3.1.1 Features of the Contract Details screen

Every product created in your bank is endowed with certain general attributes. A deal that you enter into acquires the general attributes defined for the product it involves. To recall an endowed product with the following general attributes:

• The product code, description, slogan, start and end date for the product and remarks
• The frequency of interest accrual
• The tenor limits for the product
• The liquidation mode: manual or automatic
• Whether a deal involving the product is rolled over into a new deal if it is not liquidated on its maturity date
• Whether the accrued interest of earlier placement(s) should be considered as part of the “utilized amount” while tracking credit utilization for a customer.
• Whether tax has to be applied.
• Whether brokerage has to be applied.
• The exchange rate variance (for a special customer, you can choose to apply a rate that is greater than the standard exchange rate defined for the currency. You can impose some restrictions on the special rate by way of specifying a variance). Whether a penalty is to be imposed if there is an advance repayment.
• Whether interest schedule amounts have to be recomputed in case of an advance payment
• Whether a deal involving a product is booked to be initiated on a date in the future.
• Whether for a backdated deal that has schedules prior to today’s date, the schedules have to be liquidated when the deal is initiated. A back dated deal is one, which has an initiation date, which falls before the date on which it is booked.
• The payment type for main interest - bearing, discounted or true discounted
• The values to be rekeyed, by the authorizer of a contract, at the time of authorization
• The liquidation order of various components in case of auto liquidation
• Repayment schedules
• Aging analysis details such as the movement of deals from one status to another; the mode of status change - whether forward and reverse movements should be automatic or manual; reversal or stoppage of accruals upon change of status; the transfer GL upon status change; the messages to be generated; and the transfer days for interim schedules and maturity schedules.
• Specifying rollover details like updating credit limit utilization on rollover (for a placement), tax on rollover, rolling over with interest or without, deduction of tax on rollover.
• Details of interest, charge and fee.
• Other tax details like the component being taxed, the type of tax and the event (booking, liquidation, etc.) Upon which it is applied.
• The accounting roles and the general ledgers for accounting purposes when an event (initiation, liquidation, etc.) Takes place, and the advices or messages to be generated.
• The customer categories and customers who is counterparty to a deal involving the product.
• The branch and currency restrictions

At the time of saving a Money Market contract, the system will pass specific information about the money market contract to the FATCA accounts and obligations maintenance for the customer. This is done if the beneficiary account’s customer has a reportable FATCA classification and if the money market product used to book the contract is present in the FATCA Products, account class and Instruments maintenance.

If the Money Market contract is closed or liquidated completely, then the corresponding row in FATCA accounts and obligations maintenance is archived. If you delete the Money Market contract before authorization, then you should also delete the corresponding entry in FATCA accounts and obligations maintenance.

A deal that you enter into acquires the details specified for the product. However, you also need to enter information that is specific to the contract. You can enter details specific to a contract in the Contract Details screen.

• Money Market Contract Input
  This topic provides the instructions to capture the details of Money Market Contract Input.