7.3.14.1 Liquidating and Processing ‘Advance’ Fee Component

Fee amount to be collected from the customer in advance is calculated based on the balance type defined for the fee component.

Any Fee Rate or Basis Amount or Fee Basis changes update the fee amount due only for the next unpaid schedules on or after the effective date of the change for the Advance fee component. The accrual for the current period is not affected with this change and is applicable only for the future unpaid schedules.

Note:

• For Advance fee component the fee calculation/accrual happens with the actual details as of fee inception date, based on the liquidation amount.
• The fax tag ADV-FEE-DLY-ACCR-AMT is used for the daily fee accrual amount for tranche Advance fee component.

Updation of the fee amount due happens as part of the below mentioned events, provided the unpaid fee schedule due date is equal or greater than the below event’s effective date.

• FRFX Event triggered for Fee Rate change of Tranche.
• LIQD Event Triggered for Principal changes of Drawdown.
• VAMI Event Triggered for Principal Increase of Tranche and Drawdown.
• VAMI Event Triggered for Principal Decrease of Tranche.
• FAMD Event Triggered for Fee Basis change of Tranche.
• New Drawdown Booked under the Tranche.
• Reversal of an Existing Drawdown under the Tranche.
• Reversal of liquidations on drawdown under the Tranche