4.41.4 OL Processing in LMA / LSTA Participation

1. The accounting entries for the following events of sub-participant loan contracts are changed when the LMA Participation (Loan Syndications and Trading Association, Inc./ Loan Market Association) check box is selected and authorized in the underlying loan product.
   • Contract Initiation (INIT)
   • Value Dated Amendment (VAMI)
   • Interest Accrual (ACCR)
   • Manual and Automatic Liquidation (LIQD)

   Note:

   Accounting entries as part of status change (STCH) event have the new accounting entries. The accounting entries of interest accrual (ACCR) are posted in the STCH event. However, no maintenance is required for the STCH event.
2. The system uses the borrower DDA account while posting the accounting entry for the sub-participant.
3. Wire / payment messages are suppressed for the accounting entries.
4. In the Loan and Commitment- Value Dated Amendment screen, if you select the HFS Transfer check box for the loan contracts where corresponding drawdown contract has LMA Participation / LSTA Participation selected in the participant sub-screen, the system display an error message that HFS transfer check box cannot be selected.