7. Annexure 2 - Value Dated Facility

Limits and Collateral Management module provides a feature to maintain Facility details based on a particular value date. This is called the Vale Dated Facility. This facilitates the changes in the Limits Amount, Main Line Linkage etc. to take effect from the particular date.

LCM also tracks all the Utilizations of the Facility based on the value date of the transaction. The utilizations will take effect from the value date of the transaction onwards.

Note

• Tenor wise limits will continue to be based on booking date
• Booking dated limit revaluation only will be done
• Booking dated based overrides only will be provided
• No validations based on the value dated balances will be done
• Auto limits transfer / limits transfer will be based on booking date

This chapter contains the following sections:

• Section 7.1, "Value Date Based Facility Maintenance"
• Section 7.2, "Value Date Based Utilization"

7.1 Value Date Based Facility Maintenance

LCM facilitates maintaining Facility details based on a particular value date. The changes in the Limits amount, Main line linkage etc. would take effect from the particular date.

The following parameters will be taken from the Facility Maintenance screen:

• Value date - Any valid date in the past can be maintained. No future valued records can be maintained and the value date cannot be before the conversion date.
• Main Line Code - It is the main line that the Line reports to. It will be validated that the main line in the Facilities maintenance (booking dated) is same as the main line in the latest record (value dated) in the maintenance.
• Limit Amount - The limit amount for the facility. It will be validated that the limit amount in the Facilities maintenance (booking dated) is same as the limit amount in the latest record (value dated) in the maintenance.

Whenever a new Limit Line is created, a new record will be automatically created by the system with the value date as the Limit Start Date. The Main Line and the Limit Amount will be same as the booking dated limit maintenance.

Whenever the Mainline or the Limit amount is changed in the facility, a new record will be created in the maintenance with value date as the application date. The mainline and limit amount values will be same as in the booking dated Limits maintenance. You can manually change the value to an older value date by clicking ‘Value Date’ button.

The ‘Conversion Date’ contains the date when facility was migrated from the external system to LCM. In the Facility screen this date will be displayed.

Back Valued Static Maintenance Changes

The value dated utilization details will be rebuilt from the value date of the change whenever the following static maintenances are done:

• Limit Amount Change
• Mainline Sub Line Linkage

If the facility has been migrated then back valued static maintenance cannot be prior to the conversion date.

7.2 Value Date Based Utilization

This section contains the following topics:

• Section 7.2.1, "Processing Value Date Based Utilization"
• Section 7.2.2, "Back Valued Transactions"
• Section 7.2.3, "EOD Processing"

7.2.1 Processing Value Date Based Utilization

LCM also tracks all the utilizations of the facility based on the value date of the transaction. The utilizations will take effect from the value date of the transaction onwards.

The following transactions are supported for Value dated processing:

• New utilization
• Increase utilization
• Decrease utilization
• Alter utilization

As part of the above utilization transactions, the Value Date will be the value date of the transaction. Updating of value dated utilization can be set to be online or to be a part of EOD process. This parameter is maintained in LCM Parameter Maintenance.

• If the parameter is set to update Value Date online, then during the transaction process the Value Date utilization details will be updated online. Otherwise it will be updated during EOD process.
• In the case of main lines, the system will identify all the sub lines linked and track the utilization. This utilization will be tracked in addition to the contracts that are directly linked to the main line.

7.2.2 Back Valued Transactions

The following back valued operations will cause a rebuild of value dated utilization details:

• New utilization
• Increase utilization
• Decrease utilization
• Alter utilization

If the utilization currency is not same as the line amount currency, then the system will convert the utilization into line amount currency and update the utilization. The exchange rate will be that of the value date of the utilization. So for back valued utilization the exchange rate on the value date of the back valued transaction will be used.

In case the Value Date is less than the conversion date, then the rebuild of balances will be from the conversion date only.

7.2.3 EOD Processing

If the value date update is not online, but as part of Facility EOD process, it would be updated as shown in the following examples.

Example,

Let us consider a Loan of 1 Million USD. Value date 10-Jan-2005 Revolving Line

Step 1: Initiation - Utilization Log

	S.no		Value date		Line code		Utilization		Component		Increase/decrease
	1		10-Jan-05		LINE1		1000000		PRINCIPAL		Increase

Line Utilization

	S.no		Value date		Line code		Utilization
	1		10-Jan-05		LINE1		1000000

Step 2: Payment of 0.1M Principal value date 10-Feb-2005 - Utilization Log

	S.no		Value date		Line code		Utilization		Component		Increase/decrease
	1		10-Jan-05		LINE1		1000000		PRINCIPAL		Increase
	2		10-Feb-05		LINE1		100000		PRINCIPAL		Decrease

Line Utilization

	S.no		Line code		Value date		Utilization
	1		LINE1		10-Jan-05		1000000
	2		LINE1		10-Feb-05		900000

Step 3: Value dated amendment of 0.5M Principal increase value date 15-Feb-2005 - Utilization Log

	S.no		Value date		Line code		Utilization		Component		Increase/decrease
	1		10-Jan-05		LINE1		1000000		PRINCIPAL		Increase
	2		10-Feb-05		LINE1		100000		PRINCIPAL		Decrease
	3		15-Feb-05		LINE1		500000		PRINCIPAL		Increase

Line Utilization

	S.no		Line code		Value date		Utilization
	1		LINE1		10-Jan-05		1000000
	2		LINE1		10-Feb-05		900000
	3		LINE1		15-Feb-05		1400000

Step 4: Payment of 0.2M value date 10-mar-2005 - Utilization Log

	S.no		Value date		Line code		Utilization		Component		Increase/Decrease
	1		10-Jan-05		LINE1		1000000		PRINCIPAL		Increase
	2		10-Feb-05		LINE1		100000		PRINCIPAL		Decrease
	3		15-Feb-05		LINE1		500000		PRINCIPAL		Increase
	4		10-Mar-05		LINE1		200000		PRINCIPAL		Decrease

Line Utilization

	S.no		Line code		Value date		Utilization
	1		LINE1		10-Jan-05		1000000
	2		LINE1		10-Feb-05		900000
	3		LINE1		15-Feb-05		1400000
	4		LINE1		10-Mar-05		1200000

Step 5: Reversal of Payment of 0.2M value date 10-mar-2005 on 15-mar-2005 - Utilization Log

	S.no		Value date		Line code		Utilization		Component		Increase/decrease
	1		10-Jan-05		LINE1		1000000		PRINCIPAL		Increase
	2		10-Feb-05		LINE1		100000		PRINCIPAL		Decrease
	3		15-Feb-05		LINE1		500000		PRINCIPAL		Increase
	4		10-Mar-05		LINE1		200000		PRINCIPAL		Decrease
	5		10-Mar-05		LINE1		200000		PRINCIPAL		Increase

Line Utilization - Step 6 Liquidation of Contract Value date 10-apr-2005 - Utilization Log

	S.no		Value date		Line code		Utilization		Component		Increase/decrease
	1		10-Jan-05		LINE1		1000000		PRINCIPAL		Increase
	2		10-Feb-05		LINE1		100000		PRINCIPAL		Decrease
	3		15-Feb-05		LINE1		500000		PRINCIPAL		Increase
	4		10-Mar-05		LINE1		200000		PRINCIPAL		Decrease
	5		10-Mar-05		LINE1		200000		PRINCIPAL		Increase
	6		10-Apr-05		LINE1		1400000		PRINCIPAL		Decrease

Line Utilization

	S.no		Line code		Value date		Utilization
	1		LINE1		10-Jan-05		1000000
	2		LINE1		10-Feb-05		900000
	3		LINE1		15-Feb-05		1400000
	4		LINE1		10-Mar-05		1400000
	5		LINE1		10-Apr-05		0