1. Margill The Interest Calculation Software for Law & Collection Professionals Prepared by Mark Gelinas, attorney, MBA President, Jurismedia November 2004

2. Margill - Interest Calculation Software for Law Professionals
Used by close to 500 law offices of all sizes, corporate legal departments, insurance companies, accountants, collection agencies, real estate companies, government agencies, unions, forensic accountants and courts.
Over 2600 installations in the US, Canada, Europe, the Middle East and Africa
Law fields:
civil and commercial litigation, labor, commercial, insurance, family, banking, real estate, mergers and acquisitions, investment, tax and of course, collection.

3. Common Uses in Law Interest on court awards
Partial payments paid before or after judgment
Late tax payments
Interest on unpaid or late salaries, alimony, annuities or rent
possible to index these amounts
Today value of a “old” court award (Indexation)
Court award quantum hypotheses (civil liability)(Present value)
Loans / Mortgages / Late payments / Amortization
Banking law, real estate, collection
Regular or irregular payments, fixed or variable interest rates, simple or compound interest
Interest only, Fixed principal, Normal refund (interest first)

4. Common Uses in Law Others :
Return on investment (Present value) (Corporate financing)
Appreciation / Depreciation
Effective and Nominal interest rate converter
Annual rate of return

5. Interest on Court Awards
Interest (simple or compound) between the summons date and the judgment date:
Variable interest rates (legal rates for Canada, Europe, etc.)
Create as many interest tables as required (legal rates in any State)
Variables rates may include an increase or decrease at a particuler date
Example: rate increase as of date x.
Possible de capitalize simple interest at the loan anniversary date
Option to set interest rate at the rate in effect at the ”Starting date” of a variable rate table (Spring 04)

6. Partial Payments Paid Before or After Judgment
When the defense makes payments before judgment, the “Recurring Payments (Amortization) calculation may be used
The table may be modified to reflect a particular situation
If the judge awards successive amounts, a negative payment may be included to increase the capital
Total flexibility

7. Late Tax Payments
Tax variable interest rates (Internal Revenue Service, Revenue Agency)
Generally daily compound interest
Percentage may be added as a penalty
Tables included for certain juridictions and possible to rapidly create new tables starting from Excel, Word, etc.
IRS tables...

8. Interest on Unpaid or Late Salaries, Alimony, Annuities or Rent
The “Accrual by Installment” calculation allows to accumulate amounts starting at $0,00
Allows the indexation of salaries or other annuities according to various indexation tables
consumer price index
legal indexation rates
indexation rate according to contract or collective labor agreement

9. Interest on Unpaid or Late Salaries, Alimony, Annuities or Rent
Indexation according to chosen table
Interest accumulated on these amounts
The amounts are accumulated

10. Interest on Unpaid or Late Salaries, Alimony, Annuities or Rent
Possible to rapidly edit an installment table
Possible to delete and add installments, include a paid installment (negative amount), insert a lump sum, etc.

11. Today Value of an “Old” Court Award (Indexation)
For example, what is the value in 2004 of a $35,000 award dating from Use of various indexation tables (CPI for example)
US, Canadian, European, Australian, etc.
New tables can easily be created

12. Court Award Quantum Hypotheses (Civil Liability)(Present Value)
Determines the global value today of amounts to be recevied in the future
Ideal in civil liability cases to determine the annuity the defendant should pay to the plaintiff
amounts may be uniform or not, indexed according to the cost of living or change according to the life stages of the plaintiff (student  worker  retirement)

13. Court Award Quantum Hypotheses (Civil Liability)(Present Value)
Possible to change the future amounts. Examples:
No amount paid for the first year
Lump sum at the end of each year
Impact of a higher payment in 10 years
etc.

14. Loans / Mortgages / Late Payments / Amortization
Mortgages - regular or irregular
Personal loans, lines or credit
Fixed or variable interest rates
For example US Fed reserve (Fed funds) + 2.5%; post-judgment interest rates + x%, etc.
Enter 3 of 4 variables and the fourth will be calculated automatically

15. Loans / Mortgages / Late Payments / Amortization
At any time, how has the “loan” evolved?
Right click of the mouse

16. Loans / Mortgages / Late Payments / Amortization
Payment table may be edited as desired
Add capital (negative amount)
New payments
Missed payments
Modifie paiement - lignes sélectionnées
Modify Payment - Selected Lines
Many lines changed at once
Selected lines recalculated to give a balance = 0
Etc.

17. Late payments / Collection
Concrete example:
5 bills sent to client at various dates - interest always starts 30 days later
$ May 10, 2002 (interest starts June 9, 2002)
$ June 2, 2002 (July 2)
$ June 2, 2002 (2 bills) (July 2)
$ October 1, 2002 (October 31)
$ January 15, 2003 (February 14)
Client pays irregularly :
$ August 1, 2002
$ September 15, 2002
$ October 20, turns out to be NSF with $25 fee
$ January 10, 2003
$ 10, June 5, 2003
No payment since then. How much is stilled owed on November 12, 2004?
Monthly interest of 2% compounded monthly (could also be simple interest)

18. Results screen Time to produce the schedule (data entry) : 7 minutes
Can be saved and opened subsequently for new events (partial payments, etc.)

19. Return on Investment (Present Value) (Corporate Financing)
Value to attribute to a company today considering future projeted cash flows (annual, monthly, etc.)

20. Appreciation / Depreciation
Future value of an asset taking into account a regular or irregular annual appreciation rate.

21. Effective and Nominal Interest Rate Converter + Equivalent Rates

22. Annual Rate of Return

23. Margill Interest and Indexation Tables
Interest tables
USA: Fed Reserve Base Rate, IRS late payment rates
Canada: Bank of Canada overnight rate; Ontario, BC, and Quebec legal interest rates
Great-Britain: Repo rate
Australia: Cash rate and legal rates of the Aus. Taxation Office (ATO)
Hong Kong: Base Rate
Europe: European Central Bank rates
France: legal interest rates, late payment rates
Belgium : legal interest rates
Luxembourg : legal interest rates
Indexation
USA: Consumer price index (CPI)
Canada: CPI
Great-Britain: Retail Prices Index (RPI)
Australia: CPI
France: Harmonized consumer price index (HCPI)
Switzerland: CPI
Belgium: HCPI
Luxembourg: HCPI
New tables may be created easily from Excel or Word (or directly in Margill)

24. Respecting International Standards
International standards and recognized interest calculation standards (America, Europe, Africa, Asia, Australia)
US banking rules (Regulation Z, Truth in Lending)
Canadian banking rules
European Community rules (Directive 98/7/CE)
Day count conventions :
”Real/Real" (maximum precision)
30/360, Real/360, Real/365

25. www.margill.com Conclusion
Margill allows the practitioner to solve he great majority of problems related to the value of money in time.
Margill is already the choix of hundreds of law offices, corporate legal departments, collection agencies, insurance companies, governments, and judges.
In the province of Quebec (Canada) where Margill was born in 1992, the software is used in 65% of ALL law offices. Eliminating those offices that need not this type of software (criminal and immigration), this rate increases close 70-75%.
Jurismedia inc.
Tel.:
Fax: (514)
USA
220 E. Delaware Avenue
Newark, Delaware 19711
Canada
4841 Elmview, Suite 100
Montreal, Quebec, H9A 3E9