4.9.3.2 Specifying Tranche Details

Tranche specific details will include the following:

• Booking Date

  This is the date on which the contract is captured in the system. The current system date (today’s date) will be displayed here. You cannot change this date. This date is only for information purposes and the actual accounting entries are passed only as of the Value Date of the contract.

• Value Date
  This is the date on which the contract comes into effect in the system. The tenor of the contract begins on this date, and accounting entries with respect to the contract are passed as of this date. You can specify any date as the Value Date. However, it must be:

  • Later than the Value Date of the main borrower facility contract.
  • Later than the Start Date of the tranche product involving the contract.
  • Earlier than the Maturity Date of the tranche (Maturity date of the drawdown can be later than that of the tranche) or drawdown product involving the contract.
  • Earlier than the Maturity Date of the underlying facility contract

  Note:

  The system displays an override if the specified Value Date falls on a holiday of the local currency.

  You can amend the value date as part of Contract Amendment:

  • After the authorization of the contract
  • Before the initiation of tranche
  • When no Drawdown is booked under the Tranche

  The amended value date gets defaulted to effective date in Fee Rule screen and Margin Maintenance screen with an override message asking for your confirmation. Select yes to continue or no to change the effective date manually. In addition, you can redefine the fee and repayment schedules manually.
  If the new value date is less than or equal to application date then contract initiation (INIT) happens as part of save of amendment.

  Value Dated Balances are repopulated when there is amendment of value date. You can define multiple adhoc fee components based on the requirement. In addition, pro rata type of participant FFT to facilitate the display of the adhoc FEE and its amount. Margin rate field and values are provided in future dated Borrower rate setting fax.

  Example

  For instance, when you open a tranche under the main borrower facility contract 000SNEW000010001 with Mr. Robert Carr, you can enter 15^th January 2000 as the Value Date for the borrower tranche. If you do so, on any date including and following 15^th January, a drawdown can be entered for Mr. Robert Carr, if requested by him.

  The application date on the day you enter the contract (which is the booking date) could be earlier, later or the same as this value date. For backdated contracts, you can enter backdated borrower tranches. For future dated contracts, you cannot enter tranches before the contract actually comes into effect (that is, before the value date).

  Similarly, when you enter the first drawdown under the first tranche, you would enter 31^st January 2000 as the Value Date for the drawdown, according to the drawdown schedule requested by Mr. Carr. Again, the application date on the day you enter the contract (which is the booking date) could be earlier, later or the same as this value date.
• Original Start Date

  This displays the date on which the contract was originally initiated. If the contract has been rolled over more than once, this is the date on which the first loan was initiated. By default the current system date is displayed.

  If you are entering a contract that has already been initiated, enter the date on which the same began. In this case, the date is for information purposes only and for all accounting purposes the Value Date is considered as the date on which the contract was initiated. The original start date cannot be greater than the value date of the contract.
• Maturity Date

  If the tranche product has a standard tenor, the maturity date is default based on the tenor maintained and the start date of the contract. You can change this default date, if necessary. However, the maturity date of the tranche should be between the facility start date and the end date.

  If the maturity date is known at the time of capturing the tranche (fixed maturity), you can specify it for the contract.
• DD Expiry Date

  You must specify the date beyond which further drawdowns under the tranche contract will not be allowed. The system does not calculate any commitment fee beyond this date.

  By default, the expiry date of the drawdowns processed under the tranche will be equal to the tranche maturity date. You can change it to any date between the (Value Date + 1) and the Maturity Date of the tranche contract.
• Limit Line

  You can associate a limit line to track the loan availed by the customer, if required. The credit lines defined for the selected tranche customer is available in the option list. The exposure is tracked against the line selected here.