6.5.2 Specifying Future Value Date for Payments

You can specify a future date as the value date of the payment, if required. The future value dated payment can be a normal payment or prepayment. For non-Prime contracts you can liquidate interest for the prepaying principal by checking Liqd of Int on Prepaid Principal option. The interest is computed till the value date of the captured future dated payment.

The System recalculates the interest on the prepaid principal on the value date of the payment. This result is compared with the earlier calculations performed during instruction capturing. The System logs an exception and aborts the payment process if there is any mismatch.

Note:

• For Prime contracts, Liqd of Int on Prepaid Principal check box value is defaulted from contract preferences and it is disabled.
• For prepayments, the future value date can not be greater than the next schedule date if the liquidation mode is Auto.
• If you have opted for split settlement, where the funds are to be debited from more than one account, in a specified ratio, then, accordingly each account is debited. If any of the account(s) has insufficient balance, then the same is re-attempted to debit, on the subsequent liquidation retries, to the tune of shortfall due, on the corresponding account(s).

When you book a future dated payment, events are fired, but there are no accounting entries for these booking events. The outstanding balances are updated when you perform the booking. You can generate payment FFT advices after authorization of future dated liquidation, by tagging suitable advices to the instruction booking event in the FFT Generation screen. After the prepayment is done for partial amount, billing notice generated have the interest amount calculated on the remaining principal amount and not the original principal amount. If the drawdown is completely paid ahead of the maturity date, then the maturity date is automatically be changed to the date of the drawdown paid.

You can reverse a future dated payment instruction, if required. Events are generated and the balances at the Tranche are reinstated during the reversal of future dated payment instruction.

The following are the events generated while booking a future value dated payment and reversing the same:

Event Code	Event Description	Sequence of Occurrence
BLIQ Drawdown Products	Booking of Future dated Principal and Interest Liquidation	Triggers while booking the future value dated Principal and Interest Liquidation. BLIQ event is fired in drawdown on booking future dated liquidation.
RLIQ Drawdown Products	Reversal of Future dated Principal and Interest Liquidation	Triggers while reversing the future value dated Principal and Interest Liquidation.
LIQD Drawdown Products	Future dated Principal and Interest Liquidation	LIQD event is fired after liquidation batch is run.

When you initiate the batch for processing the future dated payment instructions, accounting entries are passed based on the settlement accounts prevailing at the value date of liquidation.

Note:

• The system does not populate the schedule captured for a future dated liquidation to the next future dated liquidation.
• You can perform future dated liquidations only for Pro-Rata draw downs. You cannot do partial liquidations, except for the principal component.
• For future dated liquidations having Auto liquidation mode, you can not specify a value date greater than or equal to the next schedule date.
• You cannot perform reversal of a captured FD payment if underlying reprice is going to be overdue due to reversal of the captured FD Payment instruction.