5.2.2 Capturing Details in the ‘Preferences’ Tab

Specify the User ID and Password, login to Homepage.

From the Homepage, navigate to Drawdown Contract Detail screen.

1. From the Drawdown Contract Detail screen, click Preferences.
   The Preferences screen is displayed.

   Figure 5-3 Preferences

   
   

   
   Description of "Figure 5-3 Preferences"

   
   
2. You can specify below details in this screen. For information on fields, refer to the field description table.

   Table 5-3 Preferences Details

   Fields	Description
   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 defaults 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: Normal: A single new contract is created for the amount you want to rollover. Consolidated: Several drawdowns are consolidated into a single new drawdown. Split: You can split the original drawdown into multiple drawdowns. 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: Individual: Select this option to indicate that messages are to be sent only for the individual drawdown schedule being defined. Consolidated: Select this option to indicate that messages are to be sent for all drawdown schedules created as a result of the split.
   INIT Mode	This specification defaults from the tranche. You can change it for the drawdown, if required. This indicates the mode of initiating the drawdown in the system. The following options are available: Auto: If you select this option, the system automatically initiate the contract on the Value Date. The event INIT is fired on this date. Semi-Auto: You can select this option to indicate that forward processing is applicable to the borrower drawdown contract during the INIT event. The system processes the events, but hold the messages associated with the event. 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: If the drawdown product selected has the Suppress Advices option maintained at the product level. If the tranche contract is of revolving type 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: You can have multiple ancillaries under a tranche. You cannot perform back value dated ancillary drawdowns.
   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 topic. Note: If you process a swing line drawdown under a tranche for which the Cascade Participation option is selected, 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 selected.
   Sighting Funds Applicable	The value for this field is defaulted from the corresponding tranche and you are not allowed to modify this value. Note: If the field is selected, then the system does the following validations: INIT mode and RENEWAL mode cannot be SEMI-AUTO. Liquidation mode is Manual. Liquidate Back valued Schedules are set to No. You are not allowed to do any action that result in cascade conversion (swing line, ancillary or non-prorata drawdown). You are not allowed to define schedules for the compensatory component. They are defaulted based on the schedules for main interest component.
   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: Prime contracts are Normal or Bearing type. Swing line contracts are not applicable for Prime contracts. You cannot amend the participant ratio for back valued contracts beyond the last prepayment date if the Liqd Interest on Prepayment is selected. You can amend the Liqd Interest on Prepayment check box, if required, before the first payment for the drawdown contract. System allows partial liquidation of interest only for Prime drawdown contracts. This enables you to make partial payment of the interest and fee components. Skim is not applicable for prime drawdown contracts. At the tranche level, system does not support auto repayment schedule for prime loans. Hence, for prime contracts, the Auto Repayment Schedule check box in the Tranche Contract Online screen should be deselected. Liquidation of interest is not allowed if the option Partial Prepayment Allowed has been selected.
   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: Generate the FpML messages for the primary entity provided all the required maintenances and validations are available and satisfied. However, for non-primary entities, it generates the messages based on the media order maintained in the Customer Entity Maintenance screen. Generate the message with the next priority media maintained in the Customer Entity Maintenance screen if any FpML maintenance is not available for the message or participant does not have Send FpML chosen at the entity level. Generate the message irrespective of the media order maintained in the Customer Entity Maintenance screen in case if all FpML maintenance is available and Send FpML is chosen at the entity level. 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, Sighting Funds Applicable option has not been selected. Schedule Type is Normal Lender of Records option has been selected
   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: Standby LC Commercial LC Note: You can select the type of LC only if the LC Drawdown option is selected for the drawdown. If you select 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: Currency: If you select this option, the system allows you to select the SSI Mnemonic for each allowable currency for each participant in the Participant Ratio Details screen. The SSI Mnemonic selected is applicable to all the components for the drawdown participant. Component: This option allows you to select the SSI Mnemonic for each component defined for each participant of the drawdown. This is done in the Participant Ratio Details screen. 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 Normal 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 selected for drawdown contract. Partial Prepayment Allowed Liquidate Interest on Prepayment 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: If cash interest payment is processed in partial or full for a drawdown with Interest Payment Propagation as Cash and if the payment is active, then amendment from Cash to Normal is not allowed and system provides an appropriate error message. Amendment from Cash to Normal is allowed upon reversal of all active cash payments. You cannot amend from Normal to Cash if Partial Prepayment Allowed is selected at contract level; if interest payment exists on drawdown then, the system does not allow to deselect the flag Liqd int on prepayment. You can amend from Normal to Cash to allow user to deselect the flag Liqd interest on prepayment even if an active interest payment exists. If the flag is selected then amendment from Normal to Cash does not allowed. If user performs amendment from Normal to Cash and then capture split rollover instruction with cash interest payment as part of same CAMD then user is not allowed to change back the value from Cash to Normal during the amendment. 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.