7.3.13.2 Adding a New Component to the Contract

By default, all the fee components defined for a borrower product becomes applicable to contracts processed under it.

Example

The Advance fee component is attached at the Borrower Tranche product level, which is then defaulted to the tranches under this product.

However, you may add new components to a product after having processed contracts under it. The new component will be automatically associated with the contracts processed under the product after the addition of the fee component.

Oracle Banking Corporate Lending allows you to include the new component for the existing contracts as well. You can do this through the Fee Amendment screen.

Follow the steps given below to include a new component:

1. Unlock the Fee Amendment screen.
2. Click on the add button - Add Row to add the new component.
3. Select the component from the option list provided. This list displays all the components that are not yet associated with the contract.
4. Upon selection of the component, the Fee Rule, Ccy, Association Date (current system date) will from the product. You are not allowed to amend these values.
5. Specify the Start Date and End Date of the period for which the component will be applicable for the contract. This date should be within the Value Date and Maturity Date of the contract.
6. Invoke the Fee Schedules screen and define the schedule for the new component. Based on the schedule you define, system explodes the same and display the Due Date and Amount Due for each schedule defined.
7. In the Settlement Message Details screen, change the default settlement account, if required.
8. In the Fee Component Sharing Ratio screen, specify the ratio in which the component will be shared amongst the participants of the contract.
9. After capturing the necessary information, click the Save from the menu.
10. The component becomes effective after the details are authorized by your supervisor/ manager.