5.12.2.5 Operations Allowed on Tranches/Drawdowns with Unauthorized Prams
- PRAM (Participant Ratio Amendment)
- VAMI (Value Dated Amendment Initiation)
- LIQD (Liquidation)
- CAMD (Contract Amendment)
- Initiation of new drawdowns
Saving a tranche/drawdown with multiple PRAMs
The system maintains a sequence in which the transactions (PRAMs) are booked.
Authorizing multiple PRAMs under a tranche/drawdown
Oracle Banking Corporate Lending authorizes a transaction only if the earlier PRAMs are authorized.
During authorization of the Participant Ratio Amendment, Oracle Banking Corporate Lending revalidates the tranche availability and if the same is not sufficient to process the transfer, the authorization fails. The system displays an error message to indicate the same.
The PRAM event is triggered only upon successful authorization of the transaction.
Note:
- After you authorize the amendment/transfer, the system amends the corresponding facility, tranche or drawdown and it also applies the ratio changes to the relevant participant. The PRAM event is triggered for the contract for which you have amended the participant details. For modifications to existing participants, the relevant participant contract is also amended. For new participants, the relevant participant contract is created.
- During authorization, the system throws the following message. In order to
authorize the assignment activity, you have to authorize the overrides in the
Details of overrides requiring dual
authorization.
Contract Authorization possible only after authorizing the overrides
While authorizing the Participant Transfer an override message is thrown if the flag indicating the Transfer is Participant Transfer.
Do you want to post Accounting entry?
If you select yes, a payment to the Transferor’s Standard Settlement appears on the Forward Processor for the full amount of the Transfer. If No is selected payment ledger entry is not posted. The payment message is sent to Forward processing browser, if the liquidation mode is Semi Auto.
Parent topic: Transferring assets between existing participants