16.5 A note on Interest Rate Revision Advices

Oracle Banking Corporate Lending allows an interest rate revision beyond the last interest liquidation date, recalculates the interest for the paid schedules and tracks the payable and the receivable for the difference in the interest amounts.

• Receivables and payables are captured by Oracle Banking Corporate Lending for both the borrower and the participants (through the ‘Payable-Receivable Details’ screen). Receivables and payables can arise out of amount due changes resulting from either of the following two scenarios.
  • Back value dated rate revision beyond the last liquidation/schedule date.
  • Back value dated Margin changes due to the new back valued Drawdowns beyond the last liquidation/schedule date.
• The payable and receivables are tracked for each of the associated events (REVN for interest rate revision and MRFX for the margin changes).

Advices are sent to the participants and the borrower for rate revision and margin revision events giving details for amount due, amount received and the receivable or the payable amount.