8.2 Defining Product Rollover Preferences

When defining a borrower drawdown product, you have to specify whether drawdowns involving the product can be rolled-over. To enable this, you have to check the Allow Rollover option as part of maintaining product preferences. If rollover has been allowed for a product, all the drawdowns involving the product can, by default, be rolled-over.

Note:

However, a drawdown involving such a product will be rolled-over only if it is not liquidated, on its Maturity Date. You can choose not to rollover a drawdown involving a product with the rollover facility. This can be indicated when processing the drawdown.

The rollover details for the borrower drawdown product that you are defining can be specified in the Rollover Details screen.

Specify the User ID and Password, and login to Homepage.

1. From the Homepage, navigate to Loan Syndication - Borrower Product Definition(LBDPRMNT) screen.
2. From the Loan Syndication - Borrower Product Definition screen, click Preferences.
3. From the Preferences screen, click Rollover Details.
   The Rollover Details screen is displayed.

   Figure 8-1 Rollover Details

   
   

   
   Description of "Figure 8-1 Rollover Details"

   
   
4. You define the rollover preferences for a borrower drawdown product in the same manner as you would for a normal loan product.

   Note:

   Only those preferences that you would define specifically for loan syndication borrower drawdown products are explained in this chapter.

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

   Table 8-1 Rollover Details

   Fields	Description
   Rollover Mechanism	When defining rollover mechanism for a loans syndication product, the default rollover mechanism is Spawn Contract and you cannot change this specification. This creates a new drawdown on rollover.
   Rollover Method	You have to indicate the method that you want to employ to rollover the drawdown. You can choose from the following methods: Normal: If you choose this option, a single new contract is created for the amount you wish to rollover. In this case, you can capture the rollover details for a drawdown in the ROLLOVER tab of the Drawdown Contract Online screen. Note: Normal rollover method is NOT support for Loans Syndication (LB) module. Split: If you select this option, you can split the original drawdown into multiple drawdowns. You can capture the preferences for split rollover in the SPLIT ROLLOVER screen which you can invoke from the Drawdown Contract Online screen. Consolidated: You can opt for this if you want to consolidate a drawdown with other drawdowns into a single new drawdown. You can capture the preferences in the Consolidation Rollover screen available in the Application Browser. Note: RFR (Risk Free Rate) is supported for Split Rollover, and Consolidated Rollover. The system allows you to modify the default RFR parameters maintained at product-level during Split Rollover and Consol Rollover operations. For more information on RFR, refer to Interest User Guide. Each of the above rollover types are discussed later in this chapter.
   Maturity Date Basis	Select the basis on which the system should arrive at the maturity date of the rolled over drawdown. The options available are: Product: Select this option if you want the maturity date of the rolled over drawdown to be drawn up based on the default tenor maintained for the drawdown product. Contract: Select the option if you want the tenor of the original drawdown to be applied on the rolled over drawdown
   Rollover Mode	You can select the rollover mode from the drop-down list. The options are: Auto: If you select this option, the system automatically rollovers the drawdown on the maturity date as per the preferences maintained for rollover. Semi-Auto: Select this option to indicate that Forward Processing is applicable during roll-over. The system processes the event ROLL before the schedule date but l hold messages till the value date, for manual release. The messages are held in the Forward Processing Queue. Forward Processing has been explained in the topic Reference Information for Loan Syndication. Refer to the same for more information
   Cont Booking for Addl Amt Only	You have to select this option if you wan to rollover the drawdown for an additional amount only.
   Apply Charge on Rollover Amt	You can select this option to indicate that charge is to be applied on drawdowns that are rolled over. However, for charge to be applicable on a rolled over drawdown: It should be applicable to the product involving the drawdown. It should not have been waived for the original drawdown (one that is being rolled over).
   Liquidate Overdue Schedules	You can select this option to liquidate the overdue schedules, if any, before rolling over a drawdown.
   Repickup Interest Rate on Rollover	You may select this option to instruct the system to reapply the interest rate for the rolled over drawdown. If not selected, the interest rate applied for the original drawdown is used for the new drawdown as well.

   This topic contains the following sub-topics:

• Impact of Liquidation Mode on Rollover