6.5.4 Marking Contracts as Liquidated

You can select active facility, tranche and drawdown contracts and change the status to Liquidated, if the contract satisfies all criteria for liquidation status. This can be done through the Mark Liquidated screen.

Specify the User ID and Password, and login to Homepage.

On the Homepage, type LBDMKLIQ and click next arrow.

• The Mark Liquidated screen is displayed.

Specify the following in Mark Liquidated screen. For information on fields, refer to field description table.

Table 6-2 Mark Liquidated Details

Fields	Description
Contract Ref No	Specify the contract reference number. Alternatively, you can also select it from the option list. The list displays borrower facility, tranche and drawdown contracts. Note: When a facility or tranche or drawdown contract is marked as liquidated then the corresponding participant contracts also gets marked as liquidated, if the individual investor balance is zero. When tranche contract is marked as liquidated, the linked collateral online and settlement contract also gets marked as liquidated, if the collateral online and settlement contract balances are zero.
Facility Name	System displays the facility name once the contract reference number is chosen. You cannot modify this field.
Branch	System displays the branch once the contract reference number is chosen. You cannot modify this field.
Department	System displays the department name once the contract reference number is chosen. You cannot modify this field.
Principal Outstanding	System displays the outstanding principal amount once the contract reference number is chosen. You cannot modify this field.
Contract Amount	System displays the contract amount once the contract reference number is chosen. You cannot modify this field.
Counterparty	System displays the counterparty once the contract reference number is chosen. You cannot modify this field.
Value Date	System displays the value date once the contract reference number is chosen. You cannot modify this field.
Mature Date	System displays the maturity date once the contract reference number is chosen. You cannot modify this field.
Remarks	You may add remarks if you wish to, in this field. Note: You can only change status from Active to Liquidated; no other status change can be done from this screen.

The following operations can be performed through this screen:

• New - This operation initiates contract status change for a contract. When you click on New button, the Contract Ref No is enabled and you can select the required contract to be liquidated.
• Save - During this operation, system performs the contract lock check and if the selected contract is locked by any other user, save operation fails.
  • When there is no contract lock, system validates whether the status of the contract can be changed to Liquidated. Once all validations are successful, the following override message is displayed.

    Contract will be liquidated. Proceed?

  • If the override is selected as Yes, the contract status is changed from Active to Liquidated and LIQD event is registered. If the override is selected as No, save operation fails.
• Authorization - During this operation, LIQD event is authorized.
• Delete - During this operation, saved and unauthorized status change of the contract is deleted.

Note:

The branch and department code restrictions and maker and checker functionality is applicable to this screen.

The sequence for marking a tranche contract as liquidated is as follows:

1. Mark the loan as Liquidated. For self participant, drawdown cannot be liquidated if any underlying loans are active.
2. Mark the commitment as Liquidated. For self participant, tranche cannot be liquidated if any linked/STP commitments are active.
3. Mark the underlying drawdowns as Liquidated.
4. Mark the tranche as Liquidated.

This topic contains the following sub-topics:

• Validations