7.1 Introduction

A syndication contract (facility, tranche, or drawdown) could have various components other than the Principal, such as Interest, Charges, Fees, Margins or SKIM components.

Given below is the sequence of steps you need to follow to apply and process fees levied on a syndication contract:

• Maintain a Fee Rule through the Fee Rule – Definition screen.
• Define the attributes of a Fee Rule through the Fee Rule Maintenance screen.
• Once you have defined the attributes of a Fee Rule, you have two options:
  • Define a Fee Class through the Fee Class screen. If you define a Fee Class, you can associate it with a Product directly (through the Borrower Product – FEE Details screen) and the product inherits all the attributes of the Fee Class.
  • Do not define a Fee Class, instead, associate a Fee Rule directly with a product and define the other properties through the Borrower Product – FEE Details screen.
• The contracts booked under various products, inherit the properties of the product. For each contract, you can add, edit or remove fee components through the Fee Components screen.
• Capture fee schedules for a facility through the Fee Schedules screen (invoked from the Facility Contract Online screen). For tranche and drawdowns, capture the fee schedules in the Schedule Details section of the SCHEDULE tab in the LB Tranche Contract Online screen and Drawdown Contract Online screen respectively.
• Liquidate the outstanding fee schedules (if the Liquidation Mode of the component is Manual) and prepay future schedules through the Fee Liquidation screen.

For more information on charges and fees, refer to Charges and Fees User Manual.