9.2.2 Modifying Maturity Date

Through the Value Dated Amendments screen, you can:

• Extend the maturity date
  When extending the maturity date of the tranche, the system ensures that the new date:

  • Does not exceed the product end date.
  • Does not exceed the maturity date of the linked facility.
  • Does not exceed the tranche end date defined at the facility level
• Reduce the maturity date
  When reducing/advancing the maturity date of the tranche, the system ensures that the maturity date:

  • Does not go beyond the product end date.
  • Is not earlier than the start date of the linked facility.
  • Is not earlier than the start date defined for the tranche at the facility level.
  • Is not earlier than the value date of the tranche.
  • Is not earlier than the maturity date of existing drawdowns under the tranche.
  • Is not earlier than the amendment date.

To modify the maturity date, new date in the Modifications section of the screen:

• Maturity Date

  Specify the new maturity date for the tranche as per you requirement, whether you want to extend or reduce the maturity date. Capture the date in DD-MMM-YYYY format.

  Note that the system considers the margin rates maintained for the participants while calculating the interest due for the participants.
• Propagate VAMI to Drawdown

  Select this field to propagate the Non pro rata VAMI effect to Drawdown contracts for increase and decrease of principal amount. This box is enabled only for pro-rate tranches with agency type Participation.

  You are allowed do the following in case this field is selected.
  • Amendment of the Non Pro rata Value dated amendment beyond the Non Pro rata Value dated amendment.
  • Amendment of the Non Pro rata Value dated beyond the Liquidation.
  • Liquidation beyond the Non Pro rata Value dated amendment.

  Note:

  • This field is enabled after capturing the non-prorata ratios in the Non-prorata screen and for those prorata tranches with Agency type Participation.
  • Non-Prorata VAMI is not applicable to maturity date change and Interest rate change.
  • The system does not allow Future dated Non-prorata VAMI.
  • System allows Non-Prorata VAMI for pro rata tranches with agency type as Lead to propagate the non-prorata VAMI effect to drawdown contracts in the Value Dated Amendment screen of the tranche.
  • If the Propagate VAMI to Drawdown is selected, then on authorization of Non-Prorata value-dated amendment at tranche contract, system triggers the VAMB/VAMI event at the underlying drawdown contracts for propagating the VAMI effect.
  • Multiple NPVAMI/VAMI events are allowed on the same date for both the lead and participant.
  In case of overdue Drawdown, any variations/mismatches in the Drawdown amounts and Payment schedules, you should address them operationally.
• Reason Code

  Specify the reason code here. The adjoining option list displays all reason codes maintained in the system. Choose the appropriate one.

This topic contains the following sub-topics:

• Update LT Position
  
• Interest Refund Required
  
• Amortization Redefine