8.1 Introduction

A rollover is the renewal of a borrower drawdown under a borrower tranche of a borrower facility. Instead of liquidating a drawdown on maturity, you can roll it over into a new drawdown. The outstanding principal of the old drawdown is rolled-over with or without the interest outstanding on it. You also have the option to increase the principal when rolling over a drawdown.

You can rollover a drawdown you are processing, provided rollover is allowed for the drawdown product involved in the drawdown.

When a drawdown is rolled over, it can be processed in the following manner, depending upon your specification:

• A new drawdown with a different contract reference number is initiated.
• The original drawdown could be split into multiple drawdowns as a result of the rollover.
• The original drawdown could be consolidated along with other drawdowns as a result of the rollover.

For a borrower drawdown, typically, a new drawdown would be required to be initiated on rollover, and further, a split or consolidation may be required.

Note:

• For discounted loans, in case of reprice and rollover, adjustment of the amount through BADJ event is done only when there is a collection from borrower. Adjustment through BADJ is restricted in case of refund to the customer.
• For discounted rollover if 'Allow discounted Schedules' check box is selected, then rollover on maturity date with principal increase (VAMI) beyond the outstanding amount is restricted. The following error occurs Error Code LB-ROL-212 - Rollover amount should not exceed Total Outstanding Amount for discounted schedules. There is no (BADJ) refund to customer in case of split/consolidated rollover.