5.12.2.4 Capturing Transfer Fee Details

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.

• Fee Collection Mode: Advance
• Stop Association: Deselected

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.

Specify the User ID and Password, login to Homepage.

From the Homepage, navigate to Participant Transfer Details screen.

1. From the Participant Transfer Details screen, click Fee.
   The Transfer Fee Details screen is displayed.

   Figure 5-60 Transfer Fee Details

   
   

   
   Description of "Figure 5-60 Transfer Fee Details"

   
   
2. 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:

     • Participants involved in the transfer (both code and name).
     • Fee component associated with each component.
     • Component Status – The first time the status is Active. May change to Reversed or Liquidated, as the case may be.
   • 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 can 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 can 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.