10.7 Processing Loan Contracts in OL Module

When you book or process any activity in a tranche/drawdown contract (in the Loan Syndication module) where bank is one of the participants, the system first checks whether the participant is maintained as a self participant (in the Self participant Maintenance screen). After confirming this maintenance, it posts a record in the STP queue for every event that is generated for the self participant contract.

You can view the records in the Straight Through Processing Interface Browser available in the Application Browser.

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

1. On the homepage, type LBDSTPIB and click next arrow.
   The STP Interface Browser Detailed screen is displayed.

   Figure 10-4 STP Interface Browser Detailed

   
   

   
   Description of "Figure 10-4 STP Interface Browser Detailed"

   
   
2. You can view the Processing Status and other associated details of the record in the above browser. The following statuses are applicable for the records:
   • Extraction – The record is in this status when an event is triggered for the LB contract (self participant’s contract). These events are posted in the STP queue for handoff to OL module. The following details are displayed in the browser:
     • Reference number of the contract on the borrower’s side
     • Currency of the contract
     • Sequence in which the events occur and the corresponding event code
     • Reference number of the contract on the participant’s side
     • Event sequence number for the participant side contract
     • Processing date of the event (in DD-MMM-YYYY format)
     • Mapping that exists between the self participant, branch and desk code (as per your maintenance in the Self Participant Maintenance screen).
     • Enrich - If default preference chosen as No Default then the BOOK event is logged with processing status as Enrich. You can unlock the BOOK event and specify the Expense and Product Codes.
     • If LB-OD Component and Product mapping screen is maintained with No_Default maintenance for default preference then Drawdown contract reference number defaults in Enrich status in the STP Interface Browser and you can unlock and specify the Expense code and Product code in the screen.
   • Handoff – The record moves to this status when the LB events are handed off to the OL module to create the corresponding commitment/loan contract on the originations side.
   • Processed – Once the events that take place on the LB side are replicated/processed (after performing the validations explained in the section Validating records prior to processing in OL module below) for the corresponding commitment/loan contract, the record moves to the Processed status. In other words, the commitment/loan contract is booked and the relevant events are triggered for the same. You can view the following details in the browser:
     • Reference number of the commitment/loan contract
     • Event Sequence Number and the Event Code
   • Failed – If the processing fails, the record moves to the Failed status.

   Note:

   If the interface type is External, you have to unlock the record, key-in the commitment/ loan details and then save and authorize the record.

   Note:

   While processing the specific event, the negative base rate or margin rate is considered during interest calculation on loan contracts if base rate or margin rate is in negative at the drawdown level.

   You can unlock a record by clicking a specific record. And you cannot navigate to other records until the record is saved.

   You can also authorize the record by clicking specific record. And manually mark the process status as Processed, if the process status of the record is in Enrich. The system does not validate the position during the transaction.

   This topic contains the following sub-topics:

• Validating Records Prior to Processing in OL Module
  
• Viewing and Reprocessing Failed Records
  
• Processing Settlements
  
• Impact of STP on CUSIP/ISIN