3.3.1.6 Specifying Revaluation Preferences for Drawdown Products

Oracle Banking Corporate Lending facilitates periodic revaluation of drawdowns based on the preferences you maintain here and this is applicable only if the drawdown currency is different from the tranche currency. The new exchange rate, post revaluation, is used to convert the transaction amount from the drawdown currency into its equivalent in the tranche currency. You can specify revaluation preferences in the Contract tab.

Specify the User ID and Password, and login to Homepage.

From the Homepage, navigate to Drawdown Contract Detail screen.

1. From the Drawdown Contract Detail screen, click Contract.
   The Contract tab is displayed.

   Figure 3-4 Contract

   
   

   
   Description of "Figure 3-4 Contract"

   
   
2. You can specify the following revaluation preferences.

   Table 3-5 Revaluation preferences

   Fields	Description
   Reval Required	By default, revaluation is applicable for a drawdown product and the option Yes is selected. In this case, you have to specify the following additional preferences as mandatory information.
   Exchange Rate Code	You must select the code for the exchange rate that must be used to convert the drawdown amount from the drawdown currency to its equivalent in the tranche currency. The option list displays the rate codes maintained in the Currency Rates Maintenance screen. By default, the rate code you select here will be applicable to all drawdowns. At the time of capturing drawdown details, if the drawdown currency is different from the tranche currency and the default Exchange Rate Code is not maintained for the currency pair involved, system displays an error message.
   Exchange Rate Type	You must also specify the type of exchange rate that must be used to convert the drawdown amount from the drawdown currency to the tranche currency. The options available are: Buy Mid Sell On the revaluation schedule dates, arrived at abased on the Frequency, Start Month, and Start Day, Oracle Banking Corporate Lending picks up the exchange rate defined for the selected Exchange Rate Code and Exchange Rate Type combination, corresponding to the currency pair involved in the conversion, to convert the amount in the drawdown currency into its equivalent in the tranche currency.
   Frequency	This refers to the frequency or periodicity of revaluation. The options available are: Daily Monthly Half-Yearly Quarterly Yearly
   Start Month and Start Day	For the frequency you select, you must also specify the month and the date for commencing the revaluation process. Note: If Reval Required is Yes for the drawdown product, the same defaults to all drawdowns processed with the product. You can, however, change the preferences at individual drawdown levels. But, if ‘Reval Required’ is No for the product, you cannot change it to Yes at the drawdown level and revaluation is not applicable for cross currency drawdowns. For details on specifying revaluation preferences for a drawdown, refer the heading titled Capturing details in the Contract tab in the Loan Syndication Contracts chapter of this User Manual.