1. Cash Flow Engine Reference Guide
  2. Cash Flow Dictionary
  3. Cash Flow Columns
  4. Original Term (ORG_TERM)
  5. Module Usage

8.2.100.2 Module Usage

The ORG_TERM of the instrument is referenced by Oracle Funds Transfer Pricing and Oracle ALM as the period from ORIGINATION_DATE to MATURITY_ DATE.

Transfer Pricing

ORG_TERM is referenced by Oracle Funds Transfer Pricing when calculating cash flows for Fixed-Rate Cash Flow Methodologies. Additionally, FTP Adjustment Rules refer to Org Term when the Reference Term is set to Original Term.

Transfer Pricing and ALM

  • Oracle Funds Transfer Pricing and Oracle ALM Cash Flow Methodologies use ORG_TERM when calculating the current payment for adjustable rate accounts and in transfer pricing fixed-rate accounts. For adjustable rate accounts, the Cash Flow Engine compares ORG_TERM against AMRT_TERM, checking to see if the account is a balloon-type account.
  • If ORG_TERM < AMRT_TERM, the Cash Flow Engine recognizes the record as a balloon. The Cash Flow Engine amortizes the outstanding principal balance over the calculated number of payments, based upon the Amortization Maturity Date.