6 Make Interest Rate Changes

Any change to the terms of a Money Market deal, which affects its financial details and the accounting entries, can be made through the Value Dated Changes function of Oracle Banking Treasury Management. Through this function you can make changes to authorized deals on any day before the Maturity Date of the deal.

The changes to the terms of a deal, notified through this function, take effect on a date referred to as the ‘Value Date’. That is why the changes brought about by this function are called Value Dated Changes. A Value Date could be:

A Value Date could be:

• Today
• A date in the future
• A date in the past

Using the Value Dated Changes function, you can make changes to the various components of a deal like the profit rate or amount. You can also change the Maturity Date and the Credit Line to which the deal is linked.

In addition to changing the values in certain fields, you can enter a value into a field, which was not used, when you captured the disbursement details. For example, you may not have specified a fee at the time of deal input. Using the Value Dated Changes function, you can specify the fee so that the fee entries are passed on the Value Date.

When you make a value dated change, only the accrual entries will be passed by the Value Dated Changes function. All the other accounting entries are passed by the Automatic Contract Update function.

The Value Date is the date on which the changes that are going to be defined will take effect. This can be a date earlier than today, today, or a date in the future.

If the value date is a date in the past, it should not be beyond the following dates for any component:

• Last payment date
• Last schedule date

Also, a value date in the future cannot be beyond the Maturity Date of the deal. If it has to be beyond the Maturity Date of the deal, you have to first postpone the Maturity Date of the deal so that your proposed future value date falls before the new maturity date. Only after this change is authorized can you fix a value date in the future for the deal.

The system defaults to today’s date.

This topic has the following sub-topics:

• Navigate to the Schedule Definition Screen
  This topic describe the schedule definition screen navigation, maturity date change, make changes in the credit line and make changes in interest.
• Settlement Details
  This topic describes the systematic instructions to capture settlement details.
• Delete Value Dated Changes
  This topic describes how to delete the value dated changes for the deal.
• Upload the Contracts for Amendment
  This topic describes how to upload the contracts for amendment.
• Authorization of Changes
  This topic describes how to authorize the value dated changes.