1. Loan Syndication
  2. Loan Syndication Contracts - Part 1
  3. Capturing Facility Details

4.5 Capturing Facility Details

The following section explains the procedure for capturing the contract by associating it with a facility product. Based on the product code you choose, many of the fields are defaulted. You can overwrite some of these defaults to suit your requirements.
  • Product
    You have to select the appropriate facility product from the option list provided. All authorized products maintained in the Facility Product Definition screen is available in the option list provided. After you select a product, the following details will default to the contract:
    • Product Type
    • Branch
    • Department
    When you click on the Tab key on the keyboard, the system automatically generates the following reference numbers.
  • Contract Reference Number

    The Contract Reference Number uniquely identifies the borrower facility contract in the system. It is generated by the system automatically for every borrower facility contract.

    The system combines the following elements to form the Contract Reference Number:
    • The branch code (3-digit code)
    • The product code (4-digit code)
    • The value date of the borrower facility contract (in 5-digit Julian format)
    • A running serial number for the booking date (4-digits)

    Example

    For instance, if you are entering the facility contract with Mr. Robert Carr, as in our previous example, the Contract Reference Number generated by the system was 000SNEW000010001.
    • The first three digits are the code of the branch of your bank where the contract was entered into the system.
    • SNEW is the code of the borrower facility product that you have set up against which you are entering your facility contract with Mr. Robert Carr.
    • 00001 refers to January 1, 2000 (in Julian format) when the contract was booked. (see example given below to understand how the Julian date is interpreted).
    • 0001 is a running serial number, incremented by 1 for each contract entered on the booking date for the product code and the booking date combination.
    The Julian date is expressed in the following format - YYDDD

    Here, YY represents the last two numerals of the year, and DDD, the number of elapsed days in the year.

    Example

    For instance, 00059, in Julian format, would mean the 28th of February 2000. Here, 00 stands for the year 2000, and 059 would stand for number of elapsed days in the year 2000. The number of elapsed days in January would be 31, followed by 59-31 days in February, which computes to 28.
  • User Reference Number

    The reference number is the identification that you specify for the borrower facility contract. You can specify any identification number. In addition to the Contract Reference Number that the system generates, this number is also used to retrieve information about the contract.

    By default, the Contract Reference Number generated by the system is considered to be the User Reference Number for the contract.

    You can use the User Reference Number to uniquely identify as well as classify the borrower facility contract for the internal purposes of the bank. For instance, you may want to identify all facility contracts entered into with all customers (borrowers) of a certain net worth; or all customers in a particular nationality, or a particular industry, and so on. In such a case, you can supply a unique prefix to the user reference number to identify and classify the contract.

  • Custom Ref No

    You can capture a unique reference number for the facility. This number is used to identify the facility in the system. You can also query the facility based on this number. The reference number can consist of a maximum of 16 alphanumeric characters. You have to capture the custom reference number as mandatory information for the facility.

This topic contains following sub-topics:

Parent topic: Loan Syndication Contracts - Part 1