4.9.19.1 Specifying Skim Participants

You have to specify the following details in the Skim Participants tab of the screen:

• Payer Participant

  You have to select the participant who makes the Skim payment. The participants associated with the tranche are available in the option list. You may select a participant from this list. When you select the participant, the name of the participant is also displayed.

• Receiver Participant

  Likewise, you have to select the participant who receives the Skim payment. The participants associated with the tranche are available in the option list. When you select the participant, the name of the receiver is also displayed.

• Default Skim Rate

  Here, you have to specify the rate applicable for calculating the Skim amount. This rate is applied on the participation amount contributed by the payer. Skim is paid or received as per the Interest schedule. The rate specified here is applied.

Click Add Row button to select the next payer participant.

Note:

• If a drawdown contract involves Skim distribution among participants, it is mandatory to maintain two Skim components (payable and receivable) at the participant drawdown product level (through the Interest Definition screen).
• In the case of a manual repayment, SKIM is not applicable if a partial liquidation of interest occurs. SKIM is settled among the participants only upon full liquidation of interest.

For more details on maintaining Skim components, refer the heading Maintaining Skim components for participants in the Defining Products for Loan Syndication chapter of this User Manual.