FINERACT-2279: Contract Termination - Schedule Handing & Reverse-replay

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/api/LoanTransactionsApiResource.java

@@ -92,6 +92,7 @@ public class LoanTransactionsApiResource {
     public static final String UNDO_REAMORTIZE = "undoReAmortize";
     public static final String CAPITALIZED_INCOME = "capitalizedIncome";
     public static final String CAPITALIZED_INCOME_ADJUSTMENT = "capitalizedIncomeAdjustment";
+    public static final String CONTRACT_TERMINATION = "contractTermination";
     private final Set<String> responseDataParameters = new HashSet<>(Arrays.asList("id", "type", "date", "currency", "amount", "externalId",
             LoanApiConstants.REVERSAL_EXTERNAL_ID_PARAMNAME, LoanApiConstants.REVERSED_ON_DATE_PARAMNAME));
 
@@ -534,6 +535,7 @@ public class LoanTransactionsApiResource {
             case capitalizedIncome -> LoanTransactionType.CAPITALIZED_INCOME;
             case capitalizedIncomeAmortization -> LoanTransactionType.CAPITALIZED_INCOME_AMORTIZATION;
             case capitalizedIncomeAdjustment -> LoanTransactionType.CAPITALIZED_INCOME_ADJUSTMENT;
+            case contractTermination -> LoanTransactionType.CONTRACT_TERMINATION;
             default ->
                 throw new InvalidLoanTransactionTypeException("transaction", transactionTypeParam.name(), "Unknown transaction type");
         };
@@ -647,7 +649,8 @@ public class LoanTransactionsApiResource {
             transactionData = this.loanReadPlatformService.retrieveDisbursalTemplate(resolvedLoanId, false);
         } else if (CommandParameterUtil.is(commandParam, "recoverypayment")) {
             transactionData = this.loanReadPlatformService.retrieveRecoveryPaymentTemplate(resolvedLoanId);
-        } else if (CommandParameterUtil.is(commandParam, "prepayLoan")) {
+        } else if (CommandParameterUtil.is(commandParam, "prepayLoan")
+                || CommandParameterUtil.is(commandParam, LoanApiConstants.CONTRACT_TERMINATION_COMMAND)) {
             LocalDate transactionDate;
             if (transactionDateParam == null) {
                 transactionDate = DateUtils.getBusinessLocalDate();

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/api/LoansApiResource.java

@@ -1232,6 +1232,8 @@ public class LoansApiResource {
             commandRequest = new CommandWrapperBuilder().recoverFromGuarantor(resolvedLoanId).build();
         } else if (CommandParameterUtil.is(commandParam, "assigndelinquency")) {
             commandRequest = builder.assignDelinquency(resolvedLoanId).build();
+        } else if (CommandParameterUtil.is(commandParam, LoanApiConstants.CONTRACT_TERMINATION_COMMAND)) {
+            commandRequest = builder.applyContractTermination(resolvedLoanId).build();
         }
 
         if (commandRequest == null) {

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanAccountDomainServiceJpa.java

@@ -913,7 +913,8 @@ public class LoanAccountDomainServiceJpa implements LoanAccountDomainService {
         } else {
             if (loan.isCumulativeSchedule() && loan.isInterestBearingAndInterestRecalculationEnabled()) {
                 loanScheduleService.regenerateRepaymentScheduleWithInterestRecalculation(loan, scheduleGeneratorDTO);
-            } else if (loan.isProgressiveSchedule() && loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy()) {
+            } else if (loan.isProgressiveSchedule() && ((loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy())
+                    || loan.hasContractTerminationTransaction())) {
                 loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
             }
             loan.getLoanTransactions().add(refundTransaction);

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/handler/loan/contracttermination/LoanContractTerminationCommandHandler.java

@@ -0,0 +1,40 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements. See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership. The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License. You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied. See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.fineract.portfolio.loanaccount.handler.loan.contracttermination;
+
+import lombok.RequiredArgsConstructor;
+import org.apache.fineract.commands.annotation.CommandType;
+import org.apache.fineract.commands.handler.NewCommandSourceHandler;
+import org.apache.fineract.infrastructure.core.api.JsonCommand;
+import org.apache.fineract.infrastructure.core.data.CommandProcessingResult;
+import org.apache.fineract.portfolio.loanaccount.service.contracttermination.LoanContractTerminationServiceImpl;
+import org.springframework.stereotype.Service;
+
+@Service
+@RequiredArgsConstructor
+@CommandType(entity = "LOAN", action = "CONTRACT_TERMINATION")
+public class LoanContractTerminationCommandHandler implements NewCommandSourceHandler {
+
+    private final LoanContractTerminationServiceImpl loanContractTerminationService;
+
+    @Override
+    public CommandProcessingResult processCommand(JsonCommand command) {
+        return loanContractTerminationService.applyContractTermination(command);
+    }
+}

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanChargeWritePlatformServiceImpl.java

@@ -296,7 +296,8 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo
         }
 
         if (reprocessRequired) {
-            if (loan.isProgressiveSchedule() && loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy()) {
+            if (loan.isProgressiveSchedule() && ((loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy())
+                    || loan.hasContractTerminationTransaction())) {
                 final ScheduleGeneratorDTO scheduleGeneratorDTO = loanUtilService.buildScheduleGeneratorDTO(loan, null);
                 loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
             }
@@ -881,7 +882,8 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo
 
             if (reprocessRequired) {
                 addInstallmentIfPenaltyAppliedAfterLastDueDate(loan, lastChargeDate);
-                if (loan.isProgressiveSchedule() && loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy()) {
+                if (loan.isProgressiveSchedule() && ((loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy())
+                        || loan.hasContractTerminationTransaction())) {
                     final ScheduleGeneratorDTO scheduleGeneratorDTO = loanUtilService.buildScheduleGeneratorDTO(loan, null);
                     loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
                 }
@@ -916,7 +918,8 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo
                 .determineProcessor(loan.transactionProcessingStrategy());
         loan.addLoanTransaction(loanChargeAdjustmentTransaction);
         if (loan.isInterestBearingAndInterestRecalculationEnabled()) {
-            if (loan.isProgressiveSchedule() && loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy()) {
+            if (loan.isProgressiveSchedule() && ((loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy())
+                    || loan.hasContractTerminationTransaction())) {
                 final ScheduleGeneratorDTO scheduleGeneratorDTO = loanUtilService.buildScheduleGeneratorDTO(loan, null);
                 loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
             }
@@ -1500,7 +1503,8 @@ public class LoanChargeWritePlatformServiceImpl implements LoanChargeWritePlatfo
         if (loan.isCumulativeSchedule() && loan.isInterestBearingAndInterestRecalculationEnabled()
                 && DateUtils.isBefore(loanCharge.getDueLocalDate(), businessDate)) {
             loanScheduleService.regenerateRepaymentScheduleWithInterestRecalculation(loan, scheduleGeneratorDTO);
-        } else if (loan.isProgressiveSchedule() && loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy()) {
+        } else if (loan.isProgressiveSchedule() && ((loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy())
+                || loan.hasContractTerminationTransaction())) {
             loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
         }
         // Waive of charges whose due date falls after latest 'repayment' transaction don't require entire loan schedule

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanUtilService.java

@@ -21,9 +21,11 @@ package org.apache.fineract.portfolio.loanaccount.service;
 import java.math.BigDecimal;
 import java.time.LocalDate;
 import java.util.List;
+import java.util.Map;
 import java.util.Set;
 import lombok.RequiredArgsConstructor;
 import org.apache.fineract.infrastructure.configuration.domain.ConfigurationDomainService;
+import org.apache.fineract.infrastructure.core.api.JsonCommand;
 import org.apache.fineract.infrastructure.core.exception.PlatformServiceUnavailableException;
 import org.apache.fineract.organisation.holiday.domain.Holiday;
 import org.apache.fineract.organisation.holiday.domain.HolidayRepository;
@@ -41,17 +43,23 @@ import org.apache.fineract.portfolio.calendar.domain.CalendarInstance;
 import org.apache.fineract.portfolio.calendar.domain.CalendarInstanceRepository;
 import org.apache.fineract.portfolio.calendar.service.CalendarReadPlatformService;
 import org.apache.fineract.portfolio.calendar.service.CalendarUtils;
+import org.apache.fineract.portfolio.client.domain.Client;
+import org.apache.fineract.portfolio.client.exception.ClientNotActiveException;
 import org.apache.fineract.portfolio.floatingrates.data.FloatingRateDTO;
 import org.apache.fineract.portfolio.floatingrates.data.FloatingRatePeriodData;
 import org.apache.fineract.portfolio.floatingrates.exception.FloatingRateNotFoundException;
 import org.apache.fineract.portfolio.floatingrates.service.FloatingRatesReadPlatformService;
 import org.apache.fineract.portfolio.group.domain.Group;
+import org.apache.fineract.portfolio.group.exception.GroupNotActiveException;
+import org.apache.fineract.portfolio.loanaccount.api.LoanApiConstants;
 import org.apache.fineract.portfolio.loanaccount.data.HolidayDetailDTO;
 import org.apache.fineract.portfolio.loanaccount.data.ScheduleGeneratorDTO;
 import org.apache.fineract.portfolio.loanaccount.domain.Loan;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionType;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleGeneratorFactory;
 import org.apache.fineract.portfolio.loanproduct.domain.LoanProductRelatedDetail;
+import org.apache.fineract.portfolio.note.domain.Note;
+import org.apache.fineract.portfolio.note.domain.NoteRepository;
 
 @RequiredArgsConstructor
 public class LoanUtilService {
@@ -64,6 +72,7 @@ public class LoanUtilService {
     private final LoanScheduleGeneratorFactory loanScheduleFactory;
     private final FloatingRatesReadPlatformService floatingRatesReadPlatformService;
     private final CalendarReadPlatformService calendarReadPlatformService;
+    private final NoteRepository noteRepository;
 
     public ScheduleGeneratorDTO buildScheduleGeneratorDTO(final Loan loan, final LocalDate recalculateFrom) {
         final HolidayDetailDTO holidayDetailDTO = null;
@@ -298,4 +307,25 @@ public class LoanUtilService {
         }
     }
 
+    public void checkClientOrGroupActive(final Loan loan) {
+        final Client client = loan.client();
+        if (client != null && client.isNotActive()) {
+            throw new ClientNotActiveException(client.getId());
+        }
+        final Group group = loan.group();
+        if (group != null && group.isNotActive()) {
+            throw new GroupNotActiveException(group.getId());
+        }
+    }
+
+    public void persistNote(Loan loan, JsonCommand command, Map<String, Object> changes) {
+        if (command.hasParameter(LoanApiConstants.noteParameterName)) {
+            final String note = command.stringValueOfParameterNamed(LoanApiConstants.noteParameterName);
+            final Note newNote = Note.loanNote(loan, note);
+            changes.put(LoanApiConstants.noteParameterName, note);
+
+            noteRepository.save(newNote);
+        }
+    }
+
 }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java

@@ -1019,7 +1019,8 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
     private void reprocessChangedLoanTransactions(Loan loan, ScheduleGeneratorDTO scheduleGeneratorDTO) {
         if (loan.isCumulativeSchedule() && loan.isInterestBearingAndInterestRecalculationEnabled()) {
             loanScheduleService.regenerateRepaymentScheduleWithInterestRecalculation(loan, scheduleGeneratorDTO);
-        } else if (loan.isProgressiveSchedule() && loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy()) {
+        } else if (loan.isProgressiveSchedule() && ((loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy())
+                || loan.hasContractTerminationTransaction())) {
             loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
         }
 
@@ -2343,7 +2344,8 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
 
             if (loan.isCumulativeSchedule() && loan.isInterestBearingAndInterestRecalculationEnabled()) {
                 loanScheduleService.regenerateRepaymentScheduleWithInterestRecalculation(loan, scheduleGeneratorDTO);
-            } else if (loan.isProgressiveSchedule() && loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy()) {
+            } else if (loan.isProgressiveSchedule() && ((loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy())
+                    || loan.hasContractTerminationTransaction())) {
                 loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
                 reprocessLoanTransactionsService.processPostDisbursementTransactions(loan);
             }
@@ -2502,7 +2504,8 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
                 || rescheduledRepaymentDate != null) {
             if (loan.isCumulativeSchedule() && loan.isInterestBearingAndInterestRecalculationEnabled()) {
                 loanScheduleService.regenerateRepaymentScheduleWithInterestRecalculation(loan, scheduleGeneratorDTO);
-            } else if (loan.isProgressiveSchedule() && loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy()) {
+            } else if (loan.isProgressiveSchedule() && ((loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy())
+                    || loan.hasContractTerminationTransaction())) {
                 loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
             }
         }
@@ -3233,7 +3236,8 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
             loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
             if (loan.isCumulativeSchedule() && loan.isInterestBearingAndInterestRecalculationEnabled()) {
                 loanScheduleService.regenerateRepaymentScheduleWithInterestRecalculation(loan, scheduleGeneratorDTO);
-            } else if (loan.isProgressiveSchedule() && loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy()) {
+            } else if (loan.isProgressiveSchedule() && ((loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy())
+                    || loan.hasContractTerminationTransaction())) {
                 loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
             }
             reprocessLoanTransactionsService.reprocessTransactions(loan);
@@ -3345,7 +3349,8 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
 
         if (loan.isCumulativeSchedule() && loan.isInterestBearingAndInterestRecalculationEnabled()) {
             loanScheduleService.regenerateRepaymentScheduleWithInterestRecalculation(loan, scheduleGeneratorDTO);
-        } else if (loan.isProgressiveSchedule() && loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy()) {
+        } else if (loan.isProgressiveSchedule() && ((loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy())
+                || loan.hasContractTerminationTransaction())) {
             loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
         }
 
@@ -3410,7 +3415,8 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
                 "reversed");
         writeOffTransaction.reverse();
         loanLifecycleStateMachine.transition(LoanEvent.WRITE_OFF_OUTSTANDING_UNDO, loan);
-        if (loan.isProgressiveSchedule() && loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy()) {
+        if (loan.isProgressiveSchedule() && ((loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy())
+                || loan.hasContractTerminationTransaction())) {
             final ScheduleGeneratorDTO scheduleGeneratorDTO = loanUtilService.buildScheduleGeneratorDTO(loan, null);
             loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
         }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/ProgressiveLoanInterestRefundServiceImpl.java

@@ -82,7 +82,8 @@ public class ProgressiveLoanInterestRefundServiceImpl implements InterestRefundS
         List<LoanRepaymentScheduleInstallment> installmentsToReprocess = new ArrayList<>(
                 loan.getRepaymentScheduleInstallments().stream().filter(i -> !i.isReAged() && !i.isAdditional()).toList());
 
-        if (loan.isProgressiveSchedule() && loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy()) {
+        if (loan.isProgressiveSchedule() && ((loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy())
+                || loan.hasContractTerminationTransaction())) {
             final ScheduleGeneratorDTO scheduleGeneratorDTO = loanUtilService.buildScheduleGeneratorDTO(loan, null);
             loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
         }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/ProgressiveLoanSummaryDataProvider.java

@@ -109,7 +109,7 @@ public class ProgressiveLoanSummaryDataProvider extends CommonLoanSummaryDataPro
         Optional<LoanRepaymentScheduleInstallment> currentRepaymentPeriod = getRelatedRepaymentScheduleInstallment(loan, businessDate);
 
         if (currentRepaymentPeriod.isPresent()) {
-            if (loan.isChargedOff()) {
+            if (loan.isChargedOff() || loan.hasContractTerminationTransaction()) {
                 return MathUtil.subtractToZero(currentRepaymentPeriod.get().getInterestOutstanding(loan.getCurrency()).getAmount(),
                         totalUnpaidPayableDueInterest);
             } else {

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/ReprocessLoanTransactionsServiceImpl.java

@@ -70,8 +70,9 @@ public class ReprocessLoanTransactionsServiceImpl implements ReprocessLoanTransa
     }
 
     private Predicate<LoanTransaction> loanTransactionForReprocessingPredicate() {
-        return transaction -> transaction.isNotReversed() && (transaction.isChargeOff() || transaction.isReAge()
-                || transaction.isAccrualActivity() || transaction.isReAmortize() || !transaction.isNonMonetaryTransaction());
+        return transaction -> transaction.isNotReversed()
+                && (transaction.isChargeOff() || transaction.isReAge() || transaction.isAccrualActivity() || transaction.isReAmortize()
+                        || !transaction.isNonMonetaryTransaction() || transaction.isContractTermination());
     }
 
     @Override

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/contracttermination/LoanContractTerminationServiceImpl.java

@@ -0,0 +1,154 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements. See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership. The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License. You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied. See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.fineract.portfolio.loanaccount.service.contracttermination;
+
+import java.util.ArrayList;
+import java.util.LinkedHashMap;
+import java.util.List;
+import java.util.Map;
+import lombok.RequiredArgsConstructor;
+import org.apache.commons.lang3.StringUtils;
+import org.apache.fineract.infrastructure.core.api.JsonCommand;
+import org.apache.fineract.infrastructure.core.data.ApiParameterError;
+import org.apache.fineract.infrastructure.core.data.CommandProcessingResult;
+import org.apache.fineract.infrastructure.core.data.CommandProcessingResultBuilder;
+import org.apache.fineract.infrastructure.core.domain.ExternalId;
+import org.apache.fineract.infrastructure.core.exception.PlatformApiDataValidationException;
+import org.apache.fineract.infrastructure.core.service.DateUtils;
+import org.apache.fineract.infrastructure.core.service.ExternalIdFactory;
+import org.apache.fineract.infrastructure.event.business.domain.loan.LoanBalanceChangedBusinessEvent;
+import org.apache.fineract.infrastructure.event.business.domain.loan.transaction.LoanTransactionContractTerminationPostBusinessEvent;
+import org.apache.fineract.infrastructure.event.business.service.BusinessEventNotifierService;
+import org.apache.fineract.portfolio.loanaccount.api.LoanApiConstants;
+import org.apache.fineract.portfolio.loanaccount.domain.Loan;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanRepository;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanSubStatus;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanTransaction;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanTransactionRepository;
+import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
+import org.apache.fineract.portfolio.loanaccount.service.LoanAssembler;
+import org.apache.fineract.portfolio.loanaccount.service.LoanTransactionService;
+import org.apache.fineract.portfolio.loanaccount.service.LoanUtilService;
+import org.apache.fineract.portfolio.loanaccount.service.ReprocessLoanTransactionsService;
+import org.apache.fineract.portfolio.note.domain.Note;
+import org.apache.fineract.portfolio.note.domain.NoteRepository;
+import org.springframework.stereotype.Service;
+import org.springframework.transaction.annotation.Transactional;
+
+@Service
+@Transactional
+@RequiredArgsConstructor
+public class LoanContractTerminationServiceImpl {
+
+    private final LoanAssembler loanAssembler;
+    private final LoanRepository loanRepository;
+    private final LoanTransactionRepository loanTransactionRepository;
+    private final NoteRepository noteRepository;
+    private final ReprocessLoanTransactionsService reprocessLoanTransactionsService;
+    private final LoanUtilService loanUtilService;
+    private final ExternalIdFactory externalIdFactory;
+    private final BusinessEventNotifierService businessEventNotifierService;
+    private final LoanTransactionService loanTransactionService;
+
+    public CommandProcessingResult applyContractTermination(final JsonCommand command) {
+        final Loan loan = loanAssembler.assembleFrom(command.getLoanId());
+        // validate client or group is active
+        loanUtilService.checkClientOrGroupActive(loan);
+
+        // validate Contract Termination
+        validateContractTermination(loan);
+
+        final ExternalId externalId = externalIdFactory.createFromCommand(command, LoanApiConstants.externalIdParameterName);
+        final Map<String, Object> changes = new LinkedHashMap<>();
+
+        final LoanTransaction contractTermination = LoanTransaction.contractTermination(loan, DateUtils.getBusinessLocalDate(), externalId);
+        loanTransactionRepository.save(contractTermination);
+
+        final String noteText = command.stringValueOfParameterNamed("note");
+        if (StringUtils.isNotBlank(noteText)) {
+            changes.put("note", noteText);
+            final Note note = Note.loanTransactionNote(loan, contractTermination, noteText);
+            noteRepository.save(note);
+        }
+
+        // Mark Contract Termination, Update Loan SubStatus
+        loan.setLoanSubStatus(LoanSubStatus.CONTRACT_TERMINATION);
+        loanRepository.save(loan);
+        changes.put(LoanApiConstants.subStatusAttributeName, loan.getLoanSubStatus().getCode());
+
+        if (loan.isInterestBearingAndInterestRecalculationEnabled()) {
+            final List<LoanTransaction> loanTransactions = loanTransactionService.retrieveListOfTransactionsForReprocessing(loan);
+            loanTransactions.add(contractTermination);
+            reprocessLoanTransactionsService.reprocessParticularTransactions(loan, loanTransactions);
+            loan.addLoanTransaction(contractTermination);
+        } else {
+            reprocessLoanTransactionsService.processLatestTransaction(contractTermination, loan);
+            loan.addLoanTransaction(contractTermination);
+        }
+
+        businessEventNotifierService.notifyPostBusinessEvent(new LoanBalanceChangedBusinessEvent(loan));
+        businessEventNotifierService.notifyPostBusinessEvent(new LoanTransactionContractTerminationPostBusinessEvent(contractTermination));
+
+        return new CommandProcessingResultBuilder() //
+                .withCommandId(command.commandId()) //
+                .withEntityId(contractTermination.getId()) //
+                .withEntityExternalId(contractTermination.getExternalId()) //
+                .withOfficeId(loan.getOfficeId()) //
+                .withClientId(loan.getClientId()) //
+                .withGroupId(loan.getGroupId()) //
+                .withLoanId(command.getLoanId()) //
+                .with(changes).build();
+    }
+
+    public void validateContractTermination(final Loan loan) {
+        final List<ApiParameterError> dataValidationErrors = new ArrayList<>();
+
+        if (!loan.isOpen()) {
+            final String defaultUserMessage = "Contract termination can not be applied, Loan Account is not Active.";
+            final ApiParameterError error = ApiParameterError.generalError("error.msg.loan.account.is.not.active.state",
+                    defaultUserMessage);
+            dataValidationErrors.add(error);
+        }
+
+        if (!loan.getLoanProduct().getLoanProductRelatedDetail().getLoanScheduleType().equals(LoanScheduleType.PROGRESSIVE)) {
+            final String defaultUserMessage = "Contract termination can not be applied, Loan product schedule type is not Progressive.";
+            final ApiParameterError error = ApiParameterError.generalError(
+                    "error.msg.loan.contract.termination.is.only.supported.for.progressive.loan.schedule.type", defaultUserMessage);
+            dataValidationErrors.add(error);
+        }
+
+        if (loan.isChargedOff()) {
+            final String defaultUserMessage = "Contract termination can not be applied, Loan Account is Charge-Off.";
+            final ApiParameterError error = ApiParameterError.generalError("error.msg.loan.account.is.charge-off", defaultUserMessage);
+            dataValidationErrors.add(error);
+        }
+
+        if (loan.isContractTermination()) {
+            final String defaultUserMessage = "Contract termination can not be applied, Loan Account is already terminated.";
+            final ApiParameterError error = ApiParameterError
+                    .generalError("error.msg.loan.account.is.already.contract.termination.substate", defaultUserMessage);
+            dataValidationErrors.add(error);
+        }
+
+        if (!dataValidationErrors.isEmpty()) {
+            throw new PlatformApiDataValidationException(dataValidationErrors);
+        }
+    }
+
+}

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/reaging/LoanReAgingServiceImpl.java

@@ -128,7 +128,8 @@ public class LoanReAgingServiceImpl {
         }
         reverseReAgeTransaction(reAgeTransaction, command);
         loanTransactionRepository.saveAndFlush(reAgeTransaction);
-        if (loan.isProgressiveSchedule() && loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy()) {
+        if (loan.isProgressiveSchedule() && ((loan.hasChargeOffTransaction() && loan.hasAccelerateChargeOffStrategy())
+                || loan.hasContractTerminationTransaction())) {
             final ScheduleGeneratorDTO scheduleGeneratorDTO = loanUtilService.buildScheduleGeneratorDTO(loan, null);
             loanScheduleService.regenerateRepaymentSchedule(loan, scheduleGeneratorDTO);
         }

fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/starter/LoanAccountConfiguration.java

@@ -367,9 +367,9 @@ public class LoanAccountConfiguration {
             CalendarInstanceRepository calendarInstanceRepository, ConfigurationDomainService configurationDomainService,
             HolidayRepository holidayRepository, WorkingDaysRepositoryWrapper workingDaysRepository,
             LoanScheduleGeneratorFactory loanScheduleFactory, FloatingRatesReadPlatformService floatingRatesReadPlatformService,
-            CalendarReadPlatformService calendarReadPlatformService) {
+            CalendarReadPlatformService calendarReadPlatformService, NoteRepository noteRepository) {
         return new LoanUtilService(applicationCurrencyRepository, calendarInstanceRepository, configurationDomainService, holidayRepository,
-                workingDaysRepository, loanScheduleFactory, floatingRatesReadPlatformService, calendarReadPlatformService);
+                workingDaysRepository, loanScheduleFactory, floatingRatesReadPlatformService, calendarReadPlatformService, noteRepository);
     }
 
     @Bean

fineract-provider/src/test/java/org/apache/fineract/infrastructure/event/external/service/ExternalEventConfigurationValidationServiceTest.java

@@ -107,7 +107,7 @@ public class ExternalEventConfigurationValidationServiceTest {
                 "LoanTransactionAccrualActivityPreBusinessEvent", "LoanTransactionInterestRefundPostBusinessEvent",
                 "LoanTransactionInterestRefundPreBusinessEvent", "LoanAccrualAdjustmentTransactionBusinessEvent",
                 "LoanCapitalizedIncomeAmortizationTransactionCreatedBusinessEvent",
-                "LoanCapitalizedIncomeAdjustmentTransactionCreatedBusinessEvent");
+                "LoanCapitalizedIncomeAdjustmentTransactionCreatedBusinessEvent", "LoanTransactionContractTerminationPostBusinessEvent");
 
         List<FineractPlatformTenant> tenants = Arrays
                 .asList(new FineractPlatformTenant(1L, "default", "Default Tenant", "Europe/Budapest", null));
@@ -195,7 +195,7 @@ public class ExternalEventConfigurationValidationServiceTest {
                 "LoanTransactionAccrualActivityPreBusinessEvent", "LoanTransactionInterestRefundPostBusinessEvent",
                 "LoanTransactionInterestRefundPreBusinessEvent", "LoanAccrualAdjustmentTransactionBusinessEvent",
                 "LoanCapitalizedIncomeAmortizationTransactionCreatedBusinessEvent",
-                "LoanCapitalizedIncomeAdjustmentTransactionCreatedBusinessEvent");
+                "LoanCapitalizedIncomeAdjustmentTransactionCreatedBusinessEvent", "LoanTransactionContractTerminationPostBusinessEvent");
 
         List<FineractPlatformTenant> tenants = Arrays
                 .asList(new FineractPlatformTenant(1L, "default", "Default Tenant", "Europe/Budapest", null));