10.15 STP Processing for Swingline drawdown contracts

In Loan Parameters screen, Enable Swingline STP propagation check box is available for swingline drawdowns.

Figure 10-8 Loan Parameters

Description of "Figure 10-8 Loan Parameters"

If this loan parameter is selected then booking of swingline drawdown contract which has the participant limit at tranche level, does not convert the cascade participation to non-cascade participation. As the STP needs to be allowed it does not do the conversion. It remains as cascade participation only.

Note:

Earlier the STP propagation was failing due to the conversion of cascade to non-cascade conversion of tranche.

To denote this conversion the system propagates a CASC (Cascade Conversion to noncascade) event at tranche contract level. Now, By enabling the LOAN PARAM if user selects this check box Enable Swingline STP, the system propagates the tranche/swingline DD’s STP to OL module.

System will STP the below events to the origination module for the Swingline drawdown.

• BOOK
• INIT
• LIQD

STP for zero –investor Swingline Participant under the tranche does not happen to Origination. You have to relink the failed LS Tranche with a new Commitment which will be within the swingline limit provided at the tranche level for the zero - investor.

STP for non–zero swingline participant contract happens below.

• Non –zero investor: Participant having asset ratio and swingline limit maintained on tranche.
• Zero –Investor: Participant having asset ratio maintained as zero on tranche but swingline limit is maintained.

Appropriate error message is displayed by the system if the swingline limit at the tranche level is reduced below the total outstanding of the participant in swingline contracts.

VAMI on drawdown contracts are not allowed beyond the value date of PRAM (Events occurred before booking of any swingline contracts), if any active swingline drawdown exists under the tranche.

LIQD on drawdown under the non–revolving tranche is not allowed before the value date of any existing PRAM. (Events occurred before booking of any swingline contracts), if any active swingline drawdown exists under the tranche.