5.2.15 Specifying Drawdown SKIM Details

The SKIM details captured for the tranche gets propagated to the drawdown contract. You are allowed to amend the details at the drawdown level.

Specify the User ID and Password, login to Homepage.

From the Homepage, navigate to Drawdown Contract Detail screen.

1. From the Drawdown Contract Detail screen, click Skim.
   The SKIM Details – Drawdown screen is displayed.

   Figure 5-23 SKIM Details – Drawdown

   
   

   
   Description of "Figure 5-23 SKIM Details – Drawdown"

   
   
2. The details of the payer and receiver of Skim and the Skim rate gets defaulted to the respective participant contracts for processing. The accounting entries are also passed in the corresponding participant contracts.

   Note:

   If SKIM details are not maintained for the tranche, you cannot define them afresh at the drawdown level. Atleast one combination of Skim should be defined for the tranche.

   For details on the fields in this screen, refer the heading Defining SKIM details for tranche participants in this chapter.

   For details on the accounting entries defined for the Skim components, refer the heading Maintaining Skim components for participants in the Defining Products for Loan Syndication chapter of this User Manual.

   Note:

   • You cannot introduce a SKIM during a rate fix period.
   • The Payer and Receiver combination should be unique. However, the same payer can pay SKIM to multiple payees.
   • SKIM is paid or received along with the interest schedule. So the accounting for skim transactions occurs along with the interest receipt or payment.
   • SKIM is not settled when partial payment of an interest schedule happens. It is settled only after full interest payment is received.
   • The SKIM amount being paid or received is considered for the purpose of participant netting.
   • The advices to participants contain the SKIM amount separately.
   • The SKIM receiver can also be an external entity (one who is not a participant). For handling such a case, you need to capture the entity as a participant with 0% asset sharing ratio.

   You have the option to amend the Skim details for a drawdown through the Skim Amendment screen.

   For more information on this screen, refer the heading titled Amending drawdown SKIM details in this chapter.