Creating index clauses

You can create index clauses for leases.

1. On the Clauses, Options & Terms tab, click Clause > Add.
2. Specify the clause type, clause summary, and other details.
   The clause summary is the category under which the clause type can be grouped. For example, in the hierarchy panel, different types of rent can be categorized under the clause type "Rent".
3. For an index lease, enable the Includes Index Adjustment check box in the Covenant Details section.
4. On the Index Adjustments section that is now visible, enter details for the Adjustment Frequency, First Adjustment Date, Year of Adjustment, Maximum/Minimum Percentage fields, and any other information you want to specify.
5. Set the value for the Compare to Previous field using the guidelines provided in the following table. This is used when there are two or more payment schedules with different start and end dates associated to the index clause, or one payment schedule is associated to more than one index clause with different adjustment start and end dates.

   Compare to Previous	Explanation
   Compare and use the greater	Compares the payment amount from the current payment schedule or index clause with the latest amount from the previous payment schedule or index clause, whichever is greater, and uses the amount as the starter amount.
   Compare and use the lesser	Compares the payment amount from the current payment schedule/index clause with the latest amount from the previous payment schedule/index clause, whichever is lesser, and uses the amount as the starter amount.
   Do not compare	Does not compare. Uses the amounts specified on each payment schedule.

6. Click the Find action to associate a payment schedule that has been created. If there is no payment schedule displayed, click the Generate Payment Schedule action.
   The payment schedule that is created and associated is the base payment. Any index changes will be applied on top of this base payment.
7. Click Create to create the index clause and then click Save & Close.