual


5. The lessor accrual method is validated for any 'Passed' tests.
   
   
   
   • If the accrual type is not OPR, LeasePak will display the following message: "Passed FASB 13 tests".
     
   • If the accrual type is OPR, LeasePak will display the following message: “Warning: This application passes the FASB 13 test for a Finance Lease. You have not selected a finance lease type accrual method".
     

LeasePak will verify failed tests and display a message notifying the user of the errors. Following are some of the errors:

Asset not tied to the lease (missing information)
“FASB13 75% test was not completed. Pending asset information not available. All other tests have failed.”

Payment Schedule information missing
“FASB13 90% test was not completed. Payment Schedule information not available. All other tests have failed.”

Lease type is not OPR
“Warning: This application does not pass the FASB 13 test for a Finance Lease. You have not selected an operating lease type accrual method.” Allow them to continue.

Lease type is OPR, and passed test
“Failed FASB 13 tests for Finance Lease, Operating lease treatment required. Lease setup correctly.”

If the lessor accrual method (ACCRUAL LESSOR) is the level yield method (i.e., AAPR or RAPR), then the vendor method must also be AAPR or RAPR. The lessor accrual method and the vendor accrual method (ACCRUAL VENDR) must either be both advance (i.e., first character of the accrual method is an A) or both arrears (i.e., first character of the accrual method is an R). Click on the Help arrow for a list of valid accrual methods.

For operating leases, ACCRUAL LESSOR and VENDOR ACCRUAL METHOD must be the same. Vendors may participate in month-to-month leases.

• Vendor participation in lease income Enter the factor to be used in calculating the income to accrue to the vendor. VENDOR FACTOR must not exceed CONTRACT FACTOR less INVESTOR FACTOR. It must also fall between the minimum and maximum vendor rates, as specified on the third screen of the New Lease Customizations option of the Portfolio update [U0212]. Not applicable to operating leases.
  
  

Vendor income participation should not be entered if the lease has a payment schedule of variable amounts. The schedule may have skip payments and/or multiple advance payments, but the payment amount must be the same throughout the lease term. Vendor participation in lease payment Enter the percentage of the payment amount (PMT AMT) representing the vendor's participation. If the percentage is 10%, enter 10.00000, not ___.10000. All financial information calculated and stored for the lease will be based on only the lessor's portion of the lease payment and not on the whole lease payment.

Note: Investor income participation should not be entered if the lease has a payment schedule of variable amounts. The schedule may have skip payments and/or multiple advance payments, but the payment amount must be the same throughout the lease term.

Specify the percentage of the base rate to use as the floating rate for the loan. You can specify a base rate percentage or an add-on rate, but not both. Default value is 100%.

Specify which day of a given month to use in beginning to choose rates from the rate table. Valid values are 0 through 31. Select '0' (default value) to use current LeasePak behavior, which is to use rates individually. This field works in conjunction with Next Rate Set Month--if you set this field to '0', you must also set Next Rate Set Month to '0'.

For regular quarterly (QTR), semiannual (SEMI), or annual (ANNL) payment schedules, specify the start month(s) of the periodic cycles. For example, to specify the beginnings of Q1-Q4 as July, October, January, April (in that order), select '7'. To specify a first half-year beginning in September and a last half-year beginning in March, select '9'. This field works in conjunction with Next Rate Set Day--if you set this field to '0', you must also set Next Rate Set Day to '0'.

Specify how often to check the rate table for changes. If Next Rate Set Day and Next Rate Set Month are '0', you must select either 'DAY' (check daily) or 'NONE' (default--also checks daily). If Next Rate Set Day/Month are not '0', you can select anything but 'DAY' or 'NONE'. The other options are 'MON' (check monthly), 'QTR' (check quarterly), 'SEMI' (check semiannually), and 'ANNL' (check annually).

Specify 'C' (Calendar Day), 'P' (Previous Business Day), or 'F' (Following Business Day). If you wish to specify 'P' or 'F', you must set Calendar Code to something other than 'BASE' or (None).

Select a calendar from the list. You can set up additional custom calendars through the special Commercial Loan version of the Weekend And Holiday Assgn [U0720] (opens in a new window) update. You must set the Calendar Code to 'BASE' or (None) if you wish to specify 'C' (Calendar Day) for Use Business Day.