9.4.1 Validating Fronting Details

The system performs the following validations while capturing the fronting details for the VAMI event:

• The fronting flag for the unfunded investor cannot be different from the previous VAMI/ INIT events. In other words, for the unfunded investor, either the entire amount is fronted across disbursements or the entire amount is not fronted across disbursements.
• If the investor has already funded the disbursements, then he is expected to fund the current VAMI also. In case if the investor is not funding the current disbursement inspite of funding earlier disbursements, the following restrictions are imposed on the transaction activities:
  • Payment / Reprice / Rollover / PRAM (with such investor) and tranche downsize (nonprorata VAMI with negative amount) is blocked till the complete funding is made by the unfunded investor for VAMI activity.
  • The funding for the pending VAMI events happens together. For example, in case the investor has not funded few of the last disbursements, he cannot fund for only the first VAMI while second VAMI is already in place.
  • The system does not allow tranche upsize if any of the underlying drawdowns has not been funded completely.