This chapter contains the following sections:
You can process a drawdown contract in the ‘Drawdown Contract Online’ screen. You can invoke the ‘DrawDown Online’ screen by typing ‘LBDDDONL’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
The screen is displayed with details of an existing drawdown contract, as shown below.
When you are capturing a new drawdown, Oracle Banking Corporate Lending validates the following:
You can capture a drawdown contract either by:
For more details, refer the heading ‘Entering the facility details’ in this chapter.
You can capture the following in for a drawdown:
You capture information pertaining to the drawdown in the following tabs of the screen:
In addition, a vertical toolbar provided in the screen, may be used to invoke other sub-systems meant to capture important information for the drawdown.
These buttons are same as the ones available for the ‘LB Tranche Contract Online’ screen, except for the following:
‘Entity’ |
Click this tab to view/modify the entity details for the drawdown |
‘Exrate Fixing |
Click this tab to fix the exchange rate for a cross currency drawdown |
‘Interest’ |
Click this tab to view the interest and margin components |
Split Rollover |
Click this tab to specify the spilt rollover details if applicable for the drawdown |
‘Effective Interest Rate’ |
Click this tab to view the Effective Interest (EI) rates for the drawdown |
‘Media Priority’ |
Click this tab to specify the media for message generation |
To capture a new drawdown, click New from the menu.
The ‘Drawdown Type’ is displayed as ‘New’. The contract inherits the details of the template. Alternatively, you can also select the following details to capture a new drawdown:
Branch
Branch for which the drawdown is processed. You can process inter-branch contracts too.
Tranche Ref No
You have to select the reference number of the tranche under which you want to book a drawdown. The option list displays all active and authorized Tranche contracts. When you select the tranche, the system also displays the Tranche User Reference Number and the tranche borrower. In addition, the reference number of the borrower facility contract is also displayed.
Note
When you select a tranche, you have to ensure that all existing drawdowns under the tranche are authorized. If there are unauthorized drawdowns under the selected tranche, the system displays a message to indicate the same when you click the ‘Ok’ button. You are required to select another tranche or authorize the unauthorized drawdown (s) before you proceed.
Agent Ref No
The system displays the FpML Contract Identification number. However, you can modify it.
Borrower
By default, the borrower specified for the selected tranche is displayed here. You can specify a different borrower, if required. The option list displays all the borrowers specified for the tranche.
Drawdown Product
Select the drawdown product you want to use for the drawdown. The option list displays all the drawdown products associated with the tranche under which the drawdown is being processed. The following information defaults to the ‘DRAWDOWN’ tab of the screen (based on the preference defined for the underlying DD product and the tranche):
In the header section of the screen, you have to specify the following:
User Reference Number
The reference number is the identification that you specify for the borrower drawdown. You can specify any identification number. In addition to the Contract Reference Number generated by the system, this number is also be used to retrieve information about the drawdown.
By default, the Contract Reference Number generated by the system is considered to be the User Reference Number for the drawdown.
Custom Ref No
You can capture a unique reference number for the drawdown. This number is used to identify the drawdown in the system. You can also query the drawdown based on this number. The reference number can consist of a maximum of 16 alphanumeric characters.
You can change some of the default values for a drawdown. You can also capture additional information specific to a drawdown in the ‘Drawdowns’ tab of the screen.
The details that default and those that you can change are discussed below:
External CUSIP/ISIN
Internal and External CUSIP/ISIN is defaulted from the tranche for new drawdowns and cannot be changed at the drawdown level.
If there is a change in the External CUSIP at the tranche level, it gets propagated to the drawdowns for the tranche. The updated details for the drawdown are sent to Markit, a financial system that acts as an inventory for all agency activities, through FpML messages.
Refer the chapter ‘FpML Messaging’ for more details on the updation process
For more information on Internal and External CUSIP Number refer section ‘Capturing Contract Details’ in this chapter.
Currency
You have to select the currency for the drawdown. The option list displays the currencies allowed for the tranche. If the drawdown currency is different from the tranche currency, the system displays the following message:
Exchange Rate needs to be fixed!
The ‘Exchange Rate Fixing Date’ displays the current system date (booking date of the drawdown).
Note
If the drawdown currency is different from the tranche currency and the ‘Exchange Rate Code’ that defaults from the product is not maintained for the currency pair (tranche and drawdown currencies), the system displays an error message.
For more details on exchange rate fixing, refer the heading ‘Fixing exchange rate for the DD currency’ in this chapter.
Amount
Specify the amount being availed by the customer through the drawdown. This amount should be between the minimum and maximum DD amount specified at the tranche level. When you capture the amount, system displays its equivalent in the tranche currency (‘Amount in Tranche Ccy’ field). The sum of all drawdown amounts must not exceed that of the borrower tranche, total facility amount, and global LC sublimit at the tranche level.
Note
Example
In our first example of the facility contract with Mr. Robert Carr, the drawdown schedules requested by him for the first tranche were as follows:
Portion of loan desired in the first tranche: 50000 USD.
For each drawdown that you enter, you would specify the required amount as specified above.
PIK Margin
The PIK amount carried forward from the parent contract during rollover gets displayed here.
Unapplied Amount
The total uninitiated amount for an increase in drawdown principal for each value dated amendment is displayed here.
New Maturity Date
The unapplied maturity date for a value dated amendment is displayed here.
Drawdown Date
By default, the drawdown date is equal to the value date of the tranche. You can change the date to any date within the tranche period. In addition, the date should be later than the start date of the drawdown product. The date should be captured in ‘DD-MMM-YYYY’ format. The system displays an override if the specified drawdown falls on a holiday of the local currency. The system generates SWIFT messages to be sent to the participants before the drawdown date, intimating them to fulfill their commitment contracts.
Example
In our first example of the facility contract with Mr. Robert Carr, the drawdown schedules requested by him were as follows:
Portion of loan desired in the first tranche: 50000 USD.
Portion of loan desired in the second tranche: 50000 USD.
When you enter this schedule into the system, the drawdown dates you would specify are 30th January, 28th February, 31st March, 30th April, 31st May and 30th June.
Original Start Date
By default, the original start date of the tranche is applicable to the drawdown. You can specify a different date provided the new date is not earlier than the tranche original start date and not later than the tranche maturity date.
Maturity Date
By default, the tranche maturity date is applied. You can change the maturity date such that it is earlier than the tranche maturity date and less than or equal to the drawdown date. If the drawdown is completely paid ahead of the maturity date, then the maturity date is automatically be changed to the date of the drawdown paid.
DD Notice Date
This date is displayed based on the notification days maintained for the DD currency at the tranche level (in the ‘Currency Details’ screen). The notification date is arrived at using the notification holiday processing rules maintained for the tranche.
For details on maintaining notification days and holiday processing rules, refer the heading ‘Specifying currency details for the tranche’ in this chapter.
In case of current dated or back dated drawdowns, the booking date gets defaulted here. You can change the date beyond the booking date but less than or equal to the value date (if the value date and booking date are different). The system displays an override if the notification date is less than the current application date.
Int Rate Fixing Date
The interest fixing date for the DD currency is displayed based on the ‘Interest rate fixing days’ defined for the tranche and the list of holiday currencies maintained for each currency allowed for the tranche.
The interest rate fixing date is the date (prior to the drawdown date) as of which the interest rate is fixed for a new drawdown or for the new rate fix period. If you change the drawdown currency or the drawdown date, the system re-computes the interest rate fixing date and displays the same here.
Exch Rate Fixing Date
Similarly, the exchange rate fixing date for the drawdown currency is displayed based on the ‘Exchange rate fixing days’ defined for the tranche and the list of holiday currencies maintained for each currency allowed for the tranche. Exchange rate fixing for the new drawdown or the new rate fix period is done on this day.
For details on maintaining exchange rate and interest fixing days and holiday processing rules, refer the heading ‘Specifying currency details for the tranche’ in this chapter.
Special Amount
Specify the special amount disbursal, if any.
Note
Industry Code
Specify the industry code. The adjoining option list displays all industry codes maintained in the system. You can choose the appropriate one.
Global DD Amount
The Global Drawdown amount is computed and populated during new drawdown booking based on the Tranche, Global Tranche, and Drawdown amounts. The Global Drawdown Amount is computed as follows:
Global Drawdown Amount = (Global Tranche Amount / Tranche Amount) * Drawdown Amount.
You can amend this amount only for non-lead drawdowns and only if the corresponding Tranche has ‘Cascade Participation’ set to ‘No’. You cannot amend this amount if the underlying Tranche has ‘Cascade Participation’ set to ‘Yes’. The latest Global Amount as on the date of handoff is used for handoff of the Commitment Reduction to the Loans QT system.
However, only those Drawdown Global Amounts, with cascade participation set to N, can be amended using the new screen Global Amount Update/Amendment screen.
Note
The Global Drawdown amount cannot be updated during drawdown amendments.
Drawdown Type
This indicates whether you are defining a new drawdown or renewing an existing drawdown. For a new drawdown, ‘New’ is displayed and you cannot change it.
Renewal Type
The ‘Rollover Method’ you specify for the drawdown product will default here. You can change it at the drawdown level. Specify the manner in which the drawdown should be renewed/rolled over. The options available are:
Note
Irrespective of the type of renewal you select here, the system allows you to capture instructions for any one of the renewal types mentioned above. Depending on the type of instructions you capture, the system automatically updates the ‘Renewal Type’ with the latest value when you save the instructions.
Split Message Type
You can select this message type only if the ‘Renewal Type’ is specified as ‘Split’. The message types available are:
INIT Mode
This specification defaults from the tranche. You can change it for the drawdown, if required. This will indicate the mode of initiating the drawdown in the system. The following options are available:
For more details on this screen, refer the heading ‘Specifying participant details for the tranche’ in this chapter.
Suppress B.V Fixing Advice
You can check this option to stop the generation of payment messages when back valued schedules for a back-dated drawdown (with initiation date before today’s date) is liquidated.
Ancillary Drawdown
Oracle Banking Corporate Lending allows you to process Ancillary drawdowns under a tranche. Check this option to indicate that you want to process an Ancillary Drawdown.
This check box is enabled under the following conditions:
A pro-rata tranche is converted to a ‘Non-Cascade’ type once you save the drawdown and it remains as Non-Cascade even on repayment of the drawdown. You can send out participant FFT messages to all the lenders in the syndicate in case of ancillary drawdowns and amendments of the same. You need to maintain a separate advice template for this which you can choose in the FFT screen.
Note
Swing Line Drawdown
You can check this option while booking the new drawdown to identify a swing line drawdown. You cannot make any changes to this during the amendments of the drawdown at the contract level.
For more information on swing line refer to Loan Syndication – An Overview chapter.
Note
If you process a swing line drawdown under a tranche for which the ‘Cascade Participation’ option is checked, the system automatically converts the tranche into a non-cascade participation type.
Further, it triggers the event ‘CASC’ to indicate this conversion.
Bidding Contract
You can select this check box to specify whether the contract is of competitive bidding type.
Note
You can process a bidding contract under tranches for which the ‘Cascade Participation’ option is not checked.
Sighting Funds Applicable
The value for this field is defaulted from the corresponding tranche and you are not allowed to modify this value.
Note
Liqd Interest on Prepayment
Select this check box to indicate if interest should be liquidated as part of prepayment. This check box is enabled only for Prime contracts.
In other words, you can liquidate an interest component for a contract on prepayment, only if you have selected this check box and also the ‘Prime Loan’ check box for a product in the ‘Loan Syndication – Borrower Product Preferences’ screen.
If this check box is selected, Oracle Banking Corporate Lending allows you to define only a bullet interest schedule. Otherwise, you can define a frequency-based schedule.
Note
FpML Type
Select this check box to indicate that the FpML type is required for the DrawDown contract.
If you have selected this box, the system does the following:
If you have not selected this check box and the ‘Media Priority’ option is selected at the product level, then ‘Media Priority’ tab is enabled.
For more information, refer the section ‘Specifying Media for Message Generation’ in this chapter.
Partial Prepayment Allowed
Select this check box to indicate that for drawdown products, partial prepayment is allowed.
Note
Partial prepayment is allowed only for drawdown products where,
Allow Ratio Change
Select ‘Allow Ratio Change’ check box if you want specify the participant ratio change in ‘Loan Syndication - Contract Payment’ screen (LBDPYMNT).
LC Type
This specification defaults from the product. You may change it at the contract level, if required. The available types are:
Note
You can select the type of LC only if the ‘LC Drawdown’ option is checked for the drawdown.
If you check the ‘LC Drawdown’ option for the product, the same defaults to all drawdowns and you cannot amend it at the drawdown level.
LC Issuer
If the drawdown is an LC type of drawdown, you have to select the issuer of the LC as mandatory information. The option list displays the names of participants you have identified as issuers of LC. This is done at the tranche level.
The LC Issuance Fees is paid to the participant who is identified as the issuer of LC. This fee is computed on the outstanding amount of all the LC drawdowns for the selected issuer.
For more details on this, refer the heading titled ‘Identifying participants as issuers of LC’ in this chapter.
Int/Fee Distribution
System displays the method in which the interest and fee components are distributed among the participants when an assignment is executed before the liquidation date. The distribution type is classified into - ’Lender of Actuals’ type and ’Lender of Record’ type.
This is defaulted from the tranche level.
SSI Pickup At
This option defaults from the tranche. You can opt for a different value for the drawdown, if required. This indicates the basis for picking up the SSI (Standard Settlement Instructions) Mnemonic for the drawdown.
The available options are:
For more details on this screen, refer the heading ‘Specifying drawdown participant details’ in this chapter.
Billing Notice Days
This defaults from the drawdown product. You can change default value, if required.
This indicates the number of working days before the repayment due date when a billing notice should be generated, to be sent to a customer as a reminder of the payment.
PIK Rollover with capitalization
Select this check box to indicate that the PIK rollover with capitalization is allowed for the contract. You can amend this value after the Rollover is removed\reversed. You cannot amend the value if the interest component linked to Tranche PIK margin component is having non- zero rate.
Interest Payment Propagation
Select the interest payment for the drawdown from the below two options:
Cash payment can be processed as part of manual payment, split rollover and consolidated rollover processing. The field value for the child contract gets defaulted from parent contract during split rollover processing. During consol rollover processing, the value gets defaulted to child contract from the driver contract.
You cannot book drawdown booking with ‘Interest Payment Propagation’ as ‘Cash’ if below mentioned existing flags are checked for drawdown contract
You cannot book drawdown under lead tranche with ‘Interest Payment Propagation’ as ‘Cash’.
After the drawdown is authorized, amendment of interest payment propagation is allowed under the below validations:
For the drawdowns under lead tranches, the value is ‘Normal’ always. All the existing lead and non lead tranches, the ‘Interest Payment Propagation’ gets updated as ‘Normal’.
Named Agent
System defaults the value of the named agent maintained in the tranche contract online screen, while booking a new drawdown, in this field.
System also displays the name of the named agent adjacent to the Named Agent field.
Agreement/Administrator/Internal Remarks
These details gets default from the tranche contract and may be changed at the drawdown level.
You can capture the other contract details in the ‘Contract’ tab of the screen.
The following contract details applicable for drawdowns are explained below:
Mode of liquidation of interest and fee components associated with the drawdown defaults from the drawdown product.
At the drawdown level, you can change the mode to any one of the following methods:
For more details on ‘Contract Payment’ screen, refer the heading ‘Processing Repayments Manually’ in the ‘Processing Repayments’ chapter of this User Manual.
For more details on ‘Fee Liquidation’ screen, refer the heading ‘Liquidating Fee Components’ in the ‘Processing Charges and Fees’ chapter of this User Manual.
For more details on this screen, refer the heading ‘Forward processing of events’ in this chapter.
The statuses - for example, Active, Past Due Obligation, Non-Accrual Basis, and Write-Off , and so on. defined for the product in the ‘Status Maintenance’ screen is applicable for the drawdown. You have to indicate the mode of status change for a drawdown.
The options are:
For details on the ‘Status Maintenance’ screen, refer the heading titled ‘Maintaining status rules for a syndication product’ in the ‘Reference Information for Loan Syndication’ chapter of this User Manual.
When you are entering a borrower drawdown, specify the credit line under which exposure would be tracked, if required. The credit lines selected for the drawdown customer (borrower) is displayed in the option list provided.
You need to specify the amortization applicable to the drawdown only if the schedule type is ‘Amortized’. The following options are available:
Examples:
Case 1: Reducing balance
Assume that you have disbursed a drawdown with the following details:
Based on the reducing balance method, the interest, principal and the EMI is as follows:
Sl. No |
Interest |
Principal |
EMI |
Outstanding Bal |
1 |
86.11 |
$793.05 |
$879.16 |
$9,206.95 |
2 |
79.28 |
$799.88 |
$879.16 |
$8,407.07 |
3 |
65.39 |
$813.77 |
$879.16 |
$7,593.30 |
4 |
65.39 |
$813.77 |
$879.16 |
$6,779.53 |
5 |
56.50 |
$822.66 |
$879.16 |
$5,956.88 |
6 |
51.30 |
$827.86 |
$879.16 |
$5,129.02 |
7 |
42.74 |
$836.42 |
$879.16 |
$4,292.60 |
8 |
36.96 |
$842.20 |
$879.16 |
$3,450.40 |
9 |
29.71 |
$849.45 |
$879.16 |
$2,600.95 |
10 |
21.67 |
$857.49 |
$879.16 |
$1,743.46 |
11 |
15.01 |
$864.15 |
$879.16 |
$879.31 |
12 |
6.11 |
$873.05 |
$879.16 |
$6.26 |
The interest for the first schedule is computed on the loan principal (10,000) for the first month (31 days) using the following formula:
(10000 * 10 * 31) / (100*360)
Interest for the subsequent schedules are computed on the outstanding principal for each schedule.
Case 2: Rule of 78
Consider the drawdown details mentioned in case 1.
Total interest on the loan = (10000 * 10 * 364) / (100*360) = 1011.11
Interest for each schedule = 1011.11/12 = 84.26
Principal for each schedule = 10000/12 = 833.33
EMI = 833.33 + 84.26 = 917.59
First month’s interest = 12/78 times $1011.11 = 155.56
(78 is the sum of integers from 1 to 12)
Therefore, principal for the first month = 917.59 – 155.56 = 762.03. The interest, principal, and EMI due for each schedule is as follows:
Sl. No |
Interest |
Principal |
EMI |
1 |
155.56 |
762.03 |
917.59 |
2 |
142.59 |
775.00 |
917.59 |
3 |
129.63 |
787.96 |
917.59 |
4 |
116.67 |
800.92 |
917.59 |
5 |
103.70 |
813.89 |
917.59 |
6 |
90.74 |
826.85 |
917.59 |
7 |
77.78 |
839.81 |
917.59 |
8 |
64.81 |
852.78 |
917.59 |
9 |
51.85 |
865.74 |
917.59 |
10 |
38.89 |
878.70 |
917.59 |
11 |
25.93 |
891.66 |
917.59 |
12 |
12.96 |
904.63 |
917.59 |
Total |
1011.11 |
9999.97 |
11011.08 |
If you have not checked the ‘Schedule Level’ status processing for the drawdown product (as part of product preferences), you have to specify the drawdown status here. For a new drawdown, the default status is ‘NORM’ (Normal). You cannot change the status of any of the schedules in this case. You can select from a list of user-defined statuses maintained for the drawdown product (in the ‘Status Maintenance’ screen).
If you have defined schedule-level status processing for the drawdown product, you cannot change the status of the contract in this field. You can change the status of any of the schedules, as required, and the status of the contract is determined as the worst status among the individual statuses of the schedules.
In this section of the screen, you can specify the holiday treatment preferences for value date and maturity date falling due on holidays defined for the branch. The holiday treatment details maintained for the drawdown product defaults to the drawdown. You can change your preferences for the drawdown.
For more details on the options available, refer the heading ‘Specifying Additional Preferences for Loan Syndication’ in the ‘Defining Products for Loan Syndication’ chapter of this User Manual.
The agency type of the transaction (Lead or participation) is defaulted from LB Tranche Contract Online and you are not allowed to change it during Drawdown contract booking or Amendment.
Following details have to be captured in the ‘Other Details’ section of the screen:
Liquidate Back Valued Schedules
If you have specified, while defining the product, that for a back-dated tranche or drawdown loan contract (which has an initiation date which falls before today’s date), with schedules prior to today’s date, the schedules have to be liquidated when the drawdown is initiated, the same will apply to the drawdown you are processing. However, through this field, you can choose not to liquidate back valued schedules by leaving this field blank.
Zero Cash Flow for Future Schedules
If you select this check box, the 'Actual Amount Due' is displayed instead of 'Expected Amount Due' in the 'Payment Details' screen,
For example, If 'Rate Type' is 'Fixed User Input' and 'Rate Fixing' is selected, then amount is calculated till 'Rate Effective End Date' entered in the 'Rate Fixing' screen and displayed in 'Payment Details' screen.
If 'Rate Type' is 'Floating and 'Code Usage' is Periodic' then system calculates the amount due till next revision schedule and displayed in 'Payment Details' screen.
If 'Rate Type' is 'Floating' and 'Code Usage' is 'Auto' then the system calculates the amount due till today and displayed in 'Payment Details' screen.
The following loan statement details may be maintained:
Statement Type
You can specify if a loan statement needs to be generated for the drawdown. If loan statements are to be generated, you can specify the type of statement you want to generate. The options are:
If you do not want to generate loan statement, select the ‘None’ option.
Cycle/On
If loan statements have to be generated for the drawdown, you have to indicate the frequency of statement generation. You can set the frequency to any one of the following options:
Based on the frequency that you specify, you can also indicate the month/weekday for the generation of the statement. Thus, if you have set the loan statement generation frequency to Annual, Semi-Annual, or Quarterly, you have to indicate the month in which the first statement is to be generated.
Similarly, if you have indicated that statement generation is to be on a fortnightly or weekly basis, you should specify the day of the week on which the statement is to be generated. For instance, if you indicate that a weekly generation should be done on Thursday, the statement is generated every week on Thursdays.
When the frequency is set to monthly, then by default, the statement is generated on the last day of every month. You can also select a different day from the drop-down menu.
The rollover applicability is explained below:
Rollover (Yes/No)
While setting up the drawdown product, if you specified that drawdowns involving the product should be automatically rolled-over, then all drawdowns involving the product is rolled-over on their respective maturity dates. This feature is called auto rollover. If rollover is specified for the product, the same is applicable for the drawdowns.
If you do not want to rollover the drawdown, you can select the ‘No’ option. However, if rollover is not allowed for the product, you cannot opt for rollover at the drawdown level.
Note
This option is set to ‘No’ and is disabled if the option ‘Partial Prepayment Allowed’ has been selected.
Count
If rollover is applicable for the drawdown, the system displays the rollover count in this field. For a drawdown that has been rolled-over, this count indicates the number of times it has been rolled-over.
If Reval Reqd is ‘Yes’ for the drawdown product, the same defaults to the drawdown processed with the product. You can, however, change the preferences for a specific drawdown. But, if ‘Reval Reqd’ is ‘No’ for the product, you cannot change it to ‘Yes’ at the drawdown level and revaluation will not be applicable for such drawdowns. The following preferences become mandatory if revaluation is applicable:
Exchange Rate Code
This indicates the code for the exchange rate that must be used to convert the drawdown amount from the drawdown currency to its equivalent in the tranche currency. The option list will display the rates codes maintained for the currency pair (tranche and drawdown currencies) involved in the conversion. During revaluation, system picks up the exchange rate maintained for the selected rate code and rate type corresponding to the currency pair.
Exchange Rate Type
This refers to the type of exchange rate that must be used to convert the drawdown amount from the drawdown currency to the tranche currency. The available options are:
Frequency
This is the frequency or periodicity at which automatic revaluation should be performed. The options available are:
Start Month and Start Day
For the frequency selected, you must also specify the month and the date according to which the system commences the revaluation process.
If Reval Reqd is ‘Yes’, Oracle Banking Corporate Lending creates the revaluation schedules based on the Frequency, Start Month and Start Day you specify as part of the revaluation preferences for the drawdown. The system also takes into account the holiday preferences in the ‘Holiday Treatment for Schedule’ section of the ‘SCHEDULE’ tab to arrive at the schedule dates.
The following ‘Contract Details’ are displayed in this screen:
The following ‘Revaluation Schedules’ details are displayed in the Contract tab for each schedule:
Note
For more details on revaluation, refer the heading titled ‘Processing revaluation of drawdowns’ in this chapter.
You can capture the details pertaining to the drawdown schedule in the ‘Schedule’ tab.
The information available in this screen is discussed below:
The holiday treatment you specified for the DD product defaults to the drawdown. However, you can change the details, if required.
Note
The system redefines the future schedule dates for Principal, Fees, and Interest components based on the changes made.
For details on the available options, refer the heading ‘Specifying Additional Preferences for Loan Syndication’ in the ‘Defining Products for Loan Syndication’ chapter of this User Manual.
Grace Days
For drawdown contract, system defaults the value maintained for ‘Grace Days’ at the borrower drawdown product level. However, you can edit the default value of grace days during contract input or contract amendment. During contract amendment, the amended value is applicable only to future calculations of late payment charges. While saving the drawdown, system displays the following override message:
‘Grace Days for drawdown is defaulted from the tranche contract, do you wish to continue?’
You can accept the override message by clicking the ‘Ok’ button to continue with the save process. In this case, system defaults the value for grace days from linked borrower tranche contract. If you reject the override, then system defaults the value of ‘Grace Days’ from the drawdown product.
The “Allow schedules for discounted” check box is selected if the 'Payment Type' is 'Discounted' or 'True Discounted'. By default, this check box is selected in the Drawdown Contract while creating contract for Discounted Drawdown Product.
If selected at the product level, this check box is available to be selected at the contract level. Once selected, this check box cannot be cleared later.
The repayment schedule definition for the drawdown is based on the repayment processing rule specified at the tranche level. The available rules are:
For more information on the above rules, refer the heading ‘Specifying processing rules for the tranche’ in this chapter.
Further, it also depends on the ‘Auto Repay Schedule’ option defined for the tranche (in the ‘Schedule’ tab of the ‘LB Tranche Contract Online’ screen).
Note
The drawdown repayment schedules are determined by the reduction schedules only for drawdowns with the following attributes which are defined as part of drawdown product preferences.
The repayment schedule details include the following:
Type
In the ‘Schedule Details’ section of the screen, you can define the following types of schedules:
Component
In this field, you have to specify the component for which the schedule is being defined. All components - the principal and other components, depending upon your association with the drawdown product will be available in the form of an option list. You have to define schedules for each of them.
When defining repayment schedules for specific loans, the amount of repayment needs to be specified only for the principal. The interest, commission and fee amounts are calculated by the system, automatically, depending on the repayment date and amount of the principal.
Note
For amortized schedules, you cannot define schedules for the principal. The component is displayed as ‘AMORTISE’. You should specify the frequency of amortization.
Start Date
This is the date on which the first repayment or rate revision becomes due for the schedule being defined. Subsequent dates will be calculated based on this date and the frequency you specify in the next field. Any repayment or rate revision schedule date falling on a holiday is handled as per the holiday treatment specifications you define.
This date should be the same or later than the Value Date and same or earlier than the Maturity Date of the drawdown.
No.
Based on the frequency and the unit of frequency, you have to specify the number of schedules for the component. For instance, if you want the schedules to fall due once a month for 12 months, then you need to specify the following details:
Frequency
This indicates the frequency/interval at which the schedules fall due. The available frequencies are:
Note
You can specify only bullet schedule for PIK interest component. PIK margin maintained at the ‘Margin Maintenance’ screen is automatically picked up for the PIK margin component.
Unit
Unit of frequency identifies the number of occurrences within a frequency, for example, . Unit ‘2’ and Frequency ‘Monthly’ means bimonthly frequency that is, the schedule occurs once in 2 months. Similarly, if you want a payment every 15 days you have to specify the frequency as ‘Daily’ and enter the units as ‘15’.
Amount
When defining repayment schedules, the amount of repayment needs to be specified only for the principal. This is the amount by which the available amount under the drawdown is reduced as per the frequency.
The system calculates the interest and fee amounts automatically, depending on the repayment date and amount of the principal. However, for drawdowns with special interest, you also have to provide the interest amount. Similarly, if a fee or a charge has been defined as an amount, you also have to specify the amount.
Note
Month End Indicator
If 'Month End Indicator' is selected as ‘Yes’ then ensure to enter the 'Start Date' as month end. In this case you need to consider 'Holiday Treatment For Schedules'.
Holiday currency is based on the currency maintained in the 'Currency Maintenance' screen.
You can specify the following details related to amortize contracts
Installment Amount
Specify the installment amount for amortized contracts. This option is available only for the contract using the product which has the ‘Allow user input installment’ flag is checked.
The system performs the following validations to this field:
Installment amount captured is same for all schedules and it may differ if:
Principal is derived as Principal = user input installment– Interest component.
Allow Pre-Amortization Interest
Select this check box to indicate that the system should calculate the pre-amortization interest.
Based on the payment schedules captured for the components, Oracle Banking Corporate Lending computes the schedules and the amount payable for each schedule in the ‘Payment Schedule Details’ screen.
Click ‘Payment Details’ button from the ‘Schedule’ tab.
To view the rate revision schedules, click the ‘Revision Schedule’ button. The ‘Revision Schedule Details’ screen appears.
The following details are displayed in this screen:
In the Instance of Rate change, differential amount will be adjusted against the Bullet schedule without modifying the existing Installment constant amount. On ‘REVN’ or ‘VAMI’ either increase or decrease in the rate increases or decreases the bullet schedule amount without affecting EMI or Tenor. As a result, the EMI of the bullet schedule can be less or more than the other schedules.
The main interest component amount of each installment is re-computed in usual way based on the principal balance and the new rate. The prevailing EMI (EMI present in the current schedule of the transaction – System does not consider EMIs of previous schedules) will be kept constant.
The iteration of reducing Principal balance with above Principal component of EMI continues until the bullet schedule is reached. The last EMI have the remaining Principal amount and the interest as the EMI.
In case of user input installment amortise schedule type contracts, On Rate revision or Margin Rate Fixing, if the sum of Interest and Special Component’s amount exceeds the existing Amortization amount, exception is logged for those contracts in batch.
The following schedule adjustments are performed for prepayment:
Note
‘Liqd int on prepaid principal’ flag is not applicable for any kind of payment of amortization contracts. Payment value date should fall on a schedule date of the Interest (AMORTISE component in case of Amortise schedule type Drawdowns) to do full prepayment of the contract.
You can specify the rounding details by clicking ‘Interest’ tab and then clicking ‘Rate Settings’ tab.
The drawdown contract inherits the currency-wise rounding rules defined for interest components, in the interest class associated with the drawdown product (as defined in the ‘Interest Class Definition’ screen).
Int Period Basis
This field indicates how the system must consider the tenor basis upon which interest is computed over a schedule or interest period. You can select the required option from the drop down list.
Rounding Rule
Indicate the currency rounding rule that must be applied to round off interest amounts in the selected currency, for the main interest component. The following options are available in the drop down list:
Decimals
This indicates the number of digits after the decimal place, to which interest amount in the specified currency, is to be truncated. This specification can only be made for the rounding option ‘Truncate’. If you do not specify a value here, the system uses the number of decimals defined for the drawdown currency (in the ‘Currency Definition’ screen).
The number of decimals specified in this field cannot exceed the number of allowed decimal places defined for the specified currency (in the ‘Currency Definition’ screen).
Units
This field indicates the lowest possible measure in which interest amounts can be considered in the specified drawdown currency. This value cannot be less than the rounding unit for the specified currency (as maintained in the ‘Currency Definition’ screen). If not specified, the system picks up the rounding unit maintained for the drawdown currency.The following details default to screen and you cannot change them:
For more details on the ‘Currency Definition’ screen, refer the ‘Currency Maintenance’ chapter of the CS (Core Services) User Manual.
In the ‘Linkage Details’ section of the screen, you can view the details of the tranche under which the drawdown is processed. The following details are displayed here:
Note
You can rollover a drawdown only if you have checked the ‘Allow Rollover’ option for the drawdown product used to process the drawdown. If this option is not selected, the following message appears when you click ‘Rollover’ tab:
“Rollover not allowed”
Click ‘Interest Details’ button to enter interest related details and also RFR (Risk Free Rate) details. For more information on RFR, refer to Interest User Guide.
On click of ‘Interest Details’ button, ‘Interest Rate Fixing Date’ gets defaulted as parent contract maturity date.
For details on rollover and information on the ‘Rollover’ tab, refer the ‘Rolling-over a drawdown’ chapter of this User Manual.
You can view the Interest rate and margin rate history for each drawdown in the ‘Rates History’ screen. This screen holds the history of interest rate and margin changes that have happened for the drawdown. Click ‘Rate History’ tab to invoke this screen.
In this screen,
you have to select the interest component to view the corresponding interest
and margin details. To view the margin rates for the components, click
the ‘Margin History.
You can view the borrower entity details in the ‘Borrower Entities’ screen. These details default from the tranche associated with the drawdown. Click the ‘Entity’ tab to invoke this screen.
You can modify only the following parameters:
SSI Counterparty
By default, the drawdown borrower is displayed here. You can change the counterparty if the borrower requests to process the settlements through another account. The option list displays the names of all the customers maintained in Oracle Banking Corporate Lending.
SSI Mnemonic
SSI Mnemonics are maintained in the ‘Settlement Instructions’ screen for a Counterparty, Module, Currency, Product and Branch combination. The same is available for the counterparty/borrower of the drawdown. The Mnemonic selected here obtains the settlement details for the borrower of the contract and the same defaults to the ‘Settlement Message Details’ screen.
If you do not select the SSI Mnemonic, system defaults the SSI Mnemonic for the counterparty and contract currency when you exit the screen.
Note
Note the following:
Select the appropriate ssi mnemonic applicable for the selected currency
You must also identify the participants who contribute to the amount being disbursed under the drawdown. A borrower drawdown contract inherits the participant details defined for the borrower tranche under which it is entered. You can make changes to the defaulted participant details when you enter a borrower drawdown. To view the details in the ‘Participant Ratio Details’ screen, you have to click the ‘Participants’ tab.
Based on the drawdown amount, the system computes the contribution of each participant towards the drawdown as per the ‘Asset Ratio’ maintained for the tranche.
You can change the default participant details in this screen. Upon change of participants, the system automatically convert a ‘Cascade Participation’ type of tranche to a ‘Non Cascade Participation’ type. The ‘CASC’ event is triggered to indicate the change in the attribute and the ‘Cascade Participation’ option for the underlying tranche (in the ‘CONTRACT’ tab of the ‘LB Tranche Contract Online’ screen) is deselected. If changing the participant details is possible, you can specify the following details for each participant, for the drawdown schedule:
For example, let us assume a tranche amount of USD 10 million. The Asset Sharing Ratio (ASR) for various participants can be calculated as follows:
Participant |
Asset amount in USD |
ASR in % |
CITIBANK |
2,000,000 |
20 |
BARCLAYS |
2,000,000 |
20 |
NATWEST |
3,000,000 |
30 |
HSBC |
3,000,000 |
30 |
At the drawdown level, you can choose to change the asset sharing ratio of the participants in the following manner, if required.
Let us assume that the first drawdown amount is USD 4 million. The Asset Sharing Ratio (ASR) for this amount is as follows:
Participant |
Asset amount in USD |
ASR in % |
CITIBANK |
1,200,000 |
30 |
BARCLAYS |
400,000 |
10 |
NATWEST |
1,600,000 |
40 |
HSBC |
800,000 |
20 |
When you change the ASR for a drawdown under the tranche, the ASR at the tranche level will remain the same. However, at the time of a second drawdown, the ASR at the drawdown level displays the availability ratio instead of the tranche asset sharing ratio.
Note
The original asset sharing ratio is displayed only at the Tranche level.
The availability ratio after the first drawdown is as follows:
Participant |
Asset amount in USD |
ASR in % |
Availability amount |
Availability ratio in % |
CITIBANK |
2,000,000 |
20 |
800,000 |
13.33 |
BARCLAYS |
2,000,000 |
20 |
1,600,000 |
26.67 |
NATWEST |
3,000,000 |
30 |
1,400,000 |
23.33 |
HSBC |
3,000,000 |
30 |
2,200,000 |
36.67 |
The availability amount is computed on the following basis:
The availability amount could vary for revolving and non-revolving tranche.
For revolving tranche contracts, the available amount will be calculated as follows:
For non-revolving tranche contracts, you can compute the available amount in the following manner:
You can change the asset sharing ratio for participants on a non proportionate basis using the ‘Contract Payment’ screen.
For more information on this, refer the section ‘Processing Repayments Manually’ in the ‘Processing Repayments’ chapter of this User Manual.
For details on fields available in this screen, refer the heading ‘Maintaining participant details for the tranche’ in this chapter.
In addition to the above, you can do the following through this screen:
For details on the above procedures, refer the following headings in this chapter:
Click ‘BA Details’ button to enter ‘Discount Rate’ and ‘Stamping Fee Rate’ for each participant while booking DD contract.
You can accept inputs from individual participants for discount and stamping fee rates. Individual participant rates are summarized based on participant rates and contributions at the overall borrower level. The rates provided at the tranche level are carried forward to the drawdown level where you can modify the tranche defaulted rates.
Note
If 'Enable Participantwise BA Rates' check box is selected in Loans Parameters screen (OLDLNPRM), the participant BA rates are captured and then 'BA Details' subsystem is disabled. If it is not selected then you can capture BA details for borrower in 'BA Details' subsystem.
Additional BA Details
Rounding unit
This field is for defining rounding parameters for derivation of discount price.
Maximum rate
This field is for defining the maximum rate for individual participant discount rates
Example for Stamping fee rate computation for Borrower
Banker’s Acceptance
Participant |
Stamping Fee Rate |
Participant Asset Ratio |
Percentage |
Percentage*Stamping Fee Rate |
P1 |
1.5 |
25 |
0.25 |
0.375 |
P2 |
1 |
50 |
0.5 |
0.5 |
P3 |
1 |
25 |
0.25 |
0.25 |
|
Borrower Rate Arrived |
1.125 |
You can view or capture banker’s acceptance details only if the Banker’s Acceptance check box is selected at the product level.
The contract details get defaulted from the ‘Contract’ tab.
Broker BA Product
You can select BA broker product from the list of values. These values are maintained the ‘Static Maintenance’ screen.
Interest Day Basis
The interest day basis gets defaulted from the ‘Interest Basis’ of the main interest component.
Stamping Fee Rate
This rate gets defaulted from the ‘Final Rate’ of the main interest component.
Discount Rate
Specify the discount rate.
Treasury MIS Rate
Specify the treasury MIS rate.
This rate gets defaulted to ‘User Rate’ of the MIS screen.
Agent Rate
Specify the agent rate.
Stamping Fee Amount
This amount gets defaulted from the ‘Interest Amount’ field of main interest component amount.
Stamping fee amount = loan amount * stamping fee rate * no. of days / day basis.
Example:
Discount Amount
This amount is calculated automatically, that is, Loan Amount * (1 – Discount Rate)
Example:
Net Borrowing Amount
This amount is calculated automatically, that is, after deducting the discount and stamping fee from the drawdown amount.
Example:
You can view margin details maintained for participants of the drawdown contract, using the ‘Participant Rate Summary’ screen. To view this screen, you have to click the ‘Part Rate’ tab.
Here you can view the following details.
The system displays the following participant details:
The system displays the following component details.
The system displays the following interest details.
The system displays the following margin details.
You can view margin details of all participants including the margin history by clicking the ‘Margin History’ button on the ‘Participant Rate Summary’ screen.
The system displays the following details.
The system displays the following component details.
The system displays the following margin details.
The system displays the following margin rate details.
The margin rate maintained for the individual participant is considered while calculating the interest due on the participant side, during contract booking. This is applicable for current dated/back dated/forward dated drawdown bookings.
You will need to fix the exchange rate for drawdowns only if the drawdown currency is different from the tranche currency. The exchange rate fixing days refers to the number of business days before the value date of the drawdown or the new rate fix period. Exchange rate fixing for the new drawdown or the new rate fix period is done on this day.
To fix the exchange rate for the drawdown currency, click ‘Exrrate Fixing’ tab. The ‘Exchange Rate Fixing’ screen is displayed, as shown below:
The system arrives at the exchange rate fixing date for the drawdown currency based on the exchange rate fixing days maintained at the tranche level and the holiday validation currencies specified for the drawdown currency.
For more details, refer the heading ‘Specifying currency details for the tranche’ in this chapter.
You can specify the following details in this screen:
Effective End Date
You have to specify an end date for the new rate to be effective in the system. The start date will be equal to the drawdown date. You have to capture the date in ‘DD-MMM-YYYY’ format.
Exchange Rate
The default exchange rate is displayed here. The system picks up this rate from the ‘Currency Rates Maintenance’ screen. You can change the rate, if required. You can enter upto 15 decimal points.
Remarks
You can also capture additional information, if required. This is used only for information purposes.
Note
It is not mandatory for you to fix the exchange rate before you fix the interest rate.
Click ‘Ok’ button to save and exit the screen. When you save the drawdown, the system triggers the ‘EXFX’ event with the exchange rate fixing notice. For future dated drawdowns, you need to fix the exchange rate before the value date of the drawdown.
Subsequently, you have to manually fix the exchange rate for the drawdowns. You have to fix the rate for the next period before the end of the current period. However, if you do not do the rate fixing for the subsequent periods, Oracle Banking Corporate Lending applies the latest fixing rate for the rest of the period.
Note
For more information, refer the heading ‘Fixing Exchange Rate after drawdown booking’ in this chapter.
You can view the interest and margin components, if applicable to the drawdown, in the ‘ICCF Details’ screen. These details default from the tranche under which the drawdown is being processed. Click ‘Interest’ tab to invoke this screen.
The interest basis defaults from the product level. However, you can change the default value anytime during the lifecycle of the contract except for contracts with interest capitalization type of renewal instructions. When you change the day basis, the system re-computes the schedule interest amount from the start date of the component. The amendment becomes applicable from the value date of the contract. Note that the system considers the margin rates maintained for each participant while re-computing the interest.
The interest for each currency is calculated using the interest basis, which you select:
For more information on ‘Interest Basis’, refer to Interest User Manual.
Note the following:
You can use the navigation buttons -
to view the interest components associated with the drawdown.
Specifying Interest Rate Rounding Components
The ‘Rate Rounding Rule, ‘Rate Rounding Unit’, and ‘Rate Rounding Position’ values get defaulted from ‘Interest Limits Detail’ screen. If required, you can change these values.
Amortization Constant Component
The default value from the product gets defaulted here. The check box is selected if this is an amortization constant component. You cannot change it in the contract level.
Compensatory Component
The corresponding compensatory component is displayed from the product for the main interest component.
Note
The options of ‘Alternative Risk-Free Rates Preferences’ are defaulted from ‘Interest Class Maintenance’ screen (LFDINTCL).
While booking the contract you can modify the 'Alternative Risk-Free Rates Preferences' options.You cannot modify the preferences during contract amendment and value dated amendment.
In case loan is booked with 'Alternative Risk-Free Rates Preferences' and during contract amendment if you try to change the preferences to LIBOR Fixed/Floating, then the following error appears "Modification of parameters from RFR to Non-RFR and vice-versa is not allowed".
For more information, refer to Interest User Manual.
The billing preferences maintained at the product level defaults to the contracts. You can amend these preferences at the contract level only if you have specified the same at the product level.
Billing Notice Required
Select this check box to indicate that you would like to send a billing notice for the interest component.
No of Days
Specify the number of days prior to the billing date that the billing notice needs to be sent.
Note
You can not amend these values if the Billing Notice Required option is deselected at the product level.
For details on the above screen, refer the heading ‘Specifying Interest Details for a Contract’ in the ‘Processing Interest’ chapter of the Interest User Manual.
Just as you fix the exchange rate for the drawdown currency, you can also fix the interest rate for a predefined period. The Interest rate fixing days refers to the number of business days before the value date of the drawdown or the new rate fix period. Interest rate fixing for the new drawdown or the new rate fix period is done on this day.
Note
Note
For main interest component if ‘Rate Type’ is 'Fixed', then you can enter rate fixing details in 'Rate Fixing' screen. In addition, you can enter the 'Spread' and 'Margin Details'.
For more details regarding dual authorization, refer the heading titled ‘Authorizing Overrides’ in the chapter titled ‘Loan Syndication Contracts - Part 1’ of this User Manual.
The system arrives at the Interest rate fixing date for the drawdown currency based on the Interest rate fixing days maintained at the tranche level and the holiday validation currencies specified for the drawdown currency.
For more details, refer the heading ‘Specifying currency details for the tranche’ in this chapter.
To fix the interest rate for the drawdown currency, click the ‘Rate Fixing’ tab in the ‘ICCF Details’ screen and invoke the ‘Rate Fixing Details’ screen, as shown below:
Note
Rate Fixing button gets enabled in ‘ICCF Details’ screen only if rate fixing is selected at the product level.
You can specify the following details in the ‘Rate Fixing Details’ screen:
Rate Code
You have to specify the floating rate code based on which you can specify the interest rate fixing tenor and the default fixing rate.
Tenor Value
You can specify the rate fixing period by specifying a ‘Tenor Value’ or the ‘Rate Effective End Date’. If you are specifying a tenor, you can select a value from the option list which displays the tenor values associated with the rate code you select. This is based on your maintenance in the ‘Floating Rate Code Definition’ screen. Upon choosing a value, the following details are also displayed:
Rate Effective End Date
If you do not want to specify a ‘Tenor Value’, you have the option to capture the end date of the rate fixing period. This date should not be less than or equal to the ‘Rate Effective Start Date’. The system displays the following after you specify the end date:
Rate
The system defaults the interest rate based on the rate code and the tenor value/effective end date you specify for the drawdown. You can change the default rate, if required.
If the base rate is changed or new rate is added or the floating rate codes are changed, the system recalculates the interest. Note that it considers the margin rates maintained for the participants while recalculating the interest due for the participants.
For more details on negative rate processing, refer the title ‘Maintaining Loans Parameters Details’ in the chapter ‘Bank Parameters’ in Core Services User Manual.
Remarks
You can also capture additional information, if required. This will be used only for information purposes.
Click the ‘Ok’ button to save and exit the screen.
Note
On click of unlock button you are allowed to capture the value date by altering the rate effective start date.
Note
The following actions should be performed automatically on click of ‘OK’ button in the ‘value date’ field.
For more information on bidding refer ‘Bidding Contract’ section in ‘Interest’ manual in ‘Modularity’ module.
For details on the ‘LB Interest Rate Fixing’ screen, refer the heading ‘Fixing Interest Rate after drawdown booking’ in this chapter.
To set the rate setting rules for the borrowers drawdown, click the ‘Rate Setting’ in the ‘ICCF Details’ screen and invoke the ‘Rate setting’ screen, as shown below:
Specify the following details.
Product code
The system displays the product code.
Contract Ref number
The system displays the contract ref number.
User ref number
The system displays the user ref number.
Customer
The system displays the customer name.
Facility name
The system displays the facility name.
The system displays the split number.
Principal roll amount
The system displays the principal roll amount.
Interest roll Amount
The system displays the Interest roll amount.
Roll Product
The system displays the roll product.
Total roll amount
The system displays the total roll amount.
Maturity date
The system displays the maturity date.
Rounding rule
Select the rounding rule from the adjoining drop down list. Select one of the options listed below:
Rounding Unit
The rounding unit enables only if the you have selected the ‘rounding rule’ as ‘Down’ and ‘Upto’
Interest rate period
Select one of the interest rate periods from the options given.
Once all the Rate setting rules are maintained and when you come out of ‘Rate Setting Rule screen’ by clicking OK button (Green tick), the following override messages are displayed
To set the risk participation details for the borrowers drawdown, click the ‘Risk Participation’ in the ‘ICCF Details’ screen. The following details are provided in the ‘Risk Participation’ screen.
Funding Participant
Select the funding participant from the LOV.
Funding Participant Name
Based on the funding participant selected, the name automatically appears.
Risk Participant
Select the risk participant from the LOV.
Risk Participant Name
Based on the risk participant selected, the name automatically appears.
SSI Mnemonic
It is the settlement account for the risk participant.
Risk Amount
You can provide the risk compensation amount as agreed between the funding and risk participant banks.
Risk Rate
You can provide the risk rate as agreed between the funding and risk participant banks. The risk pay-outs are computed on this rate.
The risk compensation pay-outs are defined in the form of schedules.
Status
It indicates the risk participation status. It can be either 'Active' or 'Cancelled ( Active till cancelled)'. You can change the status from active to cancelled.
Note
Accrual computations and accounting for risk component for the self-participant portions are defined in the bilateral module.
The SKIM details captured for the tranche gets propagated to the drawdown contract. You are allowed to amend the details at the drawdown level. To view and amend the details, if needed, click the ‘Skim’ tab. The ‘SKIM Details – Drawdown’ screen is displayed.
The details of the payer and receiver of Skim and the Skim rate gets defaulted to the respective participant contracts for processing. The accounting entries are also passed in the corresponding participant contracts.
Note
If SKIM details are not maintained for the tranche, you cannot define them afresh at the drawdown level. Atleast one combination of Skim should be defined for the tranche.
For details on the fields in this screen, refer the heading ‘Defining SKIM details for tranche participants’ in this chapter.
For details on the accounting entries defined for the Skim components, refer the heading ‘Maintaining Skim components for participants’ in the ‘Defining Products for Loan Syndication’ chapter of this User Manual.
Note
You have the option to amend the Skim details for a drawdown through the ‘Skim Amendment’ screen.
For more information on this screen, refer the heading titled ‘Amending drawdown SKIM details’ in this chapter.
The charge components associated with the drawdown product is applied to the drawdown. You can view the charge details in the ‘Contract Charge Details’ screen. Click the ‘Charge’ tab to invoke this screen.
For more details on this screen, refer the heading ‘Modifying charge details for the tranche’ in this chapter.
The fee components associated with the drawdown product is applied on all drawdowns processed under it. You can view the fee component schedule details in the ‘Fee Components’ screen. Click the ‘Fee’ tab in the ‘Drawdown Contract Online’ screen to access it.
Note
For the fee components having basis amount as UTILIZED or UNUTILIZED, if there is a change in UTILIZED or UNUTILIZED amount due to Value dated amendment (VAMI), creation or liquidation of Drawdowns, then the unpaid schedules are recalculated and reflected in the future fee schedules. The recalculation for the unpaid fee schedules happens during the VAMI, If the change in basis amount happens during the fee calculation period of the Advance fee component's latest paid schedule, then the recalculation happens during the EOD on the date of amendment, and the calculated amount for that schedule is the sum of the calculated amount before amendment and after amendment.
For details on the fields in this screen, refer the heading ‘Defining tranche fee schedules’ in this chapter.
At the drawdown level, tax is applicable only on the interest and fee component.
The ‘ Tax’ sub-screen displays the tax rule details associated with the drawdown product.
You can view both borrower and participant tax details associated with the drawdown.
You can waive the subsequent tax that is applied for a borrower/participant and tax rule combination.The system passes the entries for tax based on the event you specify in the ‘Product Tax Linkage’ screen.
Typically, tax on fee is calculated upon liquidation of the fee (event ‘FLIQ’ is associated with the rule) while tax on interest is computed on interest liquidation (event ‘LIQD).
You can collect withholding tax on the fee/interest collected by the participants of a drawdown. However, tax is not applied on the fee collected from the participants. The tax details, if applicable for the participant product (linked to the drawdown through the facility product) is applied on the drawdown. To view the details, click the ‘Tax’.
This screen displays the tax rules for each participant based on which withholding tax is computed on the fee or interest components. Tax rules associated with the drawdown product defaults to the drawdown. You can waive the subsequent tax to be applied for a participant and tax rule combination.
The system passes the entries for tax based on the event you specify in the ‘Product Tax Linkage’ screen. Typically, tax on fee is calculated upon liquidation of the fee (event ‘FLIQ’ will be associated with the rule) and tax on interest is computed on interest liquidation (event ‘LIQD’ is associated with the rule).
For details on associating tax with a product, refer the heading titled ‘Specifying tax details for a participant product’ in the ‘Defining Products for Loan Syndication’ chapter of this User Manual.
For more information on the Tax sub-system of Oracle Banking Corporate Lending, refer the Tax User Manual.
You can maintain settlement instructions for various components such as fees, charges, tax, principal, interest, and so on, using the ‘Overwrite Settlement Instruction Details’ screen. Using this screen, you can post liquidation entries into an Internal GL account instead of the customer account at the time of rollover. Click ‘Overwrite default SI’ in the ‘Drawdown Contract Online’ screen to invoke the following:
Enter the details as specified below:
Component
This screen displays the all the components displayed in the Settlement Message Details screen.
Internal GL
Specify the Internal GL accounts into which you want to post the liquidation entries for the components.
Overwrite Default Settlement Instruction
Select the ‘Overwrite default settlement instruction’ check box to confirm that the liquidation entries should be posted into the Internal GL account. System posts the entries to the Internal GLs only if you check this box. Otherwise, system posts the entries as per the settlement instructions specified for the component of the contract.
Note
You need to perform dual authorization, if you have selected the Overwrite SI option for any of the following events:
For more details, refer to the section ‘Authorizing the overrides for tranche’ in the same chapter.
You can view the settlement instructions for the drawdown in the ‘Settlement’ screen. Click the ‘Settlement’ tab to view the details.
The system obtains the settlement account for each drawdown component based on the SSI Mnemonic selected for the component.
If the ‘Chinese Characters in Payment’ box is checked in the ‘Loan syndication- Branch Parameters’ screen, then only you can enter the Chinese characters in the field 57, 59, and 70 for foreign currency and local currency settlement instructions / accounts and there are no validations in the system. You need to operationally control it.
You are allowed to enter the information in Chinese or English or a combination of both in this field. If it is a combination, then the system considers it as Chinese and allow up to 35 characters.
Note
This is applicable only for ASPAC region.
For more details about the ‘Settlement Message Details’ screen, refer the Settlements User Manual.
If you have maintained MIS details for the DD (drawdown) product, the same will default to the drawdown. To view the details, click the ’MIS’ tab.
For details on the ‘Transaction MIS Details’ screen, refer the MIS User Manual.
You can also specify different entity or party types that would be applicable for the borrower drawdown as well as the applicable parties belonging to the selected party type. This is done in the ‘Party Details’ screen. Click ‘Party Type’ in the ‘DrawDown Contract Online’ screen. The party types associated with the drawdown product defaults to the drawdown. You can change the defaulted values, if required.
For more details on the above screen, refer the heading ‘Specifying parties for the facility’ in this chapter.
The UDFs defined for the drawdown product is applied for the drawdowns processed under it. You can view the UDFs, if applicable, in the ‘User Defined Fields’ screen. Click the ‘UDF’ tab to invoke this screen.
For more details on the above screen, refer the UDF (User Defined Fields) User Manual.
If the UDF ‘RATE-VARIANCE’ is maintained as a non-zero value for a tranche contract to which the drawdown is linked, dual authorization is required for some select operations.
For details on operations that require dual authorization, refer the section ‘Authorizing Overrides’ in the chapter titled ‘Loan Syndication Contracts - Part 1’ of this User Manual.
The UDF ‘PAYOFF-FEE’ attached to drawdown products is used to determine the flat fee amount. The value maintained for this UDF for the tranche contract is inherited to all linked drawdown contracts. If required, you can change the value at drawdown level. If the defaulted UDF value is overwritten at the drawdown level, then the tranche and drawdown UDF values are different. In this case, the subsequent UDF changes at the tranche contract level is not propagated to the drawdown.
The advices associated with the drawdown product (in the ‘Product Event Accounting Entries & Advices’ screen) is applicable for the drawdown. Click the ‘Advice’ tab to invoke the ‘Advices’ screen.
For more details on this screen, refer the heading ‘Modifying tranche advice details’ in this chapter.
After capturing the drawdown details, you have to save the same and have it authorized by your supervisor.
After you save the drawdown, you can view the following details of the contract:
This section explains only those details that are unique to a drawdown. For details on the other options (Diary Events, Netting Cash Flow Summary, Message Preview, Participant Summary, Events), refer the following sections in this chapter:
You can view the effective interest (EI) rates applied on the drawdown through the Effective Interest Rate details screen. Click the ‘Effective Interest Rate’ to invoke this screen.
In this screen you can view the ‘Effective Interest Rate’ and the ‘Start Date’ from which interest rate is effective in the system.
You can link escrow accounts to a contract using the ‘Escrow Account Maintenance’ screen. Click the ‘ESC’ tab in the ‘Drawdown Contract Online’ screen to access this screen.
You can specify the following details in this screen:
Account Number
Select the account number of the customer from the adjoining option list.
Account Desc
System displays the description of the account number.
Escrow Type
System displays the Escrow type.
Escrow Balance in LCY
System displays the available escrow balance in local currency.
Note
Example
If the Escrow component is part of amortization constant amount, then while redefining the following validations are performed:
Note
Escrow component can be amended only through schedules details tab and not through CAMD or VAMI. You cannot amend escrow interest amounts through contract amendment for Amortization schedule type contracts, if Escrow components are part of the amortization constant.
You can select components to which late payment charges are applicable for both commitment and loan contracts using the ‘Special Penalty Components’ screen. To invoke this screen, click the ‘Special Penalty’ tab in ‘Drawdown Contract Online’ screen.
Specify the following details:
Component
System defaults the components selected for late payment charge application at the product level.
Apply Special Penalty
Select this check box to indicate that system should apply special charges to the penalty component.
System identifies the loan contracts where grace period has expired and tracks due date, amount paid and amount settled for each component of the loan. If late payment charge component has been defined for a loan contract, that is,. if the ‘Special Penalty Component’ is selected for a component in a contract, then system does the following:
You can specify the media for the message generation in ‘Media for Message Generation’ screen. You can invoke this screen by clicking ‘Media Priority; tab. This button is enabled only if the ‘FpML Type’ option is unchecked and the ‘Media Priority’ option is checked at the product level.
The system displays the following details:
You can specify the following details:
Media for All Investors
Select this check box to indicate that the media is applicable for all the investors.
Media
Specify the individual participants and media for primary entity of each participant if the ‘Media for All Investors’ option is not selected. The adjoining option list displays all valid media maintained in the system. You can select the appropriate one.
You are allowed to select any media for primary entity of individual participant only if that media is maintained for primary entity of individual participant in the ‘Customer Entity Maintenance’ screen and also message type corresponding to the media is maintained for the event at the product level.
If there are multiple events to be registered in a single transaction from the same screen, the system validates such that message type corresponding to the media is maintained at least for one event at the product level.
In case, if the selected media is not available for any messages attached for some event, then the message for that event is generated based on the priority maintained in the ‘Customer Entity Maintenance’ screen.
During the drawdown booking, if the ‘Media for all investors’ is selected as ‘FPML’ , then the message generation corresponding to the events will be as follows:
Events |
Message generation |
DNOT |
FPML message will be generated |
IRFX |
Since there is no message attached with media FPML for IRFX event system checks the priority of Entity1 of participant and message is sent through media ‘FAX’.
If there is no media order maintained for Entity1, then system will generate the message using customer entity maintenance. |
You need to do the following set ups at the contract level for amortization schedule type contracts.
The ‘Liqd Interest on Prepayment’ flag is unchecked and disabled at the contract online screen. You are not allowed to perform any changes here. Partial payments is not allowed for agency amortization type of contracts and Partial payment allowed flag is unchecked and disabled for Amortization schedule type contracts. In CONTRACT tab, field ‘Amortization Type’ can be selected as ‘Reducing Balancing’ or ‘Rule 78’. The default value is ‘Reducing Balance’ and Schedule type is displayed as ‘AMORTISE’.
Contract schedules parameters like component, start date, number, frequency, units and other fields are defaulted. Amount is automatically derived by the system and is disabled. Based on these parameters, installment amount of each payment schedule is derived.
Contract schedule frequency redefinition to frequency values other than Monthly and Bullet are not allowed for all the components. System derives amortize amount based on the Principal and tenure of the contract using the EMI computation function.
Principal portion of the payment is derived using the formula Principal = Amortize amount– Interest component amount. System supports reducing balance amortization. And, amortization is not applicable for Sighting Funds applicable contracts.
You can view the drawdown details using the ‘Drawdown Summary’ screen. You can invoke the ‘‘Borrower Drawdown Summary’ screen by typing ‘LBSDDONL’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You can view the following fields:
You can perform a case independent search only if the parameter, ‘CASE_SENSITIVITY’ in cstb_param, is set to ‘Y’.
If you do not fix the exchange rate during drawdown booking (the event ‘EXFX’ is not fired for such drawdowns) you have the option to fix the same after the booking event. This is applicable if the drawdown currency is different from the tranche currency. You can invoke the ‘Exchange Rate Fixing’ screen by typing ‘LBDEXRFX’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
All subsequent exchange rate fixing after the drawdown booking is done through the above screen. Through this screen, you can fix the exchange rate for the current period (before the effective start date) as well as specify a rate for a new period. These options are discussed below.
You can use the unlock option to fix the exchange rate before the effective start date of the exchange rate fixing period. If you attempt to fix the exchange rate after the effective start date, the following message is displayed:
Exchange rate already fixed
To amend the exchange rate for the current fix period (i.e. before the effective start date), do the following:
Note
‘Advice for event EXFX is suppressed for the product, Do you want to continue?’
Advice for event ROEX is suppressed for product, Do you want to continue?
Advice for event CREX is suppressed for product, Do you want to continue?
You can use the ‘New’ option to fix the exchange rate for the next period. Follow the steps given below to fix the exchange rate using this option:
For the first time, you can fix the interest rate as part of drawdown booking through the ‘Rate Fixing Details’ screen. Subsequent rate fixing should be performed through the ‘LB Interest Rate Fixing’ screen. You can invoke the ‘Interest Rate Fixing’ screen by typing ‘LBDIRTFX’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You can view the agent reference number in this screen.
For interest rate fixing also you have the ‘Unlock’ (to fix the interest rate before the effective start date) and ‘New’ (to fix the interest rate after the effective start date) option. For more details on negative rate processing, refer the title ‘Maintaining Loans Parameters Details’ in the chapter ‘Bank Parameters’ in Core Services User Manual. For details on the two options, refer the heading ‘Fixing exchange rate after drawdown booking’ in this chapter.
For more information on the editable fields in the above screen, refer the heading ‘Fixing interest rate for the drawdown’ in this chapter.
You can specify the media for the message generation in ‘Media
for Message Generation’ screen. You can invoke this screen by clicking
‘Media’ tab. This tab is
enabled only if the ‘FpML Type’ option is deselected at the
contract level and the ‘Media Priority’ option is checked
at the product level.
If this tab is enabled, then the system displays an override message saying to view the ‘Media for Message Generation’ screen. If not, the system handoffs the message as per the details maintained in the ‘Customer Entity Maintenance’ screen.
For more information on the ‘Media for Message Generation’ screen, refer the heading ‘Specifying Media for Message Generation’ in this chapter.
You can amend the Skim details maintained for a drawdown in the ‘Skim Amendment’ screen.
For details on maintaining SKIM for a tranche, refer the section titled ‘Defining SKIM details for tranche participants’ in this chapter.
You can invoke the ‘Amending Drawdown SKIM Details’ screen by typing ‘LBDSKMAM’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You can use the ‘New’ option for amending the Skim details for an authorized drawdown. The ‘Unlock’ option is available only if the drawdown is unauthorized.
Note
During amendment:
When you ‘Unlock’ or select the ‘New’ option, as the case may be, do the following as part of amendment:
For more details on the ‘Skim Details – Drawdown’ sub-screen, refer the heading titled ‘Specifying drawdown SKIM details’ in this chapter.
In the ‘Value Date Wise Skim History’ section of the ‘Skim Amendment’ screen, you can view the history of modifications/amendments made till date for a payer and receiver combination. The following details are displayed here:
In the ‘Skim Rate History For:’ section of the screen, you view the latest values associated for a payer and receiver combination, prior to the amendment. If only a single amendment is processed for the drawdown, both the history sections will display the same details.
Following points are noteworthy here with reference to interest rate changes:
In addition, the margin value can change due to changes in the tranche outstanding because of a back value dated drawdown. If the amount due from a borrower changes due to a back value dated drawdown, the amount receivable from the participants also change and this change is shared by the participants based on the participant sharing ratio for the associated business event (MRFX).
The following points are noteworthy with respect to payable/ receivable tracking:
Note
You can reverse a payment of a payable/receivable by clicking the ‘Reverse’ option . This option is enabled only if you access the above screen directly from the Application Browser (to do this, you need to choose LB Operations and double-click on the Payment option under Receivable Payable).
If you have selected the ‘Payment Browser’ preference as part of the preferences for the branch for secondary loan trading (in the ‘Secondary Loan Trading – Branch Parameters’ screen), then the system processes the payments meant for trading through the ‘Payment Browser’ screen. The payments that are processed through this browser are:
Oracle Banking Corporate Lending allows future dated liquidation of Prime drawdown contracts if ‘Liquidate Interest on Prepayment’ option is selected for the drawdown contract in the ‘Drawdown Contract Online’ screen.
In this case, the interest computation is done for the prepaying principal and is computed till the value date of the future dated payment. On the value date of the payment, system recalculates the interest on the prepaid principal and compares the calculated interest amount with the interest amount that was calculated earlier by the system, while capturing the instructions for future dated payment. If there is a mismatch in the interest amount, system logs an exception and aborts the payment process.
You cannot do future dated payments for contracts which are instructed for a rollover or renewal. In such a case, you need to remove or reverse the rollover/re-price instruction on the contract in order to process a future dated payment. On the contrary, if you are reversing a future dated payment of a contract after instructing it for a rollover or re-pricing, then there will not be any change in the rollover/re-price amount. On the value date of the rollover /re-price, system will rollover/re-price the captured rollover\re-price amount. System liquidates the remaining future dated payment reversal amount based on the Liquidate Interest /Liquidate Principal options selected in the ‘Rollover’ tab of the ‘Drawdown Contract Online’ screen.
Note
When you initiate a new drawdown, Oracle Banking Corporate Lending checks whether revaluation is applicable for the drawdown. If selected, it arrives at the revaluation schedule dates based on the following:
Even if revaluation schedules have been defined with the ‘Start Date’ as the Value Date, you have to manually fix the exchange rate at the time of booking the contract.
For more details, refer the heading ‘Fixing exchange rate for drawdown currency’ in this chapter.
During EOD batch, system checks if there is a revaluation schedule for any drawdown. If revaluation is due, system further checks if the rate is already fixed for the current date (Manual Exchange Rate Fixing). If it is already fixed, system skips the revaluation process and considers only the next revaluation date for subsequent revaluations.
However, if you have fixed the exchange rate on the value date as part of contract initiation, and revaluation schedules have been defined with the Start Date equal to the Value Date, system again does a revaluation as part of EOD batch on the Value Date. The rate derived for the Rate Code and Rate Type combination at the time of running the batch, is used for revaluation. System uses this rate to convert the amount in the drawdown currency into its equivalent in the tranche currency.
Note
Once auto revaluation commences, you cannot do a manual rate fixing till the end date of that schedule.
Oracle Banking Corporate Lending allows you to perform the following back valued activities on a drawdown, beyond the last trade date, for both revolving and non-revolving tranches:
Note
System performs the following activities as part of any back value dated activity on a drawdown, beyond the trade date:
You can specify the Global Tranche or Global Drawdown amounts in the ‘Tranche Online’ and ‘Drawdown Online’ screens respectively during contract booking. Any amendment to the Global Tranche or Global Drawdown amounts is done in the ‘Global Amount Amendment’ screen.
Using the ‘Global Amount Amendment’ screen, you can amend all non-lead Tranches; however, you can only amend those non-lead Drawdowns where the Cascade Participation is set to ‘No’.
You can invoke the ‘Global Amount Update’ screen by typing ‘LBDGLAMT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
To amend the Global Tranche or Drawdown amounts, do the following:
The system automatically updates the Global Amount for non-lead Tranches or Drawdowns in the following scenarios:
The latest Global Amount for tranche as on the date of handoff is used for handoff of the Commitment Reduction to the Loans QT system.
Note
The following for the global amount for tranche:
Note
The following for the global amount for drawdown:
When you ‘BOOK’ a borrower tranche, the system creates the related participant contracts. It picks up the participant tranche product linked to the borrower tranche product (in the ‘Loans Syndication – Facility Product Preferences’ screen) and the participant details maintained for the borrower tranche contract to create the corresponding participant tranche.
In the same manner, it picks up the participant drawdown product to create the participant drawdowns. The contract uses the participant details maintained for the borrower tranche contract.
The processing of participant contracts depends on the ‘Participant Process’ mode, whether ‘Job’ or ‘Online’, set for your branch. You have to specify this as part of defining parameters for your branch in the ‘Branch Parameters – Detail’(OLDBRMNT) screen.
If the ‘Participant Process’ mode is set to ‘Online’ for your branch, the system automatically processes the related participant contracts, as mentioned above. In the ‘Online’ mode, you can save and authorize the borrower side contracts (facility, tranche or drawdowns) ONLY if the corresponding participant side contracts are processed successfully. You can view the status of the participant contracts in the audit trail section at the bottom of the respective borrower contract. For successfully saved borrower contracts, the ‘Participant Processing Status’ is displayed as ‘Processed’.
You can also view the details of borrower and participant contracts processed in Oracle Banking Corporate Lending in the ‘JOB PROCESS STATUS’ screen.
For more details on the above screen, refer the heading ‘Viewing borrower/ participant contract processing status’ in this chapter.
If the ‘Participant Process’ mode is set to ‘Job’ for your branch, you have to initiate a Background Job which picks up the participant contracts created in the system for further processing.
You have to initiate the Background Process as part of BOD programs run for the branch. The initiation is done through the ‘Participants Propagation’ (LBSPPROP)screen.
The ‘Job Status’
is ‘Job’. When you click the ‘Start
Job’ button, the Background Job gets initiated in Oracle Banking
Corporate Lending. In the ‘Job’ mode, after you save the
borrower side contract, you can proceed with the next contract while
the system processes the participant side contracts in the background.
However, you can authorize the borrower side contracts only if the corresponding
participant side contracts are processed successfully.
For successfully saved borrower contracts, the ‘Participant Processing Status’ (in the audit trail section at the bottom of the respective borrower contract) displays any one of the following statuses:
The status gets updated when the Background Job processes the participant contracts. After processing, the status reads ‘Processed’ or ‘Failed’, as the case may be.
Before executing the EOD operations for the branch, you have to stop the Background Job. This is mandatory. To stop the process, you have to click the ‘Stop Job’ button in the ‘Participants Jobs’ screen.
You can also view the details of borrower and participant contracts processed in Oracle Banking Corporate Lending in the ‘JOB PROCESS STATUS’ screen.
For more details on the above screen, refer the heading ‘Viewing borrower/ participant contract processing status’ in this chapter.
To recall, when the BOOK event for borrower facility, tranche or drawdown is triggered, the system creates the related participant facility, tranche or drawdowns You can view the participant contracts initiated by the system in the ‘Loans Syndication – Participant Contract Online’. You can also view the position identifier description in case the participant is self participant.The features of this screen are discussed in the following sections.
You can invoke the 'Participant Contract Input’ screen by typing ‘LPDCOMNT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
In the above screen, you can view the following details about the contract:
In addition, a vertical toolbar is also provided in the screen. These buttons are used to invoke other sub-systems required for processing a participant contract. These buttons have been described briefly below:
Button |
Description |
Entity |
Click this tab to view the entities defined for the participants, defaulted from the participant details in the parent borrower tranche or drawdown. |
Settlements |
Click this tab to view the settlement details for the participant, defaulted from the SSI Mnemonic selected for the participant in the borrower tranche. |
MIS |
Click this tab to view the MIS details for the contract, defaulted from the participant details in the parent borrower tranche or drawdown. |
UDF |
Click this tab to view the User Defined Fields (UDFs) for the contract, defaulted from the participant details in the parent borrower tranche or drawdown. |
Tax |
Click this tab to view the ‘Participant Tax Details’ screen. |
Payment Schedule |
Click this tab to view the payment schedule details. |
Rate History |
Click this tab to view the participant margin rate history. |
Diary |
Click this tab to view the diary events defined for the participant contract, defaulted from the parent borrower tranche or drawdown. |
Events |
Click this tab to invoke the ‘Event Log Details’ screen. Here, you can view the accounting entries for each event and the overrides encountered, if any. |
LB |
Click this tab to view the syndication details |
You can amend the participant details, if required. To do this, you have to first select the contract that needs to be amended. After selecting the contract, select Unlock from the menu to unlock the contract for making the amendment.
You cannot amend the following details:
Contract Reference Numbers
When the participant contracts are initiated, the system generates reference numbers (Contract Reference Number and User Reference Number) for them in the same manner as for normal borrower contracts.
For the purpose of tracking a borrower tranche, the reference numbers of the resultant participant tranche contracts are linked to the reference number of the parent borrower tranche.
For the purpose of tracking a borrower drawdown, the reference numbers of the resultant participant drawdown deposit contracts are linked to the reference number of the parent borrower drawdown, as well as to its’ parent borrower tranche.
Product and contract details
As mentioned earlier, in the product preferences for a borrower facility product, you specify the corresponding participant facility product that is to be used for the related participant facility contract created by the system. This is the product that would be used for the creation of the participant facility contract, along with the participant details specified in the borrower facility contract.
Similarly, in the product preferences for a borrower tranche or drawdown product, you specify the corresponding participant tranche or drawdown product that is to be used for the related participant tranche or drawdown created by the system. This is the product that would be used for the creation of the participant tranche or drawdown, along with the participant details specified in the borrower tranche.
In the ‘Contract Details’ section of the screen, you can specify the following details:
Auto Collection
You have to check this option to indicate that collection from the participant must be initiated automatically. The specification made in the preferences for the participant tranche or drawdown product used by the participant contract is displayed here. You can change it, if required.
Auto Disbursement
This option indicates whether the amount repaid by the borrower must be disbursed automatically. The specification made in the preferences for the participant facility, tranche or drawdown product used by the participant contract is displayed here. You can change it, if required.
Remarks
The remarks specified for the parent borrower facility, tranche or drawdown, under which the participant contract is created, will default here. You can modify these remarks appropriately, if required.
You can view the participant entity details in the ‘Participant Entities’ screen. These details are defaulted from the participant details maintained for borrower facility/tranche/drawdown associated with the participant facility/ tranche/drawdown. Click the ‘Entity’ tab to invoke this screen.
You can add or delete entities and also assign a different primary entity for the participant, if required. You can view the position identifier description in case the participant is self participant.
For more details on the options available in this screen, refer the heading ‘Specifying drawdown entity details’ in this chapter.
You can view the settlement instructions for the contract in the ‘Settlement Message Details’ screen. Click the ‘Settlements’ tab to view the details. The details are defaulted based on the SSI Mnemonic selected for the participant in the borrower tranche/drawdown.
For more details about the ‘Settlement Message Details’ screen, refer the Settlements User Manual.
If you have maintained MIS details for the participant tranche/drawdown product, the same will default to the participant tranche/drawdown. To view the details, click the ‘MIS’ tab.
For details on the ‘Transaction MIS Details’ screen, refer the MIS User Manual.
The UDFs defined for the participant product is applied for contracts processed under it. You can view the UDFs and its values, if applicable, in the ‘User Defined Fields’ screen. Click the ’UDF’ to invoke this screen.
For more details on the above screen, refer the UDF (User Defined Fields) User Manual.
You can collect withholding tax from participants on the interest and fee components. If you have associated tax rules with the participant tranche/drawdown product, the same is become applicable to the contract. You can view the tax details for the contract in the ‘Tax Details’ screen.
Click the ‘Tax’ tab to invoke the screen.
The following details are displayed in this screen:
For details on maintaining tax rules and schemes, refer the Tax User Manual.
Based on the payment schedules captured for the components due to the participants (Interest, Fee, Skim, and so on), Oracle Banking Corporate Lending computes the schedules and the amount payable for each schedule in the ‘Payment Schedule Details’ screen. You can view the position identifier description in case the participant is self participant.
To view the details, click the ’Payment Schedule’.
To view the margin rate history, click the ‘Rate History’ tab. The ‘Rates History’ screen is displayed, as shown below:
The following details are displayed on this screen.
You can view the participant’s margin details that are applicable for the contract, by clicking the ‘Margin History’. The ‘Rates History’ screen is displayed, as shown below:
The system displays the following details.
The system displays the following component details.
The system displays the following margin details.
The system displays the following margin rate details.
To view the details of the syndication, click the ’LB’ tab. The ‘Syndication Details’ screen
is displayed, as shown below:
In this screen, you can view the reference numbers of contracts created both for the borrower and the participant involved in the syndication.
After you save the contract, you can view the following details of the contract:
You can view the events triggered during the contract life cycle in the ‘Event Log Details’ screen. To invoke this screen, click the ‘Events’ tab. The events defined for the participant tranche/drawdown/facility product will be triggered for the contract.
For details on the above screen, refer the heading ‘Viewing events for the facility’ in this chapter.
You can use the ‘Contract Block Details’ screen for viewing blocked funds of facility, liability, collateral, and collateral pool. For more information, refer to ELCM Block Details sub-section available in Loan Syndication Contracts - Part 1 section.
For more information on message preview, refer to 'Viewing Messages using Message Preview' section, 'Loan Syndication Contracts - Part 1' chapter.
This screen defaults silent participant details based on the details entered in ‘Participant Transfer Details’ screen.
Using participant transfer function you can define silent participants. The silent participants, as a group, is represented by a specific entity, as defined during day 0 creation. The contribution of all the silent participants, as defined during participant transfer, is validated against the entity. Wrapper contracts are created and accounting is done for the life-cycle events through the existing straight-through-processing jobs mechanism.
Participants that were defined as silent can also be elevated as regular non-silent participants, if need be, using the participant transfer function.
You can view the participant position summary in the Participant Position Summary screen.
You can invoke the ‘Participant Position Summary’ screen by typing ‘LBSPTPSN’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You can view the position details of the participants, for different dates, using this screen. To view details, query using any of the following fields in the Participant Position summary screen:
The following fields are displayed in this screen
You can use this screen to query the details for self-participants and also for external participants.
If you want to make changes in the asset ratio of participants for a borrower tranche or drawdown, use the ‘Participant Transfer Details’ screen. You can invoke the ‘Participant Transfer Details’ screen by typing ‘LBDPTFR’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
The specification for ‘Cascade Participation’ (whether checked or not) defaults from the contract . When you execute a participant transfer at the tranche level and the ‘Cascade Participation’ option is selected for the tranche, the impact of the transfer automatically affects all the drawdowns under the tranche. However, if the option is not selected, you are required to update the underlying drawdowns manually. In this case, only new drawdowns, processed subsequent to the transfer will reflect the changes.
When you specify the transfer percentage for a transfer instruction, the system arrives at the transfer amount based on the existing actual balance as on the value date of the instruction. In this case, it does not consider the impact of the unauthorized PRAM instructions. You cannot authorize a transfer instruction if there are other unauthorized events like CAMD, LIQD, and so on under the tranche/drawdown.
You can perform participant transfers between the booking date and value date of drawdowns under ‘Non- Cascade Participation’ type of tranches. In this case, the value date of the transfer instruction is equal to the value date of the forward dated drawdown. In this screen, you can amend the participant details for a borrower drawdown only if the ‘Cascade Participation’ option has not been set for the underlying tranche. If this option is not selected, you cannot choose the contract reference number of such contracts in this screen, and amendment is not possible.
In case of participant amendments involving PIK components, only the Principal amount should be considered for transfer and the calculated PIK margin should be apportioned among the participants based on the resultant ratio. If you amend the participant details for a borrower tranche that uses a product for which the ‘Cascade Participation’ option has been selected, the changes are applied to all active drawdowns under the tranche. The ‘Cascade Participation’ option is available as part of additional preferences for a borrower product.
In case Sighting Funds is applicable for the contract, then the system does not allow transfer between investors who have pending funding for any of the underlying drawdowns. In addition, the system does not allow participant transfer beyond the latest actual receipt date for any of the underlying drawdowns for the investors involved in the transfer. However, future dated Participant Transfer is allowed on sighting funds enabled tranches only if ‘Part Transfer for FD VAMB/INIT on SF DD’ check box is selected in the ‘Loans Parameters’ screen, and the existing participants in that tranche involved in the participant transfer must be funded till the application date.
For details on participant transfer for sighting funds enabled tranches, refer section ‘Participation Transfer for Sighting Funds’ in this User Manual.
You can differentiate primary transfer and secondary transfer for a participant transfer by selecting the option provided here. In case of Primary Transfer, Transfer fee screen gets disabled in the Participant Ratio Amendment screen and in the Draft Transfer. Transfer Fee Billing screen gets incorporated in the Draft Transfer, however the fee billings or ledger entries will be processed only upon the confirmation of Draft Transfer.
The ledger entries and the corresponding Payment messages are applicable only for the Primary transfers if it is selected for the applicability of ledger entries and the payment messages.
The system triggers the ‘PRAM’ event to propagate the change.
Oracle Banking Corporate Lending allows you to change the participation ratio at tranche/DD level beyond the liquidation of schedules when there is transfer of shares between participants. If you do any changes to back valued Participant Ratio beyond the last liquidation/schedule date, it results in the change of the scheduled amounts for the affected participants. You need to track the Payables and Receivables for the difference between the old and new amounts for those participants.
Note
Ledger entries posting as part of PRAM/PAMI events is applicable only for Pro-Rata Tranches.
Note
You can use the ‘Participant Transfer Details’ screen for the following purposes:
Addition of new participant is allowed from a facility and is available for the tranches and drawdowns processed under it. When you invoke the screen, the following contract details are available:
When you perform a back value participant transfer and when tranches for which ‘Cascade Participation’ is selected, the following happens:
When you perform a back value participant transfer and when tranche contracts for which ‘Cascade Participation’ is not selected following happens:
You can perform future dated participant transfers for pro-rata tranches. You can specify a future date as the value date for the transfer.
The following table lists out the events associated with future dated participant transfer.
Event |
Description |
PAMB |
Future dated PRAM instruction booking |
PAMI |
Future dated PRAM instruction Initiation (will happen on value date) |
PAMA |
Modification of future dated PRAM instruction |
PAMC |
cancellation of future dated PRAM instruction |
If any back/current dated activity is performed on a tranche and underlying drawdowns before the value date of the future dated Participant Transfer instruction, the system rebuilds the asset ratio for the future dated transfer.
The following events result in a change in the asset ratio of FD PRAM:
The following events are impacted by future dated Participant Transfers:
If the future dated Participant Transfer instruction is unauthorized you are allowed to perform activities like LIQD, VAMI, and PRAM. If an unauthorized FDPRAM exists along with other unauthorized current/back dated PRAM instructions, authorizationis allowed for the earliest instruction based on the value date.
Note
Linkage Tab
The system defaults the linkage details for the contract. You can edit the linkage details during PRAM and the same gets updated at the contract and the limits are updated accordingly.
Silent Participant Details
For Silent Participation, in 'Transfer Details' you need to add silent participant id and then enter mnemonic, entity details, and transfer details. Once data for silent participant is entered, in 'Silent Participation' screen, you need to enter actual participant name and the transfer amount for the PRAM. You can capture multiple silent participant details using single PRAM.
Future dated participant transfer is allowed on sighting funds enabled tranche when any of the following future dated events exist for Drawdowns under the tranche:
In the ‘Payment Processing Browser’ (LBDMTPRC) screen, the following details are updated for participant transfer with existing participants during participant transfer authorization based on the latest ratio for future-dated events:
For participant transfer with new participants, system adds the new participants to the existing list of participants in the ‘Payment Processing Browser’ screen. The fronting value is defaulted as follows:
For more details, refer section ‘Processing the Release of Payment Messages’ in this User Manual.
To transfer assets from one participant to another, you have to select the reference number of the contract for which you want to initiate the asset transfer amongst the participants.
You can either click ‘Add Row or ‘Delete Row’ to add or delete participants. The ‘Participant Selection’ screen is displayed.
In this screen, you can view the existing participants of the contract.
The ‘Participant Transfer Details’ screen displays the following details:
You have the option to capture a consolidated type of transfer instruction or a detailed instruction for each participant. By default, the system takes you to the ‘Consolidated’ tab of the ‘Participant Transfer Details’ screen.
The system ensures the following when you capture the transfer instructions:
To capture individual participant transfer details, check the ‘Detailed ’ section.
Click Participant Details tab and check the Detailed section
To transfer assets between participants, you have to select the participants from the ‘Participant Selection’ screen and then specify the following for each:
Transferor/Transfer From
You have to select the participant from whom the asset should be transferred. Upon selection of the participant, the name is displayed in the adjacent text box. The system also assigns a sequence number ‘1’ to the first transferor and this number automatically increments by 1 for every subsequent addition of a transferor.
Update LT Position
The default value of the ‘Update LT Position’ is cleared.
You are allowed to select the check box during participant transfer booking.
The ‘Update LT Position’ is enabled only for the following desks.
When a participant transfer is booked with the ‘Update LT Position’ selected, the system updates the position in the SLT module.
When a participant transfer is booked with the ‘Update LT Position’ not selected, the system does not update the position in the SLT module.
You are allowed to select the check box, only if the portfolio of either of the transferor or transferee belongs to any of the three desks mentioned above. An internal trade is booked to create/update the LT position.
If both the portfolio of the transferor and transferee belongs to any of the three desks mentioned above, the system updates the position for both the portfolios.
If only one (either the transferor or transferee) belong to any of the three desks mentioned above, the system updates the position for the respective portfolio only. The system does not update the position for the latter one.
Transferee/Transfer To
You have to select the participant who is receiving the transfer amount. Click ‘Add Row’ button to enable the selection of a transferee. Select a participant from this list.
You may delete a participant(s) if you do you want to include it as a transferee(s). To delete, click ‘Delete Row’ button. However, atleast one transferee is mandatory for a transferor.
Transfer Amount
If you specify the transfer amount, the system computes and display the transfer ratio.
Send Message
Select this check box to indicate if the fax messages have been generated for this participant with the details of the transfer.
For consolidated type billing instruction, you have to define the transfere fee amount against each participant. Transfer Fee amount defined at the Tranche Level is applicable only for the Detailed Transfer Instruction type and not for the Consolidated Transfer Instruction type.
Accounting Entries and messages for the Transfer Fee Billing goes with the Participant Tranche contract Reference number. Accounting Entries and messages for the ledger Entries goes with the Participant Drawdown contract Reference number.
Payment message generation at the tranche level for Transfer fee Billing goes with the settlement days defined for the Transfer fee Settlement currency.
Note
Click ‘Add Row’ button to select the next transferor from the option list provided.
After specifying the changes, click ‘Save’ button to confirm the transfer details. The system arrives at the net of the transferor/transferee amount for each participant and you can view it in the ‘Consolidated’ tab of the screen.
On save of Participant Transfer of a contract, if funding is pending (Fund sighted is No) for any participants involved in transfer, the system provides an override message as shown below.
‘Funding from Participant(s) is pending. Do you want to continue?’
The following details the updated:
Select the name of the participants between whom you want to asset transfer in the ‘Consolidated’ tab of the ‘Participant Transfer Details’ screen. For a given value date, you can capture the net amount transferred to and from each participant.
For the participant who is the transferor, specify the amount with a negative sign (to indicate that the transfer is ‘From’ the participant).
Note
The sum of the transfer amount across all participants should be zero.
While maintaining the consolidated transfer instruction, you cannot visit the ‘Detailed’ section of the screen. The system displays the following error message:
Transfer Instruction Type is consolidated. Cannot enter detailed transfer instructions.
Click ‘Save’ to save the transfer details.
In ‘LOR Adjustment’ section displays the till date accrual amount between the last liquidation date and settlement date component-wise for the funded amount portion for all to the drawdowns. 'Settle Accrued Interest' is optional during participant transfer.
For information on accounting entries, refer to 'Accounting Entries for LOR' section.
You, as the lead agency, have the option to collect transfer fee for the asset transfer between participants. The fee can be charged to both the transferor and the transferee.
You can collect fee from participants only if fee components are associated with the participant product involved in the contract. In addition, the fee components should be defined with the following attributes:
For details on defining product level fee components, refer the heading ‘Specifying fee components with the product’ in the ‘Defining Products for Loan Syndication’ chapter of this User Manual.
You can capture the fee details in the ‘Transfer Fee Details’ screen. Click ‘Fee’ tab to invoke this screen.
You can capture the following transfer fee details in this screen:
Component
The applicable fee components defined for the participant product is available in the option list. You can select one of them to collect the transfer fee. After you select the component, the following details are displayed:
Fee Amount
Specify the amount to be collected as fee. The fee is expressed in the contract currency. This is collected as one time fee and hence requires no schedule definition.
Click ‘Ok’ button to save and exit the screen.
You can use the navigation buttons - in the screen to view the PRAM instructions under a tranche/drawdown.
There is an accounting entry set up at the Participant Drawdown Product for PAMI/PRAM Event to facilitate the ledger entries in case of Primary transfers for the Participant transfer amount captured at the Tranche contract level.
Transferee side accounting entries for PRAM/PAMI Event that would be passed
DR/CR |
Accounting role |
Amount tag |
DR |
Customer |
Principal_INCR |
CR |
Syndication pool |
Principal_INCR |
Transferor side accounting entries for PRAM/PAMI Event that would be passed
DR/CR |
Accounting role |
Amount tag |
CR |
Customer |
Principal_DECR |
DR |
Syndication pool |
Principal_DECR |
Note
Ledger entries at the Drawdown level get posted only for the Primary Syndication transfers and not for the Secondary Transfers.
You can perform the following operations on a tranche/drawdown even if there are multiple unauthorized PRAMs under it:
Saving a tranche/drawdown with multiple PRAMs
The system maintains a sequence in which the transactions (PRAMs) are booked.
Authorizing multiple PRAMs under a tranche/drawdown
Oracle Banking Corporate Lending authorizes a transaction only if the earlier PRAMs are authorized.
During authorization of the Participant Ratio Amendment, Oracle Banking Corporate Lending revalidates the tranche availability and if the same is not sufficient to process the transfer, the authorization fails. The system displays an error message to indicate the same.
The PRAM event is triggered only upon successful authorization of the transaction.
Note
‘Contract Authorization possible only after authorizing the overrides’
While authorizing the Participant Transfer an override message is thrown if the flag indicating the Transfer is Participant Transfer.
Do you want to post Accounting entry?
If select yes, a payment to the Transferor’s Standard Settlement appears on the Forward Processor for the full amount of the Transfer. If No is selected payment ledger entry is not posted. The payment message is sent to Forward processing browser, if the liquidation mode is Semi Auto.
You can view the new asset sharing ratio and new income sharing ratio for the participants involved in the contract in the ‘Participant Ratio Details’ screen. Click the ‘Participation Details’ tab from Participant Transfer Details screen (LBDPTFR).
Payment message generation at the drawdown level for the Ledger entries goes with the Settlement days defined for the respective drawdown currencies. You can view the unique transfer referernce number in the ‘Participant Transfer Details’ screen which is preceded with the Branch code, Product code, and PTFR sequence number.
Note
To add a new participant
You can define the following:
LMA/LSTA Participation
The following are the list of values in the ‘LMA / LSTA Participation’ drop-down list.
You are allowed to select the value during new tranche contract creation. In the drawdown creation screen, the value is defaulted from the tranche contract and you are not allowed to edit the same.
Note
LMA / LSTA participation is applicable only for ‘Cascade Participation’.
The default value of ‘LMA / LSTA Participation’ is ‘Non-Standard’ during new tranche contract creation. However, you are allowed to manually update the same to ‘LMA Participation’ / ‘LSTA Participation’.
The system validates at the time of clicking ‘Ok’ button in the participant sub screen if position identifier and portfolio maintenance is present with the ‘LMA / LSTA Participation’ value selected when you create a tranche contract with the new field value for ‘LMA/LSTA Participation’. Appropriate error messages are displayed if the validation is failed.
When the ‘LMA / LSTA Participation’ value is selected ‘Non-Standard’ for a participant for whom the ‘LMA / LSTA Participation’ is selected in the portfolio / position maintenance, the system displays an error message advising ‘LMA Participation’ is selected at position identifier or portfolio maintenance for $1.LMA/LSTA Participation flag cannot be Non-Standard when self-participation flag is checked for this participant’ at the time of save.
You have to either change the value of the field to ‘LMA Participation’ / ‘LSTA Participation’ or clear the ‘Self-Participation’ check box and proceed to save the contract.
The ‘Self Participant’ check box is selected and disabled if the value ‘LMA /LSTA Participation’ is selected.
Note
If the value ‘Non-Standard’ is selected , the ‘Self Participant’ check box is cleared and disabled.
The value of the ‘LMA / LSTA Participation’ is not editable during contract amendment.
When you select the value for ‘LMA / LSTA Participation’, there will not be any validations to check if the linked trade contract has the similar value in the field ‘Trade Standard’.
When a participant transfer or value dated amendment is processed for tranche / drawdown contracts with value selected in the ‘LMA / LSTA Participation’, the same value is defaulted to the participant sub-screen in the corresponding tranche and drawdown contracts.
The ‘Participant Transfer Details’ screen looks as shown below:
After capturing the necessary details, save and authorize the record. You can then select the tranche processed under the facility (to which new participants have been added) and transfer the assets appropriately between the existing and new participants. Viewing Details of Processed Transfers
You can view all ‘Detailed’ authorized transfer instructions in the ‘Processed Transfer Details’ screen. To invoke this screen, click ‘Processed Transfer’ tab.
In this screen, you can view the following details of a transfer transaction:
You can also view the net amount transferred from/to each participant (for ‘Consolidated’ transfer instructions) in the ‘Processed Transfers - Consolidated’ screen. To invoke this screen, click ‘Console Transfer History’ button.
The ‘Transfer Amount’ with a negative sign indicates that the transfer is ‘From’ the participant. If the transfer is ‘To’ the participant, the amount will be shown with a positive sign.
You also have the facility to view details of all pending transfer instructions in the ‘Pending Transfer’ screen. To invoke this screen, you have to click ‘Pending Transfer’ tab in the ‘Participant Transfer Details’ screen.
For each pending transfer, you can also view the net amount transferred from/to each participant in the ‘Pending Transfers - Consolidated’ screen. To invoke this screen, click ‘Console Transfer History’ button.
You can view margin details maintained for participants of the drawdown contract, using the ‘Participant Margin Maintenance’ screen. To view this screen, you have to click the ’Part Margin’ tab.
All details captured in the ‘Margin Maintenance’ screen are defaulted here.
For a given effective date and currency, you can view the margin maintained for the borrowers and participants.
To add a new participant, click ‘Add Row’ and click ‘Default Components’.
The system displays all participants linked to the tranche. You can specify the margin rate applicable for the required participants from the required effective date.
Note that you can maintain margin rates for participants only for margin components of the main interest components of the Tranche’s Drawdown products.
Place your cursor on a participant and click the ‘Delete Row’ button to delete that participant.
Click ‘Ok’ button to save
the details and exit the screen.
The system will ensure that the total margin rate of all the participants is the same as the borrower margin rate for the effective date for which margin rate is captured/ amended. It will also check the rates for each participant, margin component, currency, effective date and amount slab combination. You should have computed the required margin rates prior to capturing or amending the margin rate using this screen. If the validation for margin rates fails, the system will display an error message and will abort the transaction. You will have to correct the margin rates and then proceed.
If base rate is negative or borrower margin rate is negative then system will not allow user to maintain participant margin. If user has captured positive margin rate for borrower and participant then system will not allow user to amend the margin rate from positive to negative.
The system displays the below error:
Borrower margin is lesser than 0, hence participant margin cannot be captured.
Oracle Banking Corporate Lending enables you to send faxes to all the participants on Participant transfer (Assignment) Processing with the following details:
After the Participant Transfer is authorized, an override message gets generated for regeneration of Pending Advices. Regeneration of pending advices/notices is for the existing participants with event based notices, event based rate fixing advices and event based payment notices. You can view the list of existing affected participants and advices for the existing affected participants with Pending Status in the ‘Participant Transfer Advice Regeneration’ screen.
You can invoke the ‘Participant Transfer Advice Regeneration’ screen by typing ‘LBDPTADV’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You can view the following details here:
Generate
The generate check box is selected for all the investors and the events for regeneration. However, you can also clear the check box.
After the generation of selective advices, the status gets updated to ‘Regenerated’ from pending.
Note
Regeneration of Free format is possible only when billing date is in future. The contracts which got the cascade participation are applicable for regeneration. Advices are also regenerated for new participants added as part of participant transfer. The system identifies the events for which advices have to be regenerated based on the advice events whose value dates are greater than the system date. Event value date should be greater than or equal to assignment date for the events other than NOTC and for NOTC it should be greater than the assignment date.
Oracle Banking Corporate Lending enables you to remit the withheld tax amount that was not remitted for a period, to the Central Bank. The tax administrators will review the tax withholdings of all participants at regular intervals. They will select the tax withholdings that need to be sent to the internal Treasury Tax Loan (TTL).
Tax is remitted to the Central Bank using the ‘Tax Remittance’ screen. You can invoke the ‘Tax Remittance’ screen by typing ‘LBDTARMT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Enter the following details:
Remittance Ref No
For any remittance, you need to click ’New’ from menu. System generates a unique 16 digit reference number and populate the same here. For example, the format of the reference number will be as follows - CT4ZTRM043660065 where;
You can query the remittance made in the past using the remittance reference number.
Tax Payable GL
The tax remitted amount will be credited into this GL account. The option list will display all internal GLs of the branch.
Start Date
Select the date from when you want to remit the tax withholdings. The drop-down list will display all the withholding tax have been booked from this date.
End Date
Select the date till when you want to remit the tax withholdings. The drop-down list displays all the withholding tax have been booked till this date.
Transaction Code
The transaction code you specify here will be used to pass liquidation entries. The option list displays all transaction codes maintained in the ‘Transaction Code Maintenance’ screen.
For more details on transaction codes, refer the chapter ‘Transaction Code Maintenance’ in the Core Services (CS) User Manual.
MIS Group
Select the MIS Group from the list of values. The accounting entries are posted with MIS details associated with the MIS group.
Currency
This is the currency in which the tax that has been withheld needs to be remitted.
Note
System does not post accounting entries or fire events after remitting tax for any LB contract.
Once you enter the above details, click the ‘Populate’ button to view details under ‘Contracts for Remittance’. Here, system will display all the withheld tax entries for the specified period in the currency you have selected.
If you change the Start Date, End Date or Currency, you will need
to click the ‘Populate’ button
to update the details displayed under ‘Contracts for Remittance’.
Contract Ref No.
The reference number of the facility, tranche and drawdown contracts against which the tax was withheld is displayed here.
System displays the tax currency and the total tax amount that was withheld against the participants of the contract. Click ‘Events’ to view the ‘Event Log Details’ screen.
For more details on the ‘Event Log Details’ screen, refer the section titled ‘Viewing events for the facility’ in the ‘Loan Syndication Contracts’ chapter of this User Manual.
You can execute the following operations in the ‘Tax Remittance’ screen:
Note
Oracle Banking Corporate Lending enables you to refund the withheld tax amount when there is fluctuation in the interest rate, or change in the tax status. The tax administrators review the previous tax withholdings of all participants and select those withholdings that need to be refunded. System calculates and refunds the total amount to the participants through wire transfer.
Tax is refunded to the participants using the ‘Tax Refund’ screen. You can invoke the ‘Tax Refund’ screen by typing ‘LBDTXREF’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
In the above screen, system displays all the withheld tax components. The following details will be displayed:
Borrower Ref No.
Specify the reference number of the borrower contract for which you want to refund the tax.
Participant
From the option list select the participant for whom you want to refund the tax.
Participant Ref No.
System displays the reference number of the participant.
Tax Rule
System displays the tax rule associated with the contract.
Component
System displays the component against which the tax rule is associated.
Ccy
This is the currency in which the Tax that has been withheld which needs to be remitted.
Refund Amount
This is the sum of all the Refund Amount specified under ‘Schedule Details’.
System will display the schedule details of the components:
Tax Rule
This is defaulted from the Tax Rule under ‘Component Details’.
Tax Due Date
System displays the due date of the component with which the tax rule is associated.
Tax Collection Date
This is the date on which the component was liquidated.
Amount
This is the maximum tax amount that can be considered for the refund for a Tax rule, Due Date and collection date combinations for the given participant of an LB contract. System calculates this amount considering the impact of the past refunds and the remittances.
Refund Amount
You can specify the amount you wish to refund to the participant. You can choose to refund the tax withholdings in partial or full. The amount in the Amount field is defaulted here. You can, however, change the amount. If you specify zero, it indicates that you do not want to refund any amount.
Click ‘Settlements’ tab in the ‘Tax Refund’ screen to invoke the ‘Settlement ’ screen. This screen displays the customer’s account where the refund amount is credited.
Click ‘Events’ tab to invoke the ‘Event ’ screen. This screen displays the accounting entries posted with TXRF (Tax Refund) and TXRV (Reversal of refund) events.
Click ‘Media Priority’
button to invoke the ‘Media for Message Generation’ screen.
You can specify the media for the message generation in this screen.
This buttonis enabled only if the ‘FpML Type’ option is unchecked
at the contract level and the ‘Media Priority’ option is
selected at the product level.
If this button is enabled, then the system displays an override message saying to view the ‘Media for Message Generation’ screen. If not, the system handoffs the message as per the details maintained in the ‘Customer Entity Maintenance’ screen.
For more information on ‘Settlement Message Details’ screen, refer the Settlements User Manual.
For more details on the ‘Event Log Details’ screen, refer the section titled ‘Viewing events for the facility’ in the ‘Loan Syndication Contracts’ chapter of this User Manual.
For more information on the ‘Media for Message Generation’ screen, refer the section ‘Specifying Media for Message Generation’ of this chapter.
You can execute the following operations in the ‘Tax Refund’ screen:
Note
The payments generated or handed off to the investors as tax refunds can be sent for Sanction Check avoiding maker/checker process. You can view the payments and their sanction screening ACK code.
If the option, ‘Forward Processing Required’ in Loans Parameter screen is selected, the system populates the payments details to the forward processing browser, and the full message is sent to Sanction Check system immediately.
If the status from sanction check system is ‘-1’ (Complete) and the INIT/Liquidation mode is selected as ‘Auto’, the tax refund payment from Forward Processing browser is released. And if the INIT/Liquidation mode selected at the contract level is ‘Semi-Auto’, then you have to manually confirm the release of payment message.
Note
Sanction check functionality is applicable only for the new payment messages.
The system supports fee payment messages in modules LB, OL and SLT where the messages are released from ‘Forward Processing browser’. Firstly, the system populates the ADHOC Fee and derived fee payments into Forward Processing browser if the ‘forward processing required’ flag is checked and if fee liquidation mode at the product level is set to the following criteria’s:
You will be able to release the message if the liquidation mode is ‘Semi-Auto’ and ‘Auto’ for derived Fee in LB module. For Adhoc Fee component in LB and OL modules, the system will release the messages based on the sanction check without user intervention
Therefore, in a contract if more than one fee liquidation is performed, on the same value date and for the same currency, ‘Forward processing browser’ contains entries even when multiple fee liquidation are performed for the same reference, Counterparty, value date and currency.
Oracle Banking Corporate Lending recalculates the interest/fee for the paid/liquidated schedule and tracks the payables and receivables for the difference in the interest/fee amounts as a result of:
Note
The recalculation of interest due to change in interest rate happens across all drawdowns which use the modified interest rate code.
Note
To recall, it is through the ‘Floating Rate Code Definition’ screen that you maintain the interest rates, which are updated daily as and when they change.
Refer to the chapter titled ‘Maintaining Floating Rates’ in the Core Services (CS) User Manual for relevant information.
In Oracle Banking Corporate Lending, you have the ‘Payment–Receivable Details’ screen through which you can view the receivable/payable amounts for a drawdown. You can invoke the ‘Payable-Receivable Details’ screen by typing ‘LBDPRDET’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
For a drawdown/tranche, this screen displays the receivable/payable amounts for each component and the associated event. Based on the last event which has occurred in the life cycle of the contract, the corresponding event sequence number gets defaulted in the ‘Event Seq No’ field. Once the payable and the receivable amounts are settled across all the components for a particular contract, the system updates the ‘Settled Status’ field to ‘Settled’.
All the components for a contract are displayed in the ‘Component Details’ section.
For each component of the drawdown/tranche, the system displays the following details:
Note
If the tax rules are tagged to the components and if the tax is applicable, the system also passes the necessary accounting entries for tax.
You can use the navigation buttons - provided in the toolbar to scroll through the tranches and drawdowns.
You can process settlement of a payable/receivable amount in the ‘Payable – Receivable Payment’ screen. Click the ‘Payment’ button to access this screen. This screen shows the amounts payable and receivable for the contract chosen in the ‘Payable – Receivable Details’ screen.
The following details are displayed in this screen:
Note
You also have the provision to invoke the ‘Payable-Receivable Payment’ screen directly from the Application Browser. To do so, choose LB Operations and double-click on the Payment option under the Payable Receivable sub-menu. In this case, you need to select the tranche/drawdown from the option list provided. In addition, you need to select the relevant event from the ‘Event Code’ option list provided. The corresponding event sequence number gets defaulted in the ‘Event Seq No’ field here.
To view the components due for the selected contract, click “Populate’ button. The following details are displayed:
Liqd Reqd
By default, this option is checked for all the participants. However, you can choose to liquidate the payable/receivable amount for selective participants only. To do so, you need to check this option against the appropriate participant (s) and uncheck the same for the others.
Note
The receivables from any party (participant or borrower) should be liquidated in a single instance. For instance, if the amount receivable from a borrower is USD 6000, the same has to be settled entirely including the settlement of individual participant share. Likewise, the amount receivable from participants can be settled individually or with other participants. However, you are not allowed to do a partial liquidation within the individual participant amount.
Apply Tax
Tax is calculated upfront based on whether tax is applicable for the contract. However, at the time of payment, you can check this option to apply tax on the receivable/payable amount. To waive tax, uncheck this option. Your selection here is updated in the ‘Payable-Receivable Details’ screen.
Click button to move between the ‘Component Details’ and ‘Participant Due Details’ sections of the screen.
After capturing the amounts to be settled against the components,
click ‘Save’ to save the payment. Click ‘Exit’ button to exit the screen
and return to the ‘Payable-Receivable Details’ screen. The
‘Amount Settled’ field in this screen is updated accordingly.
Note
You can reverse a payment of a payable/receivable by clicking the ‘Reverse’ from the menu. This option is enabled only if you access the above screen directly from the Application Browser (to do this, you need to choose LB Operations and double click on the Payment option under Receivable Payable.
You can view the processing status of both borrower and the resultant participant contracts in the ‘JOB PROCESS STATUS’ screen. You can invoke the ‘Participant Exception Log’ screen by typing ‘LBDBPCNT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
This screen displays all the borrower side contracts (facility, tranche and drawdowns) and the corresponding participant contracts for each borrower side contract.
The following details are displayed for a borrower contracts:
The following details are displayed for a participant contract:
In addition, the ‘Borrower Contract Process Summary’ section of the screen displays the following details:
For each borrower contract, the above details are displayed for the corresponding participant contracts, in the ‘Participant Contract Process Summary’ section of the screen. You can double-click on any contract to view the contract details in the respective contract online screen.
Note
The system displays the processed contracts in ‘Green’ while the contracts that fail are displayed in ‘Red’.
You have the option to reinitiate the ‘Background Job’ on an adhoc basis. This option is available only if the ‘Participant Process’ mode is set to ‘Job’. You have to specify this as part of defining parameters for your branch in the ‘Branch Parameters – Detail View’ screen.
For more details on maintaining branch parameters, refer the heading ‘Creating branches and maintaining branch level parameters’ in the ‘Branch Parameters’ chapter of the Core Services (CS) User Manual.
You can also use the reinitiate Background Job to process the failed
contracts after making the necessary corrections. To re-execute the job,
you have to click on the ‘Re-Run’
button in the ‘JOB PROCESS STATUS’ screen. The contracts
may be processed successfully.
You cannot use the reinitiate option if the ‘Participant Process’ mode is set to ‘Online’ for the branch.
You can waive late payment charge schedule(s) for a component using ‘LB Special Penalty Component Waiver’ screen.
You can invoke the ‘Special Penalty Waiver’ screen by typing ‘OLDPNWVR’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Specify the following details:
Contract Ref No
Specify the reference number of the contract for which the late payment charge schedules should be waived.
System displays the following details based on the specified contract reference number:
Penalty Comp
Select the penalty component from the adjoining option list. This list displays all the late payment charge schedules for the contract which are not fully paid of waived.
Due Date
System displays the due date for the penalty component selected. However, you can edit the due date.
System displays the following details based on the selected penalty component:
Remarks
Specify a brief description regarding the waiver for late payment charges for a schedule.
Waive
Select this check to indicate that the late payment charge schedule should be waived for a component. You can save the waiver operation only if the ‘Waive’ box is checked for all schedules.
You can waive a partially paid late payment charge schedule. In this case, the unpaid amount is treated as waived and the already paid amount is treated as settled. No further dues are tracked for this schedule.
Before allowing the waiver of each schedule, system checks that all preceding schedules have been paid or waived. If there are any unpaid schedules preceding this schedule, then system displays the following override message:
‘Prior schedules are unpaid for this component. Please pay/waive all such schedules before proceeding’
On waiving a late payment charge, the previously calculated charges are no longer be due.
The accounting entries are posted against the event ‘SPWV’ (Special Penalty Waiver). If multiple schedules are waived as part of the same waiver operation, then system triggers a single ‘SPWV’ event with separate accounting entries for each schedule. The accounting entries are posted for information and tracking purposes only.
You can reverse the waiver of late payment charges by selecting the original waiver record using the ‘Special Penalty Component Waiver Reversal’ screen. You can invoke this screen by clicking the ‘Reversal’ button in the ‘LB Special Penalty Component Waiver’ screen.
If multiple schedules are waived as part of the original waiver operation, then system allows you to select any or all of such waived schedules for waiver reversal and deselect the ‘Waive’ box. Reversal can be done only if the ‘Waive’ box is unchecked for at least one schedule.
System allows you to undo the waiver operation only if the basis component for the late payment schedule is unpaid/partially paid. If basis component for the late payment charge schedule is fully paid, then you cannot undo the waiver operation.
On waiver reversal, system re-computes late payment charges using values of basis component, grace days and late payment charge fixed rate/flat amount as on the current date. Calculation date is the original schedule due date.
Waiver reversal accounting entries are posted against the event ‘RSPW’ (Reversal of special penalty waiver). If waiver reversal of multiple schedules is performed simultaneously, then system triggers a single RSPW event with separate accounting entries for each schedule. The accounting entries are posted for information and tracking purposes only.
Accrual entries are not passed and late payment charges are booked to P&L only upon liquidation.
Note
At the loan product level, system validates to check that event ‘SPWV’ is mandatory maintained for a component for which ‘Special Penalty Component’ is checked. System also validates to check that no accounting entries are maintained for the event ‘RSPW’ at the loan product level. System automatically associates the reversal event ‘RSPW’ for such products.
You can view current status of all unpaid late payment charge components for a contract using ‘Special Penalty Component Waiver Summary’ screen.
You can invoke the ‘Special Penalty Component Waiver Summary’ screen by typing ‘OLSPNWVR’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
In this screen, you can view the following details:
You can maintain netting preferences for borrowers and participants of a tranche in the ‘Borrower Details’ sub-screen and the ‘Participant Ratio Details’ sub-screen of the ‘LB Tranche Contract Online’ screen.
For a borrower, you can choose one of the following as the netting preference (in the ‘Borrower Details’ sub-screen of the ‘LB Tranche Contract Online’ screen):
Similarly, for a participant, the following options are available for netting (in the ‘Participant Ratio Details’ sub-screen of the ‘LB Tranche Contract Online’ screen):
You can view the borrower and participant side contracts for a tranche, for which netting is applicable, in the ‘Loans Syndication Netting Cash Flow Summary’ screen.
Netting takes place only if the following parameters for a cash flow are same:
In this screen, you can specify the following to view:
To net the components for a contract, select the contract from the summary screen and double-click on it. The ‘Cash Flow Netting Details’ (LBDNETCF) screen is displayed, as shown below:
You can view the following details in the ‘Netting Details’ tab of this screen:
The ‘Other Cashflows’ tab of the screen displays all contracts till date which need to be netted.
You can check the ‘Netted’ option for these contracts if you want to net them along with the current contracts.
After selecting the contracts for netting (in the ‘Netting Details’
tab of the screen), you have to click the
‘Resolve’ button to continue. If pending cashflows are present
in the ‘Other Cashflows’ tab, system will display a message
to indicate the same. The system will display a message to seek confirmation
to resolve the selected contracts. Select ‘OK’ in the message
window to continue.
If netting is successful, system will update the ‘FT Contract Details’ section of the screen with the following details:
You can also view the events and messages triggered for the contracts after netting the contracts. Click the ‘Events’ from LB Tranche Contract Online screen to view the events Click ‘Messages’ from ‘Events’ screen to view the messages.
You can enable the system to generate free format messages with respect to loan syndication contracts, by using either of the following options:
You can generate free format for multiple participants or borrowers.
You can invoke the ‘Free format message’ screen by typing ‘OLDFFMSG’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Thereafter, select ‘New’ from the menu. The Free Format Message screen is displayed without any details. Alternatively, you can also select invoke this screen by clicking the ‘PartFFT in the ‘Contract Diary Event’ screen.
When you click on the ‘New’ button, system automatically generates a unique ‘FFMT Reference No’ for the free format message.
You have to specify the following in the ‘Message Details’ section of the screen:
Contract Ref No
Select the reference number of the loan syndication contract (facility/tranche/borrower) in respect of which you want to generate free format messages. Upon selection of the contract, system displays the counterparty code and name of the customer involved in the contract. The system also displays the names of participants involved in the contract.
Hold
You have the option to place the free format message on hold. To do this, check this option.
If you have indicated that messages should be generated on-line the free format message is displayed in the ‘Outgoing Message Browser’ once it is saved. You can generate it from the browser. If you indicate that the message should be put on hold, you first have to release the message before you generate it from the ‘Outgoing Message Browser’.
Receiver
You have to select the recipient of the message. The available options are:
Entity Type
If you select the receiver as ‘ENTITY TYPE’, you have to select the type here. The entity types defined for the participants are displayed in the option list. You can select the required type from this list.
The message is sent to only those entities of the selected entity type linked to participant at the facility level.
When you select a syndication contract, the associated participants gets displayed in the ‘Participant Details’ section of the screen. Here, you can select the participant(s) to whom you would like to send the free format message. To indicate you want to send a message to a participant, check ‘Send Message’ against the required participant(s).
By default all the participants are marked for sending the message. However, it is mandatory to capture the message that has to be sent in the ‘Message’ section at the bottom of the screen.
If you specify the ‘Receiver’ as ‘ENTITY’, the entities linked to each participant are displayed in the ‘Entity Details for Participant’ section of the screen. You can indicate the following for the entities:
Media
Indicate the media through which the free format message should be transmitted. The media through which you can channel a free format message depends on the media types that you have maintained for your branch in the ‘Media Maintenance’ screen. You can choose a media code from the option list that is available. For each customer, you can maintain a default media in the ‘Customer Address Maintenance’ screen. The default media is applicable for all the entities under that participant. Hence, you can send the message through different media for each participant simultaneously.
A participant entity for which ‘Send FPML’ option has been selected in ‘Customer Entity Details’ screen, will have the media defaulted as ‘FPML’.
Depending on the media selected, you can capture the message details in the ‘SWIFT’, ‘MAIL’ , ‘TELEX’ and ‘FpML’ tab of the screen.
Primary
By default, one of the entities are designated as the primary entity based on the specification for the participant. You can designate a different entity as the primary entity to receive the message.
Send Message
To instruct the system to send the free format message to the selected primary entity, you have to check the ‘Send Message’ option against the primary entity. However, if the participant of the entity is not marked for sending the message (the ‘Send Message’ option against the participant should be checked), you cannot send a message to the entity.
In this case, system displays the following message:
Since participant is not marked for sending the message, cannot mark entity/entity type for sending the message.
You have to indicate the type of free format message that has to be sent to the receiver. The available options are:
You can enter the free format message to be sent to the recipient in the ‘Message’ section of the screen. You have the option of using one of the templates that you have maintained in the ‘Message Format Template Maintenance’ screen. To do this, right-click on the screen. The following two choices appear:
Select the option ‘Template Code’.
You can select the template you would like to use. Upon selection of the template, the message is displayed in the box. You can amend the message that gets defaulted from the template. The code of the selected template is displayed in the ‘Template Code’ field.
Note
Although you are allowed to make changes to the message defaulted form the template, these changes does not affect the template itself. You can make changes to a template through the ‘Message Format Template Maintenance’ screen alone.
You can capture the details of messages in FpML format in the ‘FpML’ tab. For FpML messages, you need to select the message template in the ‘MAIL’ tab inititally. The FPML template to which the MAIL template is mapped gets automatically updated in the ‘FpML’ tab. This value also gets displayed in ‘FpML Template’ field.
Note
If a participant has only ‘FpML’ messages enabled, then you won’t be able to select the message template using ‘MAIL’ tab. In such cases you need to select the FpML template in ‘FpML’ tab.
The following options are available only if the ‘Message Type’ is ‘Custom’:
Related Event
You have to select the event for which the message should be generated. The events at the product level are displayed in the option list provided. Select an event from this list. When you select the event code, the description is displayed alongside.
If the Message Type is ‘Custom’, you can include free format message tags for the message, right-click on the ‘Message’ section of the screen.
When you select the ‘TAGS’ button, a list of pre-defined loan syndication module tags will be displayed as shown below:
From this list, you can select the required tags one by one, to be included in the message.
You can specify the message tag details for participants only if the following criteria are met:
You can specify the tag details in the ‘Participant TAG Details’ screen. Click the ‘Tags’ button to invoke this screen.
You can enter the values for the tags that you have already selected from the TAG List screen.
Note
Only those Tag IDs that you have defined for the Message Type ‘Custom’ in the ‘Free Format Message Tags’ screen is available for use.
If the ‘Message Type’ is ‘Custom, the screen appear, as shown below:
For a ‘Custom’ Message Type, you also have the following option:
After capturing the required message details, you can preview the message. To do this, click the ‘Message Preview’ button.
This screen displays the following details:
Through this screen, you also view the actual format of the message
that would be generated. To do this, click the ‘View Message’ button.
Note
In the free format messages for the primary entity, first line of the message will display the borrower/participant name and the second line displays the entity name. In the case of free format messages for non-primary entity, the first line of the message displays ‘Copy - Avoid Duplication’. The second line displays the borrower/participant name and the third line will display the entity name. These positions are fixed and you are allowed to change them.
To generate the ‘Custom’ message, click the ‘Generate’ button in the ‘Free Format Messages – Multiple Participants’ screen.
You can modify the advice details, if required. Click the ‘Ok’ button to generate the message.
After you opt to generate the message, you have the option to cancel the generation of the message. To do this, you have to click the ‘Undo Generate’ button in the ‘Free Format Messages – Multiple Participants’ screen.
Note
For entities having the media as ‘FPML’, FpML notices also get generated in addition to the MAIL notices.
While generating the free format messages for participant, If the ‘FpML Type’ option is checked for borrower tranche / drawdown then the system will do the following:
If the ‘FpML Type’ is not checked, then for free format message, the system does not check the media priority setup.
If you select the ‘Message Type’ as ‘ProRata’, you have to specify the pro-rata tag values. To do this, click the ‘Prorata Tag Values’ button in the ‘Free Format Messages – Multiple Participants’ screen. However, you can enter the tag values only if the message is specified in the ‘Message’ section of the screen. If not maintained, the system displays an override to indicate the same.
You can use a template to capture the message format. Refer the heading ‘Capturing the free format message’ in this chapter for details on the same.
When you right-click on the ‘Message’ section of the screen. When you select the ‘TAGS’ option, a list of pre-defined loan syndication module tags will be displayed as shown below:
You can select the required tags one by one, to be included in the message. After selecting the tags, you have to specify the values for the same.
Note
Only those Tag IDs that you have defined for the Message Type ‘ProRata’ in the Free Format Message Tags screen is available for use.
You can specify the tag values in the ‘ProRata TAG Values’ screen. To invoke this screen, click the ‘Prorata Tag Values’ button.
Specify the following details in the screen:
The system automatically computes the breakup details of the components for the participants based on the amount you enter and the asset sharing ratio. The following details are displayed in the ‘Participant Details’ section of the screen:
You can enable the system to generate a normal advice, as well as custom messages to borrowers through the ‘Free Format – Multiple Borrowers’ screen. You can invoke the ‘Free Format Messages - Multiple Borrowers’ screen by typing ‘OLDFFMBR’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
The details to be captured for ‘Normal’ and ‘Custom’ message types are as explained under ‘Generating Free Format Messages for multiple participants’, the only difference being that you will be capturing the details for ‘Borrowers’ this time. In addition, you have to select the following:
Module
You have to select the module for which the free format message details are being captured. The available options are:
Select ‘LS’ (Loans Syndication) option here to indicate that the messages are being maintained for loan syndication contracts. When a free format message specification is authorized, the pre-defined event for free format messages (ZFFT) is triggered for the contract. The pre-defined tags available for the Loan Syndication module are:
‘_ACNOTAG_’: This tag indicates the interest amount being credited
You can specify the billing date in the ‘Billing/Schedule Date’ section. YSpecify the following details:
Billing Date
Specify the date on which the free format message needs to be generated.
Cash Interest Amount
Specify the cash interest amount. If cash interest amount is not zero, then it is mandatory to input cash interest amount at participant level.
You can upload and download the PDF file using 'Free Format Messages -Multiple Borrowers' and 'Free Format Messages -Multiple Participants' screen.
You can upload the PDF file from your local system or shared area.
The uploaded PDF file is sent as e-mail attached to the borrowers/participants. You can draft content to be sent be sent to the borrowers/participants in the body of the email message.
Send Message Content as Attachment
By default, this check box is selected. If you want to send the free format message content in the body of the e-mail message, then you can clear this check box by selecting the ‘Message Type’ as ‘Normal’. If ‘Message Type’ is ‘Normal’ then there is no pre-defined content in the ‘Message’ field.
If this check box is selected, then you can send the free format message content through e-mail message as a PDF attachment.
PDF Path
Using this option, you can browse and select the PDF files from the local system/shared area. Once a PDF file is uploaded, the path of the PDF file in the local system is displayed in this field.
Upload
Using this option you can upload the PDF file.
Download File
You can download/view the PDF file which is attached in the free format message during creation.
This option is enabled only when the PDF file is already uploaded in the free format message and the message is saved.
Note
There is no dependency between the downloaded file and authorize action. You are allowed to view the PDF file in Adobe Acrobat Reader and simultaneously authorize the free format message even before closing the PDF file.
Click ‘Part Int share’ button to invoke the screen, ‘Payment Breakup for Participants’(LBDPYMNT) with details of all the participants under the drawdown and outstanding interest (Cash Interest) for each participant under the field ‘Amount Due’.
Refer the section, ‘Specifying Payment Breakup for Participants’ in the Repay Chapter
for more details.
Amount Paid
Specify the individual participant share amount for the interest being paid.
Existing participant free format advices having interest payment details can include cash interest payment that is captured by user during free format message generation (for interest liquidation and principal + interest liquidation).
Rollover notification advices that are generated systematically during rollover booking, can include cash interest payment that is captured by user during rollover booking (for interest liquidation and principal + interest liquidation).
Specify the proper cash amount for borrower and participant during free format message generation and payment should be processed for the same amount which is operationally controlled by user.
Property Code
Select the property code during Payment Notice message generation from the adjoining option list. This list displays only those property codes that are linked to the loan/drawdown selected.
This option list is enabled only if the value of 'Property Selection Required' UDF is 'Yes'. Otherwise, this option list is disabled.
The following UDFs in the 'Message Format Template Maintenance' screen are used for message generation based on the predefined parameters by the user:
UDF |
Values |
Property Selection Required |
Yes/No |
Notice Type |
Payoff/Payment/Null |
If the value of 'Property Selection Required' UDF is 'Yes', then system does the following:
If the value of 'Property Selection Required' UDF is 'No', then system does the following:
The event 'PNTC' is used as a related event to generate the Payment Notice and Payoff Notice for loans and drawdowns. The event 'ZFMG' (Free Format Messaging) is triggered at the contract level for processing free format messages.
The following points on Payment Notice are noteworthy:
Escrow Type |
Component |
ESC1 |
Tax escrow component |
ESC2 |
Insurance escrow component |
ESC3 |
Other escrow components |
While generating free format messages for borrower or participant drawdown contracts, if the UDF value for ‘COMPONENT-TYPE’ at interest class level is ‘SERVICER-FEE’ for payment or rollover notices, then system does the following:
On the booking date of the contract, Oracle Banking Corporate Lending queues up payments due for the value date and then you can release payment messages based on approvals and /or funds received in the system using ‘Payment Processing Browser’ screen.
You can invoke the ‘Payment Processing Browser’ screen by typing ‘LBDMTPRC’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You can specify the following fields in this screen:
Contract Reference Number
Specify the borrower contract reference number to capture the fronting/funding details for the disbursement/payment activities of the contract.
The system displays the event wise borrower details for the disbursement and payment events in the Borrower Details frame of this screen.
Borrower Fronting
Select the fronting for the borrower, in case of payment activities, from the following options.
Investor Fronting
Select the fronting for the investor, in case of disbursement activities, from the following options.
Actual Receipt Date
The date on which the borrower is funding for the payment is displayed in this field; however, you can choose to modify this date.
Note
Funds Sighted
Select ‘Yes’ if the fund is sighted for the borrower repayment; otherwise, select ‘No’.
The following fields are displayed in this screen.
Eventwise Fronting Details
You can capture the investor fronting details for each event in this frame.
Default Investor Fronting
Select any of the following options to indicate the type of participant fronting.
Fronting
Select the fronting for the investor, for the disbursement event, from the following options.
Note the following:
Actual Receipt Date
The actual receipt date is defaulted from Investor wise Funding Details Tab for each Investor; however, you can modify this date. The system uses this date for the interest computation for the investors
Recall Date
In case of Recall for the fronted portion, specify the recall date for Fronted investors for the respective disbursement events.
Note
The following fields are displayed in this frame:
Funds Sighted
Select ‘Yes’ to Indicate if the fund is sighted for the Investor for the disbursements.
Payment Date
Specify the date on which the amount is disbursed to the borrower.
Actual Receipt Date
Specify the date on which the investor is funding the amount.
The following fields are displayed in this screen:
Click ‘Funding History’ to display the funding history for the chosen investor in the ‘Funding History’ screen.
The following fields are displayed in this screen:
The Payment Processing browser is populated during the participant transfer authorization of future-dated events. This is based on the following conditions:
Click ‘Borrower Payment History’ to display the borrower payment details for the chosen borrower contract for the past disbursement events based on investor funding.
The following fields are displayed in this screen:
On authorization of disbursement events, the system defaults the Payment Processing Browser with the following values:
You have to capture the Fronting Details of Borrower and Participants before proceeding with any other activity. You can query for the borrower contract and unlock it to capture the Fronting and Funding details.
Investor Fronting field in borrower details has the options, Fronting All, Fronting Partial and No Fronting for Disbursement Events. Borrower fronting flag is not applicable for disbursement events. Payment date, funds sighted flag and actual receipt date in Borrower details is not applicable for Borrower disbursements
Default Investor fronting flag is enabled only if investor fronting is selected as ‘Fronting partial’ in the borrower details. It have the three options, Fronting, Seek Approval and No Fronting
Fronting flag is enabled for Disbursement events and it will have the three options, Fronting, Seek Approval and No Fronting.
If the investor is funding for the disbursement, then the payment date is defaulted from Investor wise Funding Details tab and you are not allowed to modify it.
Actual Receipt Date is defaulted from Investor wise Funding Details Tab for each Investor and you are allowed to modify it. It is not populated until the Fund is sighted for the respective investor.
For the fronted investors, the current application date is defaulted to the payment date on the date of such borrower payments and you are not allowed to modify it.
The system updates the Unfunded Amount for each investor after each Disbursement or Repayment. All the fields in Participant Details frame are display fields.
On receiving the funds from an investor, you have to update the Funds Sighted field to Yes for that investor. The current application date is defaulted to the payment date and actual receipt date and you are allowed to modify these dates. The complete unfunded amount is defaulted as the funding amount.
For the fronted investors, it is assumed that the investor has funded and the system populates the funding details internally and the unfunded amount is decreased accordingly. Actual receipt date is updated with the current application date. This update happens at the time of saving the instruction for the current dated or back dated disbursement events. For the future dated disbursement events, this defaulting happens as part of the Beginning Of Day Batch processing.
The system does not allow Partial funding if the funding is due across many disbursement events. The complete amount should be funded when the Fund is sighted for an investor.
Example:
In case the investor has not funded few of the last disbursements, he cannot fund for only the first VAMI while second VAMI is already in place.
If there are multiple investors funding as part of the current activity, then payment date should be the same for all the investors. However, actual receipt date can be different for each investor.
Payment Date/Actual Receipt Date cannot be beyond the latest disbursement event value date. In case if the funding is due across multiple disbursement events for any investors, such investors are expected to fund all the pending disbursements together on or after the latest disbursement event date. (Future dated disbursements are not considered here). Payment date/Actual Receipt date cannot be in the future.
If there are multiple investors funding on the same date for a contract, you should capture the funding details across all investors in a single activity to facilitate the combined payment message to the borrower. However, system allows the user to capture the funding details for various investors on different time period in a day. In such cases, separate payment messages are generated for each distinct funding activity.
Payment date is defaulted to the Payment date in the Event Wise Fronting Details tab and you are not allowed to modify it.
Actual Receipt Date is defaulted to the Actual Receipt date in the Event wise Fronting Details Tab and you are allowed to modify it during subsequent activities.
On saving the fronting details and/or funding details, the system triggers the event ‘SFNT’. If funding details are captured as part of the current instructions, the screen, ‘Payment Details’ is displayed. It shows the funded and fronted amount captured for the current activity.
This screen displays the investor funding details, bank Fronting amounts (If applicable) and also the total amount to be paid to the borrower.
In case of any funding by an investor for whom bank has fronted, the amount is not paid to the borrower; instead it is settled with the bank Sighting Fund GL specified as per the branch parameter setup. Upon confirmation and its authorization in the Payment Processing browser, system populates the new payment infrastructure (if funding details captured for any of the investors).
The event ‘BPMT’ processes the disbursement accounting entries and sends payment messages to the borrower on receiving the fund from the investor(s). This event is triggered on the borrower and affected investor contracts.
It also generates the Payment message for the borrower contract for the funded amount (funded by the investors or Fronted by bank).
In case of backdated and current dated disbursements, the accounting entries and payment messages match with the current application date. In case of future dated disbursements, the accounting entries and payment messages match with the event value date.
The system processes the future dated disbursements (INIT/VAMI) for which the fronting details are captured in advance.
When the funding is done by the Fronted investors, BPMT is triggered for the funded amount, but Payment Message is not generated for the amount which is funded against bank fronted amount.
You can view the borrower payment details by clicking the ‘Borrower Payment History’ button in the Investor Funding Details Tab in the Payment Processing Browser.
You can view the funding details for each investor by clicking ‘Funding History’ in the Investor
Funding Details Tab in the Payment Processing Browser.
In case of Recall for the fronted portion, specify the recall date for Fronted investors for the respective disbursement events.
You can specify the recall date for the latest disbursement event only, the system updates the same recall date for all the previous disbursements. It validates if the Recall date is greater than or equal to the latest disbursement event value Date.
Recall Date is used in Interest Calculation for the borrower and investor. For the borrower, the total recall amount is treated as unfunded from the recall date. For the investor, the amount is treated as unfunded from the value date of the contract itself.
On authorization of repayment events, Payment Processing Browser is populated with the following values.
You have to specify the Fronting Details of Borrower before proceeding with any other activity. You can query for the contract and unlock it to capture the Fronting and Sighting Fund details for the Repayment Event.
Borrower Fronting has the options, Fronting and No Fronting for Repayment Events: Investor fronting is not applicable for repayment events. On receiving the funds from the borrower, you have to update the Funds Sighted field to Yes. The current application date is defaulted to the actual receipt date and you are allowed to modify it.
If bank is fronting or fund is sighted from the borrower, then the current application date is defaulted to the payment date.
You can only view the Investor wise Funding Details tab for Repayment Events since there is no investor funding for the payment events.
On saving the fronting details and funding details, system triggers the event ‘SFNT’. On confirmation and its authorization in the Payment Processing browser, system populates the payment infrastructure (if fund is sighted from borrower or if Fronting Option is chosen).
The event ‘PPMT’ processes the payment accounting entries and sends payment messages to the investors. On capturing the details for the repayment event, this event is triggered on the borrower and all investor contracts, if fund is sighted from the borrower or fronting is set to Yes.
The event ‘PPMT generates the Payment message for the Participant contract for the liquidated amount (Pro rata Share of the amount repaid by the Borrower).
In case the investor has not funded at the time of borrower repayment, the payment is not made to such investors and the net unfunded amount is reduced to the extent of expected payment amount for such investors as per their pro rate share.
In case of bank fronting the borrower payment, bank sighting fund GL is debited for the borrower amount and paid to the investors.
Fronting options at the borrower level only governs the payment to the investors and fronting option at the investor level does not have any significance for the borrower payments.
When the borrower payment is funded or fronted, the payment is made to all the investors (if they have fully funded).
In case of backdated and current dated payments, the accounting entries and payment messages match the current application date.
In case of bank fronting the borrower payment, upon fund sighted from the borrower, PPMT is triggered for the funded amount, but payment message is not generated for the amount already fronted by bank.
Multiple payments cannot be funded together. In case of multiple payments being funded on the same date, you have to capture each funding as a separate instruction.
Note
You can view the events, BPMT and PPMT and the corresponding accounting entries and the payment messages through the Events sub screen in the Drawdown/Tranche Contract Online screen.
If fronting details have not been captured for the previous disbursement/repayment event, then the following will not be allowed:
If Overwrite Settlement Instructions is yes at the time of BPMT/PPMT event triggering, accounting entries for BPMT/PPMT events are not passed to Customer Accounts; instead they are passed to the internal GLs mentioned in the Overwrite SI screen for the respective components.
In case if the borrower payment is made in multiple splits (based on number of investors funding), it has multiple BPMT events on different time frames. While triggering each of the BPMT events, the Overwrite SI is checked and accounting entries are passed accordingly.
The payable receivable processing is not be handled for sighting funds.
Sighting Fund Process (PPMT) is applicable for the Fee payments at the Tranche contract level. However, the fee computation remains the same.
This section contains following topics.
The check box ‘Hold Transaction’ is used for holding the interest and principal payment transactions in the ‘Forward Processing Browser’ screen.
You can invoke the ‘Payment Browser’ screen by typing ‘LBDFWDPR' in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
By default, this check box is not selected and you can select this check box for interest and principal payments You need to query for the contract in the FP browser. You can click 'Unlock' and select the ‘Hold Transaction’ check box and save the record.
Once the ‘Hold Transaction’ check box is selected, systematically the ‘Confirmed to Auto’ check box is cleared and disabled. Even though if the ‘Confirmed to Auto’ check box is selected for a transaction before it is held, once you select ‘Hold Transaction’ check box, the ‘Confirmed to Auto’ check box is cleared and disabled systematically.
The system performs the below validations when you select ‘Hold Transaction’ check box and save the record.
Once the record is saved and authorized, the payment message is put on hold and it is not released from the system.No changes is done as part of rollover processing/VAMI and rollovers are processed on the respective dates irrespective of whether the payments are held/un-held. All accounting entries are passed on the relevant value date and not when the payments are un-held/released.
Liquidation (LIQD) is not processed for the contracts during EOD batch on the schedule date if the payment message for the associated event is held. All accounting entries are passed on the relevant value date online if the current application date is lesser than the schedule date. If the current application date is greater than the schedule date, then the accounting entries are posted during the EOD batch on the schedule date
You are not allowed to hold messages generated for any other events than liquidation (LIQD), and future dated rollover with increase (VAMI).The ‘Hold Transaction’ check box is enabled for current dated payments where the message generation has happened before the current date. If both the message and payment generation happened on the current date, the system does not allow you to hold such messages. Appropriate error messages are displayed.
If the payment messages generated for future dated VAMI/LIQD/rollover with increase is placed on hold,
Note
Note: In case of future dated rollover with increase, VAMB/VAMI events are triggered on the value date and there are no blocks on these events. However, the payment message is generated as part of PMSG are blocked systematically.
Currently if any fee payment is being held in FP browser, the system does not stop the processing of any drawdown events and the same continues to exist.
Changes are done to stop the archival of the payment messages which are held in the FP browser. Archival is done on the EOD once the payment messages are un-held in the FP browser.
You are allowed to hold / un-hold the reverse MT103 payment messages generated as part of payment liquidation as well.
In the above scenarios, the accounting entries are posted in the respective contracts as per the amendment done. However, the amount in the payment messages are not changed and the payment messages are generated for the original amount.
You can maintain settlement instructions in the Settlement Instruction Maintenance screen.
You can invoke the ‘Settlement Instructions Maintenance’ screen by typing ‘LBDINSTR’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Note
In case of data masking, if ‘PII Allowed’ check box is not selected in ‘User Maintenance screen’, then the following field values are masked.
In case of granular access, customer details for allowed list of customers are allowed for view, query, modify, authorize, re-open, copy, delete, and so on by the user based on the user/users preferences selected in ‘Access Group Restriction’ tab available in the ‘User Maintenance’ screen.
In case of right to be forgotten, all the PII fields maintained for the customer are anonymized once the customer is forgotten in the ‘Forget Customer Process’ screen (STDCSFRT).
For more information, refer to Common Core - Security Management System User Guide.
You can capture the basic details of brokers with whom your bank deals with in the ‘Broker Maintenance Detail’ screen. In this screen, you can specify the following:
You can invoke the ‘Broker Maintenance Detail’ screen by typing ‘BKDMASTE’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Note
In case of data masking, if ‘PII Allowed’ check box is not selected in ‘User Maintenance screen’, then ‘Name’, ’Street’, ‘City’ and ‘Country’ field value is masked. For more information, refer to Common Core - Security Management System User Guide.
At any point during the tenor (or life cycle) of a syndication contract, you can view its status. You can view the tranche contracts as well as the drawdown contracts, for the borrower and the participants. Summary screens are available listing the currently active contracts entered at each level. These screens can be invoked from the respective contract input screens or from the Application Browser.
You can invoke the ‘Auto Rate Set Browser’ screen by typing ‘LBDRSBRW’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
The system automatically process the rate set events for the following events on authorizing the following operations:
While authorizing the future dated transactions, the Rate set browser gets populated with future dated event details with processing status as ‘Unprocessed’.On the Rate Fixing Date, the Rate set event gets processed and the processing status is updated as ‘Processed’/’Failed’ based on the event processing.
If the Rate Set Event is successfully processed, then
The IRAM/ROIX/CRIX/SPIX event is auto authorized if the flag Auto auth Rate fixing events is checked.
The IRAM/ROIX/CRIX/SPIX event is not authorized if the flag Auto auth Rate fixing events is not checked. User have to manually authorize the event
If the Rate Set Event processing is failed, then
The Re-processed event have maker/checker id as below
If Auto Auth Rate Fixing event is Yes, then the User id of who is reprocessing the event is displayed as Maker/Checker ids
If Auto Auth Rate Fixing event is No, then the User id of who is reprocessing the event is displayed as Maker id. Checker will be the approver id
For example,
The USER1 books future dated drawdown and USER2 approves it. On authorization of the future dated drawdown, rate set browser is populated with below details:
If the Rate fixing event is processed automatically on the rate fixing date, below details are updated for the drawdown ref no. and for the main interest combination
The IRAM gets authorized when the flag ‘Auto auth Rate fixing events’ is checked. Else IRAM gets unauthorized and checker id is blank in this case.
In the above example, the USER1 is allowed to delete the unauthorized IRAM event from Interest Rate Fixing Screen when the flag ‘Auto auth Rate fixing events’ is not checked.
Note that on click of ‘Select All’ checkbox. all the unprocessed or Failed records are selected and user is allowed to reprocess all the selected records
You are not allowed to amend the fields in the browser, except the check box to select the event for reprocessing
All the processed records are removed from the browser to history data store. This is a daily activity which is done as part of End of Day process
Auto rate setting process fixes the Base Rate of Drawdown Main Interest component having Rate Fixing Required as Yes for the contract in Agency module of the types:
This is defining the appropriate rate rule through rate setting screen for the above said contracts.
DrawDown Contract Online (LBDDDONL)
If the rates are not available for rate fixing date, then the insertion of Contract Reference Number, Processing Status, Rate Fixing Date Actual, Date, Rate Code, and Rate Fixing Date Used (OLSRATLG) happens in the rate log table. You can either save the contract with 0 rate or with previous rate based on the loan parameters maintained in the ‘Interest Limits Detail’ screen (OLDINTLM).
After saving the contract, if the rates are maintained for the actual rate fixing date in the Floating Rate Maintenance screen (CFDFLTRI), you can run the rate fixing job from ‘Job Processing’ screen (LBSJOBRN). Thereafter, the rate is picked for the actual rate fixing date. and REVN event is fired at the contract level.
Consolidated Rollover (LBDCOROL)
In ‘Consol Rollover Input’ screen, the ‘Rate Fixing Required’ check box and ‘Rate Fixing Days’ are available in ‘Normal’ and ‘Split’ tabs.
‘Rate Fixing Required’ check box is defaulted from the ‘Loan Syndication - Product Definition’ screen (LBDPRMNT) and ‘Rate Fixing Days’ is defaulted from ‘Interest Limits Detail’ screen.
Split Rollover (LBCSPROL)
In Split Rollover screen, the ‘Rate Fixing Days’ is defaulted from the ‘Interest Limits Detail’ screen.
Split Reprice (LBDREPRS)
In ‘Re-price Transaction - Spilt Details’ screen, ‘Rate Fixing Required’ check box is defaulted from Product screen (LBDPRMNT) and ‘Rate Fixing Days’ is defaulted from ‘Interest Limits Detail’ screen.
The future dated events, found in the system for the Rate set events pending to be processed. The Job automatically initiates online process on the Rate Fixing Date as soon as the LIBOR Daily rate maintenance is available for the day. The Jobs are automatically started based on the ‘Auto rate set Job start time’ for all the branches. While processing Rate Set Events automatically, the Job skip the contract and proceed with next contract in the below scenarios:
The Rate Set event Processing Date and Value Date should pick the rate from Daily LIBOR Rate, this is always be same which is Interest Rate Fixing Date.
For future dated transactions, Auto Rate Set event is not processed on the rate fixing date, if rate fixing is not done / rate setting rule screen is not visited while capturing the future dated transactions. In addition, User have to visit Rate Setting Rule screen before visiting Rate Fixing screen while capturing the future dated transactions
If Future dated rate setting events pending to be processed on the same day for multiple Drawdown under a tranche and if the flag ‘Auto Auth Rate fixing Required’ is deselected then
You have to manually re-process the failed events individually
In system a job processes automatic rate fixing on the Rate Fixing Date and IRAM event is registered for this process. The Base rate is picked up from Daily LIBOR Rate for the Rate fixing date for Drawdown currency and for Interest Rate Period and Rate Code. The System picks the IRFX message template and generates the advice for the IRAM event. If the Rate is input as 0 during future dated Drawdown booking, then the IRFX event is registered but IRFX advice is not generated. The IRAM is processed online once the Job starts processing and also when the rate maintenance available for the Rate fixing date.
If the flag ‘Auto Auth Rate Fixing Events’ is ‘Yes’ at loans parameters screen, then the RAM is auto-authorized with maker/checker as SYSTEM
If the flag ‘Auto Auth Rate Fixing Events’ is ‘No’, then the IRAM is not authorized. The Maker Id for IRAM event is the user id of BOOK event. you are allowed to authorize this event in the existing Interest Rate Amendment Screen.
The Uninitiated Rolled over child contracts will not be considered for automatic rate setting as the you have already captured the Rate Setting Rules during Rollover booking and processing of ROLL event will initiate the Rolled over child contract. You have to manually amend the interest rate through Interest Rate Amendment screen (IRAM), if further amendments required for the Drawdown interest components.
The Job fails the IRAM event if rate maintenance is not available for the day and the appropriate exception is logged saying rate maintenance is not available.
The system processes the ROIX on the Rate Fixing Date. The Interest rate is not picked from Daily LIBOR Rate for the Rate fixing date for Drawdown currency, Interest Rate Period and Rate Code. The ROIX get processed online once the Job starts processing and also when the rate maintenance available for the Rate fixing date.
If the flag ‘Auto Auth Rate Fixing Events’ is ‘Yes’ at loans parameters screen, then the ROIX is auto-authorized with maker/checker as SYSTEM. If the flag ‘Auto Auth Rate Fixing Events’ is ‘No’, then ROIX is not authorized. Maker Id for ROIX event is SYSTEM. You are allowed to authorize this event from Drawdown Contract Online Screen
You have to manually amend the interest rate through Interest Rate Amendment screen (IRAM), if further amendments required for the Drawdown interest components. The Job fails the ROIX event if rate maintenance is not available for the day and an Appropriate exception will be logged saying rate maintenance is not available.
The Interest Rate will not be defaulted from Daily LIBOR rate while booking future dated Rollover. The system processes CRIX on the Rate Fixing Date. The Interest rate is picked up from Daily LIBOR Rate for the Rate fixing date for Drawdown currency and Interest Rate Period and for Rate Code. The CRIX is processed online once the Job starts processing and also when the rate maintenance available for the Rate fixing date.
If the flag ‘Auto Auth Rate Fixing Events’ is ‘Yes’ at loans parameters screen, then CRIX is auto-authorized with maker/checker as SYSTEM. If the flag ‘Auto Auth Rate Fixing Events’ is ‘No’, then CRIX is not authorized. Maker Id for CRIX event is SYSTEM. User is allowed to authorize this event from Consolidation Rollover Screen. You have to manually amend the interest rate through Interest Rate Amendment screen (IRAM), if further amendments required for the Rolled over Drawdown interest components. In case of Consol and Split rollover, Rate setting rules should be maintained for each split instruction individually. The Job fails the CRIX event if rate maintenance is not available for the day and an appropriate exception is logged saying rate maintenance is not available.
This chapter contains the following sections:
You can invoke the ‘Mark Liquidated’ screen by typing ‘LBDMKLIQ’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You are allowed to query the facility contracts in the field ‘Contract Ref No’. Upon querying the contract successfully, the other fields in the screen are populated with the relevant information.
Note
If there is any fee outstanding for the facility contract, an override message is displayed to the user regarding the same.
You can invoke the ‘Mark Active’ screen by typing ‘LBDMKATV’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
Note
Same CUSIP can be linked with one Lead and one non-lead tranche, in case of silent participation. In such cases, validation is not failed.
Note
The flag ‘Accrual Required’ should be checked for the fee in the ‘Fee Class Maintenance’ screen order for the fee to be accrued in the LB Tranche contracts.
Note
It is possible that the status can be non-performing for the activated OL contracts. In such cases, the system perform memo accruals.
For more information on LB mark liquidated contract status , refer Marking Contracts as Liquidated section in this User Manual.
You can invoke the ‘Principal Schedule Upload’ screen by typing ‘LBDPSUPL’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You can invoke the ‘Payable Receivable Upload’ screen by typing ‘LBDPRUPL’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.
You can invoke the ‘Maintenance Screen for Bulk Upload’ screen by typing ‘OLDBUPRM’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button. Using this screen you can maintain values for bulk upload. For example, bulk payment, bulk contract creation, and so on. You can view the summary details using summary screen.
High value transactions requires multi-level of authorization. When a contract is booked with huge amount, the contract must go for multi-level authorization.
This functionality is available on the following screens of LB module.
For more information about multi-level of authorization, refer to Bilateral Loans and Product Definition User Manual.