4.9.3.3 Specifying Drawdown details

The details specific to the drawdowns processed under the tranche include the following:

• Minimum DD Amount and Maximum DD Amount

  Specify the minimum and maximum amounts that can be disbursed through borrower drawdowns under the borrower tranche contract. This amount is considered in the borrower facility contract currency.

  When you capture the drawdown amounts, the system ensures that the amount is within the range of minimum amount or maximum amount specified here.

  Note:

  • By default, the maximum drawdown amountis equal to the tranche amount.
  • If the drawdown currency is different from the borrower facility contract currency, the amount is converted using the standard exchange rate, for the purpose of validation.
• Maximum No of DDs

  You have to capture the maximum number of borrower drawdowns under the tranche being processed. When you enter a borrower tranche contract under the borrower facility contract, you specify the drawdown schedules. The system validates that the total number of outstanding drawdowns (also taking into account future drawdown schedules) does not exceed the maximum number of drawdowns specified here. Similarly, when a disbursement is made on initiation of a drawdown, the system validates that the total number of outstanding drawdowns including the drawdown being initiated does not exceed the maximum number of drawdowns specified.

  Note:

  • Drawdown schedules of type Renewal (which would, typically, be defined for rollover) are not taken into account when the system validates for the maximum outstanding drawdowns.
  • If the number of drawdowns under the tranche exceeds the maximum number, the system displays an error message.
  • As and when you process drawdowns under the tranche, the system updates the Current DD No with the total DDs processed.
• Clearing Line

  Specify the clearing line that should be linked to the tranche. The adjoining option list displays all available clearing lines based on the GFCID/customer of the tranche contract, if the box NAM Limit Confirmation is selected in the Loan Parameters screen. If the box NAM Limit Confirmation is not selected in the Loan Parameters screen, this list displays all available clearing lines based on the GFCID/Customers maintained in the Tranche Borrower Details screen. You can also select the appropriate one from it.

  You can update this value at the time of contract booking and amendment. On copying an existing contract, this value is not copied.
  The system displays an override message for Tranche and Drawdown in the following cases:

  • If the Tranche contract is not associated to any clearing line.
  • If the clearing line associated is marked as unavailable in the ‘Clearing Limits’ screen

  Note:

  • Clearing line association validations are applicable for Tranche and Drawdown events.
  • Clearing line availability validations are applicable only for Drawdown events.