8.3.3 Specifying Interest Basis Details

The interest components and the associated details defined for the drawdown is applicable for the rolled over drawdown as well. However, you can amend the following details:

Table 8-2 Interest Basis Details

Fields	Description
Rate Type	You have to indicate the nature the interest applicable for the rolled over drawdown. The options available are: Fixed: If you choose this option, the interest rate is fixed and it is based on the Fixed Rate Type you specify (explained below) Floating: If this option is chosen, the rate is floating in nature and it is picked up based on the Floating Rate Code you select (explained below).
Fixed Rate Type	This option is applicable only if you select the Rate Type as Fixed. The system picks up the rate based on the option you select here. The options available are: Standard: If you select this option, system picks up the rate based on the Fixed Rate Code you select for the component. Treasury: If you select this option, system picks the appropriate rate based on your maintenance in the Treasury Floating Rate Maintenance screen. For more details on the above screen, refer the heading Maintaining treasury floating rates in the Loans Treasury Operations chapter of the OPS User Manual.
User Input	If you select this option, you have to specify the applicable interest rate in the Rate field.
Fixed Rate Code	You have to select the applicable fixed rate code if: Rate Type is Fixed Fixed Rate Type is STANDARD The option list displays the rates codes maintained through the Standard Rates Maintenance screen. You can select a code from this list. System picks up the appropriate rate based on the effective date and the drawdown currency. For more information on maintaining standard rate codes and rates, refer the sections Maintaining Standard Rate Codes and Maintaining Standard Rates in the Processing Auto Deposits chapter of the OD (Overnight Deposits) User Manual.
Floating Rate Code	You have to select the applicable floating rate code if the Rate Type is Floating. The rate codes maintained through the Floating Rate Code Definition screen is available in the option list provided. The system picks up the rate based on the rate code you select here.
Rate	You have to specify the interest rate if: Rate Type is Fixed Fixed Rate Type is User Input However, if you have selected the Rate Fixing Required for the interest component at the drawdown product level (in the Interest Definition screen), you have to specify the rate in the Rate Fixing Details screen. For more details on this screen, refer the heading titled Fixing interest rate for the drawdown in the Loan Syndication Contracts chapter of this User Manual. For more details on negative rate processing, refer the title Maintaining Loans Parameters Details in the chapter Bank Parameters in Core Services User Manual.
Spread	If you have indicated the Rate Type as Floating for the rolled over drawdown and also specified the applicable Floating Rate Code, you can indicate the spread applicable for the rate.
Margin Rate	When you select an interest component, the margin components, if defined for the interest component, are defaulted in the Margin Details section of the ROLLOVER tab. You can amend the margin rate ONLY for those margin components for which the Basis Amount Tag is User Input. The new rate is applied for the rolled over drawdown. If rollover is performed after Margin Rate amendment, on the same day, then the system applies the margin change for the participants based on the margin maintained for individual participant. Similarly, if forward dated rollover is captured and margin amendment is done before the rollover effective date, margin is applied as part of end of day margin batch. The system considers the margin rates maintained for the individual participants while calculating participant interest.
Remove Rollover Instructions	After capturing the rollover instructions for the drawdown, if you do not want to rollover the drawdown, you have the option to remove the instructions maintained. You have to select this option to remove the rollover instructions. For information about Interest Basis on Split/Consolidation Rollover, refer to Interest User Manual.