5.1.7.2 DCF on Unfunded Amount

DCF for the unfunded amount is further sub-divided into different categories and are calculated as explained below:

• Commitment Fee = Commitment Amount * Commitment Fee rate * number of days delay / Fee basis. The associated fee category is DCFCOMM.
• Utilization Fee = Utilization Amount * Utilization Fee rate * number of days delay / Fee basis The associated fee category is DCFUTILIZ.
• Facility Fee = Facility Amount * Facility Fee rate * number of days delay / Fee basis The associated fee category is DCFFACILITY.
• Stand By LC Fee = Stand By LC Amount * Stand By LC Fee rate * number of days delay / Fee basis The associated fee category is DCFSTBYLC.
• Commercial LC Fee = Commercial LC Amount * Commercial LC Fee rate * number of days delay / Fee basis

  The associated fee category is DCFCOMMLC.

These fee components are calculated on their respective drawdown/tranche currencies and are displayed in the Funding Memo screen. You can modify these, if required.

For tranches with drawdowns in multiple currencies, the Interest DCF is summed up for each currency across the drawdowns.

The currency wise fee accounting entries are posted. The following table shows the basic accounting entries posted for DCF.

Bank is Buyer	Bank is Seller
Dr Trade Counterparty A/c Cr Income a/c	Dr Expense a/c Cr Trade Counterparty A/c

You need to capture the LIBOR rate for computing Cost of Fund and Cost of Carry components of delayed compensation fee.

For more details on LIBOR rates, refer the topic titled Capturing LIBOR Rate Details in this user manual.