NOTE - The User Code, Computer ID and F-Number (located on the back of the CD case) are all required to obtain a license code and must appear on the screen when entering in the license code. You must enter the "F-" when typing the F-number.

After entering the License Code on the screen, click UNLOCK.

Store the SmartPC installation CD in a safe place. You may need the CD again to Uninstall the program from one computer and Install it on another computer.

Network Uninstall

Single Workstation / User Uninstall

If you need to reassign the users in case of having new computers or transfer the license to other computers, please call Carleton Customer Service at (800) 433-0090.

Let us know the serial number on the disk (F-######).

Instructions will be given to you on how to proceed.

Server Uninstall

To completely remove the SmartPC software from the server, for either later installation, or for re-location to a different server, you must uninstall the program from the original workstation that was used to INSTALL the software.

Once you are at the workstation, click START > SETTINGS > CONTROL PANEL > ADD/REMOVE PROGRAMS.

Highlight the SmartPC software, and then click the "Add/Remove" button. The program will verify that you do want to uninstall and choose "Yes".

Main Menu

Among the most useful features of SmartPC are the extremely flexible setup options that are available. (See Options Menu). These options determine how the software displays prompts, fees, and calculates interest and credit insurance. All of these parameters can be changed to meet your institution's specific needs and are stored in Case Files. SmartPC comes preloaded with case files for all fifty states. Multiple Case files within a state may be created.

When SmartPC is opened, it brings up the last used case file. The Main menu screen (see below) can be customized to only show the transaction types used by your institution. The name of the case file opened is displayed on the top title bar of the screen.

Custom Menu	All Available Programs
This allows you to access the File, Edit, Options, Help and Insurance Options Menus. It also allows you to Exit the program.

File Menu

• New Loan •

The new loan selection appears on either the File Menu or the bottom of the Main Menu. This option displays the New Computations menu where Standard Loan, Balloon Loan, Single Payment, Irregular Payment, Interest Only, Irregular Loan, Refund, APR Check, Amortization Schedule, and Fixed Principal can be selected for quoting. The options that appear are determined in the Loan Setup. See Program Options.

• New Case •

Allows the user to setup new case files quickly. It starts the user on the first Loan Setup screen and proceeds through each setup screen sequentially until the case file is complete.

• Open Case •

Allows the user to change between state or loan class files easily. If the case file for Ohio is currently opened and a Michigan transaction needs to be run, simply select File/Open Case and choose the MI.c2k file from the open box.

• Save Case •

If your institution has specific calculation, prompting, or insurance requirements, please see the Options section in the manual. After these options have been set using Options/Loan Setup the case file needs to be saved using File/Save Case so that the settings are retained.

• Save Case As •

Used to create distinct case file names for your institution. For example, you may offer different types of credit insurance coverage based on loan type. Real Estate transactions may offer Net life insurance while Consumer Loans offer Gross life. The standard case file might be set to Gross/Net option. You can modify the standard case file to offer Net Life Only by using Options/Loan Setup and then use File/Save Case As to name the file MI_RealEstate or MI_Net. You could then modify the standard case file again to offer Gross Life Only and use File/Save Case As to name it MI_Consumer or MI_Gross. Choose a name that has meaning to you.

Warning: The extent of a case file must always be left as .c2k (MI_Consumer.c2k).

If a Case name is entered of a file that already exists, the old file will be overwritten.

• Printer Setup •

This is the default Windows printer setup window. It allows you to select different printers.

• Print Loan Setup •

Prints the entire loan setup of the case file currently open.
Note: When there is a question about a calculation, Carleton requires that the Loan Setup is printed and faxed along with an example to analyze.

Options Menu

Note: If Menu Bar is grayed out, click on Cancel Button(s) until it is available.

Setup

First section located under Options on the Menu bar. Thus lists all the possible screens.

Case Information

The name entered in the Case Information setup screen will appear on the title bar when SmartPC is running and active on the screen. Enter up to 40 characters in the Case Name to identify the case information uniquely. This name can be used to help remember the type of setup options selected. For example, use "Louisiana Net" as the name for one case and "Mississippi Net" for another.

Programs Available

Insurance Options

• Glossary of Insurance Terms
  • Accidental Death
  • Age Banded Rates
  • Allow Insurance on PPY other than monthly
  • Balloon loan with Amortization Term
  • Do Not allow A&H on Balloon
  • Gross
  • Gross/Net Switch_Months
  • IUI
  • Level on Net Balloon
  • MOB
  • Net
  • Net Options
  • Prompt for Life, A&H, IUI term
  • Property Insurance Coverage
  • Show coverage options on output screen
  • TPD

Appendix B

Balloon Loan with Amortization Term

See "Insurance Options" setup

SmartPC offers 3 options for Balloon Loans with insurance given an amortization term.

The table below illustrates the differences.

Table 1
60 Payments
120 Amortization Term
$15000 Loan Amount
6% Interest Rate
Month & Day 365

Premium in Payment AND Balloon Option

Reference Single Life in Table 1 above.
The $176.11 regular payment will amortize the $15,863.72 principal (which includes premium) at the amortization term (120). See Exhibits 1 and 2.
Note: This is the default method set in all standard case files for SmartPC.

Exhibit 1

Exhibit 2

Premium in Balloon (Fixed Payment) Option

$166.53 is Payment from a No Insurance transaction where principal is $15000 for a loan term of 120 equal monthly payments (see Exhibit 3).

SmartPC uses $166.53 for any insurance combination and solves for a balloon given 60 payments. (See Exhibit 4)

Exhibit 3

Exhibit 4

Premium in Payment (Fixed Balloon) Option

$166.53 is Payment for No Insurance transaction where principal is $15000 for a loan term of 120 equal monthly payments. (See Exhibit 5)

SmartPC uses $166.53 to solve for a balloon given 60 payments. That balloon is $8780.47 (see Exhibit 6).

SmartPC now uses that balloon for any insurance combination and solves for a payment given 60 payments. (See Exhibit 7)

Exhibit 5

Exhibit 6

Exhibit 7

Insurance Setup

• Glossary of Insurance Setup Terms
  • A&H Balloon Coverage
  • A&H Deviation Factor
  • A&H Discount Factor
  • A&H Joint Factor
  • A&H Rates Bracketed by
  • Allow A&H Without Life Ins
  • Allow IUI Without A&H Insurance
  • Allow IUI Without Life Insurance
  • Allow TPD Without A&H Insurance
  • Alternate Rate Deviations
  • Compensate Life Rate for Odd Days
  • Convert Rate to MOB at Amort Term
  • Coverage for A&H, IUI
  • Coverage for Life, Prop., Acc. Death
  • Decreasing Life Gross Coverage
  • Deduct Insurance from Proceeds
  • Do Not Show Insurance Pre Payment
  • Exclude Interest from Daily Insurance
  • State

Single Premium Insurance Rates

• Glossary of Single Premium Insurance Rates Terms
  • Accidental Death Rates
  • Discount Factor 1
  • Discount Factor 2
  • Discount Factor = APR
  • Use Disc 2 Over ___ Months
  • Discount Factor for Level
  • Discount Factor for Truncated
  • Discount Factor for Single Pay
  • Discount Method
  • Do Not Round Life Rates
  • I.U.I. Rates
  • Level Life Rates
  • Level Rate Option (Monthly Pmt Only)
  • Life Rate Type
  • Monthly Life Rates (Special Options)
  • PPY (1,2,4,6) Insurance Rate Options
  • Property Rates
  • Single Payment
  • TPD Rates
  • Use Monthly Rates for Gross over __ Months
  • Use "B" Rate over ___ Mos or over $___ Amt. Fin.

MOB Insurance Parameters

Note: This only shows after MOB is selected on Insurance Option Setup screen.

• Glossary of MOB Insurance Parameters
  • MOB A&H Rates
  • MOB Calculation Types
  • MOB IUI Rates
  • MOB Life Rates
  • MOB Premium Posted Day
  • MOB TPD Rates
  • MOB Truncation Method

Accident & Health Rates

Note: If you do not want A&H option available, you must use Delete tab to remove rates.

• Glossary of Accident & Health Rates Terms
  • A&H Description
  • A&H Mos Rate
  • A&H Do Not Round
  • A&H Add Rates
  • A&H Delete

Underwriting Limits

• Glossary of Underwriting Limits
  • A&H (TIER1)
  • Accidental Death
  • Age Tiered Limits
  • Age Options
  • Cap Level on Balloon First
  • Compensated Decreasing Life
  • Insure just payments on truncated gross life
  • IUI
  • Level on Remaining Payments
  • Life (TIER 1)
  • Partial
  • Property
  • Tier 2 Limits
  • Tier 3 Limits
  • Truncate all at Life Term

Fee Setup

Display from above setup on the Loan Input screen:

Note: The grayed areas of the Service Charge % and Flood Fee $ were not selected in the setup screen.

• Glossary of Fee Setup Terms
  • CA Administrative Fee
  • Do Not Insure Fee Financed
  • Fee-Pre Paid
  • Fee Financed
  • Fee Non-Financed
  • Fee Other
  • Florida Fees

Appendix A

FEES - Definitions and Examples

Carleton asks three basic questions whenever a fee is requested.

Fee-Pre-Paid

•Paid in cash (at consummation of the transaction).
•Subtracted from principal to arrive at the amount financed for Truth-in-Lending purposes.
•Added to interest to arrive at finance charge for Truth-in-Lending purposes.

Fee Financed

•Included in the principal for the purpose of computing interest.
•Subtracted from the principal to arrive at the amount financed for Truth-in-Lending purposes.
•Added to interest to arrive at finance charge for Truth-in-Lending purposes.

Fee Non-Financed

•Not included in the principal for the purpose of computing interest.
•Excluded from the amount financed for Truth-in-Lending purposes.
•Added to interest to arrive at finance charge for Truth-in-Lending purposes.

Fee - Other

•Included in the principal for the purpose of computing interest.
•Included in the amount financed for Truth-in-Lending purposes.
•Excluded from the finance charge for Truth-in-Lending purposes.

Loan Setup

Click on Add/Edit Items button under Retail Sales Prompts to access the screen below.

Click on Edit Rates under Small Loan > Maximum Rates to access the screen below.

• Glossary of Loan Setup Terms
  • Add-On Rates
  • APR Disclosure
  • Dealer Reserve
  • Dollar Tax Input
  • HOEPA Triggers /Treasury Rates
  • Lending to Military Personnel Disclosures
  • Loan Min/Max Rates
  • Max Spread
  • Prompt for Add-On Interest
  • Prompt for Closing Dates
  • Prompt for Payments per Year
  • Retail Sales Prompt
  • Single Pay
  • Small Loan - Maximum Rates
  • Re-finance

Payment Setup

Note: Allow Level Payments and Whole Dollar Payments only appear if per diem Time Counting/Daily Rate method chosen.

• Glossary of Payment Setup Terms
  • Daily Rate Payment Frequency more than monthly
  • Round Payment
  • Single Payment Program
  • Time Counting/Daily Rate

Appendix C

Payment Frequency greater than monthly

Daily Rate Examples

See "Payment Setup" screen

$10,000 Loan Amount
6% Interest Rate
Month & Day 365

Refund Setup

• Glossary of Refund Setup Terms
  • A&H Refund Type
  • Accidental Death Refund Type
  • Actuarial
  • Anticipation
  • Daily Rate - Payment Frequency more than monthly
  • Daily Refund for Actuarial
  • Daily Refund for Pro Rata
  • Decr Life Refund Type
  • Finance Charge Refund Type
  • I.U.I. Refund Type
  • Level Life Refund Type
  • Mean Between
  • Pro-Rata
  • Property Refund Type
  • Refund Days
  • Rule of 78ths
  • Use Loan Balance With Anticipation Decr Life

Appendix D

Refund Examples

Sample Refunds for transaction above with Pay-off date of 8/31/09

	Rule 78th	Anticipation	Actuarial	Pro-rata	Mean Between
Net Life	367.39	377.29	480.64	521.18	N/A

Refund Types	Description	Applicable to:
Rule of 78ths	Also referred to as Direct Ratio method or Sum of the Digits. This method assumes that the portion of the total charge/premium contained in each installment is computed as a direct ratio of the number of remaining unpaid installments to the sum of the original number of installments.	Life Level Life A&H Property AD IUI Finance Charge
Anticipation (ROA)	Rule of Anticipation (ROA) Refunding the unearned premium using the same formula that was used to compute the original premium only the remaining term rate is substituted in place of the originally scheduled rate and the remaining balance is substituted in place of the original amount. Note: For A&H insurance this method will generally return a larger portion of the original A&H premium than Rule of 78th. *For credit life, this method makes sense when the underlying insurance rate is a Uniform Monthly (MOB) Rate.	Life* A&H
Actuarial	Method of allocating payments made on a debt between the amount financed and the finance charge pursuant to which a payment is applied first to the accumulated finance charge and any remainder is subtracted from or any deficiency is added to, the outstanding balance of the amount financed.	Life Finance Charge
Pro-Rata	Earned in equal portions.	Life Level Life A&H Property AD Finance Charge
Mean Between	(Pro-Rata refund + Rule 78th refund) / 2	Gross Life A&H

Multi-Insurance Quote

This flexible and powerful option allows the setup of multiple credit insurance “what if” scenarios. Payments are quoted and displayed for the selected scenarios of insurance coverage combinations and the input loan data. This feature can be a great asset that assists in the selling of credit insurance products in conjunction with your credit transactions.

Entering Preset Combinations of Insurance Coverage
To enter a preset insurance scenario, follow these steps:

1) Click on the radio buttons for the insurance coverage(s) desired
Scenario #1 will include Single Life and Single A&H.

The scenario number corresponds to the “Current Preset” value Click on “Enable Multi-Ins” so that all subsequent calculations will include the multiple scenarios. To include a No Insurance payment quote in conjunction with the selected scenarios, click on the box “No Insurance Quote”

2) To move to Scenario (Current Preset) #2, click on the right arrow below the current scenario number. Moving to scenario #2 also saves #1 to memory.

One click and a new scenario (#2) is ready to be setup. Simply follow the procedures above in selecting the desired coverage types.

NOTE: Up to 20 scenarios can be created and saved.

Once all of the desired scenarios have been created, click “OK” to return to the Menu.

Display of Multi-Ins Coverage Scenarios

Click on “Standard Loan” program and enter the input information in the Loan Information screen. Click on “Calculate” and the output will now look similar to this:

By double clicking the mouse on any of the individual lines, a full disclosure page will appear for that scenario.

• SCL = Single Credit Life
• JCL = Joint Credit Life
• SAH = Single Accident & Health
• JAH = Joint Accident & Health
• SA/D = Single Accidental Death
• JA/D = Joint Accidental Death
• IUI = Involuntary Unemployment
• STPD = Single Total & Permanent Disability
• JTPD = Joint Total & Permanent Disability

For example, Scenario #1 including single credit life and single A&H coverage can be viewed in its entirety by clicking on the line “SCL, SAH”

Password Setup

Available under the Options Menu.

Supervisors/Administrators can use the password setup option to invoke password protection for the case saving and/or the loan setup utilities (insurance rates, calculation methods and screen prompts). Note: Setting up a password on the Network version of SmartPC will require a password to gain access to the utility that is protected on every workstation.

To setup a password: Click on the Setup Button from the Password screen.

Note: If a password has already been setup, it will need to be entered into the Password screen before continuing to the setup screen.

From the Password Setup screen, enter a new password and choose which options will require password protection. Protection can be setup for the Save options (Save Case, and Save Case As) and for the entire Loan Setup utility of SmartPC. When the protection is turned on for these utilities, the user will not be allowed access unless they enter a correct password. The password protection will apply to all case files.

Warning: Please make a note of the password that you enter in a safe and secure place where it can be found if you forget the password you have chosen.

Edit Name

If this screen is filled in, the information prints at the top of each disclosure page.

Amortization Schedules

The amortization input screen can be accessed either through Options or on the Main Menu “New Computations” screen.

Help

Insurance Objections

Programs Available

To begin using SmartPC, select a loan type from the Transaction Type menu. Each transaction type may have different entry requirements and/or input prompts.

An installment payment loan or credit sale transaction (that is not irregular) and involves consecutive, periodic installments. This is the most common type of loan.

Loan having a final payment at least twice as large as the regular payment.

A loan where the amount paid back occurs in one lump sum.

Borrower only pays the interest each month and the final payment is usually one period’s interest plus the original principal amount.

Installment loan where the payments are not equal in amount, or time periods.

This loan allows for irregular payment amounts or time periods for teacher or farmer plans that have seasonal income schedules. The software is extremely flexible in allowing the user to enter odd payment dates or amounts on a one time only, or yearly basis.

Refund calculator for calculating single premium credit insurance and interest refunds when the credit transaction is paid in full prior to the scheduled maturity date.

This option allows the user to verify the Truth-in-Lending Annual Percentage Rate (APR) for a given transaction.

APR values can be computed by the US Rule or Actuarial method. APR values are computed by the guidelines determined in Regulation Z of the Truth-in-Lending act.

Creates an amortization schedule for any transaction with the option to accrue interest by any of 9 time counting methods. This option allows the user to enter an existing contract and creates a printable amortization.

Borrower only pays the interest each period plus a fixed amount applied to principal reduction along with a final payment of one period’s interest plus the outstanding principal.

Transaction Input Screens

Because SmartPC is extremely customizable, the screen appearance and prompts shown might be slightly different than your setup.

Standard Loan

Note: Prompts on this screen are dependent on choices made in each case file setup.

Note: Institution name comes from information entered under Options and Edit Names.

Standard Loan – Retail Sales Prompts

Note: To activate and customize Retail Sales Prompts see Loan Setup Screen.

This screen can be customized to your needs.

Option of Sale Price or Loan Amount All Optional Up to 5 fees with custom labels that are part of Unpaid Balance. See Fee Setup Screen for fees that are part of Finance Charge. Click OK and next screen ready for input. Unpaid Balance calculated from inputs on this screen.

Balloon Loan

Note: You can enter only one of the following three prompts:

Single Payment Loan

Interest Only Loan

Irregular Loan

Click Calculate after input is completed and screen below appears allowing you to enter irregular payment dates and/or irregular payment amounts.

Click OK to get full disclosure.

An Amortization schedule is also available by clicking on the Amortize button at the bottom of the disclosure screen.

Refund

Use the refund transaction to calculate refunds for credit insurance and/or interest. The calculation methods available for each credit insurance type and interest are displayed in the table below.

Rule of 78ths
(Also referred to as Direct Ratio or Sum of the Digits)
This method assumes that the portion of the total amount contained in each installment is computed as a direct ratio of the number of remaining unpaid installments to the sum of the original number of installments.

Pro-rata
Proportional