3.1.2 Contracts

A contract is a specific agreement or transaction entered into between two or more entities. A customer who approaches your bank to avail of any of the services offered by your bank enters into a contract with your bank. In the case of a borrower facility contract, the entities involved in a contract are the borrowing customer and the participants for any tranche of the agreement. Similarly, any specific loans (drawdowns) disbursed by your bank under a tranche in the borrower facility contract are also contracts.

In Oracle Banking Corporate Lending, a contract is entered into the system against a product. For instance, a drawdown under a tranche in a borrower facility contract is entered into the system against a borrower leg drawdown loan product.

When Oracle Banking Corporate Lending processes the contract, it applies all the attributes and specifications made for the product against which the contract was entered. You can enter more than one contract against a product.