2.18 Banker's Acceptance Maintenance

Bankers' Acceptance (BA) is a negotiable financial instrument used to raise short term funds in the money market. This is a common short term borrowing at a fixed rate in Canadian credit facilities.

This functionality is applicable only if you select the product preferences as Bankers' Acceptance and the payment type as Discounted or True Discounted in Borrower Product Definition screen.

Limitations

The following are the limitations in BA contracts.

• You cannot link SLT trade to BA tranche/commitment contracts.
• Rate changes and value dated amendments are not applicable for BA contracts.
• Cascade Participation - N is not applicable for the tranches where BA drawdowns are booked.
• Participant ratio amendments are not allowed where BA contracts are booked under the tranche.
• BA contracts are applicable for both LB linked OL contracts as well as standalone OL contracts (bilateral loans).
• Re-linking of OL contracts are not allowed for BA contracts since the system creates the corresponding OL contract through STP once the LB contract is authorized. If you want the OL contracts to be re-linked, you need to reverse the original contract and then rebook.
• Conversion is not applicable for the existing set of contracts.
• There is no change in the Reverse MT103 and not configured/used for these kinds of contracts.
• LB/OL consol rollover/split rollover screens/processes are not applicable for BA contracts.
• LB/OL merge reprice screen/processes are not applicable for BA contracts.
• Participant transfer transactions not supported for tranches with BA products.
• Overdue penalty feature not supported for BA products.