Contents
1. About this Manual
1.1 Introduction
1.2 Audience
1.3 Organization
1.4 Documentation Accessibility
1.5 Related Documents
1.6 Glossary of Icons
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. Maintaining Details Specific to SLT
3.1 Introduction
3.2 Maintaining User Groups
3.3 Maintaining Diary Events
3.4 Maintaining Message Types for a Module
3.4.1 Maintaining User-Defined Field Tags
3.5 Associating Message Types to Events for a Module
3.5.1 Associating Diary Events
3.5.2 Specifying Diary Events for a Contract
3.5.3 Generating Messages for Diary Events
3.6 Maintaining Market Price Details
3.7 Free Format Messages for Loan Contracts
3.7.1 Free Format Messages to Multiple Borrowers
3.7.2 Maintaining the Payoff Notice Components
4. Defining Attributes Specific to Loan product
4.1 Introduction
4.1.1 Specifying Product Type
4.1.2 Creating a Commitment Product
4.2 Setting Product Preferences
4.2.1 Specifying the Payment Method
4.2.2 Indicating the Schedule Type
4.2.3 Setting Billing Notice Days
4.2.4 Specifying Grace Days to Penalty
4.2.5 Indicating Values to be Rekeyed during Authorization
4.2.6 Setting the Accrual Frequency
4.2.7 Specifying Tenor Related Details
4.2.8 Specifying Exchange Rate Variance
4.2.9 Specifying if Status Processing for Contract Schedules is Required
4.2.10 Processing Prepayment Schedule
4.2.11 Specifying the Status/ Revaluation during Status Change Process
4.2.12 Specifying Payment of Past Schedules
4.2.13 Allowing a Change of the Settlement Account
4.2.14 Liquidation of Interest on Prepaid Principal
4.2.15 Allowing Partial Prepayment
4.2.16 Restricting the Generation of Settlement Messages
4.2.17 Specifying the Mode of Liquidation
4.2.18 Allowing Partial Liquidation
4.2.19 Specifying the Minimum Amount for Auto Liquidation
4.2.20 Identifying the Rate Code to be Used for Loans in Foreign Currency
4.2.21 Indicating the Rate Type
4.2.22 Allowing Rollover
4.2.23 Confirming the Status of Loan Products
4.2.24 Applying a Block on the Limit of a Credit Line
4.2.25 Specifying whether the Product Is an Intra-Day Product
4.2.26 Identifying Products for Agency Contract Creation
4.2.27 Specifying whether the Product is a Fed Rate Product
4.2.28 Specifying whether the Contracts to be Included in 1098 Statement
4.2.29 Allowing Prepayment along with Overdue Schedules
4.2.30 Tracking Accrued Interest for Credit Utilization
4.2.31 Applying Prepayment Penalty
4.2.32 Specifying whether Prepayment of Loans is Allowed
4.2.33 Specifying whether Cost of Credit is Allowed
4.2.34 Propagating Statuses to Loans
4.2.35 Re-computing Schedules after a Prepayment
4.2.36 Hold Prepayments in Intellect Browser
4.2.37 Specifying if Installment Schedules should be Allowed
4.2.38 Specifying Additional Preference
4.2.39 Specifying the Reversal Transaction Type
4.2.40 Discounting Multiple Schedules for Discounted Loans
4.2.41 Indicating the Annual Effective Rate (TEA) for loans
4.2.42 Enabling the Customer Effective Loan Rate Option
4.2.43 Allowing Forward Dating
4.2.44 Prioritizing the Liquidation of Components
4.2.45 Tracking Status Changes for Loans
4.2.46 Maintaining the Disclosure Details
4.2.47 Mapping the Product to Disclosure Details
4.2.48 Specifying the Special Penalty Components
4.2.49 Maintaining UDFs
4.3 Maintaining Slab/Tier Based Spread on Loan Outstanding
4.3.1 Specifying Contract Details
4.3.2 Specifying Currency Details
4.3.3 Specifying Effective Date
4.3.4 Specifying the Spread Details
4.3.5 Impact of Loan Outstanding on Spread
4.4 Specifying the Logic for Currency Rounding
4.5 Applying Tax on Liquidated Principal
4.6 Classification of General Ledgers based on Transaction Codes
4.7 Maintaining Pool Fund Details
4.8 Identifying a Component as a Refinance component
4.8.1 Capturing the Reversal Transaction Type
4.9 Maintaining 1098 Parameters
4.9.1 Generating ASCII File
4.9.2 Generating 1098 Forms
5. Disbursing a Loan
5.1 Introduction
5.1.1 Invoking the Loan Disbursement Screens
5.2 Capturing Loan Disbursement Details
5.2.1 The Facility Name
5.2.2 Specifying the LC Sublimit Amount
5.2.3 Contra GL Balance Details
5.2.4 Net Outstanding Amt
5.2.5 Current Exposure Details
5.2.6 Specifying the Currency
5.2.7 Specifying the Loan Amount
5.2.8 Specifying the Line Code
5.2.9 Specifying the Settlement Account
5.2.10 Specifying the Related Reference Number
5.2.11 Capturing Details of Amendments to Loan Agreements
5.2.12 Specifying the Tenor
5.2.13 Last Availability Date
5.2.14 Specifying the Loan Status
5.2.15 The Payment Method
5.2.16 Specifying the Maturity Type
5.2.17 Specifying the Interest Details
5.2.18 Allowing Rollover
5.2.19 Specifying Industry Code
5.2.20 Specifying the Administrator Details
5.2.21 Pool Funding
5.2.22 Identifying an Agency Contract
5.2.23 Rollover Count
5.2.24 Confirming the Status of Loan Products
5.2.25 Tax Scheme
5.2.26 Entering Internal Remarks
5.2.27 Enabling the Reprogramming Counter
5.2.28 Enabling Auto Extension
5.2.29 Indexed Loans
5.3 Preferences for a Loan
5.3.1 Setting Loan Schedule Preferences
5.3.2 Re-computing Late Payment Charges Online
5.3.3 Processing the Late Payment Charges
5.3.4 Maintaining System Derived Schedules
5.3.5 Maintaining User Input Schedule Amounts
5.3.6 Maintaining Schedule Adjustments on Interest Rate Revision
5.3.7 Maintaining Schedule Adjustments on Prepayment
5.3.8 Re-Amortization
5.4 Linking a Loan to Commitments, or Accounts
5.4.1 Specifying the Type of Linkage
5.4.2 Specifying the Details of the Linkage
5.4.3 Projected Available Amount
5.4.4 The Exchange Rate
5.4.5 Specifying the Linked Amount
5.4.6 Linking a Loan in One Branch to a Commitment in another Branch
5.4.7 Linking Commitments to a Loan
5.4.8 Modifying a Loan Disbursement
5.4.9 Financial Details that can be Changed
5.4.10 Viewing the Other Details of a Loan
5.4.11 Advices for Loan Disbursement
5.5 Levying Transaction Charges on a Loan
5.6 Posting the Manual Journal Entries
5.6.1 Maintaining the Amount Types
5.6.2 Mapping the Accounts and the Amount Type
5.6.3 Posting Manual Adjustment Entry
5.6.4 Uploading Excel for Adjustment Entry Posting
5.7 Error Log Details
5.8 Viewing Event Details
5.8.1 Viewing Accounting Entries for Loan disbursement
5.9 Levying Tax on a Loan Contract
5.10 Specifying the Interest Details
5.11 Maintaining Transaction-specific MIS Refinancing Rates
5.11.1 Maintaining Contract Level Refinance Rates
5.12 Maintaining Overwrite Settlement Details
5.13 Viewing Effective Rate (ER) of Interest for a Loan
5.14 Changing the Status of a Loan
5.15 Enquiry for Interest and Principal Projections
5.15.1 Reversal of Accruals during Contract Reversal
5.16 Viewing the Settlement Details during Contract Authorization
5.17 Viewing the Different Versions of a Loan
5.18 Viewing the Accrual Fee Details for a Loan
5.19 Viewing Entity Details
5.20 Viewing the Effective Interest Details for a loan
5.21 Specifying the Installment Preferences for a Loan
5.22 Capturing customer relationships for every loan
5.22.1 Capturing Currency Sub-limits
5.23 Specifying the Special Penalty Components
5.24 Maintaining Floor and Ceiling Initial Details
5.24.1 Specifying Currency Details
5.24.2 Specifying Effective Date
5.25 Booking Re-Price Transactions
5.25.1 Child Re-Price Transaction (Split)
5.25.2 Authorizing Override for Split Re-Pricing
5.25.3 Fixing Rate during Reprice
5.25.4 Floating Periodic Manual Contracts
5.26 Consolidating Re-Price Transactions
5.27 Maintaining Loan Loss Reserve
5.28 Amending the Exchange Rate
5.28.1 Exchange Rate Details
5.29 Classifying LC Sublimit
5.29.1 Updating LC Sublimit HFS Balance
5.29.2 Updating LC Sublimit HFI Balance
5.30 Maintaining Special Penalty Component Waiver Details
5.30.1 Reversing the Waiver of Late Payment Charges
5.31 Viewing the Waiver Details of Special Penalty Components
5.32 Maintaining Floor and Ceiling Details
5.32.1 Specifying Currency Details
5.32.2 Specifying Effective Date
5.32.3 Processing All-In Rate Floor and Ceiling rates
5.32.4 Validating and Propagating All-In Rates for Re-Price Transactions
5.32.5 Manual Linking of Standalone Loans with Commitments
5.32.6 All-In Rate Batch Propagation for new Floor/Ceiling Maintenance or Amendment
5.33 Specifying the Disclosure Schedule Details
5.34 Viewing the Contract Disclosure Schedule Status Details
5.35 Viewing Summary Details of a Loan
5.36 Dual Authorization
5.36.1 Relaxing Dual Authorization
6. Processing Upfront Fee Accruals
6.1 Introduction
6.2 Applying a Fee
6.2.1 Associating the Component with the Product
6.2.2 Specifying the Accounting Roles
6.2.3 Specifying Discount Accrual
6.2.4 Specifying Re-Price
6.2.5 Processing Lock-ins
6.2.6 Generating Fee Accrual reports
6.3 FASB Fees Amortization Using Straight Line Method
6.3.1 Maintaining Fee Rule Details
6.3.2 Associating Fee at Contract Level
6.4 Liquidating Fee Components
6.5 Transferring Memo Interest to FAS91 Fee
6.5.1 Restarting Amortization Fee Accrual
6.5.2 Associating the Accrual Fee Component
7. Defining Discount Accrual Fee Classes
7.1 Introduction
7.2 Defining a Discount Accrual Fee class
7.2.1 Associating Discount Accrual Components to Products
7.3 Events and Accounting Entries for Discount Accrual
7.4 Specifying Status Change Details for Discount Accrual
7.4.1 Processing for Contract Status Change
7.5 Processing for Internal Rate of Return Calculation
7.5.1 Recalculation of IRR with new effective date
7.5.2 Computation of Net Present Value based on Acquisition Type
7.5.3 Computation of Net Discount Accrual Amount for a Processing Day
7.5.4 Discount Accrual Processing - an Example
8. Processing Repayments
8.1 Introduction
8.2 Defining Schedules for a Product
8.3 Setting Product Schedule Preferences
8.3.1 Processing Overpayment and Refund of Interest/Fees
8.4 Defining Repayment Schedules
8.5 Setting Loan Schedule Preferences
8.6 Specifying the Preferences of the Contract
8.6.1 Types of Repayment Schedules
8.6.2 Defining Installment Schedules for Loans
8.6.3 Specifying the Amortization Type
8.6.4 Liquidating Back Valued Schedules
8.6.5 When the Repayment Schedule Date is a Holiday
8.6.6 Moving Schedules Forward or Backward
8.6.7 Moving Schedule Dates across the Month
8.6.8 Cascading Schedules
8.6.9 Specifying the Holiday Currency
8.6.10 Specifying the Mode of Liquidation
8.6.11 Ascertaining the Availability of Funds
8.6.12 Invoking the Contract Schedules Screen
8.7 Revision and Repayment Schedules
8.7.1 Interest Rate Revision Schedule
8.7.2 Specifying the Rate Revision Frequency
8.7.3 Specifying the Rate Revision Dates
8.7.4 Repayment Schedule
8.7.5 Interest Repayment Schedules as Different from Rate Revision Schedules
8.7.6 Specifying Schedules for a Loan with a Fixed Interest Rate
8.7.7 Redefining Schedules
8.7.8 Authorizing a Redefined Schedule
8.7.9 Viewing Schedule Details
8.7.10 Viewing Revision Schedule Details
8.8 Making Manual Payments
8.8.1 Invoking the Contract Schedule Payments Screen
8.8.2 Input of Manual Payments
8.8.3 Specifying Prepayment Schedule Processing
8.8.4 Handling Prepayments
8.8.5 Navigating to Other Screens
8.8.6 Paying Tax
8.8.7 Viewing the Schedule Break-up Details
8.8.8 Deleting Manual Payments
8.8.9 Authorizing Manual Payments
8.8.10 Reversing Manual Payments
8.8.11 Marking Contracts as Liquidated
8.9 Processing a Loan Payment when Contra Accounting is Applicable
8.9.1 Events for Contra Accounting
8.9.2 Processing Principal Payment
8.9.3 Processing Interest Payment
8.9.4 Increasing/Decreasing Contra GL Balance
9. Rolling-over a Loan
9.1 Introduction
9.2 Features of the Product Roll-over Details Screen
9.2.1 Specifying whether Rollover is Applicable
9.2.2 Specifying the Rollover Mechanism
9.2.3 Specifying the Rollover Method
9.2.4 Mode of roll-over
9.2.5 Roll-over of Interest, Charge and Fee Components
9.2.6 Maturity Date Basis
9.2.7 Updating Credit Limit Utilization
9.2.8 Applying Tax on Roll-Over
9.2.9 Deduct tax on Roll-Over
9.2.10 Contingent Entries for Additional Amount
9.2.11 Applying a Charge on the Roll-Over Amount
9.2.12 Liquidating Overdue Schedules
9.2.13 Interest Rate on Rollover
9.2.14 Indicating the Values to be Re-keyed during Authorization
9.3 Specifying Contract Roll-Over Details
9.3.1 Rollover Preferences for a Loan Contract
9.4 Specifying Details for Normal Rollover
9.4.1 Mode of Roll-Over of a Contract
9.4.2 Manual Rollover
9.4.3 Specifying the Roll-Over Amount
9.4.4 Specifying the Manner in which the Special Amount should be Treated
9.4.5 Updating Credit Limit Utilization
9.4.6 Applying Tax
9.4.7 Specifying whether Charge should be Applied on the Rolled-over Amount
9.4.8 Specifying the Schedule Basis for the rolled over contract
9.4.9 Specifying whether New Components have to be Included
9.4.10 Specifying whether Overdue Schedules should be liquidated
9.4.11 Specifying the Maturity Type
9.4.12 Indicating the Interest Basis for Roll-over
9.4.13 Specifying the Refinancing Rate for the rolled over Contract
9.5 Specifying Details for Rollover Split
9.5.1 Specifying Details for Rolled Over Contracts Created out of the Rollover Split
9.6 Specifying Details for Rollover Consolidation
9.7 Advices for a Rolled-Over Loan
9.8 Authorizing a Manual Roll-Over
10. Making Additional Disbursements and Rate Changes
10.1 Introduction
10.1.1 Changing the Maturity Date
10.1.2 Enabling the Reprogramming Counter
10.1.3 Capturing details of amendments to loan agreements
10.2 Navigating to the Schedule Definition screen
10.2.1 Applying Rate Revision Schedules
10.2.2 Making Changes in Interest
10.2.3 Making Changes in Interest Rate Type
10.2.4 Making Changes in Maturity Type
10.2.5 Making Changes in Special Rate Type
10.2.6 Amortization after a Value Dated Amendment
10.2.7 Making Changes in Fees
10.2.8 Settlement instructions
10.2.9 Specifying Linkages
10.2.10 Deleting Value Dated Amendments
10.2.11 Reduction of CoC balances for HFI Contracts
10.3 Tracking Payables and Receivables
11. Automatic Processing
11.1 Automatic Events in the Life Cycle of a Loan
11.2 Specifying Branch Parameters
11.2.1 Processing for Holidays
11.2.2 Specifying the Tax Basis
11.2.3 Setting the Accrual Level
11.2.4 Setting the Residual Amount for Force Liquidation
11.2.5 Auto Authorization
11.2.6 Transaction Code for Force Liquidation
11.2.7 Reversal Suspense GL
11.2.8 Indicating your Specifications for the different ‘Rates’
11.3 Initiating the Automatic Contract Update Function
11.3.1 Processing during Beginning of Day
11.3.2 Processing during End of Day
11.3.3 Processing for Holidays
11.4 Initiating a Future Value Dated Contract
11.5 Processing an Automatic Repayment
11.5.1 Advices Generated for a Repayment
11.6 Generation of Billing Advices and Delinquency Notices
11.7 Automatic Rollover of a Loan
11.7.1 Advices for Rollover
11.7.2 Automatic Status Changes
11.7.3 Defining Status Codes for a Product
11.7.4 Changing the Status of a Loan
11.7.5 Automatic Status Change
11.8 Advices to be Generated for a Status Change
11.9 Accrual of ICCF Components
11.9.1 The Memo Accrual Function
11.9.2 Contents of the Accrual Control Journal
11.10 Interest Rate Revision on a Loan
11.11 Value Dated Changes
11.11.1 Advices generated for Value Dated Changes
12. Processing a Commitment
12.1 Introduction
12.2 Defining a Commitment Product
12.3 Initiating a Commitment
12.3.1 Making Value Dated changes
12.3.2 Capturing Auto Step-up and Auto Step-down of a commitment
12.4 Linking a Loan to a Commitment
12.4.1 Specifying the Details of the Linkage
12.4.2 Specifying the Linked Amount
12.4.3 Specifying the Exchange Rate
12.4.4 The Converted Link Amount
12.4.5 Type and Total Linked Amount for each Type
12.4.6 Uncovered Amount
12.4.7 Accounting Entries for a Linkage
12.4.8 Amending Commitment Linkage Details
12.4.9 Processing Commitment Linkage Changes
12.4.10 Defining Schedules for Reduction of Commitment Amounts
12.5 Viewing Billing Notice History
12.6 Maintaining Slab/ Tier Based Fee for Commitment
12.6.1 Maintaining Fee Rule Definition Structure
12.6.2 Associating Fee at Product Level
12.6.3 Associating Fee at Contract Level
12.7 Viewing Quick Query Details of Loans
12.7.1 Viewing Loan Quick Reference Summary Details
12.8 Viewing Quick Query Details of Commitments
12.8.1 Viewing Commitment Quick Reference Summary Details
12.9 Revaluation of Commitment
13. Annual Rest Loans
13.1 Introduction
13.1.1 Specifying the Unearned Interest Calculation Parameters
13.1.2 Specifying the Accounting Roles for Unearned Interest Component
13.1.3 Capturing the unearned interest details at the contract level
13.1.4 Amending the Details of Annual Rest Loans
13.1.5 Processing Accruals
13.1.6 Specifying the Status of Annual Rest Loans
13.1.7 Processing Prepayments of Installment Loans
14. Loans and Commitment Reports
14.1 Interest Projection Report
14.2 OL Productivity Matrix Report
14.3 Accrual Control List Report
14.4 Accrual Report - OL PNL Washable Entries
14.5 Amortisation Report
14.6 Interest Calculation Analysis Report
14.7 Event Report
14.8 Loans and Commitments Forward Contract Report
14.9 Loans and Commitments Forward Changes Report
14.10 Loans and Commitments Linked Contracts Utilization
14.11 Maturity Report
14.12 Accrual Report
14.13 Overdue Schedule Report
14.14 Contract Retrieval Report
14.15 Rate Revision Report
14.16 Adverse Status Report
14.17 OL Amalgamation Report
15. Appendix A - Customer Correspondence
15.1 Introduction
15.1.1 Contract Initiation
15.1.2 Amendments to the Terms of the Loan during its Tenor
15.1.3 Advice generated for Contract Initiation
16. Appendix B - Accounting Entries, Advices and Error Codes
16.1 Accounting Entries for Loans
16.2 Loans Events
16.3 Amount Tags
16.4 Accounting Roles
16.5 Event-wise Accounting Entries and Advices
16.5.1 Term Loan – Bearing
16.5.2 Demand Loan
16.5.3 Commitment
16.5.4 Late Payment Charges
16.6 Accounting Entries for Contract Adjustment
16.7 Payable Receivable Liquidation
16.8 Accounting for Discounted Loans
16.9 Accounting Entries for Non-Performing Loans
16.10 Accounting Entries for Reserved and Non-reserved Loans
16.11 Accounting Entries for Cost of Credit Valuation
16.12 Accounting Entries for LC Sublimit Re-classification
16.13 Error Codes
16.13.1 Amortized Exchange Details
16.13.2 Effective Date of Exchange Rate Amendment
16.13.3 Adjustment Reversal Details
16.13.4 Cost of Credit Valuation
16.13.5 LC Sublimit Balance (HFI) Update
16.13.6 Late Payment Charges
16.13.7 All-In Rate Floor/Ceiling for Loans
16.13.8 Pool Funds
16.13.9 Chinese Characters in Payment
16.13.10 UCC Processing
16.13.11 Marking Contracts as Liquidated
16.13.12 Clearing Line Validation
16.13.13 Participant Margin Maintenance
16.13.14 CUSIP Reclass
16.14 Examples of Calculating TEAC
16.14.1 Example I – Simple Bearing loan
16.14.2 Example II –True Discounted Loan
16.14.3 Example III – Bearing Loan (Irregular Interest periodicity)
16.14.4 Example V – Premature Liquidation
17. Appendix C – Unexpected Recovery
17.1 Introduction
17.1.1 Setting Up Events, Accounting Roles and Amount Tags
18. Function ID Glossary