11.12.1 Advices generated for Value Dated Changes

When creating a product, you can specify the advices that are to be generated when a value dated change is made on contracts involving the product. For a loan involving the product, you can suppress these advices, if you do not want them generated.

For example, if you have so specified:

• A future dated contract with a value date as of today is initiated and a contract advice is generated for the benefit of the customer. If any component (like discounted interest, tax on principal, and so on.) is liquidated on takedown, an advice is generated for each of them.
• In case a change entered through the value dated changes function is due today and is executed, an advice notifying the customer about the new terms of the contract is generated.
• In case a floating/periodic rate that affects a contract has changed, an advice notifying the customer of the new rate applicable for the contract is generated.

The Automatic Contract Update function generates the advices you have specified for the loan during the beginning of day processes. If the value dated change falls on a holiday, it’s processing and the generation of the advice is done as per your holiday handling specifications in the Branch Parameters screen.