9.6.1 Increasing Drawdown Principal

After you unlock the drawdown, you need to specify the following:

• Amendment Date

  By default, the current system date is displayed as the date of amendment. Once you specify this date, you cannot change it.

• Change in Principal

  Specify the amount by which you want to increase the drawdown principal. You can indicate this under the Modifications section in the Value Dated Amendments screen. If the currency of the drawdown is different from the local currency of the branch, system displays its equivalent in the local currency.

  When you specify the increase in principal, this amount is blocked at the tranche level from the date of booking.

Note:

• For normal and bearing type of drawdowns, the increase in principal amount is added to the bullet payment schedule.
• For amortized type of drawdowns, the increase in principal recalculates the payment schedule of the contract.
• You cannot enter a back dated amendment on or beyond the previous value dated amendment.
• For normal or bearing type of drawdowns, you can enter back value dated amendments beyond the liquidation date or schedule date only if the following criteria are satisfied:
  • Latest non-prorata payment date
  • Last payment date of the prime loan with the option to pay the interest along with the principal prepayment
• For any change in the principal amount, the participant’s share is subsequently change. As a result, the participant’s contracts will get updated based on their share. This is initiated through a VAMI event.
• When the principal amount changes at the drawdown level, Oracle Banking Corporate Lending recalculates the utilization and non-utilization fees at the tranche level.
• Value dated amendments are not applicable for swing line contracts.
• If the drawdown currency is different from the tranche currency, Oracle Banking Corporate Lending converts the increase in drawdown amount to the tranche currency. This amount is then validated against the tranche availability amount. This validation will be effective from the value date of the amendment till the maturity date of the drawdown.
• During value dated amendments, you cannot decrease the principal amount.
• Value dated amendments to the principal and interest components are not allowed after the maturity date of the loan.
• Future Value dated amendments are allowed for Prime draw downs, similar to normal draw downs.