Contents
1. About this Manual
1.1 Introduction
1.2 Audience
1.3 Organization
1.4 Documentation Accessibility
1.5 Related Documents
2. Loans - An Overview
2.1 Introduction
2.1.1 The Product Definition Facility
2.1.2 Methods of Interest Application
2.1.3 Flexible Repayment Schedule Set Up
2.1.4 Defining Grace Periods
2.1.5 Rolling Over a Loan
2.1.6 Tracking the Status of a Loan
2.1.7 The Tax Types that are Supported
2.1.8 Automatic Processing of Different ‘Events’
2.1.9 Penalties on Pre-Payment
2.1.10 Value Dated Amendments
2.1.11 Retrieving Information
3. Defining Attributes Specific to Loan product
3.1 Introduction
3.1.1 Specifying Product Type
3.1.2 Creating a Commitment Product
3.2 Setting Product Preferences
3.2.1 Specifying the Payment Method
3.2.2 Indicating the Schedule Type
3.2.3 Setting Billing Notice Days
3.2.4 Specifying Grace Days to Penalty
3.2.5 Indicating Values to be Rekeyed during Authorization
3.2.6 Setting the Accrual Frequency
3.2.7 Specifying Tenor Related Details
3.2.8 Specifying Exchange Rate Variance
3.2.9 Specifying if Status Processing for Contract Schedules is Required
3.2.10 Processing Prepayment Schedule
3.2.11 Specifying the Status/ Revaluation during Status Change Process
3.2.12 Specifying Payment of Past Schedules
3.2.13 Allowing a Change of the Settlement Account
3.2.14 Liquidation of Interest on Prepaid Principal
3.2.15 Allowing Partial Prepayment
3.2.16 Restricting the Generation of Settlement Messages
3.2.17 Specifying the Mode of Liquidation
3.2.18 Allowing Partial Liquidation
3.2.19 Specifying the Minimum Amount for Auto Liquidation
3.2.20 Identifying the Rate Code to be Used for Loans in Foreign Currency
3.2.21 Indicating the Rate Type
3.2.22 Allowing Rollover
3.2.23 Confirming the Status of Loan Products
3.2.24 Applying a Block on the Limit of a Credit Line
3.2.25 Specifying whether the Product Is an Intra-Day Product
3.2.26 Specifying whether the Contracts to be Included in 1098 Statement
3.2.27 Allowing Prepayment along with Overdue Schedules
3.2.28 Tracking Accrued Interest for Credit Utilization
3.2.29 Applying Prepayment Penalty
3.2.30 Specifying whether Prepayment of Loans is Allowed
3.2.31 Specifying whether Cost of Credit is Allowed
3.2.32 Propagating Statuses to Loans
3.2.33 Re-computing Schedules after a Prepayment
3.2.34 Hold Prepayments in Intellect Browser
3.2.35 Specifying if Installment Schedules should be Allowed
3.2.36 Specifying Additional Preference
3.2.37 Specifying the Reversal Transaction Type
3.2.38 Discounting Multiple Schedules for Discounted Loans
3.2.39 Indicating the Annual Effective Rate (TEA) for loans
3.2.40 Enabling the Customer Effective Loan Rate Option
3.2.41 Allowing Forward Dating
3.2.42 Prioritizing the Liquidation of Components
3.2.43 Tracking Status Changes for Loans
3.2.44 Maintaining the Disclosure Details
3.2.45 Mapping the Product to Disclosure Details
3.2.46 Specifying the Special Penalty Components
3.2.47 Maintaining UDFs
3.3 Maintaining Slab/Tier Based Spread on Loan Outstanding
3.3.1 Specifying Contract Details
3.3.2 Specifying Currency Details
3.3.3 Specifying Effective Date
3.3.4 Specifying the Spread Details
3.3.5 Impact of Loan Outstanding on Spread
3.4 Specifying the Logic for Currency Rounding
3.5 Applying Tax on Liquidated Principal
3.6 Classification of General Ledgers based on Transaction Codes
3.7 Maintaining Pool Fund Details
3.8 Identifying a Component as a Refinance component
3.8.1 Capturing the Reversal Transaction Type
3.9 Maintaining 1098 Parameters
3.9.1 Generating ASCII File
3.9.2 Generating 1098 Forms
4. Disbursing a Loan
4.1 Introduction
4.1.1 Invoking the Loan Disbursement Screens
4.2 Capturing Loan Disbursement Details
4.2.1 The Facility Name
4.2.2 Specifying the LC Sublimit Amount
4.2.3 Contra GL Balance Details
4.2.4 Net Outstanding Amt
4.2.5 Current Exposure Details
4.2.6 Specifying the Currency
4.2.7 Specifying the Loan Amount
4.2.8 Specifying the Line Code
4.2.9 Specifying the Settlement Account
4.2.10 Specifying the Related Reference Number
4.2.11 Capturing Details of Amendments to Loan Agreements
4.2.12 Specifying the Tenor
4.2.13 Last Availability Date
4.2.14 Specifying the Loan Status
4.2.15 The Payment Method
4.2.16 Specifying the Maturity Type
4.2.17 Specifying the Interest Details
4.2.18 Allowing Rollover
4.2.19 Specifying Industry Code
4.2.20 Specifying the Administrator Details
4.2.21 Pool Funding
4.2.22 Rollover Count
4.2.23 Confirming the Status of Loan Products
4.2.24 Tax Scheme
4.2.25 Entering Internal Remarks
4.2.26 Enabling the Reprogramming Counter
4.2.27 Enabling Auto Extension
4.2.28 Indexed Loans
4.3 Preferences for a Loan
4.3.1 Setting Loan Schedule Preferences
4.3.2 Re-computing Late Payment Charges Online
4.3.3 Processing the Late Payment Charges
4.3.4 Maintaining System Derived Schedules
4.3.5 Maintaining User Input Schedule Amounts
4.3.6 Maintaining Schedule Adjustments on Interest Rate Revision
4.3.7 Maintaining Schedule Adjustments on Prepayment
4.3.8 Re-Amortization
4.4 Linking a Loan to Commitments, or Accounts
4.4.1 Specifying the Type of Linkage
4.4.2 Specifying the Details of the Linkage
4.4.3 Projected Available Amount
4.4.4 The Exchange Rate
4.4.5 Specifying the Linked Amount
4.4.6 Linking a Loan in One Branch to a Commitment in another Branch
4.4.7 Linking Commitments to a Loan
4.4.8 Modifying a Loan Disbursement
4.4.9 Financial Details that can be Changed
4.4.10 Viewing the Other Details of a Loan
4.4.11 Advices for Loan Disbursement
4.5 Levying Transaction Charges on a Loan
4.6 Posting the Manual Journal Entries
4.6.1 Maintaining the Amount Types
4.6.2 Mapping the Accounts and the Amount Type
4.6.3 Posting Manual Adjustment Entry
4.6.4 Uploading Excel for Adjustment Entry Posting
4.7 Error Log Details
4.8 Viewing Event Details
4.8.1 Viewing Accounting Entries for Loan disbursement
4.9 Levying Tax on a Loan Contract
4.10 Specifying the Interest Details
4.11 Maintaining Transaction-specific MIS Refinancing Rates
4.11.1 Maintaining Contract Level Refinance Rates
4.12 Maintaining Overwrite Settlement Details
4.13 Viewing Effective Rate (ER) of Interest for a Loan
4.14 Changing the Status of a Loan
4.15 Enquiry for Interest and Principal Projections
4.15.1 Reversal of Accruals during Contract Reversal
4.16 Viewing the Settlement Details during Contract Authorization
4.17 Viewing the Different Versions of a Loan
4.18 Viewing the Accrual Fee Details for a Loan
4.19 Viewing Entity Details
4.20 Viewing the Effective Interest Details for a loan
4.21 Specifying the Installment Preferences for a Loan
4.22 Capturing customer relationships for every loan
4.22.1 Capturing Currency Sub-limits
4.23 Specifying the Special Penalty Components
4.24 Maintaining Floor and Ceiling Initial Details
4.24.1 Specifying Currency Details
4.24.2 Specifying Effective Date
4.25 Booking Re-Price Transactions
4.25.1 Child Re-Price Transaction (Split)
4.25.2 Authorizing Override for Split Re-Pricing
4.25.3 Fixing Rate during Reprice
4.25.4 Floating Periodic Manual Contracts
4.26 Consolidating Re-Price Transactions
4.27 Maintaining Loan Loss Reserve
4.28 Amending the Exchange Rate
4.28.1 Exchange Rate Details
4.29 Maintaining Special Penalty Component Waiver Details
4.29.1 Reversing the Waiver of Late Payment Charges
4.30 Viewing the Waiver Details of Special Penalty Components
4.31 Maintaining Floor and Ceiling Details
4.31.1 Specifying Currency Details
4.31.2 Specifying Effective Date
4.31.3 Processing All-In Rate Floor and Ceiling rates
4.31.4 Validating and Propagating All-In Rates for Re-Price Transactions
4.31.5 Manual Linking of Standalone Loans with Commitments
4.31.6 All-In Rate Batch Propagation for new Floor/Ceiling Maintenance or Amendment
4.32 Specifying the Disclosure Schedule Details
4.33 Viewing the Contract Disclosure Schedule Status Details
4.34 Viewing Summary Details of a Loan
4.35 Dual Authorization
4.35.1 Relaxing Dual Authorization
5. Processing Upfront Fee Accruals
5.1 Introduction
5.2 Applying a Fee
5.2.1 Associating the Component with the Product
5.2.2 Specifying the Accounting Roles
5.2.3 Specifying Discount Accrual
5.2.4 Specifying Re-Price
5.2.5 Processing Lock-ins
5.2.6 Generating Fee Accrual reports
5.3 FASB Fees Amortization Using Straight Line Method
5.3.1 Maintaining Fee Rule Details
5.3.2 Associating Fee at Contract Level
5.4 Liquidating Fee Components
5.5 Transferring Memo Interest to FAS91 Fee
5.5.1 Restarting Amortization Fee Accrual
5.5.2 Associating the Accrual Fee Component
6. Defining Discount Accrual Fee Classes
6.1 Introduction
6.2 Defining a Discount Accrual Fee class
6.2.1 Associating Discount Accrual Components to Products
6.3 Events and Accounting Entries for Discount Accrual
6.4 Specifying Status Change Details for Discount Accrual
6.4.1 Processing for Contract Status Change
6.5 Processing for Internal Rate of Return Calculation
6.5.1 Recalculation of IRR with new effective date
6.5.2 Computation of Net Present Value based on Acquisition Type
6.5.3 Computation of Net Discount Accrual Amount for a Processing Day
6.5.4 Discount Accrual Processing - an Example
7. Processing Repayments
7.1 Introduction
7.2 Defining Schedules for a Product
7.3 Setting Product Schedule Preferences
7.3.1 Processing Overpayment and Refund of Interest/Fees
7.4 Defining Repayment Schedules
7.5 Setting Loan Schedule Preferences
7.6 Specifying the Preferences of the Contract
7.6.1 Types of Repayment Schedules
7.6.2 Defining Installment Schedules for Loans
7.6.3 Specifying the Amortization Type
7.6.4 Liquidating Back Valued Schedules
7.6.5 When the Repayment Schedule Date is a Holiday
7.6.6 Moving Schedules Forward or Backward
7.6.7 Moving Schedule Dates across the Month
7.6.8 Cascading Schedules
7.6.9 Specifying the Holiday Currency
7.6.10 Specifying the Mode of Liquidation
7.6.11 Ascertaining the Availability of Funds
7.6.12 Invoking the Contract Schedules Screen
7.7 Revision and Repayment Schedules
7.7.1 Interest Rate Revision Schedule
7.7.2 Specifying the Rate Revision Frequency
7.7.3 Specifying the Rate Revision Dates
7.7.4 Repayment Schedule
7.7.5 Interest Repayment Schedules as Different from Rate Revision Schedules
7.7.6 Specifying Schedules for a Loan with a Fixed Interest Rate
7.7.7 Redefining Schedules
7.7.8 Authorizing a Redefined Schedule
7.7.9 Viewing Schedule Details
7.7.10 Viewing Revision Schedule Details
7.8 Making Manual Payments
7.8.1 Invoking the Contract Schedule Payments Screen
7.8.2 Input of Manual Payments
7.8.3 Specifying Prepayment Schedule Processing
7.8.4 Handling Prepayments
7.8.5 Navigating to Other Screens
7.8.6 Paying Tax
7.8.7 Viewing the Schedule Break-up Details
7.8.8 Deleting Manual Payments
7.8.9 Authorizing Manual Payments
7.8.10 Reversing Manual Payments
7.8.11 Marking Contracts as Liquidated
7.9 Processing a Loan Payment when Contra Accounting is Applicable
7.9.1 Events for Contra Accounting
7.9.2 Processing Principal Payment
7.9.3 Processing Interest Payment
7.9.4 Increasing/Decreasing Contra GL Balance
8. Rolling-over a Loan
8.1 Introduction
8.2 Features of the Product Roll-over Details Screen
8.2.1 Specifying whether Rollover is Applicable
8.2.2 Specifying the Rollover Mechanism
8.2.3 Specifying the Rollover Method
8.2.4 Mode of roll-over
8.2.5 Roll-over of Interest, Charge and Fee Components
8.2.6 Maturity Date Basis
8.2.7 Updating Credit Limit Utilization
8.2.8 Applying Tax on Roll-Over
8.2.9 Deduct tax on Roll-Over
8.2.10 Contingent Entries for Additional Amount
8.2.11 Applying a Charge on the Roll-Over Amount
8.2.12 Liquidating Overdue Schedules
8.2.13 Interest Rate on Rollover
8.2.14 Indicating the Values to be Re-keyed during Authorization
8.3 Specifying Contract Roll-Over Details
8.3.1 Rollover Preferences for a Loan Contract
8.4 Specifying Details for Normal Rollover
8.4.1 Mode of Roll-Over of a Contract
8.4.2 Manual Rollover
8.4.3 Specifying the Roll-Over Amount
8.4.4 Specifying the Manner in which the Special Amount should be Treated
8.4.5 Updating Credit Limit Utilization
8.4.6 Applying Tax
8.4.7 Specifying whether Charge should be Applied on the Rolled-over Amount
8.4.8 Specifying the Schedule Basis for the rolled over contract
8.4.9 Specifying whether New Components have to be Included
8.4.10 Specifying whether Overdue Schedules should be liquidated
8.4.11 Specifying the Maturity Type
8.4.12 Indicating the Interest Basis for Roll-over
8.4.13 Specifying the Refinancing Rate for the rolled over Contract
8.5 Advices for a Rolled-Over Loan
8.6 Authorizing a Manual Roll-Over
9. Making Additional Disbursements and Rate Changes
9.1 Introduction
9.1.1 Changing the Maturity Date
9.1.2 Enabling the Reprogramming Counter
9.1.3 Capturing details of amendments to loan agreements
9.2 Navigating to the Schedule Definition screen
9.2.1 Applying Rate Revision Schedules
9.2.2 Making Changes in Interest
9.2.3 Making Changes in Interest Rate Type
9.2.4 Making Changes in Maturity Type
9.2.5 Making Changes in Special Rate Type
9.2.6 Amortization after a Value Dated Amendment
9.2.7 Making Changes in Fees
9.2.8 Settlement instructions
9.2.9 Specifying Linkages
9.2.10 Deleting Value Dated Amendments
9.3 Tracking Payables and Receivables
10. Automatic Processing
10.1 Automatic Events in the Life Cycle of a Loan
10.2 Specifying Branch Parameters
10.2.1 Processing for Holidays
10.2.2 Specifying the Tax Basis
10.2.3 Setting the Accrual Level
10.2.4 Setting the Residual Amount for Force Liquidation
10.2.5 Auto Authorization
10.2.6 Transaction Code for Force Liquidation
10.2.7 Reversal Suspense GL
10.2.8 Indicating your Specifications for the different ‘Rates’
10.3 Initiating a Future Value Dated Contract
10.4 Processing an Automatic Repayment
10.4.1 Advices Generated for a Repayment
10.5 Generation of Billing Advices and Delinquency Notices
10.6 Automatic Rollover of a Loan
10.6.1 Advices for Rollover
10.6.2 Automatic Status Changes
10.6.3 Defining Status Codes for a Product
10.6.4 Changing the Status of a Loan
10.6.5 Automatic Status Change
10.7 Advices to be Generated for a Status Change
10.8 Accrual of ICCF Components
10.8.1 The Memo Accrual Function
10.8.2 Contents of the Accrual Control Journal
10.9 Interest Rate Revision on a Loan
10.10 Value Dated Changes
10.10.1 Advices generated for Value Dated Changes
11. Processing a Commitment
11.1 Introduction
11.2 Defining a Commitment Product
11.3 Initiating a Commitment
11.3.1 Making Value Dated changes
11.3.2 Capturing Auto Step-up and Auto Step-down of a commitment
11.4 Linking a Loan to a Commitment
11.4.1 Specifying the Details of the Linkage
11.4.2 Specifying the Linked Amount
11.4.3 Specifying the Exchange Rate
11.4.4 The Converted Link Amount
11.4.5 Type and Total Linked Amount for each Type
11.4.6 Uncovered Amount
11.4.7 Accounting Entries for a Linkage
11.4.8 Amending Commitment Linkage Details
11.4.9 Processing Commitment Linkage Changes
11.4.10 Defining Schedules for Reduction of Commitment Amounts
11.5 Viewing Billing Notice History
11.6 Maintaining Slab/ Tier Based Fee for Commitment
11.6.1 Maintaining Fee Rule Definition Structure
11.6.2 Associating Fee at Product Level
11.6.3 Associating Fee at Contract Level
11.7 Viewing Quick Query Details of Loans
11.7.1 Viewing Loan Quick Reference Summary Details
11.8 Viewing Quick Query Details of Commitments
11.8.1 Viewing Commitment Quick Reference Summary Details
11.9 Revaluation of Commitment
12. Annual Rest Loans
12.1 Introduction
12.1.1 Specifying the Unearned Interest Calculation Parameters
12.1.2 Specifying the Accounting Roles for Unearned Interest Component
12.1.3 Capturing the unearned interest details at the contract level
12.1.4 Amending the Details of Annual Rest Loans
12.1.5 Processing Accruals
12.1.6 Specifying the Status of Annual Rest Loans
12.1.7 Processing Prepayments of Installment Loans
13. Loans and Commitment Reports
13.1 Interest Projection Report
13.2 OL Productivity Matrix Report
13.3 Accrual Control List Report
13.4 Accrual Report - OL PNL Washable Entries
13.5 Amortisation Report
13.6 Interest Calculation Analysis Report
13.7 Event Report
13.8 Loans and Commitments Forward Contract Report
13.9 Loans and Commitments Forward Changes Report
13.10 Loans and Commitments Linked Contracts Utilization
13.11 Maturity Report
13.12 Accrual Report
13.13 Overdue Schedule Report
13.14 Contract Retrieval Report
13.15 Rate Revision Report
13.16 Adverse Status Report
13.17 OL Amalgamation Report
14. Appendix A - Customer Correspondence
14.1 Introduction
14.1.1 Contract Initiation
14.1.2 Amendments to the Terms of the Loan during its Tenor
14.1.3 Advice generated for Contract Initiation
15. Appendix B - Accounting Entries, Advices and Error Codes
15.1 Accounting Entries for Loans
15.2 Loans Events
15.3 Amount Tags
15.4 Accounting Roles
15.5 Event-wise Accounting Entries and Advices
15.5.1 Term Loan – Bearing
15.5.2 Demand Loan
15.5.3 Commitment
15.5.4 Late Payment Charges
15.6 Accounting Entries for Contract Adjustment
15.7 Payable Receivable Liquidation
15.8 Accounting for Discounted Loans
15.9 Accounting Entries for Non-Performing Loans
15.10 Accounting Entries for Reserved and Non-reserved Loans
15.11 Accounting Entries for Cost of Credit Valuation
15.12 Accounting Entries for LC Sublimit Re-classification
15.13 Error Codes
15.13.1 Amortized Exchange Details
15.13.2 Effective Date of Exchange Rate Amendment
15.13.3 Adjustment Reversal Details
15.13.4 Cost of Credit Valuation
15.13.5 LC Sublimit Balance (HFI) Update
15.13.6 Late Payment Charges
15.13.7 All-In Rate Floor/Ceiling for Loans
15.13.8 Pool Funds
15.13.9 Chinese Characters in Payment
15.13.10 UCC Processing
15.13.11 Marking Contracts as Liquidated
15.13.12 Clearing Line Validation
15.13.13 Participant Margin Maintenance
15.13.14 CUSIP Reclass
15.14 Examples of Calculating TEAC
15.14.1 Example I – Simple Bearing loan
15.14.2 Example II –True Discounted Loan
15.14.3 Example III – Bearing Loan (Irregular Interest periodicity)
15.14.4 Example V – Premature Liquidation
16. Function ID Glossary