3. Annexure 2 - Value Dated Facility

3.1 Introduction

Oracle Banking ELCM provides a feature to maintain Facility details based on a particular value date. Oracle Banking ELCM also tracks all the Utilizations of the Facility based on the value date of the transaction.

Oracle Banking ELCM process all the utilization transaction as of book date.

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

3.2 Value Date Based Facility Maintenance

Oracle Banking ELCM facilitates maintaining Facility details based on a particular value date. The following parameters are taken from the Facility Maintenance screen:

• Value date - The date in which the limit amount or main line was created or modified is captured here.
• Main Line Code - It is the main line that the Line reports to. It is 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 is 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 is automatically created by the system with the value date as the Limit Start Date. The Main Line and the Limit Amount are same as the booking dated limit maintenance.

Whenever the Mainline or the Limit amount is changed in the facility, a new record is created in the maintenance with value date as the application date. The mainline and limit amount values are same as in the booking dated Limits maintenance. You can view these details by clicking ‘Value Date’ button.

3.2.1 Value Date Based Utilization Processing

Oracle Banking ELCM also tracks all the utilizations of the facility based on the value date of the transaction. 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 is 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 Oracle Banking ELCM Parameter Maintenance.

● If the parameter is set to update Value Date online, then during the transaction process the Value Date utilization details are updated online. Otherwise, it is updated during EOD process.

● In the case of main lines, the system identifies all the sub lines linked and track the utilization. This utilization is tracked in addition to the contracts that are directly linked to the main line.

Refer Annexure – 1 for more details on Utilization Transactions.

3.2.2 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

Serial no	Value date	Line code	Utilization	Component	Increase/Decrease
1	10-Jan-05	LINE 1	1000000	PRINCIPAL	Increase

Line Utilization

Serial no	Value date	Line code	Utilization
1	10-Jan-05	LINE 1	1000000

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

Serial no	Value date	Line code	Utilization	Component	Increase/Decrease
1	10-Jan-05	LINE 1	1000000	PRINCIPAL	Increase
2	10-Feb-05	LINE 1	100000	PRINCIPAL	Decrease

Line Utilization

Serial no	Value date	Line code	Utilization
1	10-Jan-05	LINE 1	1000000
2	10-Feb-05	LINE1	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

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

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

S.no	Value date	Line date	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	20000	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 date	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 date	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