6.4.1 Specifying Holiday Treatment for Schedules

Schedule dates for a drawdown could fall on holidays defined for your branch or on holidays defined for the drawdown currency. In addition, schedules may also fall due on the other currencies, as per your specification in the Holiday Preferences tab of the Drawdown Contract Online screen.

In the Product Preferences for the borrower facility product, 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 using the product. It also defaults to underlying borrower tranches or drawdowns that are opened under the facility if you specify the Holiday Default Basis as Facility when maintaining a Borrower/Tranche product (in the Additional Preferences for Loans Syndication screen).

You can specify that any of the following:

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

You can specify the holiday treatment type for schedules falling due on holidays in the Holiday Preferences tab of the Drawdown Contract Online screen. 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:

• Ignore Holidays

  You have to select this option to instruct the system to ignore the holiday. Payment schedules are processed as per the due date even if the schedule falls due on a holiday.

• Include Branch Holiday

  Select this option 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.
• Holiday Currency

  You can also select a currency for the holiday check. The system checks the holiday calendar maintained for the selected currency before arriving at the schedule due date.

  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.
• Move 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 working day.

• Move Across Months

  If you have indicated either Forward or Backward movement of a schedule date falling due on a holiday, and the moved schedule date crosses over into a different month, you can indicate whether such movement is allowable; it is allowable only if you check this option.

• Cascade 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. The other schedules remain unaltered.

• Move Payment Schedules

  You may select this option to indicate that the holiday processing rule should be applied on repayment schedules as well. This is applicable only to drawdown products.

• Move Revision Schedules

  You may check this option to indicate that the holiday processing rule should be applied to interest rate revision schedules as well.

• Use Tranche Currency

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

• Use Contract Currency

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

  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.
• 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.