3.3.1.5 Specifying Holiday Preferences for All Schedules

Schedule dates for a contract could fall on holidays defined for your branch or on holidays defined for the currency of the contract. In the Product Preferences, you can specify whether the system should check for schedule dates falling on holidays, and how such schedule dates must be handled. These specifications would default to any borrower facility contract using the product, and also to underlying borrower tranche or drawdown contracts that are opened under the facility contract.

Note:

You can change the holiday parameters for schedules through amendment at tranche/ drawdown contract online screens, if required. You can specify that:

• Holidays must be ignored
• Checks must be made for schedule dates falling on holidays

If you specify that checks must be made, you can also specify the corresponding treatment for schedule dates falling on holidays.

Holiday Treatment Type

The Holiday Treatment Type is the parameter that defines how the system checks for schedule dates falling on holidays. You can specify one of the following options:

• Include Branch Holiday

  Select this check box to indicate that you want the system to check whether a schedule date falls on a local holiday defined for the branch.

  The system checks the holiday table for your branch. If it encounters a contract entered in your branch, with a schedule date falling on a branch holiday, the holiday is handled according to the holiday-handling preferences you specify.
• Use Facility Currency

  If you choose this option, the system checks whether the schedule date falls on a holiday defined for the currency of the facility (borrower) contract, if this currency is different from the holiday currency you have indicated.

• Use Local Currency

  If you choose this option, the system checks whether the schedule date falls on a holiday defined for the local currency, if this currency is different from the holiday currency, facility currency and contract currency you have indicated.

• Holiday Ccy

  If the system must check whether the schedule date falls on a holiday defined for the currency of the contract, you must specify the code of the holiday currency.

  Further, you have the following options to specify the specific currency for which the check must be done:
  • Facility Currency
  • Local Currency
  The system checks the holiday table for the currencies you have specified. If it encounters a contract using any of the specified currencies, with a schedule date falling on a holiday for any of the currencies, the holiday is handled according to the holiday-handling preferences you specify.

Holiday-handling Preferences for Schedule Dates

If you have specified that the system check for schedule dates falling on holidays, you must also specify the treatment for schedule dates encountered by the system that do fall on holidays. The following preferences can be set:

• Moving the Schedule Date Backward or Forward

  You can indicate whether the schedule date falling on a holiday must be moved forward to the next working day, or backward to the previous one.

• Moving Across Months
• If you have indicated either forward or backward movement, and the moved schedule date crosses over into a different month, you can indicate whether such movement is allowable; it will be allowable only if you indicate so in the Move Across Months field.
• Cascading Schedules

  If one schedule has been moved backward or forward in view of a holiday, cascading schedules would mean that the other schedules are accordingly shifted. If you do not want to cascade schedules, then only the schedule falling on a holiday is shifted, as specified, and the others remain as they were.

Holiday Processing on Commitment Reduction Schedules

Select the Move Comm Redn Sch check box to indicate the holiday processing rule should be applied on commitment schedules. This is applicable only to tranche products.

Holiday Processing on Repayment Schedules

Select the Move Payment Sch check box to indicate the holiday processing rule should be applied on repayment schedules. This is applicable only to drawdown products.

Holiday Processing on Interest Rate Revision Schedules

Select the Move Revision Sch option to indicate the holiday processing rule should be applied interest rate revision schedules. This is applicable only to drawdown products.

Specifying Holiday Preferences for Maturity and Value Dates

The maturity date for a contract could fall on holidays defined for your branch. In the Product Preferences, you can specify whether the system should check for maturity dates falling on holidays, and how such dates must be handled. These specifications would default to any borrower facility contract using the product, and also to underlying borrower tranche or drawdown contracts that are opened under the facility contract. You can specify that:

• Holidays must be ignored OR
• The maturity date falling on a holiday must be moved according to the holiday-handling preferences that you specify.

Holiday Treatment Type

The Holiday Treatment Type is the parameter that defines how the system checks for maturity dates falling on holidays. You can specify one of the following options:

• Include Branch Holiday

  Select this check box to indicate that you want the system to check whether a maturity date falls on a local holiday defined for the branch. You will not be able to specify a check for currency holidays, if you choose this option.

  The system checks the holiday table for your branch. If it encounters a contract entered in your branch, with a maturity date falling on a branch holiday, the holiday is handled according to the holiday-handling preferences you specify.
• Use Facility/Tranche Currency

  If you select this check box, the system checks whether the maturity date falls on a holiday defined for the currency of the facility (borrower)/tranche contract, if this currency is different from the holiday currency you have indicated.

• Use Local Currency

  If you select this check box, the system checks whether the maturity date falls on a holiday defined for the local currency, if this currency is different from the holiday currency, facility currency and contract currency you have indicated.

• Holiday Ccy
  If the system must check whether the maturity date falls on a holiday defined for the currency of the contract, you must specify the code of the holiday currency. Further, you have the following options to specify the specific currency for which the check must be done:

  • Facility Currency
  • Local Currency

  The system checks the holiday table for the currencies you have specified. If it encounters a contract using any of the specified currencies, with a maturity date falling on a holiday for any of the currencies, the holiday is handled according to the holiday-handling preferences you specify.
• Apply Financial Centre Holiday Treatment

  This check box allows you to enable financial centre holiday treatment and add the financial centres for the holiday treatment.

  For more information about maintaining financial centre for holiday treatment refer to Products User Manual.

Holiday-handling Preferences for Maturity Dates

If you have specified that the system check for maturity dates falling on holidays, you must also specify the treatment for maturity dates encountered by the system that do fall on holidays.

The following preferences can be set:

• Moving the Maturity Date Backward or Forward

  You can indicate whether the maturity date falling on a holiday must be moved forward to the next working day, or backward to the previous one.

• Moving across months

  If you have indicated either forward or backward movement, and the moved maturity date crosses over into a different month, you can indicate whether such movement is allowable; it is allowable only if you indicate so in the Move Across Months field.