1. Loan Syndication
  2. Defining Products for Loan Syndication
  3. Creating a Borrower Tranche/Drawdown Product
  4. Specifying Preferences for Tranche/ Drawdown Products

3.3.1 Specifying Preferences for Tranche/ Drawdown Products

Preferences are options that you can use to define specific attributes for a product, which is applied automatically to contracts that are entered and processed against the product.

You set up preferences for a borrower tranche/drawdown product in the Loans Syndication – Borrower Product Preferences screen.

Specify the User ID and Password, and login to Homepage.

From the Homepage, navigate to Loans Syndication – Borrower Product Definition screen.

  1. From the Loans Syndication – Borrower Product Definition screen, click Preferences
    The Preferences screen is displayed.

    Figure 3-2 Preferences


    Preferences

  2. You set up the general preferences for a borrower tranche or drawdown product in the Loan Syndication – Borrower Product Preferences screen in the same manner as you would for a normal commitment product or loans, depending upon the product type you have specified in the Loans Syndication – Borrower Product Definition screen.
    Refer the Bilateral Loans User Manual for a detailed description.

    Note:

    This section explains about those preferences that you need to set specifically for borrower tranche or drawdown products under a borrower facility contract.

    To indicate Forward Processing is applicable to the borrower tranche or drawdown product during the events INIT and LIQD, select the option Semi-Auto against the fields Initiation Mode and Liquidation Mode, respectively. The system processes the two events before the scheduled date, but hold the messages till the spot date or value date. The messages are held in the Forward Processing Queue.

    For details on Forward Processing, refer to the Capturing Forward Event processing details in the chapter Reference Information for Loan Syndication.

    Notice Days - You can indicate whether the notice days applicable for borrower drawdown contracts using the product must be defaulted from the product preferences, or from the parent tranche or facility contract.

    The notice days refers to the number of days before a schedule payment date, a payment notice is to be sent to the borrowing customer, for the borrower drawdown contract. This would apply to ad-hoc fee, interest and principal schedules, and defined for the contract.
    This topic contains following sub-topics:

Parent topic: Creating a Borrower Tranche/Drawdown Product