CLOSED ACCOUNT LOGIC

Please be aware that the entire logic of closing share types, loans and member accounts and reporting them to the credit union has been restructured.  The reason is to make the procedure easier to understand, more consistent, and allow the credit union more control over when an individual share type, loan or member account will be closed and deleted from the system.

REQUIREMENTS FOR CLOSING (DELETING) A MEMBER ACCOUNT

1. All Shares must be zero balance
2. All Loans must be zero balance
3. Program #3 Closed Account Indicator (flag #16) must be set to "Y"

CLOSED SHARE TYPES AND LOANS ON AN ACTIVE ACCOUNT

1. A share type that is closed remains on the system until Year-End at which time it is deleted.  The reason is to enable the member to add YTD Dividends on individual share types and come up to the YTD Div figure at the top of the statement. 
    
2.  A loan that is paid off  will remain on the system until Year-End at which time it is deleted.  The reason is to enable the member to add YTD Interest on individual loans and arrive at the total YTD INT figure at the top of their statement.  

CLOSING AN ACCOUNT MID-YEAR

If all of the following conditions are met:

1. All share and loan types are zero balance
2. In Program #3 the Closed Account Indicator flag (#16) is 'Y'.  

At the next month-end the following will happen

3. A final share and loan statement will be issued to the member this month-end (even if it is not a quarter-end)
4. The member account will be deleted from the system
5. History will be stored in Program #23
6. YTD information will be retained for IRA 1099/1098 reporting at year-end.