4.22.2 Spreading Margin Rate Revisions

Oracle Banking Corporate Lending allows you to revise the margin rates to active drawdowns and the liquidated contracts also under a Tranche.

When a rate revision happens for a Tranche, MRFX event get fired across all drawdowns that are either in active or liquidated status. Payable and Receivable details get updated for the schedules which are falling after the effective date of the Margin Rate revision along with the settlement of difference in the settled and revised interest amounts. Note that the margin maintained for individual participants is also considered while re-computing interest due for the participants. If you amend the margin rates with effective date beyond the paid drawdown schedule, the system generates pay-receive (based on the margin maintained for the individual participants) for any change in the interest due, and this interest is liquidated separately.

Backdated margin rate revision gets applied only for the drawdowns under the tranche where the Interest/Fee Distribution type is defined as Lender of Actual.