4.7.3 Initiation of Participant Contracts

To recall, you open a tranche by entering a commitment contract for the borrower. When the BOOK event for the borrower tranche contract is triggered, the system creates commitment contracts for the participants, using the product specified for participant tranche contracts, in the product preferences for the borrower tranche product which the borrower tranche contract uses, and the participant details maintained for the borrower tranche contract.

Similarly, after you enter a drawdown loan contract for the borrower under a tranche reference number, the system creates a deposit contracts for participants, using the product specified for participant drawdown contracts, in the product preferences for the borrower drawdown product which the borrower drawdown contract uses, and the participant details maintained for the borrower tranche contract.

Participant contracts initiated by the system can be viewed and amended using the Participant Contract screen, which is discussed later in this chapter.