3.3.5.1 Indicating Propagation of Charge Components to Participant Contracts

When you collect the charges from the borrower, you can choose to pass the charges to the participants of the tranche or drawdown contract. To indicate this you have to click the Propagation Required check box in the Charge Class Maintenance screen (LFDCHGCE).

Figure 3-9 Charge Class Maintenance

Note:

This check box is active only for charge components of the LB module. For all other modules the box is deactivated.

Refer the Charges and Fees manual for further details on this screen.

In the product Charge Definition screen, when you are associating the interest components for the borrower tranche or drawdown product, you can choose a charge class for which the propagation to participants option has been indicated in the class definition, if required. If so, the Propagation Reqd check box is required.

You can change this specification and deselect the Propagation Reqd check box, if you want to indicate that charge class propagation to participants is not applicable. Alternatively, if you have chosen a charge class for which propagation to participants has not been indicated, you can select the Propagation Reqd check box to indicate propagation of charge class to participants, if required.