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I changed the issue description (description taken from thread attached by Matthew Laurenson) because we were not able to reproduce previously described bug:
"When a penalty is applied on a account is waived using the "waive" link on the loan summary page, only the unpaid amount of the penalty should be waived. Currently clicking on the Waive link actually waives the entire penalty including the paid component thereby resulting in a negative balance on the account."
If originally described issue will occur again, then new issue will be created for this bug.