4.35.2 Validating and Propagating Base Rate/All-In Rates

While saving split Re-Price instructions, system provides necessary over-ride stating that allin rate of the interest component is not within Floor / ceiling limit, if the all-in rate for the child product and interest components are not within the maintained Floor/Ceiling for the child loan product and interest components:

• On click of OK, all-in rate is systematically changed based on Floor and ceiling maintenance and system does not register any event for such systematic rate changes.
• On click of Cancel, system does not allow to save the renewal instruction.

While saving split Re-Price instructions, if the base rate for the child product and interest components are not within the maintained Floor/Ceiling for the child loan product and interest components the system displays the following override message.

• $1 for component $2 is $3.But $4 maintained at commitment is $5. Contract will book with $6 as $7. OK to proceed?

Split Reprice instructions, having split value date as current application date, the all-in rate for the child contract is validated and updated during the online child contract creation/initiation.

Split Re-price instructions, having split value date greater than current application date, validations happen online during the save of the Split Re-price instructions. In addition, the validations and necessary defaulting with the floor or ceiling rate (if all-in rate of interest component is not within floor/ceiling limit) happens while initiating the child contract during batch process as per the propagation mentioned above.

Propagation is always based on the latest Floor and ceiling maintenance as of the renewal processing date (split value date).