10.12 Processing the LB PRAM (Assignment) as Part of STP

Oracle Banking Corporate Lending processes the LB PRAM (assignment) in Origination (OL) module as part of STP.

Note:

• As part of any assignment in Agency involving the Self participation, there is no increase or decrease in self participation based on the type of assignment (Buy/Sell).
• Any increase in the Self participation is represented as Value Dated amendment of Loans and commitments. The system treats PRAM with the BUY as VAMI in OL module with the increase in amount
• Similarly, any decrease in the Self participation is represented as Value Dated amendment of Loans and commitments to ensure that the commitment availability is intact considering the Revolving/ Non Revolving attribute of the commitment. The system treats PRAM with the SELL as VAMI in OL module with the decrease in amount.
• The system updates the Principal schedules after the VAMI value date on Pro Rata basis.
• There is an indication in the Value Dated amendment upload to indicate if the VAMI should adjust the schedules on Pro Rata basis.
• The VAMI functionalities remain with the Principal schedules being updated on LIFO basis (Change in the Bullet schedule).
• The VAMI with the decrease in amount is applicable only for the assignment STP process.
• In case of introduction of new self participation, the system hands off the same as New contract Booking (BOOK and INIT events) on the OL side as part of STP.
• You have to operationally handle any discrepancies in the Loan/Commitment amounts or schedules due to the back valued activities.
• If VAMB/VAMI is initiated from LB, system checks on the OL whether VAMB/VAMI is done with same value date and amount combination. If it is done already on the OL side, STP will not be done and instead process status is changed as Processed.
• If VAMB/VAMI is not done on the OL side, STP process is decided based on the reason code selected at the VAMI screen. If the reason code is maintained as STP Process not required, STP is not done and Process Status is updated as Failed.

Possible activities which may result in the position or schedule mismatch are as follows:

• Assignment beyond another assignment or payment or borrower VAMI.
• Borrower VAMI beyond assignment or payment.
• Any back valued activities beyond the prepayment with the interest.
• Payment/Prepayment beyond assignment.
• Assignment with the overdue principal schedules