Early Redemption Penalty Options

This document outlines the penalty options for early investment redemption within DDI-Connect Investments.

Table of Redemption Methods/Calculations

Formatting Key
Orange	Items that are in orange font reference fields located on the Investment screens within DDI-Connect. Reference the screen shots provided
Red	Items that are in red font refer to a Penalty Rate Table. Reference the below appendix for additional information

Method	Code	Description
Penalty Rate with Separate Bookkeeping	0	(Total Interest Paid TTD + Actual Accrued Interest) – (Penalty Int Earned TTD) + (Number of Days since Last Accrual * Penalty Current Balance * PenRateTable / 36000) + (Penalty Charged)
% of Orig. Balance Based on Rate & Term	1	Original Principal Balance * Rate / 3600 / 90 or 180 (see note below) Note: If the Term Months are less than or equal to 36 the value above will equal 90. If the Term Months are greater than 36 the value above will equal 180
Penalty Rate Applied to Interest Earned	2	(Total Interest Paid TTD + Actual Accrued Interest) - (Total Interest Paid TTD + Actual Accrued Interest) * PenRateTable / Rate) + (Penalty Charged) Penalty Rate = Minimum of Penalty Rate calculation or Rate
Withdrawal Amount Penalty	3	Principal Withdrawal Amount * Rate) / 36000 / 60
Penalty Rate * Withdraw Amount * Days Early	4	Original Principal Balance * PenRateTable / 100 / Number of Days Per Year * Number of Days Since Purchase Note: Number of days per year (360/365/366) is based on the Investments Interest Computation Code
Manual Entry	5	Manual Calculation at time of withdrawal
Number of Days Interest	6	Original Principal Balance * Rate) / 100 / Number of Days Per Year * Investment Category’s Penalty Days Note: Number of days per year (360/365/366) is based on the Investments Interest Computation Code

Examples

Penalty Rate Table

Use this table to fill in the appropriate rate where the formula has PenRateTable. If the “Investment System Settings” has “Investment Penalty Fixed” marked, the Penalty Rate will follow the Investment. If you select Method, “Interest Earned Penalty (Code 2)” and the “Demand Note” is marked in “Investment Category Maintenance” then the rate = 0.

Otherwise see the table below:

Code	Penalty Rate Description
0	Maximum of Type/Rate Demand Rate OR (Screen Rate - Type/Rate Penalty Rate)
1	Maximum of Type/Rate Demand Rate OR 0 OR (Screen Rate - System Settings Penalty Rate)
2	Type/Rate Penalty Rate
3	System Settings Penalty Rate
4	Type/Rate Demand Rate
5	Find first Type/Rate with a category = "DEM" and is a current offering: Type/Rate Current Rate + 1%
6	Category Penalty Rate