4.9.11.2 Specifying the Sublimits

You can maintain sublimit for all LC products and specific to a currency for all borrower products and the borrower sublimit is tracked against all LC products.

System defaults the value of Limit type as sublimit to maintain the limit for individual product or all product not both. In addition, system maintains the limit for individual currencies or ALL currency, not for both.

If Specific DD Product and Currency limit with Limit Type as Sublimit is already maintained for the borrower, then system will not allow another record with ALL DD Product Option. If Single Limit is maintained with ALL currency option then Limit will be tracked with Tranche Currency. If Limit type is chosen as ALL LC, then the system will allow to maintain the limit for ALL product only, not for individual product. If Sub Limit or ALL LC limit is maintained for ALL currency, the limit amount is tracked in the tranche currency and the limit amount in this case can not exceed the tranche amount.

In case of rollover with the additional principal or rollover with different exchange rate or both the additional utilization impact is validated during rollover child contract creation.

When you process drawdowns under the tranche, the system checks for the following:

• The total of all drawdowns for a currency and product combination does not exceed the limit specified here.
• If you have not maintained a product + currency wise limit for a borrower, the system allows the borrower to withdraw any amount under any allowed product and currency under the tranche.
• If the drawdown amount exceeds the product + currency limit amount maintained for a borrower, the system displays an override message to indicate the same when you attempt to save the contract. In addition, once the limit is reached, you cannot process any more drawdowns for the same combination even if there are repayments under existing drawdowns for the combination. The system displays an override in this case.
• If the limit amount changes due to exchange rate fixing or revaluation, the system displays an override message when the EXFX (Exchange Rate Fixing) event is triggered.

At the tranche level, you can view the borrower limit details and the utilization against the same in the Borrower Sub Limit At Tranche Level screen.

Specify the UserID and Password, and login to Homepage.

1. On the homepage, type LBDBRLMT and click next arrow.
   The Borrower Sub Limit At Tranche Level screen is displayed.

   Figure 4-48 Borrower Sub Limit At Tranche Level

   
   

   
   Description of "Figure 4-48 Borrower Sub Limit At Tranche Level"

   
   
2. You can also invoke this screen, by going to LB Tranche Contract Online screen, clicking Borrower and then clicking Borrower Limit Detail.
   This screen displays the following:

   • Limit amount for a borrower, currency and DD product combination.
   • Available amount for the same combination.
   • The reference number of drawdowns processed under the combination, the utilized amount and the value date of each drawdown.