4.9.3.4 Selecting Liquidation Details

In the Liquidation section of the screen, specify the following:

• Liquidation Mode

  The mode of liquidation of components default from the tranche product associated with the contract.

  At the tranche level, you can change the mode to any one of the following methods:
  • Automatic: The system automatically liquidates the schedule during EOD on the schedule due date of the component.
  • Semi-Auto: If you choose this option, the message that should get generated during liquidation (Event: LIQD) are kept on hold. The messages are available in the Outgoing Message Browser with status Hold. You need to use the Events for Forward Processing screen to release the messages.
  For more details on this screen, refer the heading Forward processing of events in this chapter.
  • Manual: In this mode, you have to liquidate the components manually through the Contract Payment screen. Fee components should be liquidated through the Fee Liquidation screen.
  For more details on Contract Payment screen, refer the heading Processing Repayments Manually in the Processing Repayments chapter of this User Manual.

  For more details on Fee Liquidation screen, refer the heading Liquidating Fee Components in the Processing Charges and Fees chapter of this User Manual.

• Billing Notice Days

  You can instruct the system to generate the Billing Notice for participants/ borrowers predefined days before the due date of the components. For instance, if the component due date is 31^st Dec ’05 and the billing notice days is 2, the system sends a notice to the customer on 29^th Dec ’05 as a reminder of the payment due on 31^st. This applies to ad-hoc fee, interest and principal schedules, defined for the contract.