4.5.1 Specifying Contract Details

In the Contract Details section of the screen, you have to specify the following:

Table 4-1 Specifying Contract Details

Fields	Description
Customer	You must specify the customer with whom the facility contract has been finalized. This, typically, is the borrowing customer. The customers allowed to be counterparty to a facility contract are defined at the facility product level. The customers allowed for the contract are displayed in the option list provided. Select the customer from this list. Note: A primary entity must be defined for every customer who is allowed to be a borrower of the facility contract, in the Borrower Details screen. Example When you are entering a borrower facility contract that we saw in the first example, with Mr. Robert Carr, you can select the code assigned to Mr. Carr, in the system, from the option list. You must also designate a Primary Entity to whom advices and notices related to the contract would be sent.
Currency	You have to specify the currency of the borrower facility contract. The currencies allowed for the facility product are available in the option list provided. Select the currency from this list. This is the currency in which the contract amount is expressed.
Amount	Specify the total principal that is to be lent to the borrowing customer through the borrower facility contract. The value you enter here is taken to be in the currency specified for the borrower facility contract. You can specify T or M to signify thousand or million, respectively. For instance, 10T would mean ten thousand and 5M, five million. When you specify the contract amount, the system computes and displays the facility amount in reporting currency using the exchange rate maintained between the two currencies (Contract Ccy and Reporting Ccy) for the branch. This is displayed in the Reporting Details section of the screen.
Facility Start Date	This is the date on which the contract becomes effective in the system. On any date following this, you can capture the tranche-level commitment contracts and the individual drawdown loans in the system. By default, the current date is displayed here. However, you can change this date to any one of the following: A past date The application date A future date To change the date, click the Calendar button. The system then displays the following message to seek confirmation for the change: Facility Start Date and Tranche Start Date are defaulted to System Date, Continue? Click OK in the message window to proceed with the change. Note: The facility start date must be later than the Start Date defined for the product involving the contract and earlier than the End Date of the product. All tranche contracts and drawdown loan contracts must be value dated later than the Facility Start Date. Example For instance, when you enter the borrower facility contract with Mr. Robert Carr, you must enter 1st January 2000 as the Value Date. The application date on the day you enter the contract could be earlier, later or the same as this value date. For instance, Mr. Robert Carr could approach you on 15th January 2000 and enter into a contract with your bank, wanting that the contract to come into effect on 1st January. The value date in this case is 1st January 2000, and the contract would be backdated. For backdated contracts, you can enter backdated tranches and drawdowns. Alternatively, Mr. Robert Carr could approach you on 15th December 1999, and enter into a contract with your bank, wanting that the contract must come into effect on 1st January 2000. This is the value date, and the contract would be future dated. For future dated contracts, you cannot enter tranches before the contract actually comes into effect (that is, before the value date).
Facility End Date	This is the date on or before which all tranches and drawdowns under the borrower facility contract mature. You can enter any future date as the facility end date. It must be later than the Start Date defined for the product involving the borrower facility contract, and earlier than the End Date of the same product. The Facility End Date must be later than the Facility Start Date defined for the contract. Facility End Date is mandatory in case of Stand By Fee component. Example For instance, when you enter the borrower facility contract with Mr. Robert Carr, the customer indicates that the tenor of the contract must be a year, that is, the maturity date of the facility contract must be 1st January 2001. This means that all tranches and drawdowns entered must mature on or before that date.
Internal Agency ID	Select the CIF Id of a bank or its entity to play the role of a self participant in the syndicated loan. The id you select for the facility is propagated to the tranche and drawdowns created under it. During STP from LB module to OL module, the id selected here becomes the settlement party of the corresponding commitment/loan contract. For details on STP, refer to the Straight Through Processing (STP) chapter of this User Manual.
CUSIP Number	You have to capture a unique number to identify the tranche. This number is used to identify the loans being traded and to quote the market price. This number gets defaulted to all the drawdowns processed under the tranche and cannot be changed at the drawdown level. You can use a maximum of 16-alphanumeric characters for a CUSIP. CUSIP also appears in all correspondences under the tranche that is,. advices to both participants and borrowers. CUSIP number is modifiable as part of contract amendment (CAMD). After authorization of the CAMD event, the internal CUSIP propagates to all the underlying drawdowns, linked commitment, its underlying loans, linked trades and position contract, if any. The Internal CUSIP cannot be changed as part of CAMD if there exists: Any PRAM or Non-prorata VAMI for the corresponding tranche. Any open position for the existing CUSIP. Note: The Internal CUSIP is mandatory and cannot be made null during contract input or amendment.

Specifying Details for Tranches

You need to specify the following details for tranches borrower facility contract:

Table 4-2 Specifying Details for Tranches

Fields	Description
Start Date	You have to capture the date on which the tranches created under the facility contract become effective in the system. By default, the current date is displayed here. However, you can change this date provided the new date is not earlier than the facility start date and later than the facility end date.
End Date	Similarly, you have to specify the date on which the tranche contracts processed under the facility contract should mature. You can enter any date as the facility end date provided: The new date is not earlier than the facility start date and later than the facility end date. The new date is not equal to or earlier than the start date specified for the tranche
Minimum Amount	You can specify the minimum amount that must be disbursed through the tranche contracts under the borrower facility contract. This amount is considered in the borrower facility contract currency. When you enter a borrower tranche contract under the borrower facility contract, you have to specify the drawdown schedules. The system validates that the schedule amount is not be less than the minimum amount you specify here. If the tranche currency is different from the borrower facility contract currency, the amount is converted using the standard exchange rate, for the purpose of validation.
Maximum Amount	Similarly, you have to specify the maximum amount that must be disbursed through the tranche contracts under the borrower facility contract. This amount is also considered in the borrower facility contract currency. When you enter a borrower tranche contract under the borrower facility contract, the system validates that the schedule amount does not exceed the maximum amount you specify here. If the tranche currency is different from the borrower facility contract currency, the amount is converted using the standard exchange rate, for the purpose of validation.

Specifying Other Details

You have to capture the following detail also for the facility contract:

Table 4-3 Specifying Other Details

Fields	Description
Named Agent	Select an appropriate named agent from the adjoining option list. The list displays all valid named agents from Named Agent Maintenance screen, who are mapped with the proof code that is the same as the department code under which the facility is being booked. Note: You must maintain same values for department and proof codes. You cannot amend a named agent if any active tranches are associated with the facility.
Primary and Secondary administrators	You have to identify the officer assigned to be the primary and secondary administrator for the borrower facility contract. The administrators maintained through the Administrator Details screen are available for selection. Upon selection of the code, the name of the administrator is displayed alongside. For more details, refer the heading titled Maintaining administrators in the Reference Information for Loan Syndication topic of this User Manual.
Agreement Title	A borrowing customer may avail a syndicated loan arrangement for a specific purpose, such as beginning a new venture, or a personal business project. You can capture this information as part of the facility contract. You can also specify the agreement title in Chinese up to eighty five characters and the same is displayed in the Loans Syndication : Draft - Tranche and LB Tranche Contract Online screens.
Internal Remarks	You can specify information about the facility contract to be used for reference, within your bank. It is not printed on any correspondence with customers, but it is displayed when the details of the contract are displayed or printed. You can also specify the internal remarks in Chinese up to eighty five characters and the same will be displayed in the Loans Syndication : Draft - Tranche and LB Tranche Contract Online screens.

Specifying Watch List Details

You can specify whether you want to keep the facility under watch. The following details related to the watch list can be specified here:

Table 4-4 Specifying Watch List Details

Fields	Description
Watch List Facility	Select this check box to indicate that you would like to keep the facility under watch.
Watch List Remarks	Select the reason for including the facility under watch list from the option list available. Note: This field is enabled only if you select the Watch List check box. The standard reasons for watch list are maintained in the Static Maintenance -Detail screen. The system displays the following override message when you try to perform any activity on existing tranches or drawdowns, or when you enter new tranches or drawdowns under a facility with Watch list. The override message displays the reason for the facility being under Watch List. The underlying facility is under Watch List, reason being ‘Facility under Watch’ Do you want to continue? For more details, refer the section titled Maintaining Watch List Details in the Reference Information for Loan Syndication chapter of this user manual.

Each of the vertical buttons in the screen is explained below in detail.

Indicating Agency Type

You can indicate the agency type of the transaction from the following options.

• Lead - Your bank is the lead agent for the syndication transaction.
• Participation - Your bank is one of participant in the syndication transaction.

Note:

You can indicate the agency type during the facility booking and you are not allowed to do any amendments to this at a later stage for this transaction.