Manage note maturities with advance notifications, configure auto-renewal or auto-redemption, process manual renewals, and handle demand note redemption requests.
Every note with a defined maturity date has a maturity_action that determines what happens when the term expires. Set this during note creation or update it any time before the maturity date.
The system sends a maturity notice to the investor 30 days before the maturity date and holds the note in MATURED status until staff processes the renewal or redemption manually.
The note is automatically renewed into a new term at maturity. The system creates a new term with the configured renewal parameters.
renewal_term_months: length of the new term (defaults to original term if not set)renewal_rate_adjustment: basis-point adjustment to the rate (e.g., -0.25 to reduce by 25bp)The note is automatically redeemed at maturity. Principal plus any remaining accrued interest is returned to the investor.
CEF Core tracks maturity-related activities in the investor_notes.maturity_event table. Each event is timestamped and linked to the note for a complete audit trail.
Created 30 days before the maturity date. Triggers investor notification and appears on the staff maturity watch list.
Recorded when the maturity notice is delivered to the investor (email, mail, or portal notification).
Created on the maturity date. Interest accrual stops. The maturity action (NOTIFY, AUTO_RENEW, or AUTO_REDEEM) is then executed.
The final event records the outcome: the note was renewed into a new term, or the principal was returned to the investor.
When a note matures with the NOTIFY action, staff must manually process the renewal or redemption. Follow these steps:
MATURED to see all notes awaiting action.AUTO_RENEWED event is recorded.Important: Do not leave notes in MATURED status indefinitely. A matured note no longer accrues interest, but the fund still holds the investor's principal. Process renewals or redemptions promptly to maintain accurate liability reporting.
To configure automatic renewal for a note, set the following fields in the NoteModal or via the API:
| Field | Type | Description |
|---|---|---|
maturity_action | enum | Set to AUTO_RENEW |
renewal_term_months | integer | Length of the renewed term (e.g., 12 for one year). Defaults to the original term if null. |
renewal_rate_adjustment | decimal | Adjustment to the interest rate in percentage points (e.g., -0.25 lowers the rate by 0.25%). Set to 0 for same rate. |
auto_reinvest | boolean | If true, accrued interest at maturity is added to principal for the renewed term instead of being paid out. |
Pro Tip: Even with AUTO_RENEW configured, the system sends a MATURING_SOON notification 30 days in advance. This gives the investor an opportunity to request a change before the automatic renewal occurs.
Demand notes have no fixed maturity date. The investor can request redemption at any time, subject to the demand_notice_days advance notice period.
DEMAND_REDEMPTION_REQUESTED maturity event is recorded.demand_notice_days period (typically 30 or 90 days). Interest continues to accrue during the notice period.Note: Callable notes (where callable = true) can also be redeemed early by the fund, not just the investor. The same notice period and redemption process applies in reverse.
Variable rate notes have their interest rate adjusted periodically based on a reference index. Rate resets are processed automatically by the scheduler on the configured next_rate_reset_date.
rate_index (PRIME, SOFR, or TREASURY).new_rate = index_value + rate_spread.rate_floor and rate_ceiling.interest_rate is updated to the new rate.next_rate_reset_date advances by rate_reset_frequency_months.When a note is redeemed (either at maturity or on demand), the following journal entries are posted automatically:
| Account | Code | Debit | Credit |
|---|---|---|---|
| Investor Notes Payable | 2000 | Principal amount | -- |
| Accrued Interest Payable | 2100 | Accrued interest | -- |
| Cash (bank account) | 1010 | -- | Total payout |
Total payout = principal amount + accrued interest balance. These entries remove both the liability (Notes Payable) and the accrued interest obligation from the balance sheet.
Learn how investors can view their notes, download statements, and access tax documents through the investor portal.
Investor Portal Guide