11.3 Processing Split Re-Pricing

During split re-pricing, in case there are residual interest and principal on the parent contract (in case of partial re-price), the system liquidates the same in the parent contract if you select the Liquidate Principal and Liquidate Interest boxes. If you do not select the amount is retained in the parent contract.

Note:

• If the parent contract is a prime loan for which you have checked both Liquidate Interest and Liquidate Interest on Prepayment, the system liquidates the interest that is accrued till date (the date when the re-pricing is done).
• The system posts the accounting entries for the principal and interest liquidation at reprice for the SPTI (Split Transaction Initiation) event triggered for the parent contract.

The system creates the child contracts with the same currency as that of the parent contract. However, if drawdown currency is different from the linked tranche currency, you have the option to fix exchange rate for each child contract.

For details, refer the section titled Fixing exchange rate for child contracts in this chapter.

You cannot perform a back dated re-pricing beyond the:

• Latest PRAM date
• Last payment date
• Last value dated amendment date
• Re-price value date

This topic contains the following sub-topics:

• Automatic Rate Set Process for Future Dated Split Re-Price
  
• Generating Child Contracts for Future Dated Re-Pricing
  
• Fixing Exchange Rate for Child Contracts
  
• Fixing Interest Rate for Child Contracts
  
• Authorizing Override for Split Re-Pricing
  
• Viewing Event Details
  
• Specifying Media for Message Generation