Safe Deposit Box Functionsaffect the safe deposit box master account, since there are no actual...

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Safe Deposit Box Functions

Last Modified 4/5/2012

Safe Deposit Box Functions 2012

Cardinal Software System Documentation ©2012 Cardinal Software, Inc. All Rights Reserved

Revision/Approval History

Date Description Author

11/7/2011 Original James Lee

4/5/2012 Reviewed James Lee



Table of Contents PREFACE .......................................................................................................................................... vii

Purpose of Document ....................................................................................................................... vii

Who Should Read This Document .................................................................................................... vii

Objectives ......................................................................................................................................... vii

Overview .......................................................................................................................................... ix

Safe Deposit Box Inquiry ....................................................................................................................1

Open/Close Safe Deposit Box Accounts ..............................................................................................5

Open Safe Deposit Box ........................................................................................................................ 5

Close Safety Deposit Box................................................................................................................... 11

Enter/update entry restrictions ........................................................................................................ 14

Enter/update Deposit box rentals..................................................................................................... 16

Enter Deposit Box Rentals ................................................................................................................. 16

Update Deposit Box Rentals ............................................................................................................. 18


Cardinal Software System Documentation Page vii ©2012 Cardinal Software, Inc. All Rights Reserved

PREFACE

Purpose of Document

The purpose of this document is to guide you with inquiries on a safe deposit account, to open and close

a safe deposit box account, post payments, and enter restrictions.

Who Should Read This Document

Cardinal Software Users

Cardinal Software Personnel

Objectives

Upon completion of this module the learner will be able to:

Explain the fields displayed through safe deposit box inquiry.

Open and close a safe deposit box.

Input an entry restriction on a safe deposit box.

Post payments to a safe deposit box.


Cardinal Software System Documentation Page ix ©2012 Cardinal Software, Inc. All Rights Reserved

Overview

The most common transactions for safe deposit box accounts are rental payments, however, you may

need to make late charge payments, manually assess late charges, or reverse rental payments. The kinds

of transactions you can perform depend on the transaction codes defined by your bank in this

application. Monetary transactions can affect the rental fee or the late charge.

Keep in mind that the safe deposit box application is not a complicated application. Transactions serve

to provide totals for the general ledger and to form the basis for a history for the account; they do not

affect the safe deposit box master account, since there are no actual balance fields contained in the

account record. Rental amount due and past due information are defined in parameter files.


Cardinal Software System Documentation Page 1 of 19 ©2012 Cardinal Software, Inc. All Rights Reserved

Safe Deposit Box Inquiry

Step Action

1 Click on Display deposit box input menu.

2 Click Safe deposit box inquiry.

3 Enter short name or account number.

4 Click on Name of customer record.



Use the following fields to review Safe Deposit Box Information.

Field… Description…

Box ID The Box ID field is comprised of two separate fields. The first field holds the actual box number, which the customer is renting. The second field allows you to attach a suffix, in the event that you have more than one safe deposit box with the same number. The suffix field is optional and can be left blank if there are no duplicate box numbers.

When assigning a customer to a box during the set up of a new account, the account number will be used as the box number if you do not provide a unique box number.

The box ID is used to retrieve information about the box, which is kept in the installed box information file. If the box is not available to be rented, you cannot set up an account with this box number. You also cannot set the account up if the box is available but has already been rented.

Key ID Some banks make sure that each key has a number on it, to track which keys are given to customers.

In many cases, the key has the same number as the box number. In other cases, such as when there are multiple keys for one box, there may be other identifying information.

This is an optional field and is for informational purposes.



Original date The date the customer enters into the safe deposit box agreement should be put into this field.

If entering a new account, the current date is supplied as a default. This field is used on some reports and it must be a valid date.

Rental due date Enter the date on which the rent will become due.

Some banks have all rentals come due on a single date in the year; others assign rents on the anniversary of the original date; yet others have monthly rental due dates.

The only time this date is advanced is if the account has a transaction which advances the due date. If you enter a date in the past for a new account, it is not automatically advanced until a transaction which advances the due date is made to the account. This date must be a valid date. It is used with the term and term code fields to produce a new date.

When you are setting up a new account, the current date is inserted in the field to provide a default. Once you process the customer's payment for the first period, the rental due date is rolled according to the term and term code of the period.

If you want to provide a rent free box, use a rental payment date in the distant future.

For example, 12/31/69 would indicate the last day of the year in 2069. This tells the system there is a lengthy period of time before any rent is due.

Term of rental If you want most boxes for this product type to have the same term and term code, enter those values in these fields.

These fields are used to determine the next rental due date after the old one expires when a transaction is made to advance the due date.

For example, if most accounts should be set up as:

Yearly rentals, enter 12 M

Monthly rentals, 1 M

If the customer chooses the frequency in which payments are made, leave these fields blank as input defaults. If there is an entry in these fields, it can be changed at setup time.

EXAMPLE:

EXAMPLE:



Rental code To provide a key to the rental amount, enter the rental code you are assigning to box accounts.

You can add a new rental amount code by typing in the new code on one of the blank lines. If there are no blank lines on your screen, use your Roll Up/Down keys until you see a blank line. If you leave one or more spaces blank to the left of the code, the code will be left justified when you press [Enter].

If you want to change an existing rental amount code, type the new code over the old one, or type it on a blank line and including all other necessary information. The new information appears in the old code's fields when you press [Enter].

If you want to delete a rental amount code, you can use the Field Exit key to blank out the rental code field. When this field is empty, the code will be deleted from the file.

Rental amount This field should contain the actual amount charged by your bank for the box to which this code will be applied.

If you want to waive a rental fee, you should enter a rental due date in the extreme future. Although this field can be left blank, it is probably not a good idea since it takes a transaction to automatically advance the due date.

Primary officer If there is an officer or other individual who is primarily responsible for this account and they are defined in the bank's officer parameter file, enter that officer's code in this field.

This field can be blank, but it must be a code defined in the bank officer parameter file when used.

Some of the following reports use the officer's name:

New and closed account letters

Coming due notices

Past due letters

Escrow deposit This field is generally used for a key deposit and is only at the account level. You would enter this amount when opening the account or it could be maintenanced. This field can be blank and it must be cleared out before the account can be deleted.

Late charge due This is a calculated field seen on inquiries. Paid late charges are subtracted from assessed late charges to create the total amount of late charge due. This field is calculated. Maintain either the Late charges assessed or Late charges paid fields to change the amount of late charges due.



Open/Close Safe Deposit Box Accounts

Platform does not upload to Safe Deposit Boxes

If customer has the Accounts Platform, then you will be able to acquire the required safe

deposit box documents.

Open Safe Deposit Box

Step Action

1 Click on Display deposit box input menu.

2 Click on Enter new deposit box accounts.

3 Enter account number and click OK.

This will usually be the box number.



4 Enter short name to search for a customer.

5 Double-click a customer record.



6 Click Select this.

7 Complete the following fields and click OK.


Enter relationship to account

This field is a five character code which is used to describe the relationship between the customer and this account. The character must be a valid relationship code defined by your



bank. There can be one, and only one, main owner of an account.

Any valid relationship can be entered in this field.

Examples of a relationship code might be:

JTWRS to show joint tenants with rights of survivorship

CMPNY to indicate a business relationship

FAMLY to indicate that there is a familial relationship

Keep in mind that the relationship codes can be defined as having direct, indirect, or other liability for the account. This has an impact for inquiry and possibly some reports. For example, account balances are added into different categories for direct and indirect account relationships.

This code cannot be blank.

Receive notices This field allows you to define if a customer should receive notices for an account.

The allowable responses for the field are:

Y - Yes

N - No

E - Email FUTURE USE

B - Both FUTURE USE

This field cannot be blank.

Additional name lines

If you wish additional names to appear on this account for inquiries or correspondence, place a check mark (Y value) in this field. It is important to understand that even though the intent of the additional lines is to provide room for more names, there is no real limitation on the use of these lines. You can enter more address information if necessary, or any other information which further identifies the account. These lines print on correspondence, so discretion should be used.

These fields can play an important role when you are defining account information for the primary owner. For a secondary customer, the likelihood of using these fields diminishes.

If you leave the check box blank (N value), no additional lines will be used for this account. If there was information in these fields and you change this field

EXAMPLES:



from a check mark (Y value) to un-checked field (N value), the previous information in the additional name lines will be automatically deleted.

If you have placed a check mark (Y value) in this field, another screen will appear when you press [Enter]. The next screen displays the current main name and address information at the top of the screen, and three additional lines where additional names or other information can be placed.

If the account has additional customers attached to it, the names of the customers appear as defaults. Pressing [Enter] without any changes will accept the defaults and the names will now appear on correspondence and inquiries.

The combination of the main address lines and the additional name lines cannot exceed six lines.

Alternate address for account

If this account should be sent to an address, which is different from the main address found in the customer's CIS record, place a check mark (Y value) in this field. If the main address is to be used, leave the box blank. The default value of this field is to be blank (N value).

Like the additional name line fields, these fields can play an important role when you are defining account information for the primary owner. For a secondary customer, the likelihood of using an alternate address diminishes.

If you leave this field blank (N value), no alternate address will be used for this account. If there was an alternate address previously defined, and you change this field from a check mark (Y value) to un-checked field (N value), the previous information for the alternate address will be automatically deleted.

If you have placed a check mark (Y value) in this field, another screen will appear when you press [Enter]. The next screen will display the current main name and address information at the top of the screen and another four lines to enter the different address for this account. The same guidelines apply to the alternate address as any other address in the system. The customer's name appears on the first line as a default. Using the [F5] key will toggle the format of the last line from a standard, U.S. format to an unformatted field. Using the [F11] key will delete the alternate address.

Account level greeting

When entering or maintaining any customer to account relationship, you can enter information in this field to be used as a salutation line in correspondence.



Any information in this field overrides the main owner's greeting for the correspondence. This is useful when you have more than one person or entity reflected in the ownership of the account and all of the parties have their own CIS records.

A husband and wife have a joint checking account where you would enter a greeting that reflects both of their names.

User code The user code can be used to further define the relationship between customers. If you enter something in this field, it must be a valid entry in the miscellaneous user code parameter file. This field can be left blank.

EXAMPLE:



Close Safety Deposit Box

Step Action

1 Click on InputTask.

2 Locate and click on Safe deposit box inquiry.

3 Enter short name or account number and click OK.

This will usually be the box number.



4 Double-click a customer record.

5 Click Delete this.



6 Press enter to delete or F12 to cancel deletion.



Enter/update entry restrictions

This is used when you cannot close the box, such as a court order or is unavailable for rent. This box is

still in your inventory.

Step Action

1 Click on Input Task menu.

2 Locate and click on Enter/update entry restrictions.

3 Enter short name or account number.



4 Double-click the Name of a customer record.

5 Key information regarding restricted entry and click OK.



Enter/update Deposit box rentals

This is a window transaction that creates a batch for safe deposit box payments.

When this program is called, the system will assign the lowest available batch number to the batch of

transactions you are entering.

Enter Deposit Box Rentals

Step Action

1 Click on Input Task.

2 Click on Enter/update deposit box rentals.

3 Complete the following fields and click OK to make a payment to the safe deposit box.




Account Number

Enter the safe deposit box account number for this transaction. The account number cannot be zero.

If the account number cannot be found in the master file, a message will appear to inform you that the account was not found. You can press [F9] to override the error condition and accept the transaction. You should only do this if you are sure the account will be set up by the time processing takes place; otherwise, the transaction will reject in processing.

A similar condition is presented if the account is closed. You can use [F9] to respond to the message and accept the error condition if you are sure the status will be maintained by processing time.

Amount Enter the amount of the transaction.

This field cannot be blank.

Tran Code Enter the transaction code for this transaction.

It must be a valid transaction code; that is, it must be defined in the safe deposit box transaction code parameter file.

Effective Date If the transaction should have posted to the account's history as of a previous date, enter that date in this field.

This date, if used, must be a valid date.

It cannot be in the future.

Since this date is optional, it can be left blank.

Name This will auto-populate.



Update Deposit Box Rentals

1 Once the transactions have been entered, you will have the ability to select transaction totals on the left side.

2 To select a batch, highlight it and select either Change, Delete entire batch or Print batch..



3 Double-click a record to update a safe deposit box transaction.

4 Make changes to the displayed fields. These fields are described above in the Enter Deposit Box Rentals section of this document.


One Time Transfer



One Time Transfer 2012





4/5/2012 Reviewed James Lee

10/4/2012 Updated screens to reflect the new Universal Interface.

James Lee



Table of Contents PREFACE .......................................................................................................................................... vii

Purpose of Document ............................................................................................................................. vii

Who Should Read This Document .......................................................................................................... vii

Objectives ............................................................................................................................................... vii

Overview .......................................................................................................................................... ix

One Time Transfer .............................................................................................................................1



PREFACE

Purpose of Document

This document will assist you with the necessary steps to enter a one-time transfer.




Objectives

Upon completion of this module the learner will be able to:

Enter a one-time transfer.

Charge a fee on a one-time transfer.



Overview

The One Time Transfer AC1550 program is used to enter transfers which do not recur. One example is

when a customer requests a transfer over the phone. You simply enter the transfer instructions

interactively with this program, and the system creates transactions immediately for you. These

transfers must occur between two accounts within your institution.

There are parameters in the system menu users which govern how a user may use this option. The user

can be limited to certain account types to which they can make transfers to and from. A maximum

amount can be defined that a user can enter a transfer amount for. When selecting the debit and credit

accounts for the transfer, the telephone inquiry code is shown on the debit account screen so that you

can verify the caller's right to transfer funds. You can charge a fee for each transfer if you choose.

After the transfer has been entered, if you need to change or delete the transaction prior to processing,

the transactions created for the transfer can be found in the appropriate application transaction file.

When this program is called, a screen displays three fields to begin defining the transfer.


Cardinal Software System Documentation Page 1 ©2012 Cardinal Software, Inc. All Rights Reserved

One Time Transfer

Step Action

1 Locate and click on Customer/account inquiry.

2 Enter short name or account number and click OK.

3 Double-click on a Short Name record.



4 If there are messages to display they will appear, click OK.

5 Click Special tab.

6 Double-click Enter One Time Transfers AC1550.




Field Description

Enter amount to transfer The amount of funds to transfer.

Charge a fee for this transfer Check this box to charge a fee for the transfer, otherwise leave this field blank.

Print notice now Option… Description…

Nightly Notice is printed during the nightly processing cycle.

Now Notice is printed now.

Bypass Bypass printing the notice.

8 Enter short name or account number for account to transfer funds from and click OK.



9 Enter short name or account number for account to transfer funds to and click OK.


Field Description

Enter amount of fee The amount of the fee can be entered in this field or the amount of the fee can be defaulted, as defined in the Wire Transfers/Fees Transfer Parameter.

GL Transaction description credit

You can enter a description for the credit offset to carry to your G/L, if desired. If no description is entered, it will carry the description of the Tran code used.

11 If there are messages to display they will appear, click OK.



12 Key Description about transfer and press OK.


Transfers






4/24/2012 Added missing field “Day of Month” James Lee

9/27/2013 Modified “Company ID” mandatory information Terri Wakefield

Transfers 2013


Table of Contents PREFACE ............................................................................................................................................ v

Purpose of Document ............................................................................................................................. v

Who Should Read This Document ........................................................................................................... v

Objectives ............................................................................................................................................... v

Overview ......................................................................................................................................... vii

Transfers ...........................................................................................................................................1

Transfers 2013

Cardinal Software System Documentation Page v ©2013 Cardinal Software, Inc. All Rights Reserved

PREFACE

Purpose of Document

This training guide provides directions to create or change internal or external transfers.




Objectives

Upon completion of this module the learner will identify required fields and be able to:

Complete required information to set up a transfer between accounts.

Build a transfer to maintain a certain balance in another deposit account using an irregular

schedule.

Complete required information to set up a transfer to make a loan payment.

Create transfers to move money to a different bank via ACH originator.

Transfers 2013


Overview

Transfers

The EFT (Electronic Funds Transfer) application in the Cardinal Core system is devoted to transferring

funds from one account to another. Transfers can be made between accounts within your bank or

between an account in your bank and an account in another bank. When transfers take place between

accounts within your bank, they can involve deposit, loan, or general ledger accounts. Transfers are

typically set up to recur automatically. EFT transactions are pre-posted to the accounts after any daily

transactions have been taken into consideration. The transfer transaction can be set up to look at the

balance of the debit account and determine if the transfer should be made. If funds are inadequate,

there are several options available:

The transfer instructions can be automatically terminated and therefore not tried again

The transfer can keep trying daily until the transfer can be made

The transfer can be completed regardless of the debit account's balance

The debit account can be frozen from accepting other transactions until this transfer can be

made.

Another feature of the EFT application concerns transfers made on an irregular basis. When a transfer is

set up in this manner, the credit account's balance is examined daily to determine if a transfer should be

made. This feature can be used to maintain a certain balance for an account with funds from another

deposit account.

Many times transfers are used to make payments on loans. If the loan account has a variable loan

payment amount, there is a provision in the EFT software which allows you to specify the use of the loan

payment amount instead of the transfer amount. This forces the system to examine the loan master file

to retrieve the appropriate payment amount. You can also choose to use the loan's payment due date

instead of the actual transfer date. Doing this controls whether a transfer is made if the loan is paid

ahead. In other words, if the transfer date arrives and the next due date for the loan is three months in

the future, you can control whether the transfer is made or not.

EFT Instructions AC1500

EFT instructions tell the system when, and under what conditions, transfers should take place.

You can set up transfers for customers who move funds from one account to another within the bank or

to one in a different bank providing you’re a certified ACH originator. These transfers can recur on a

cyclical basis for any period of time. They also have several distinctive characteristics to control their

behavior so that transfers can be tailored to individual needs.

Transfers 2013

Cardinal Software System Documentation Page viii ©2013 Cardinal Software, Inc. All Rights Reserved

One of the variables you are required to define for each transfer is to what degree you want the transfer

to create a negative balance in the debit account, if any. You can instruct the system to:

Continue attempting the transfer until money becomes available

Make the transfer regardless of the balance

Stop trying after the first time

Keep trying but freeze the account to prevent other transactions from posting until there are

funds to cover the transfer request

Take as much money as possible for a loan payment and keep trying.

Another feature to consider is whether an irregular period should be used to trigger the transfer. This

feature allows you to use one account to transfer funds if the balance of another account falls below a

certain balance.

Example:

A parent who has a college student with a separate account might set up the transfer so that if

the student overdraws the account money from the parent's account would be transferred to

the college student's account.

You can also create a check for the credit half of the transfer and transfer just the interest paid amount

on a deposit account to any other type of account when the account is not a time deposit account.

Account Examples:

Savings account

Money market

Time deposit accounts have their own mechanism to handle this feature.

There are two fields used to describe behavior of the transfer for a loan payment:

Occasionally, you use the loan's payment amount instead of a fixed payment amount, since the

loan's payment amount can change from month to month (e.g. for interest only loans, overdraft

protection, or revolving credit accounts).

The other field which has a similar use asks if the transfer should use the loan's next due date as

the transfer date. For regular loan payments, using the loan next due date would insure

payments very close to the dates on their repayment schedules. However, if the customer ever

got ahead in the repayment schedule and wanted to stay ahead, the transfer date should be

used, not the loan's next due date. These parameters only apply to loans in your bank.

Transfers 2013


It is a very simple matter to set up a transfer record to handle cases where one of the accounts does not

belong to your bank.

1. You access a second screen that asks for several basic pieces of information.

2. Determine whether or not a pre-notification should be generated, what the receiving

institution's routing/transit number is, and what the receiving account number is.

When creating an ACH origination record to be sent out of the bank, if the standard entry code is

defined as IAT in the outgoing ACH information, another screen will be presented allowing you to enter

additional information required for an IAT transaction. If you enter any other SEC code, the next screen

presents you the appropriate fields for a regular ACH origination.

When accessing the addenda information for an IAT transaction:

Each new addenda type will increment for addenda types 10 through 16.

After type 16, the program will ask you to input the addenda type, you can only have 2 types of

17's, and you will have to input type 18's manually, if you need that addenda type for the

origination.

There are edits in place to make sure your addenda records are in the correct sequence and that the

required addenda records are attached to the record before exiting the screen.

Another variable to consider when defining a transfer is whether to assess a fee. Since this is decided for

each transfer, you can charge fees in any manner: by type of account, by type of transfer (e.g. between

banks vs. within your bank, or regular transfer vs. irregular repayment, etc.), or even by customer. The

fee can be taken from any account you choose and put into any other account.

Example:

For a transfer from a customer's checking account to a checking account in another bank, maybe

the fee would come from the customer's savings account and would go into a non interest

income G/L account.

When this program is called, an input field for the debit account number/type is displayed. From this

point, you can make changes to transfer instructions or you can set up new EFT instructions for an

account. The required steps you need to take are described in the next sections.

Transfers 2013


Transfers

Step Action

1 Click Display EFT/ACH Origination Menu.

2 Click Enter/update EFT transfers.

Transfers 2013




Enter debit branch, account number and type

The debit branch, account number and type are used to define the debit side of the transfer. The debit branch is only used for GL accounts. You may leave this blank for all other account types.

Enter credit branch, account number and type

The credit branch, account number and type are used to define the credit side of the transfer. The credit branch is only used for GL accounts. You may leave this blank for all other account types.

Enter short name The short name is used to look up existing transfers.

4 Click Display Short Name to view name on account.

Transfers 2013


5 Double-click on an EFT Transfer record.

6 Complete the following fields and click on forward arrow.

Transfers 2013



Status There are three possible values for the status of a transfer:

A Active transfer

P Paid out transfer (i.e. closed)

S Single attempt tried, transfer put in inactive status

The default value for a new transfer is A.

If either account on the EFT transfer has a status of a P or if the account(s) is non-existent, the status of the EFT record is changed from an A to a P; with the exception of originations. If the credit account is a loan, and that loan has been paid off, the system will change the status from A to P. The same action will be performed by the system when the current date passes the expiration date of the transfer.

All inactive transfers will be removed from the EFT master file when the bank performs its general purge of accounts.

If you change a transfer status from S to A to reflect the reactivation of a transfer, which has not been active due to insufficient funds in the debit account, the next transfer date will probably also need to be maintained.

Credit branch account no

Enter the branch and account number from your incoming wire information from Fed to credit for this transaction.

This field cannot be left blank.

Transfer amount This is the amount of the transaction.

If the transfer is not using a loan's payment amount for a transfer amount, and the transfer is not for deposit account's interest only, and the transfer is not using an irregular transfer period, the transfer amount cannot be zero. This is because the system recognizes that you are describing a regular transfer and an amount for the transfer is required.

If the transfer is for a Christmas Club account, identified by the Y in the Xmas club transfer amount field, and the status of the EFT is A (active), this field is updated with the transfer amount when the Christmas Club check program is processed.

If the debit side of the EFT transaction is an account type H (shareholder account), the transfer amount will be automatically populated when the program for dividend payment processing has been run.

Transfers 2013


Transfer Interest Only

If the debit account is a deposit account that pays interest by cycle or when it is added back to the balance of a time deposit account, you can set up a transfer to transfer for the amount of interest paid. In most cases this transfer occurs on the day the interest is paid. There are two exceptions to this, governed by parameters at the product level, and they are:

1) When interest is paid on the first day

2) When interest is paid through the end of the month

These two exceptions pay on the next business day following when the interest is paid. The reason for this is because the amount of interest to be paid cannot be anticipated the night before it is paid (when the transfers are created) and the interest paid amount is not known until after the date when interest is paid.

This transfer option is convenient when you want to produce a CD check for someone other than the account owner.

A check to another bank for depositing to that bank

Transferring interest only for time deposit accounts is also useful if you want to send the interest into the ACH system as an origination item or apply the interest to a loan account.

In all of these cases, you must set the deposit account up, to add the interest back to the account, and then set up a transfer record.

If you want to transfer the interest to another deposit account or cut a check for the account owner, you can use the fields within the time deposit account master record for those cases. A transfer record is not necessary in that event.

This method is the only way to transfer interest out of a deposit account when the interest is paid by cycle, for example, a savings or money market account.

If you answer Y to this question, you cannot enter a transfer amount or a transfer date and frequency. Interest is transferred on the same day it is paid, except for the two aforementioned instances. If the credit half of the transaction is going out into the ACH system as an origination item, the transfer is eligible to

EXAMPLE:

Transfers 2013


be completed when the interest transaction is put into the suspense fields. The parameter setting at the product level will determine the number of days in advance of the payment when this will occur. The other ACH parameter for number of lead days to originate an outgoing credit must also be satisfied before the transfer is initiated.

If you answer N to this field, you must enter a transfer amount and date unless you are using a loan's next payment date and amount or if you are using the irregular transfer mechanism. If you leave this field blank, it is considered to be a negative response.

Next transfer date This is the date when the next transfer will occur.

You can enter today's date as the next transfer date if you want the transfer to occur tonight, providing that daily processing has not occurred yet.

All Christmas Club check programs verify if an EFT has been set up for the Christmas Club account and are in active status, and if so, this field is updated causing the EFT to occur in the next daily processing.

If the debit side of the EFT transaction is an account type H, indicating a shareholder account, you will not be required to enter a next transfer date. This field will be automatically populated with the date when the program for dividend payment processing has been run.

This field cannot have an entry if the field for an irregular transfer period contains a Y in it, because the system will use balance information instead of date information to determine if a transfer should be made. Also, if the transfer is for an interest only transfer or the transfer uses a loan's payment date, this field must be blank.

In the loan extension process, if the account has an EFT record defined, this field in the record will be advanced.

Day of month This field holds the day of the month portion of the next transfer date if the date is 29, 30 or 31. This field keeps the transfer at the end of the month when that particular month may not have that many days in the month.

If you have a transfer date of 01/30 (January 30) in a given year and the transfer date is set up to roll monthly, the next transfer date will be calculated by

EXAMPLE:

Transfers 2013


the system to be February 28. If no entry is made in the Transfer day of the month field, the next transfer date calculated by the system would be March 28. If the transfer should be made on the 30th, a value of 30 entered in this field would enable the system to compute the correct date of March 30.

If the transfer should be made on the last day of the month, enter the value 31. If the transfer occurs on or before the 28th day in a month, no entry in this field is necessary. This field cannot be greater than 31. An edit check will ensure the value of this field is entered correctly. This edit check applies to the new entry program or the maintenance program.

Before/after if closed

For in house transfers, you can indicate if you want the transfer performed on the day before or after the actual transfer date when the actual date falls on a non - processing date.

A Indicates the transfer is completed on the next business date after the transfer date

B or Blank

Allows the transfer to be performed on the business date prior to the transfer

Transfer frequency These fields contain the frequency and the frequency code of the transfer. The frequency is expressed numerically and the frequency code must be either D for days or M for months. The frequency fields determine the number of days or months between each transfer and are used to roll the transfer date on a regular basis.

Monthly transfers would be set up as 1 M and weekly transfers would be 7 D.

(B)usiness/ (C)alendar Days

The (B) usiness /(C) alendar Days field works in conjunction with the transfer frequency field. If the transfer frequency for EFT is 1 D, then the EFT Business/Calendar field must be populated with B or C.

B Denotes that the next transfer date will be incremented by one business day when the transfer is processed.

C Indicates the next transfer date will be incremented by one calendar day when the transfer is processed.

For any existing EFT's with a transfer frequency of 1D, we are pre-populating the field with B at release installation time.

EXAMPLE:

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Ending date Enter the expiration date of the transfer. This is the date after which no such transactions should occur.

When the current date is greater than the next transfer date, P, indicating a paid or closed transfer, is placed in the status field by the system to indicate an inactive transfer record.

If you wish to set up the transfer with no effective ending date, leave it blank.

If you are setting up a one – time only transfer, enter today's date in this field.

If this transfer is for a loan with a balloon amount, it is a good idea to set the ending date to one month prior to the maturity date, and then send a maturity notice for the final amount due.

This date must be valid.

User code You can use a user code to track different types of transfers or to use it in any way that is beneficial to your bank.

This code is not used in any processing tests. If you enter a value in this field, it must be a valid code defined in your miscellaneous user code parameter file.

NSF instructions This field is used to control the transfer when the debit account would be put into a negative balance situation. There are five valid entries for this field:

A Always make the transfer regardless of the balance

F Freeze the account from any future debits until this transfer can be made

K Keep trying each day until there are enough funds in the debit account to complete the transfer

P Take as much money as possible for a loan payment and keep trying

S Stop trying to make the transfer after the initial attempt fails transfer will become inactive

The value of A allows the transfer transaction to be created, even if the resulting debit account balance will be a negative amount. Your bank's normal rules governing overdrafts will then decide how to handle this situation

If you are a post all or post none bank, if you pay internal transactions before incoming checks, etc.

EXAMPLE:

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A value of F will freeze all debit activity on the account until this transfer can be processed. This option ensures that the transfer will take precedence over any other withdrawals from the debit account. When the EFT software freezes an account, the only transactions which get processed are those whose transaction code dictates that the debits should be forced to post.

Note that any credits to the account are unaffected by the frozen status caused by the EFT software.

When an account is temporarily frozen for this purpose, this code does not change. There is a field in the deposit master file for the account which controls activity under these conditions.

The K value is the default for a new transfer. Before the transfer transaction will be created, the system checks for adequate funds in the debit account daily. Since the next transfer date is not to be updated, this checking process continues indefinitely until the transfer is made.

A P in this field allows the system to take all available money from the debit account for the transfer and to keep trying the transfer until the transfer amount has been satisfied. This option is only available for transfers involving loan payments because the loan system is the only place where partial payments are tracked.

An S in this field tells the system to make one attempt to make the transfer on the appropriate transfer date. If there are not enough funds in the debit account on that date, no further attempts to process the transfer take place and the status changes to an S, which will be used for reporting purposes. This transfer must be maintained if you wish it to be activated again. The status must be changed to an A and the next transfer date needs to be updated.

Use due date from loan

If the credit account is a loan, and you want to use the due date of the loan as a transfer date, enter Y in this field. When you use Y, you will keep the customer's loan payments very close to the dates in their repayment schedule since transfers will be generated on or about their due dates. This means that if a customer pays ahead for three months, no transfers will be generated for that period of time.

If you want to use the transfer date instead of the due date, enter N. This indicates that the transfer date will be used to

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determine if the transfer should be made. This will also keep the customer's payments close to the repayment schedule. However, if a customer prepays the loan, the transfer will still be made to allow the loan to eventually be paid off earlier than the maturity date.

The logic for payments which are due over a weekend and that include a loan credit origination will pull the last processing day prior to the weekend. The loan credit will post on the due date.

Use loan payment amount

If the credit account is a loan, and you want to use the payment amount of the loan as the transfer amount, enter Y in this field.

If you want to use the transfer amount instead of the payment amount, enter N.

If the loan account has a variable payment due to the inclusion of interest or a percentage of principal, you should enter a Y in this field. This would apply to loan accounts which have interest only payments, principal plus interest payments, or revolving credit accounts. When this field has a Y in it, the EFT software searches the loan record for the correct payment amount which can vary for each payment period.

If the EFT is set up to take payments from an in-house deposit account and the loan is past due, the EFT will take as many full payments as funds are available from the deposit account. This feature will work for loans either using bills or not using bills. This field and the Use due date from loan field must both be set to Y for this feature to function.

Previously, the code looked for the availability of the full past due amount in the deposit account, now the system will take as many full payments on the loan as the deposit account has funds available for transfer.

If the loan account has a fixed amount for the life of the loan, the entry in this field probably doesn't matter as the transfer amount equals the payment amount (providing it has been entered that way).

Adjustable rate loans whose payments change because of rate changes should use a Y instead of N, because the payment amount for the life of the loan is not guaranteed.

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Transfer in increments of…when balance in credit account is below…

This field holds the amount of the increments to transfer when the account falls below the defined threshold. If the field is left blank then the system will transfer the exact amount of money that it needs.

Example 1:

If you have this field set to “Transfer in increments of $10.00 when credit account balance is below $0” and the account is overdrawn by $25.00, then the system would make a transfer of $30.00.

Example 2:

If the parameters were set to “Transfer in increments of $0 when the balance in the credit account is below $0” and the credit account was overdrawn $25.00, then the system would make a transfer of $25.00.

Apply based on payment code

The Apply Based On Payment Code field allows additional instructions for the EFT record utilizing the use due date from loan and use loan payment amount fields. The field with the value of a Y dictates the use of the payment code to determine the payment amount, as opposed to payment information from a billing record, thus allowing the billing system to generate an interest only payment at maturity; as opposed to a final payment.

You have an interest only loan and you have a maturity bill that principal and interest. Only the interest portion of the bill will be applied to loan and debited to the DDA account.

Entries in this field should be limited to Y, N, or blank. A blank is considered to be the same as N.

Irregular transfer period

This unique field allows transfers to be made in specific increments from one account to another based on the balance of the account receiving the credit. This type of transfer has an irregular transfer interval since it happens on an as needed basis.

A customer wants funds transferred between deposit accounts to prevent an overdraft situation. If a customer has a regular checking account and has a son or daughter in college who also has a checking account, it would be possible to set up a transfer from

EXAMPLE:

EXAMPLE:

EXAMPLES:

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the parents' account to prevent the son's or daughter's account from becoming overdrawn.

There are quite a few rules governing the entry of a value in this field. The program will check the entry in this field in combination with other fields for verification. They are as follows.

If this transfer occurs on a regular basis, with either a valid combination of next transfer date and frequency information or by using a loan account's due date, enter N in this field. If dates will not be the determining factor for the creation of a transfer, enter Y in this field. This will cause the system to look at the balance in the credit account to determine if a transfer should be created.

If no Next transfer date has been entered, then the irregular transfer field is being used. The fields Use due date from loan and Use loan payment amount would also have an N in both of them. Likewise, when a transfer date is entered, these three fields must have an N in them. By keeping this distinction, any confusion about when the transfer should take place will be eliminated, since the transfer will be determined by a date (next transfer date or due date from loan) or by the balance.

If this field has Y in it, there can be no date specified in the next transfer date.

If a loan's payment amount will not be used for the transfer, the interest only flag is set to N and this field is set to N, the transfer amount cannot be equal to zero as the program will not know how much money to transfer.

If this field has N in it, the frequency of the transfer cannot be blank and the frequency code must be D or M; because the programs could not calculate subsequent next transfer dates properly.

If N is in this field the following fields have to be blank or zero:

Transfer increment amount

Credit balance lower limit

Outgoing entry code

Suppress printed notice

There are two possible values for this field:

Y Yes, suppress the notice

N No, print the notice

If you leave this field blank, no notices are produced.

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7 Complete the following fields and click on forward arrow.


Fee amount If there is a fee associated with this transfer, enter the amount of the fee in this field.

This field may be left blank if there is no charge for the transfer.

Fee debit branch account n

This field holds the account from which the fee will be debited. Typically this is from a DDA account or Savings account. The branch field is only needed for GL accounts.

Fee credit branch, account r

This field holds the account to which the fee will be credited. Typically this is a GL Income account. The branch field will only be needed for GL accounts.

Add fee to transaction This field has been added to the EFT transfer instruction enter/update screen, AC1500.

N will cause the fee to reduce the transfer amount

Y will cause the fee to be added to the transfer amount.

This field defaults to N on enter/update.

Outgoing entry code If the debit transaction of this transfer does not belong to your bank and should be sent as an ACH item, enter D in this field. In this case, the credit account must be a valid account in your system.

Similarly, if the credit transaction of this transfer does not belong to your bank and should be sent as an ACH

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item, enter C in this field. In this case, the debit account must be a valid account in your system.

This code will determine whether or not the transaction should be kept within the bank (if it is left blank) or whether it should be formatted and sent to the Federal Reserve Bank as an ACH item (if it is a D or C).

If the field for irregular transfer periods has a Y in it, this field can have no entry; it must be blank.

When this field is not blank (when at least one half of the transaction will be sent through the ACH system), there are certain fields which are required to have information in them. They supply information such as:

Whether a prenotice should be sent

The name of the company

The standard entry code (the type of transaction for the ACH system)

The company entry description (a brief description of the transaction)

The routing/transit number of the bank

The name of the individual.

Send pre-notice code If a pre-notification (a notice in which the transfer is sent as a test with no monetary value) is required or desired for the half of the transaction going through the ACH system, enter a Y in this field when describing a transfer, otherwise enter an N.

After a pre-notice has been generated for the transaction, the system places an N in this field. If you receive a correction for the transaction, you can make any changes to the transfer (maintain this field from an N to a Y), which will generate another pre-note.

If there is an entry (D or C) in the Outgoing entry code field, there must be either a Y or N in this field.

Standard entry code The standard entry code is a three character code used in the ACH system to distinguish different types of transactions. There are several of these codes that can be used, but there are only a couple used daily.

One of the frequently used standard entry codes is the PPD code. This code stands for a Prearranged Payment and Deposit entry. These are basically transactions where one half of the transfer involves a personal account. These types of transaction include payroll credits from companies to individuals and monthly

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insurance payments from individuals to companies.

Another frequently used code is the CCD code, which stands for a Cash Concentration and Disbursement entry. These entries are typically used to transfer funds between corporate accounts. Perhaps affiliated stores will use these types of transactions to forward excess funds to the central office or perhaps these types of transactions can involve drafts between banks.

Some of the other standard entry codes require additional information, which must be input in a different format (usually addenda information). You should consult your regional ACH rules to determine if this is the case for the standard entry code you wish to use.

This is a required field and cannot be left blank if there is an entry in the Outgoing entry code field.

Company entry description

This field is used to describe each individual transaction.

This field is required for use on the receiving customer's account statement by Reg E. It cannot be left blank when there is an entry in the Outgoing entry code field.

This field should contain an extremely clear description of the purpose of the transaction.

PAYROLL

INS. PREM.

DLY SETTLM

Receiving DFI ID This is the routing/transit number of the RDFI, which is to receive the ACH transaction.

This field should include the actual 8 digit routing/transit number and its associated check digit.

Send Acknowledgement Originators may utilize the ACH acknowledgment process to request confirmation from the RDFI that a corporate credit entry has been received by the RDFI and that the RDFI will attempt to post the credit to the Receiver's account. An acknowledgment entry is a non-dollar transaction transmitted by the RDFI in response to a request for an acknowledgment contained within the forward CCD or CTX credit entry. The ACK format will be used by RDFIs to acknowledge the receipt of entries originated using the CCD format, and the ATX format will be used by the RDFI to acknowledge the receipt of

EXAMPLES:

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entries originated using the CTX format.

If there is a Y in this field the Standard Entry Code (SEC) code must be CCD or CTX. The valid values for this field are a Y or N.

8 Complete these remaining fields.


Company name Enter the exact name of the company submitting ACH transactions for you to originate. This name must be an exact match for the name supplied by the company in their batch header or no offset will be generated.

Also use caution in defining these names since some companies may use several variations of their company name depending on the nature of the transactions.

Perhaps the Copacabana Entertainment Corp. has transactions they send to the bank representing payroll entries, beverage invoices, and payments to entertainers. Respectively, they might use COPACABANA PAYRL, COPACABANA INV, and COPACABA ENTRMNT in their batch headers to describe the associated transactions. If the Copacabana Entertainment Corp. wanted to have these transactions automatically deducted from their account(s), three entries in the company information file would be necessary, either with the same offset account number/type or different ones.

You can add a new company name by typing the name

EXAMPLE:

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on one of the blank lines.

If no more blank lines are available, use your [Page Up/Down] keys until you locate a blank line.

If you want to change an existing company name, key the new name over the old one. The other fields will remain the same unless you change them as well. You can also change an existing name by typing it on a blank line and including all other necessary information. The new information will appear in the old name's fields when you press [Enter].

If you want to delete a company name, you can use the Field Exit key to blank out the name field. When this field is empty the record will be deleted from the file.

If you leave the first character blank, the program will left justify the remaining characters in the field.

Com discretionary data As the name of the field implies, Company Discretionary Data is an optional field. If desired, you can enter any code or information which may help to identify this transfer in the event that it is returned.

This field is not used by the receiving depository financial institution or by the receiving individual. You can enter anything in this field which might be useful.

Company ID This field holds the company ID of an ACH transaction.

It must be typed exactly like the Company ID that is passed to your bank in the ACH file in order for the item to become a stop pay suspect. It will only apply to ACH transactions. This field is mandatory as the FED rejects transfers that do not have a Company ID.

Individual ID number The Individual Identification Number is an optional field for the half of the transaction sent as an ACH item. It usually contains the number by which the individual is known to the originator when it is a transaction between a company and an individual. It is only used for identification and descriptive purposes by the sending party; it does not need to have any meaning for the receiving bank or individual.

Keep in mind that this is not the account number which is debited or credited, since that has already been defined. For banks who are originating transactions on

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behalf of their customers, as in the case of transfers, you might enter the customer's Social Security number in this field; although it could be any other identifying information such as the account number for the other half of the transfer.

Individual name This field should hold the name of the customer, who is the owner of the account receiving the transaction.

This field is required, it is used to complete the identification process, to match the account number with its owner and may be needed if the entry needs to be returned.

This field cannot be blank if the Outgoing entry code field has an entry in it.

Special account number This field will allow up to a 15 position account number to be entered for origination account numbers that are over 11 positions.

9 Click New Record to add Addenda information.

10 Key an Addenda Type Code, which are provided by NACHA.

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Transaction type code This field holds the three – character code required to identify the reason for the payment. These codes are defined by NACHA. The reason for payment must be included in the International ACH Transaction (IAT) entries to provide relevant information in support of Regulation E. The Transaction Type parameter file AC1152 defines the codes for input into this field.

Receiving Company/Indiv Name

This field should hold the name of the receiving company or the customer, who is the owner of the account receiving the transaction.

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