8.3.3 Specifying Interest Basis Details
The interest components and the associated details defined for the drawdown is applicable for the rolled over drawdown as well. However, you can amend the following details:
Table 8-2 Interest Basis Details
Fields | Description |
---|---|
Rate Type | You have to indicate the nature the interest applicable for the
rolled over drawdown. The options available are:
|
Fixed Rate Type | This option is applicable only if you select the Rate
Type as Fixed. The system picks
up the rate based on the option you select here. The options available
are:
|
User Input | If you select this option, you have to specify the applicable interest rate in the Rate field. |
Fixed Rate Code | You have to select the applicable fixed rate code if:
For more information on maintaining standard rate codes and rates, refer the sections Maintaining Standard Rate Codes and Maintaining Standard Rates in the Processing Auto Deposits chapter of the OD (Overnight Deposits) User Manual. |
Floating Rate Code | You have to select the applicable floating rate code if the Rate Type is Floating. The rate codes maintained through the Floating Rate Code Definition screen is available in the option list provided. The system picks up the rate based on the rate code you select here. |
Rate | You have to specify the interest rate if:
For more details on this screen, refer the heading titled Fixing interest rate for the drawdown in the Loan Syndication Contracts chapter of this User Manual. For more details on negative rate processing, refer the title Maintaining Loans Parameters Details in the chapter Bank Parameters in Core Services User Manual. |
Spread | If you have indicated the Rate Type as Floating for the rolled over drawdown and also specified the applicable Floating Rate Code, you can indicate the spread applicable for the rate. |
Margin Rate | When you select an interest component, the margin components, if
defined for the interest component, are defaulted in the
Margin Details section of the
ROLLOVER tab. You can amend the margin rate
ONLY for those margin components for which the Basis Amount
Tag is User Input. The new rate
is applied for the rolled over drawdown.
If rollover is performed after Margin Rate amendment, on the same day, then the system applies the margin change for the participants based on the margin maintained for individual participant. Similarly, if forward dated rollover is captured and margin amendment is done before the rollover effective date, margin is applied as part of end of day margin batch. The system considers the margin rates maintained for the individual participants while calculating participant interest. |
Remove Rollover Instructions | After capturing the rollover instructions for the drawdown, if you do
not want to rollover the drawdown, you have the option to remove the
instructions maintained. You have to select this option to remove the
rollover instructions.
For information about Interest Basis on Split/Consolidation Rollover, refer to Interest User Manual. |
Parent topic: Specifying Contract Rollover Details