4.9.22.2 Processing Utilization and Non-Utilization Fees

The utilization fee and non-utilization fee which is payable by the borrower on the total outstanding amount under a tranche is always be collected in arrears. Oracle Banking Corporate Lending calculates the daily outstanding and the daily non-utilized portion of the tranche for both revolving and non-revolving types. The outstanding portion and non-utilized portion are calculated only on days when there is a change either to the fee rate or to the basis amount. In all other cases, the last available value for the fee rate and basis amount are used for fee calculation.

The system does not calculate backdated utilization/non-utilization fee beyond the last liquidation/schedule date.

Example

Assume that you have defined a monthly fee schedule for utilization and non-utilization fee for a tranche contract where the payment falls on the last day of every month. If you process a backdated drawdown on 15^th Jan 2005 with the value date on 15^th Dec 2004, the system does not recalculate the utilization/non-utilization fee from 15th Dec 2004.

You cannot process back valued drawdowns beyond the last liquidation/ schedule date of the interest components of all the drawdowns under a tranche. Similarly, back valued drawdowns are not allowed beyond the last liquidation/schedule date of utilization /non-utilization fee components of the tranche.

Back value dated repayments/prepayments/drawdowns/value dated amendments for increasing the principal drawn down is based on the outstanding amount and non-utilization amount. However, the system does not allow back value dated amendments/participant ratio changes beyond the last schedule/liquidation date. Similarly, back valued amendments /back valued participant ratio changes/back value dated drawdowns are not allowed beyond the last schedule/liquidation date of the utilization/non-utilization fee components of the tranche.