7.9.3 Specifying the Rate Revision Dates

In the OL Contract Schedules screen, select the component for which the Rate Revision frequency has to be defined (say INTEREST1). Select the Rev box (Revision box) to indicate that it is a rate revision schedule.

Then, instead of specifying the other schedule details like the frequency, the number and unit, indicate the date in the Start Date field. The rate revision is done on that date.

Example

A loan of USD 200,000 to Cavillieri and Barrett Finance Corporation has been initiated on 10 December 1997 and is to be repaid at Maturity on 16 December 1997. It has been defined with rate revisions and they are to be performed on the following dates:

• 12 December 1997
• 14 December 1997
• 16 December 1997

Select the component, INT1, indicate rate revision by selecting the Rev box and give the date in the Start Date field as 12 December. Then select the same component, INT1 and specify the date as 14 December. Repeat the process for the same component for 16 December.

The rates applicable on the specified dates are applied on the loan at the time of calculating interest.

You can specify the frequency through this screen. To do this, you have to specify a rate revision schedule for the component (by giving the frequency and the Start Date for the first rate revision), as well as a repayment schedule, if it is to have one.