9.6.2 Modifying Interest Rate

You can modify the interest for fixed or floating rate type of drawdowns in ICCF Details screen (Interest button is available only if you are performing value dated amendment for a drawdown).

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

From the Homepage, navigate to Value Dated Amendment screen.

1. From the Value Dated Amendment screen, click Interest.
   The ICCF Details screen is displayed.

   Figure 9-11 ICCF Details

   
   

   
   Description of "Figure 9-11 ICCF Details"

   
   
2. Using the above screen, you can select the rate type for which you want to change the interest rate. For floating rate type of drawdowns, you can also change the interest rate code.
   For more details on negative rate processing, refer the title Maintaining Loans Parameters Details in the chapter Bank Parameters in Core Services User Manual.

   For more details on this screen, refer the section Specifying Interest Details for a Contract in the Interest User Manual.

   Note:

   • You can modify the interest rate only for drawdowns.
   • You can also change the interest rate/spread on a Value Date prior to the last PRAM (Participant Ratio Amendment)/VAMI date. Any difference in the interest amount as a result of the change is tracked as payables/ receivables.
   • If the UDF RATE-VARIANCE is maintained as a non-zero value for a tranche contract to which the drawdown is linked, dual authorization is required for rate code changes for floating rate contracts and margin rate changes for borrower drawdowns.
   • The system considers the margin rates maintained for the participants while calculating the interest due for the participants.

   Note:

   For main interest component if Rate Type is Fixed, then you can enter rate fixing details in Rate Fixing screen. In addition, you can enter the Spread and Margin Details. For more details regarding dual authorization, refer the heading titled Authorizing Overrides in the chapter titled Loan Syndication Contracts - Part 1 of this User Manual.

   For more details, refer the heading titled Processing Back Valued Interest/Fee for Payables and Receivables in the chapter titled Loan Syndication Contracts- Part 2 chapter of this User Manual.

   Risk Participation

   Risk compensation and rate can be modified. Risk participation cancellation can also be done in this screen. On cancellation, the risk compensation is paid out.