6.5.3 Processing Non-Prorata Payments

The system also allows you to process non-prorata payments on the maturity date of the drawdown if the drawdown is not a Prime loan. In the Contract Payment screen, click Non-Prorata button to invoke the Participant Ratio Details screen.

In this screen, you can maintain the following details:

• Select the participant who is not maintained at the tranche level
• Add participant amount
• Provide asset ratio/participation amount of VAMI amount
• Maintain settlement currency, mnemonic and entity for the new participant
• Provide settlement details for new participants for all currencies maintained in the tranche.

For existing participants, system displays the displays the settlement details for all currencies maintained at the tranche level. Note that you cannot modify these details.

Note:

If Propagate Ratio to Drawdown box is selected, then on save of the tranche amendment, system triggers the VAMI event at the tranche contract level. In addition, system increases the tranche amount and updates the new asset ratio at the tranche contract. System triggers the PRAM event at the underlying drawdown contracts for propagating the new asset ratio.

To select the participants for processing the payment, click Participant Selection button in the above screen. In the Participant Selection screen that is displayed, the names of all the participants of the drawdown are listed. Select the participants you want to include for payment processing. Click Ok button to save the details and return to the Participant Ratio Details screen. The system displays the selected participants’ names and the relative payment distribution ratio (in the Component Ratio field of the screen) arrived at based on the asset sharing ratio of each participant. You cannot amend the ratio that is displayed here.

Click Ok button to return to the Contract Payment screen. In this screen, you have to specify the Amount Paid which is distributed amongst the selected participants as per the relative distribution ratio.

When you save a non-pro rata payment for a drawdown under a pro-rata type of tranche (the Cascade Participation box is selected in the LB Tranche Contract Online screen), the system converts the tranche into a non-pro rata type (the Cascade Participation option is deselected). The system also recalculates the asset ratio for the drawdown.

For information on non-prorata rollover, refer the section titled Processing Non-Prorata Rollovers in the Rolling over a drawdown chapter of this User Manual.

Note:

Oracle Banking Corporate Lending does not allow participants to contribute an amount more than the asset amount maintained at the tranche level.

Refer the chapter Loans Syndication Contracts in this manual for more information on computing Participant Ratio based on non pro-rata basis.

For a detailed description on processing manual repayments, refer to the chapter Processing Repayments in the Loans User Manual.

This topic contains the following sub-topics:

• Processing Non-Prorata Payments for Sighting Fund enabled Tranches