Total Legal Accounting 3
The Mortgage Register has been designed to maintain the static details of a Mortgage attached to a Client/Trust file. There can be only one Mortgage File for any particular Client/Trust file. Also, it is usual to only use that Client/Trust file for the purposes of the Mortgagor. Any kind of transactions can be entered into the Trust card but only Trust transactions are displayed or printed when making enquiries in the Mortgage sub-system. (I.e. General transactions are ignored.)
Apart from the name of the Mortgagee, the card also allows entry of up to 15 contributors. These must also have Client/Trust files. This information is used for automatic dissection of TRUST TRANSFERS from the Mortgagor's file. (See SECTION 2.3.1.)
The normal sequence of use for a Mortgagors file is as follows:
1) Receive monies from the Mortgagee's file (TRUST RECEIPT).
2) Pay this to the Mortgagor. (TRUST CHEQUE).
3) Receive interest. (TRUST RECEIPT).
4) Take out charges. (FILE BILLS, TRUST TAKE-BACK, etc.)
5) Transfer the net interest payment to the Mortgagee's file (TRUST TRANSFER JOURNAL) and the dissect this amount to the Contributors if necessary (also TRUST TRANSFER JOURNALS). It is possible to do all of the TRUST TRANSFER JOURNALS (in this part) via the special transaction type: MORTGAGE TRANSFER JOURNAL.
6) When the loan is repaid, the balance is received into the Mortgagor's file (TRUST RECEIPT) and the transferred to the Mortgagee (TRUST TRANSFER).
Various specific reports are available to facilitate recovery of interest payments.
The MORTGAGE MENU is accessed as item 2 or <F2> from the MAIN MENU. On selecting this menu the following menu will be displayed:
To return to the MAIN MENU, press <ESC>.
Fields available on the MORTGAGE MASTER file.
MORTGAGOR'S FILE This is the file number of the Mortgagor's Client/Trust file. It is up to 6 characters long. The Client/Trust card must exist and cannot be deleted until the Mortgage file is deleted.
MORTGAGEE'S FILE This is the file number of the Mortgagee's Client/Trust file. It is up to 6 characters long. The file must exist. This is an intermediate file, as interest payments are finally transferred to the contributor files, see below. This file is usually belongs to the practice itself.
CONTRIBUTORS There are 15 entries here. Each has the code of the Client/Trust file of the Contributor and the value of the contribution. Each file must exist and the contribution must be greater than zero. The sum of contributions should equal the PRINCIPAL SUM (see below). It is possible to have no contributors entered here. In this case, the Mortgagee is the only contributor and this section is left blank. It is also possible to enter a commission rate here for each contributor. This is any value from 0.001% to 99.999. It represents the agreed commission to be taken off any interest payments as they are dissected to the contributors. The MORTGAGE TRANSFER program can do this automatically. (See SECTION 1.3.1.) It is usual to enter a penalty commission rate also. This is normally higher than the normal commission rate and can be chosen when a MORTGAGE TRANSFER is made.
PRINCIPAL This is the original amount lent (Principal Sum). It is must not be zero and should be equal to the sum of the contributions.
DATE LENT This is the starting date of the mortgage. I.e. when the Principal Sum was lent.
DATE REPAYABLE This is the date the principal sum is repayable. It must not be less than the date lent.
CHANGES Here you may enter up to two lines of changes. There is space for both the new sum lent and the date it happened. There is no provision for keeping track of any new repayable date as this tends to stay constant.
ACCEPTABLE RATE (%) & AMOUNT This is normal (lower) percentage interest rate of the loan and the value it represents.
HIGHER RATE (%) & AMOUNT This is the penalty (higher) interest rate of the loan and the value it represents.
RESTS This is a documentary entry describing the rests in interest payments.
PERIOD This is a single letter representing the period of interest payments. The options are: M for monthly payments, Q for quarterly payments, H for Half-yearly payments and Y for yearly payments.
SECURITY ADD This contains the address of the Mortgagees property.
TITLE - VOLUME & FOLIO There are four groups of entries here. Each has two spaces for a Volume & Folio number, respectively. Each field is five characters field wide. Thus you can document up to four Titles associated with this Mortgage.
VALUATION This is estimated dollar value of the security.
ESTABLISHED BY This contains the name of the valuer.
REGN. NO This is a 10 character field containing details of the Registration or Dealing number.
UNSEC. PARTICULARS If the mortgage is unsecured, the particulars must be entered here.
MORTGAGE TYPE Here you enter which type of Mortgage this is. Eg. First, Second, etc.
INSURANCE CO.NAME Here you enter the name of the insurance company insuring the property or loan.
AMOUNT OF COVER Here you enter the value of the insurance cover.
DUE DATE This is the due date of the insurance policy.
POLICY NUMBER This is the number of the insurance policy.
DEED PACKET NO. Here you enter the Deed Packet Number associated with this Mortgage.
Apart from these fields, you can also use the function keys to access several free-format fields.
NOTE (<F4>) This is a field that allows you to attach a comment to the account. For instance, you might use this to store details of a dispute.
COLLAT (<F6>) This is a field that allows you to list any special collateral information.