5.6 Allowing Back Valued Activities on a Drawdown Beyond the Trade Date

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:

• Back value dated drawdown initiation
• Back value dated drawdown amendment
• Back value dated drawdown liquidation

Note:

• You can perform back valued activities beyond the trade date only for drawdowns under pro-rata tranches.
• System does not allow back value dated drawdown initiation and liquidation, beyond the trade date, for drawdowns under Non-prorate tranches and of Lender of Record type of distribution.
• System does not liquidate any of the back dated schedules as part of initiating a back value dated drawdown.
• System allows you to perform back value dated amendment of drawdowns in any of the following instances:
  • On the value date of another value dated amendment
  • Beyond the value date of another value dated amendment
  • Beyond the last payment value date

System performs the following activities as part of any back value dated activity on a drawdown, beyond the trade date.

• When a drawdown is initiated beyond the last trade date, system triggers a Participant Ratio Amendment (PRAM) event for each of the PRAM event at the tranche level, so that the new drawdown have all the ratio changes that have happened in the tranches since the value date of the drawdown.
• In case of back value dated liquidation/amendment beyond the last trade/payment date, for a drawdown under a non-revolving tranche, the ratio for the subsequent PRAMs changes. System triggers PRCH event at tranche level to indicate that the ratio has changed at the tranche level due to the back valued drawdown activity. System updates the future principal schedules of the drawdown participants based on the latest asset ratio.
• For back value dated amendment beyond the last payment date of drawdowns having distribution type as Lender of Actuals, system updates the payable/receivable of the respective liquidated payment schedule.