January 19, 2015

COMMERCIAL Charge-Off Processing


A COMMERCIAL charge-off indicates that a portion of the receivable balance of the loan has been determined to be uncollectible. All or a portion of the loan asset may be charged off. COMMERCIAL Charge-off and recovery transaction activity is recorded.

Payments may arrive from the borrower, from asset recovery, or from any other source. Such credits will be applied to the loan. By default, the system will recover principal on the loan record, apply the credit to the shadow loan and will recover principal on the COMMERCIAL charge-off record. When a loan is not 100% charged-off, the system will not automatically post recoveries until the remaining portion has been collected.