5.4 Processing Future Value Dated Payments

Oracle Banking Corporate Lending allows future dated liquidation of Prime drawdown contracts if Liquidate Interest on Prepayment option is selected for the drawdown contract in the Drawdown Contract Online screen.

In this case, the interest computation is done for the prepaying principal and is computed till the value date of the future dated payment. On the value date of the payment, system recalculates the interest on the prepaid principal and compares the calculated interest amount with the interest amount that was calculated earlier by the system, while capturing the instructions for future dated payment. If there is a mismatch in the interest amount, system logs an exception and aborts the payment process.

You cannot do future dated payments for contracts which are instructed for a rollover or renewal. In such a case, you need to remove or reverse the rollover/re-price instruction on the contract in order to process a future dated payment. On the contrary, if you are reversing a future dated payment of a contract after instructing it for a rollover or re-pricing, then there will not be any change in the rollover/re-price amount. On the value date of the rollover /re-price, system will rollover/re-price the captured rollover\re-price amount. System liquidates the remaining future dated payment reversal amount based on the Liquidate Interest /Liquidate Principal options selected in the Rollover tab of the Drawdown Contract Online screen.

Note:

• System does not allow you to reverse FDLIQD event if there is an underlying reprice which is over due for the drawdown contract due to FDLIQD reversal. To proceed with FDLIQD reversal you need to reverse the re-price instruction on the contract.
• System allows only one active future dated payment at any point of time.