4.2.1 Specifying the LC Sublimit Amount

Specify the LC sublimit amount for the loan in commitment contracts. The system tracks the LC sub limit balance and unused commitment amount based on the LC sublimit amount you specify here.

Note:

• You can amend the LC sublimit amount during the contract life cycle.
• The system uses the following logic to arrive at the Change in LC Sub Limit Amount on various activities on the Loans and commitments such as Value dated amendment, Payments, and so on.
• Unfunded Commitment Amount = Total Commitment Amount – (Outstanding Normal loan amount + Outstanding LC loan Amount)
• New LC Sublimit amount = Minimum of ( Unfunded Commitment Amount), (Contractual LC Limit – Outstanding LC amount))
• Change In LC Sub Limit amount = New LC sublimit amount – Old LC sublimit Amount

You can also view following details in loan disbursement screen.

• FAS114 Reserve Amt - The system displays the funded FAS114 Reserve amount for a loan and the unfunded FAS114 Reserve amount for a commitment in this field.
• Write off Amount - The system displays the amount written off for the loan.
• Recovery Amount - The system displays the amount recovered for the loan.