Redemption Notice Maintenance Function - Introduction

Early settlement of credit facilities outstanding by borrowers can happen anytime due to the following reasons:-

  • Borrowers have additional funds and wish to reduce their debts.

  • Borrowers have obtained refinancing facilities from other bank.

The requirement of a redemption notice for earlier settlement of a credit facility depends on the practice of the respective bank or financial institution.

However, even if no redemption notice or settlement statement has been issued, the system allows users to directly perform redemption transactions on a credit facility account.

This function basically allows user to do the following:-

  • To generate a redemption notice for the purpose to fully redeem the credit facility.

  • To print the new redemption notice.

  • To view and reprint the previously issued redemption notice.

This function can also be accessed from the 'Credit Account 360' function by clicking once on the 'Redemption Notice' button.