Metro 2 Special Comment Code AX: Account Paid From Collateral

Specification

Code	AX
Meaning	Account Paid From Collateral
Field	Special Comment (Field 31)
Record	Base Segment
Length / position	2 chars · 213–214
Category	Paid by a Third Party
CRRG reference	CRRG Exhibits 6 & 7 (Special Comment Codes)

AX explains the source of the payoff. The balance reached zero, but not through ordinary borrower payments.
AX applies to secured obligations. On an unsecured account there is no collateral to pay from, so the comment does not fit.
AX does NOT mean the borrower paid the loan normally, and it does not erase the delinquency or the recovery event that led to the collateral being liquidated.
AX does NOT apply where the proceeds fell short and a deficiency remains. A deficiency balance is still owed and is reported as such.
AX describes a completed event, so it is terminal on the tradeline rather than a condition that needs removing later.

1An auto lender repossesses and sells a vehicle and the sale proceeds fully satisfy the remaining loan balance.
2A lender releases a share-secured loan by applying the pledged deposit to the outstanding balance.
3A mortgage servicer's foreclosure sale generates proceeds that fully retire the debt.
4An equipment lender liquidates financed equipment and the recovery covers the payoff.

Report AX only when the collateral proceeds actually satisfied the balance in full.
Populate Date Closed and report a zero Current Balance in the same record.
Do not use AX where a deficiency remains; report the deficiency honestly instead of implying the account was satisfied.
Keep the recovery event visible through Account Status. AX explains the payoff source, it does not soften the event.
Do not report AX on an unsecured account.

A file can be structurally valid and still be wrong. These are the cross-field conditions Special Comment Code AX has to satisfy.

Current Balance and Amount Past Due must both be zero once the collateral proceeds satisfied the debt.
Date Closed must be populated in the same record.
Account Status should reflect the recovery outcome the account actually reached, such as a repossession or foreclosure-related paid status, rather than a plain paid-as-agreed status.
Date of First Delinquency stays where it was. Liquidating collateral does not reset the FCRA purge clock.
Portfolio Type is normally I (Installment) or M (Mortgage) here, since the comment presumes secured lending.