8.3.7.3 Split Rollover with Increase in Principal Amount

Oracle Banking Corporate Lending allows you to do the rollover of the special amount exceeding the current outstanding amount of the parent contract. During the rollover process, system checks if the sum of the split amount exceeds the outstanding amount of the parent. System initiates a value dated amendment process to increase the principal amount to the extent of the additional amount to be disbursed to the borrower. This value date of the amendment is the rollover date.

Accounting entries for value dated amendment for borrower is as in the table below:

Amount Tag	Debit / Credit	Account
PRINCIPAL_INCR	Debit	SYND_POOL
PRINCIPAL_INCR	Credit	Customer

Accounting entries for value dated amendment for participant is as in the table below:

Amount Tag	Debit / Credit	Account
PRINCIPAL_INCR	Credit	Customer
PRINCIPAL_INCR	Debit	SYND_POOL

Example

If the outstanding amount at the time of rollover is USD 100,000 and Sum of Split Amount USD 150,000.

Oracle Banking Corporate Lending passes the value dated amendment for USD 50,000 value dating the maturity date of the parent contract.

Note:

When the rollover is captured with increase (by increasing utilization for the child contract) then, the system re-calculates the PIK amount and same is displayed in the PIK Amount in both split rollover and consol rollover.

Rate Setting

To set the rate setting rules for the Splitrollover, click the Rate Setting button in the Split Rollover screen and invoke the Rate setting screen.

Contract Details

Table 8-4 Contract Details

Fields	Description
Product code	The system displays the product code.
Contract Ref number	The system displays the contract ref number.
User ref number	The system displays the user ref number.
Customer	The system displays the customer name.
Facility name	The system displays the facility name.

Split Details

Table 8-5 Split Details

Fields	Description
Split number	The system displays the split number.
Principal roll amount	The system displays the principal roll amount.
Interest roll Amount	The system displays the Interest roll amount.
Roll Product	The system displays the roll product.
Total roll amount	The system displays the total roll amount.
Maturity date	The system displays the maturity date.

Interest rate rounding rules

Table 8-6 Interest rate rounding rules

Fields	Description
Rounding rule	Select the rounding rule from the adjoining drop down list. Select one of the options listed below: Down Upto No rounding Manual
Rounding Unit	The rounding unit enables only if the you have selected the rounding rule as Down and Upto.
Interest rate period	Select one of the interest rate periods from the options given. Note the following. Once all the Rate setting rules are maintained and when you come out of Rate Setting Rule screen by clicking OK button, following override message is displayed. If the Interest Rate Rounding Rule is Manual, then the message is Rounding Rule is manual. Auto Rate Fixing will not be done. If Interest Rate Rounding Rule is not Manual, then the message is Rounding Rule is maintained. Auto Rate Fixing will be done and rate will be defaulted. This message appears only for the future dated events / contracts. You are allowed to change the Rounding Rule by clicking Cancel button in the override message.