Advances on Zero Balance Loans

When an advance is performed on a zero balance loan, Portico will use the type of statement set up for the loan to ensure that a loan’s due date is advanced in compliance with the 14-day requirement for statement reporting on open end loans.

When a loan advance is performed on a zero balance loan and the due date is in the past, the due date will be advanced to a date that is at least 14 days after the next loan statement is produced. No differentiation will be made between open end and closed end loans. The statement print option defined on the loan profile will determine the process for advancing the due date.

• For loans reported on a combined statement at month end, the due date will be advanced to the first due date greater than or equal to the 14th of the next month. For example, the due date for a zero balance loan due on the 10th of the month would advance to March 10th, instead of February 10th for an advance performed in January. For loans where the due date is already greater than or equal to the 14th of the next month, no changes to the due date are made.
• For loans reported on a loan billing statement that is produced at month end (lead days = 99 or 00), the due date will be advanced to the first due date greater than or equal to the 14th of the next month. For example, the due date for a zero balance loan due on the 10th of the month would advance to March 10th, instead of February 10th for an advance performed in January. For loans where the due date is already greater than or equal to the 14th of the next month, no changes to the due date are made.
• For loans that use lead days (other than 99 or 00) to determine the statement generation date, a comparison date will be calculated. This date will be used in the process to determine the new due date of the loan, if necessary.
  • For loans reported on a loan billing statement or mortgage statement where the lead days are greater than or equal to 14, Portico will use the lead days along with the post date of the loan advance (not effective date) to determine the comparison date.
  • The comparison date will be adjusted for loans where the lead days are greater than the number of days in the month prior to the calculated comparison date so that the loan due date does not advance further than needed. This applies to “monthly” based frequencies of monthly, quarterly, semi-annual and annual.
  • The comparison date may need to be adjusted for loans where the lead days are greater than 13 and the frequency is semi-monthly with the comparison date being in February. This will be so that the loan due date does not advance further than needed.
  • For loans reported on a loan billing statement or mortgage statement where the lead days are less than 14, Portico will use 14 days along with the post date of the loan advance (not effective date) to determine the comparison date.
  • Loans will be reported on a statement according to the lead days on the loan as determined by the credit union. For example, the due date for a zero balance loan due on the 28th of the month with lead days of 25 will advance to January 28th, instead of February 28th, if the advance is processed on January 2nd.
  • For loans where the due date is already greater than or equal to the comparison date, no changes to the due date are made.

When a loan advance is performed on a zero balance loan where the due date is already greater than or equal to the first due date within the next month, Portico will determine if the due date should be advanced based on when the next loan statement is produced.

When a loan advance is performed on a zero balance loan that is not reported on any statement (the loan profile statement option is none), the due date will be advanced the same as if it were reported on a combined statement.

When a loan advance is performed on a zero balance loan where the exclude from statement option is selected, the due date will be advanced according to the statement print option on the loan profile.