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Loan Syndication User Manual

1. Accounting Role Amount Tag Dr Cr Indicator ASSETOFF COMMUTIL_INCR Debit DLNK Accounting Role Amount Tag Dr Cr Indicator ASSETGL COMMUTIL_DECR Debit ASSETOFF COMMUTIL_DECR Credit 10 1 2 1 Events for borrower tranche or draw down products ADBK This event will be triggered when ad hoc charge schedules are maintained for a contract ADCH This event will be triggered when ad hoc charge is liquidated for a contract RADC This event will be triggered when ad hoc charge liquidation is reversed for a contract ROBK This event will be triggered when a rollover is booked ROSL This event will fire in the parent loan when a split rollover takes place This will not have any underlying accounting entry ROCL This event will fire in all the underlying loans of the consolidated rollover when consolidation takes place This will not have any underlying accounting entry Reversal of Consolidated Split Rollover will result in REVV event in the parent contract s REVC contract in child contract s The following events are available for generation of advices DNOT You can associate the Drawdown Notice Advice MT643 for this event EXFX You can associate the Exchange Rate Fixing Advice MT644 for this event IRFX You can associate the Interest Rate Fixing Advice MT644 for this event ADNT You can associate the Fee Liquidation Notice MT645 for this event You are a
2. Event Code Event Description Propagation Type ACCR Interest Accrual Not required ADBK Adhoc Fee Booking Not Required ADNT Adhoc Fee Notice Generation Required ADCH Ad hoc Charge Liquidation Required BOOK Contract Booking Required CAMD Contract Amendment Required DLNK Release of Linkage to Loan Not required DNOT Drawdown Notice Generation Required EXFX Exchange Rate Fixing Required INIT Contract Initiation Required IRFX Interest Rate Fixing Required LINK Linkage to Loan Not required LIQD Liquidation Required NOTC Billing Notice Generation Required PRAM Participant Amendment Required RADC Adhoc Fee Reversal Required REAS Reassign User Not required RESD Reversal of Residual Accrual Not required REVC Contract Reversal Required REVN Rate Revision Required REVP Reversal of Payment Required ROBK Rollover Booking Required 10 7 ORACLE Event Code Event Description Propagation Type ROLL Rollover of Contract Required SGEN Settlement Message Generation Required VAMB Value Dated Amendment Booking Required VAMI Value Dated Amendment Initiation Required INOT Interest Rate Notice Generation Required ENOT Exchange Rate Notice Required ROCL Consol Rollover of Contract Required ROSL Split Rollover of Contract Required 10 8 ORACLE 11 SWIFT Messages for Loan Syndication 11 1 SWIFT Messages The SWIFT messages generated by the system during the life cycle of a tra
3. E Participant Reference Counterparty Short Name Process Status Message J 2 Borrower Contract Process Summary Processed _ F Unprocessed EEE Work in Progress E Processed Unprocessed Work in Progress Failed E Participant Process Summary The details of the processed participant contracts are displayed in the following manner e Borrower Reference Number wise e Participant Reference Number wise If the Participant Process mode is set to Online for your branch the system will automatically process the related participant contracts as mentioned above In the Online mode you can save and authorize the borrower side contracts facility tranche or drawdowns ONLY if the corresponding participant side contracts are processed successfully You can view the status of the participant contracts in the audit trail section at the bottom of the respective borrower contract For successfully saved borrower contracts the Processing Status will be displayed as Processed ae ORACLE 5 8 If the Participant Process mode is set to Job for your branch you have to initiate Participant Processing Job which will pick up the participant contracts created in the system for further processing For successfully saved borrower contracts the Processing Status
4. Contract Reference Branch Serial Number User Reference Value Date Facility Tranche Drawdown Contract Reference Contract Reference Contract Reference User Reference User Reference User Reference Borrower Cascade Participation Drawdown Number Borrower Name Detailed Instruction Enrich Detailed Consolidated Participant Transfer Participant Participant Name Transfer Amount Participant Old Amount Participant New Amount o 25 Existing Ratio Components a Participant Participant Name A Component Component Type Ratio Total o 3 it Entity Details E Entity id Remarks o az Pending Transfers Processed Transfers Input By Authorized By Contract authorized Date Time Date Time Status After you authorize the amendment transfer the system will amend the corresponding facility tranche or drawdown and it will also apply the ratio changes to the relevant participant The PRAM event will be triggered for the contract for which you have amended the participant details For modifications to existing participants the relevant participant contract is also amended For new participants the relevant participant contract will be created After capturing the necessary details save and a
5. Dr Cr Event Accounting Role Amount Tag Dr RNDL SYN_RNDEXP PRINCIPAL_ADDL Cr RNDL SYN_POOL PRINCIPAL_ADDL Dr RNDL SYN _RNDEXP iccf_component_LIQD Cr RNDL SYN POOL iccf_component_LIQD Dr RNDL SYN_RNDEXP adhoc_fee_component_ADCH Cr RNDL SYN_RNDPOOL adhoc_fee_component_ADCH Dr MRGP SYN _POOL iccf_component_LIQD Cr MRGP iccf_componentMIN iccf_component_LIQD Dr MRGP SYN_POOL adhoc_fee_component_ADCH Cr MRGP adhoc_fee_compon adhoc_fee_component_ADCH entMIN Dr ROLL eee PRINCIPAL_LIQD Cr ROLL SYN_POOL PRINCIPAL_LIQD Dr ROLL as lt interest_component gt _LIQD Cr ROLL lt Interest_compone lt interest_component gt _LIQD nt gt REC Dr ROLL SROL_SUSPENSE PRINCIPAL_ROLL Cr ROLL SYN_POOL PRINCIPAL_ROLL Dr ROLL SROL_SUSPENSE interest_component_ROLL Cr ROLL lt Interest_compone interest_component_ROLL nt gt REC Dr ROBK SYN_POOL PRINCIPAL Cr ROBK SROL_SUSPENSE PRINCIPAL Dr DSBR SYN_POOL PRINCIPAL Cr DSBR eae PRINCIPAL 10 5 ORACLE 10 1 3 1 Events for participant facility tranche or draw down contracts The following events are available for definition of accounting entries and advices all being propagated when the same event is triggered in respect of the related borrower side contract unless mentioned otherwise e BOOK e CAMD e EXFX e ADBK e ADNT e ADCH e INIT e IRFX e LIQD e NOTC e PRAM e REVP e REVC e SGEN e MRGP Triggered whenever a
6. Number Contract Type This is the MM Contract Record s Product Type Trade Date This is the MM Contract Record s Trade Date Value Date This is the MM Contract Record s Value Date Maturity Date This is the MM Contract Record s Maturity Date Amount This is the MM Contract Record s Amount Deal Currency This is the MM Contract Record s Deal Currency Interest Rate This is the MM Contract Interest Record s Interest Rate Our Receive This is the Contract Settlement Record s Our Receive account Their Receive This is the Contract Settlement Record s Their Receive account Apart from this the report contains summary information specifying the number of unconfirmed transactions for the following buckets 4 Less than or equal to 7 days 5 Greater than 7 days and less than or equal to 14 days 6 Greater than 14 days and less than or equal to 28 days 7 Greater than 28 days and less than or equal to 42 days 8 Greater than 42 days and less than or equal to 91 days 9 Greater than 91 days and less than or equal to 180 days 10 Greater than 180 days 13 31FX Unconfirmed Contracts Report This report gives details of all unconfirmed FX contracts It is printed daily as part of the batch process ae ORACLE 13 31 1 Selected Options You can configure this report to display details of FX Unconfirmed Contracts Report You can generate the report based on the following criteria e The Branch for wh
7. Product Maintenance Product Code Product Type Loan Product Description Commitment Slogan Product Category Start Date End Date Remarks ise Daten Roe Toto Recount Sats voucos and Sntonens Eon BranchiCurrency Restriction Customer Category Restriction Product Fields ms Fields Preferences Maker Date Time Mod No Checker Date Time Record Status Authorization Status For any product you create in Oracle FLEXCUBE you can define generic attributes such as branch currency and customer restrictions interest details etc by clicking on the appropriate icon in the horizontal array of icons in this screen For a borrower tranche drawdown product in addition to these generic attributes you can specifically define other attributes These attributes are discussed in detail in this section You can define the attributes specific to a borrower tranche draw down product in the Loan Syndication Borrower Product Definition screen the LS Product Preferences screen ORACLE 4 3 1 Product Code and Description The code you enter for a product identifies it throughout the module You can follow your own conventions for devising the code However it must have a minimum of four characters When defining a new product you should enter a code This code is unique across the CL modules of Oracle FLEXCUBE For instance if you have used VA01 for a product in this module you cannot use it as a product cod
8. Moving the schedule date backward or forward You can indicate whether the schedule date falling on a holiday must be moved forward to the next working day or backward to the previous one Moving across months If you have indicated either forward or backward movement and the moved schedule date crosses over into a different month you can indicate whether such movement is allowable it will be allowable only if you indicate so in the Move Across Months field Cascading schedules If one schedule has been moved backward or forward in view of a holiday cascading schedules would mean that the other schedules are accordingly shifted If you do not want to cascade schedules then only the schedule falling on a holiday is shifted as specified and the others remain as they were aie ORACLE 6 3 2 Specifying how maturity dates falling on holidays must be handled The maturity date for a contract could fall on holidays defined for your branch In the Product Preferences for the borrower facility product you can specify whether the system should check for maturity dates falling on holidays and how such dates must be handled These specifications would default to any borrower facility contract using the borrower facility product and also to underlying borrower tranche or draw down contracts that are opened under the facility contract You can specify that e Holidays must be ignored e The maturity date falling on a holiday must be move
9. e Asset ratio for the participants e Outstanding amount for the participants e New asset amount for the transferor vee ORACLE The system will fire the event PRAM for the contract whose participant ratio is being amended If the participant to which the ratio is being transferred already exists for the contract then only PRAM event is propagated to the participant contract If the participant does not exist then the system will create a new participant contract based on the transfer ratios In the case of facility participant contract the system will trigger BOOK event automatically and for tranche drawdown participant contracts the system will trigger BOOK and INIT events automatically For tranche drawdown participant contracts the INIT event will not pass any accounting entries for PRINCIPAL amount This is because the asset transfer and fee transfer between the parties is expected to be processed outside the loans syndication module If participant amendment is being done for a tranche which has cascade participation then the system will apply the amended ratio to all the active drawdowns under the tranche The system will fire PRAM event for all the active drawdowns under the tranche fror The INIT event for the new participant contract will not pass any accounting entries 5 6 3 2 Transferring Assets between Existing Participants To transfer assets from one participant to another you have to select the reference number of the
10. Borrowers button in the Loans Syndication Contract Input screen to invoke the Borrower Details screen where you can specify the borrowers Borrower Details Contract Reference User Reference Borrower Details O Customer Number C Customer Name Settlement Sequence Number Blocked Entities Product And Currency Entity Details Oo Entity Name c Primary You can specify more than one borrower The following details are defaulted Contract Reference The contract reference number is defaulted here User Reference The user reference number of the contract is defaulted here Specifying Borrower Related Details You can specify the following details related to the borrower Customer Number Select the customer number from the option list The adjoining option list contains all the customer codes numbers maintained in the system Customer Name Depending on the customer number chosen the name of the customer is displayed here aR ORACLE Settlement Sequence Number For each borrower you must specify a settlement sequence number that will enable the system to obtain the settlement details for the selected borrower for the contract Blocked This indicates whether a borrower is available during Tranche Drawdown 5 4 5 1 Product and Currency Tab Borrower Product Restriction is not applicable to Facility contracts This applies only to Tranche contracts At the facility contract level
11. Drawdown Product Party Type Currency Exchange Rate Details Entity ORACLE You can maintain the following details here Tranche Ref No When you are entering a draw down loan contract in the Drawdown Details screen you must specify e Tranche Contract Reference Number of the tranche borrower tranche contract against which the draw down loan is being entered The sequence number of the draw down loan is generated by the system For instance let us assume that you have scheduled 10 draw down loans under a tranche Five disbursements have already been made You are processing the sixth disbursement The system displays 6 as the draw down number You can now proceed to enter the details of the borrower draw down contract Details for Main Borrower Draw Down Loan Contract In the Drawdown Details screen you need to enter the draw down loan contract details for the borrower against the following references e Contract Reference Number of the borrower tranche contract e Contract Reference Number of the borrower facility contract The borrower draw down products that you have defined in the borrower facility product used by the borrower facility contract under which the draw down is being entered against a tranche has to be picked from Product Code pick list A loan contract inherits all the specifications made for the loan product it involves Therefore you need not specify all the details again You
12. LSRPPADC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button ee ORACLE Participant Drawdown Contribution Drawdown Reference Facility Reference Tranche Reference Drawdown Number The preferences that you can specify are as follows e Based on a specific Drawdown Reference number On selection of the drawdown the corresponding Facility Reference number and the Tranche Reference number under which the selected drawdown is initiated will also be displayed e If you select the All option the details of all the drawdowns initiated under all the Facility and Tranche contracts of your bank will be displayed in the report e If you choose a specific drawdown its sequence number will also be displayed ee ORACLE The contents of the Participant Drawdown Contribution report are discussed under the following heads 13 2 2 Contents of the Report Header of the Report The Header carries the title of the Report information on the branch code the branch date the user ID the module name the date and time at which the report was generated and the page number of the report Body of the Report The following details of the participants will be displayed in this report Facility Ref No The Contract Reference Number of the borrower facility contract main syndication contract finalized between the borrowing customer and one or more
13. Let us suppose that the interest percentage applicable on the loan is 5 and the penalty rate for prepayment is 2 SH ORACLE Let us suppose a prepayment of 30000 USD is made on 15 February 2000 The two previous schedules for 1 January and 1 February have been liquidated Interest payable would be computed at 5 for 14 days from 1 of February 2000 till the February 2000 on the schedule amount 20000 14 365 5 100 38 4 USD This interest would be adjusted against the repaid amount e Penalty amount for prepayment at 2 2 100 30000 38 4 599 23 USD The interest component that has been adjusted against the repaid amount will be booked under the amount tag INTEREST_ADu 6 3 8 Specifying rate revision for fixed rate interest components You can enter the revised rate for a fixed rate interest component applicable to a syndication contract before the rate revision schedule falls due The revised rate is uploaded into the revision schedule for the contract as a rate revision amendment You can enter the revised rate in the Fixed Interest Rate Revision screen You can invoke this screen by typing LSDFXRVN in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button interest Rate Revision Account Number Branch Code Effective Date Change Applied UDE Details HEE E User Defined Element Id Old UDE
14. Round Up Down Decimal If you want to round off the results of an intermediate formula you can indicate the number of digits upto which the results should be rounded off to Compound Days Months Years If you want to compound the result obtained for the intermediate formula you have to specify the frequency for compounding the calculated interest The frequency can be in terms of e Days e Months e Years If you do not specify the compound days months or years it means that compounding is not applicable Rounding Factor Decimal Specify the precision value if the number is to be rounded It is mandatory for you to specify the precision value if you have maintained the rounding parameter one ORACLE Compound Days If you want to compound the result obtained for the intermediate formula you have to specify the frequency for compounding the calculated interest The frequency can be in terms of days Compound Months If you want to compound the result obtained for an intermediate formula you have to specify the frequency for compounding the calculated interest The frequency can be in terms of months Compound Years If you want to compound the result obtained for an intermediate formula you have to specify the frequency for compounding the calculated interest The frequency can be in terms of years Condition and Result A formula or calcualtion logic is built in the form of expressions where each expression consist
15. The value captured here determines the number of times a schedule frequency should recur For example a 12 monthly schedule would have a Monthly unit and number of schedules as 12 Capitalized Check this option to specify capitalization of the component for a particular schedule If the Capitalized option under Component Definition is checked the Capitalized option at the schedule level will also be checked for payment schedules You can however uncheck this option for a schedule 4 3 5 12 Processing at Installment Level At the installment level if there is a change in the installment status Oracle FLEXCUBE will first check if accrual is required for the installment components When the accrual frequency for a component is not Daily Oracle FLEXCUBE will validate if the installment status changes before accrual execution date If it changes Oracle FLEXCUBE will trigger catch up accrual for the component till the installment status change date Subsequent to this Oracle FLEXCUBE will process the installment status change The following example will explain the Complete Pending Accrual functionality This is applicable for both Installment Level as well as Account Level Status change Example Let us assume an accrual frequency for a component MAIN_INT The schedules for this component are as follows e Value Date 05 Jan 06 e Schedule Dates gt 05 Jan 06 gt 05 Feb 06 gt 05 Mar 06 e Ac
16. in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Facility Drawdown Detail LBL_FACILITY_REF_NO 13 12 2 Contents of the Report The contents of the Facility Drawdown Detail report are discussed under the following heads Header of the Report The Header carries the title of the Report information on the branch code the branch date the user ID the module name the date and time at which the report was generated and the page number of the report Body of the report The details of the borrower that would be displayed in the report are as follows Facility Ref No Filter field The Contract Reference Number of the main borrower facility contract under which the drawdown contract is initiated Customer No The number of the borrowing customer taking part in the borrower drawdown contract Base Currency This is the currency in which the borrower facility contract amount is defined User Ref No The User Reference Number Customer The number and name of the borrowing customer taking part in the Borrower borrower drawdown contract Name ord ORACLE Date The date on which the draw down loan is requested by the borrower The report also displays the totals of all the drawdown amounts ie ORACLE 13 13 1 13 13Facilities Detail Report You can generate a report to obtain the details of facili
17. 1 A borrower facility product for borrower facility contracts Also participant facility products for the resultant participant facility contracts 2 Tranche level tranche type of products for borrowing customers and participants 3 Loan products for the borrowing customers for draw downs under a tranche as well as deposit products for the participants The definition of these products is explained in detail in the chapter Defining Products for Loan Syndication in this user manual a ORACLE 5 4 5 4 1 Capturing Details for Borrower Facility Contract You can capture details for a borrower facility contract in the Loan Syndication Contract Input screen You can access this screen from the Application Browser You can also invoke this screen by typing LNDCONON in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Loan Syndication Contract Input mfa of gt Da ce Product Contract Reference Description User Reference Product type Contract Holiday Preferences Contract Details Tranche Details Customer Start Date Facility Start Date Ej End date Facility End Date Minimum Amount Currency Maximum Amount Amount Reporting Details Amount Primary Administrator Secondary Administrator Agreement Title Re
18. 500 Oracle Parkway Redwood Shores CA 94065 U S A Worldwide Inquiries Phone 1 650 506 7000 Fax 1 650 506 7200 www oracle com financial_services Copyright 2011 Oracle Financial Services Software Limited All rights reserved No part of this work may be reproduced stored in a retrieval system adopted or transmitted in any form or by any means electronic mechanical photographic graphic optic recording or otherwise translated in any language or computer language without the prior written permission of Oracle Financial Services Software Limited Due care has been taken to make this document and accompanying software package as accurate as possible However Oracle Financial Services Software Limited makes no representation or warranties with respect to the contents hereof and shall not be responsible for any loss or damage caused to the user by the direct or indirect use of this document and the accompanying Software System Furthermore Oracle Financial Services Software Limited reserves the right to alter modify or otherwise change in any manner the content hereof without obligation of Oracle Financial Services Software Limited to notify any person of such revision or changes All company and product names are trademarks of the respective companies with which they are associated
19. Account Number Facility Reference Number Main Rollover Renegotiation Amendments Account Details Default CheckList Fields Components Charges Linkages Advices Tranche Swift Message Details Account Details Customer id Ccy1 Calculate Gross Principal Customer Name Commitment Type Revolving Value Date Non Revolving Amount in Tranche Maturity Date Maturity Type Fixed Call Promotions F Promotion Type Promotionid Beneficiary Priort lt gt Account Statistics EH Component Name Expected Overdue Outstanding Advance Compensation Cey w MIS GL Balance Events Contracts Diary Borrower Participant Drawdown Product Party Type Currency Exchange Rate Details Entity mememe be meee fee Input By Date Time Authorized By Date Time Contract Status Wi Authorizes Process Status The following details are displayed e Name of the product used in the tranche e Counterparty Id and Name e Contract Reference Number e Start date of the tranche e Currency of the tranche e Reference Number of the facility under which the tranche is processed e Number of drawdowns processed under the tranche The Amendment tab will display the following e Current Principal e Current Maturity Date To make an amendment select the reference number of the tranche you wish to amend and then click the Unlock icon in the toolbar to unlock the same ve ORACLE
20. Participant button in the Drawdown Details screen Z Participant Ratio Details Web Page Dialog x al Contract Reference Number User Reference Number Pariticipant Details 3 O Participant Code Participant Name Asset Amount Asset Ratio Settlement Sequence Number Self Participant Zz Component Details Entity Details F E Component Type Component Ratio Ej O Entity Code Remarks Primary Entity EJ e ORACLE When you open this screen the reference number of the borrower drawdown contract is displayed in the Contract Reference Number field The following details would have been defined for each participant e The ID of the participant e Contribution of the participant to the draw down contract either in terms of a ratio or an amount this is known as the asset ratio or asset amount e Settlement sequence number of the participant which the system will use to obtain the settlement details for the participant e Whether the lead bank is also a participant in the syndication self participant e Interest charge and ad hoc fee components levied on the contract the receivables from which are due to the participant e Proportion of income from the interest charge and ad hoc fee components which is due to the participant specified either as a ratio or an amount e Locations for the participant where notices and advices related to the contract will be sent A primary location would have
21. Period days This is the period in days for which interest on the drawdown loan is calculated Base The drawdown amount for each participant expressed in the Currency currency of the borrower tranche under which it is defined Amt Exchange The exchange rate that is used if the draw down currency is rate different from the currency of the borrower tranche contract or the account to which it is linked Drawdown The request id number for the drawdown loan contract 13 16 ORACLE No Filter Field Drawdown The amount that is drawn under each draw down loan linked to the Ami Optional tranche and the currency in which the draw down loan amount is Currency expressed Interest Rate The interest rate that is applied on the participant leg tranche or draw down contracts under the facility borrower contract Interest Basis The method according to which the number of days is computed for interest calculation This is applied specifically for the interest derived by each participant as per the bower facility contract Interest Calculated From To The date range for which interest is calculated on the drawdown loan contract Body of the report The following details of the participants will be displayed in this report Participant Name Customer The number allotted to each participant of the drawdown contract Participant No Sort Field Customer Name
22. User Defined Fields Contract Reference Field Properties Field Name Field Value ie ORACLE 5 5 5 5 1 Processing Loan Syndication Contracts After you enter a borrower facility contract into Oracle FLEXCUBE you need to 4 Open a tranche by creating a tranche contract for the borrower 5 Create a draw down loan contract for the borrower when a draw down is requested and as soon as intimation is received from the participants indicating that their tranche has been fulfilled and the funds have been credited to the nostro account of the lead bank your bank A draw down loan can be entered for the borrowing customer on each of the schedule dates that are specified according to the borrower s requirement The lead bank typically checks to ensure that all the necessary formalities have been completed and any necessary documents required to be furnished by the borrower have been received before entering a draw down loan The participants make their contributions available in their vostro accounts from where the funds are drawn into the common syndication pool and then to the account of the borrower when a draw down loan is entered The system therefore processes the borrower facility contract in two stages 6 Processing the tranche contracts 7 Processing the draw down loan contracts The system also processes two different types of contracts when it processes a borrower facility contract 8 Those
23. You can enter any date as the value date It could be any of the following dates e A past date e The application date e A future date The facility start date must be later than the Start Date defined for the product involving the borrower facility contract and earlier than the End Date of the same product All tranche contracts and draw down loan contracts must be value dated later than the Facility Start Date specified for the borrower facility contract Example For instance when you enter the borrower facility contract with Mr Robert Carr you must enter 1 January 2000 as the Value Date The application date on the day you enter the contract could be earlier later or the same as this value date For instance Mr Robert Carr could approach you on 15 January 2000 and enter into a contract with your bank wishing that the contract to come into effect on 1 January The value date in this case is 1 January 2000 and the contract would be backdated For backdated contracts you can enter backdated tranches and draw downs Alternatively Mr Robert Carr could approach you on 15 December 1999 and enter into a contract with your bank wishing that the contract must come into effect on 1 January 2000 This is the value date and the contract would be future dated For future dated contracts you cannot enter tranches before the contract actually comes into effect i e before the value date Facility End Date This is th
24. e The borrower details The system generates a Reference Number for the borrower loan contract After you have entered a borrower draw down contract when the BOOK event of the contract is triggered the system automatically initiates deposit contracts for the participants These contracts constitute the participant leg of the processing of the draw down They are linked to the respective tranche contracts created at the tranche level et ORACLE 5 5 3 5 5 4 Participant Contracts To recall you open a tranche by entering a tranche contract for the borrower When the BOOK event for the borrower tranche contract is triggered the system creates tranche contracts for the participants using the product specified for participant tranche contracts in the product preferences for the borrower tranche product which the borrower tranche contract uses and the participant details maintained for the borrower tranche contract Similarly after you enter a draw down loan contract for the borrower under a tranche reference number the system creates a deposit contracts for participants using the product specified for participant draw down contracts in the product preferences for the borrower draw down product which the borrower draw down contract uses and the participant details maintained for the borrower tranche contract Participant contracts initiated by the system can be viewed and amended using the Participant Contract screen which is disc
25. nee ORACLE Date the facility contract is available for use Facility End This is the date that indicates the end of the period for which the Date facility contract is available for use 13 40 Tranche Borrower Report This report gives details of all tranche borrower contracts It is printed daily as part of the batch process 13 40 1 Selected Options You can generate this report to obtain the participant details for e A specific tranche in this case the reference number of the facility contract under which the selected tranche is booked will also be displayed or e All tranche contracts disbursed at your bank till date You can invoke this screen by typing LSRTBDET in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Tranche Drawdown Contact Detail Tranche Reference 13 40 2 Contents of the Report The contents of the Facility Borrower Contact Detail report are discussed under the following heads oe ORACLE Header of the Report The Header carries the title of the Report information on the branch code the branch date the user ID the module name the date and time at which the report was generated and the page number of the report Body of the report The details of the borrower that would be displayed in the report are as follows Facility Ref No Sort field The Contract Reference Number of t
26. Administrator Name Phone Number Fax Number Number Input By Authorized By Modification Authorized ext Date Time Date Time Open oe ORACLE 3 3 Maintaining Self Participants When the lead bank participates in the syndication by contributing funds it is called Self Participation You can maintain the lead bank as a self participant using the Self Participant Maintenance screen You can invoke this screen by typing LLDSPMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Self Participant Maintenance Self Participant Description Branch Input By Authorized By Modification Authorized exit Date Time Date Time Number Open The following details are captured here Self Participant Select the code of the bank from the option list The codes of all valid customers maintained are available in this list Description Based on the bank code selected the description is defaulted here Branch Select the branch that has to be designated as the transaction branch for the participant i e the system creates the corresponding commitment loan contract in this branch oi ORACLE 3 4 3 5 Maintaining Party Types You can identify the different types of entities or parties involved in loan syndication contracts in the system in the Party Type Definition screen You can invoke this screen
27. Amount Here you can maintain the minimum limit for allowing prepayment of schedules If the residual amount after prepayment against a schedule is less than the threshold amount you specify here the system will disallow the prepayment Currency If you specify the threshold amount you also have to indicate the currency in which the amount should be expressed You can select the currency from the option list provided 4 3 5 6 Intermediate Formula Intermediate Formulae are used as building blocks for more complex formulae An intermediate formula is used to create a Booked Moratorium formula as an intermediate step It will not be associated directly to any schedule To define an intermediate formula click the Intermediate button in the Components screen The Intermediate Formula Expression Builder screen is displayed en ORACLE intermediate Formula Round Up Down decimal Formula Name Rounding Factor decimal Compound Days Compound Months Compound Years Expression 11 Pete conan est constr romane T Conditiona You can specify the following details here Formula Name Specify a suitable name to identify the formula that you are defining After you specify the name you can define the characteristics of the formula in the subsequent fields You have to use the name captured here to associate a formula with a schedule The name can comprise of a maximum of 27 alphanumeric characters
28. Exchange Rate Variance in Product Description Override Limit Slogan Stop Limit Product Group Start Date End Date Remarks ries Erens eronces Prereroncos ms bry events pry Ovals aoc charges rs J oatome Maker Date Time Mod No Checker Date Time Record Status Authorization Status You can specify the basic details for the product such as the Product Code Description Group and life span in the same manner as you specified for the tranche draw down product Defining Generic Attributes of Loan Syndication product After specifying all the basic details of a product you can indicate certain specific attributes for the product Each of these attributes can be defined in the corresponding screen that you can invoke from the Loan Syndication Product main screen by clicking the appropriate icons Attributes with common characteristics are grouped together in common screens simplifying the process of defining them You can define generic attributes such as branch currency and customer restrictions by clicking on the appropriate icon in the horizontal array of icons in this screen For a borrower facility product in addition to these generic attributes you can specifically define other attributes These attributes are discussed in detail in the following sections For further information on the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals e Produ
29. Facility Ref The reference number of the contract for which you are generating No the report Customer The code of the customer with whom this syndication contract has Borrower No been finalized This typically is the borrowing customer Customer The name of the borrower with whom the contract has been Borrower finalized Name Customer The country to which the customer borrower belongs Borrower 13 28 ORACLE Facility Ref No The reference number of the contract for which you are generating the report Country Maturity Date This is the date on or before which all tranches and drawdowns under the syndication contract should be maturity dated GFCID The customized UDF maintained under customer maintenance Ta ORACLE 13 18 1 13 18Ad hoc Fee Detail Report For all syndication contracts you can define ad hoc special amount fee The adhoc fee component facility is applicable to Syndication Facility LN Syndication Borrower LS and Syndication Participant LL module This report describes the ad hoc details under the following search criteria e The type of customer whether he is a borrower or a participant e The product type of the loan Select the type facility tranche or Drawdown e The list of ad hoc fee that applied over a period in time specify the From and To date of the period Contents of the Report The contents of the
30. If the tranche currency is different from the local currency of the branch the system will display its equivalent in the local currency A change in tranche principal will result in recalculation of the Utilization and Non Utilization Fee It will also alter the Non Utilized amount under the tranche An increase in the principal will allow you to process new drawdowns under the tranche to the extent of the increased amount aa ORACLE 9 2 2 9 2 3 Modifying maturity date Through the Tranche Value Dated Amendments screen you can Extend the maturity date When extending the maturity date of the tranche the system will ensure that the new date e does not exceed the product end date e does not exceed the maturity date of the linked facility e does not exceed the tranche end date defined at the facility level Reduce the maturity date When reducing advancing the maturity date of the tranche the system will ensure that the maturity date e Does not go beyond the product end date e Is not earlier than the start date of the linked facility e Is not earlier than the start date defined for the tranche at the facility level e Is not earlier than the value date of the tranche e Is not earlier than the maturity date of existing drawdowns under the tranche e Is not earlier than the amendment date To modify the maturity date new date in the Modifications section of the screen Maturity Date Specify the new maturity d
31. If you have chosen the rollover method as Normal then you must enter the corresponding details for the rollover in the Default Tab in the Drawdown Details screen Drawdown value Dated Amendment X 1 Go to Page Facility Reference Number Product Code Main Rollover Renegotiation Amendments Account Details Default Check List Fields Components Charges Linkages Advices Tranche Swift Message Details Rollover Amend Past Paid Schedule Rollover Mode Auto Roll By Liquidate Back Valued Sch Manual Rollover Type Special UDE Rollover Product Custom Contract Rollover Allowed es Schedule Basis Product No Contract Liquidation aas m Auto Liquidation Somi iva Rollover Component Component Name Auto Ligd Reversed Pmt Partial Liquidation Track Receivable Auto Liquidation Manual Liquidation arra MIS GL Balance Events Contracts Diary Borrower Participant Drawdown Product Party Type Currency Exchange Rate Details Entity een iiaii Il bina il li b damnant itinaas asa iiaeia Input By Date Time Authorized By Date Time Contract Status WB Authorized Process Status In the case of normal rollover the system creates a new draw down contract with a new contract reference number for the original one being rolled over All the preferences in the Default Tab that are applicable for rollover of normal loans are also applicable for draw down loans
32. LBL_CLASS_DESCRIPTION LBL_MODULE LBL_MODULE_DESC LBL_PARTICIPANT_PROPAGATION LBL_FIELDS Input By Authorized By Modification Authorized exit Date Time Date Time Number Open You can capture the following details here Specifying the class code While defining the ad hoc fee class you need to specify the class code to which it belongs and then link the same to the module To do this enter a unique identifier for the class you are defining and give a brief description for the code in the field adjacent to it Linking the class code to a module This is the module for which you are defining the ad hoc fee The option list will display all the modules available for linkage i e Syndication Facility LN Syndication Borrower LS and Syndication Participant LL module Choose the appropriate module from the option list A brief description of the module will be displayed on selecting the module Indicating participant propagation While defining the ad hoc fee you have the option to pass the ad hoc fee collected from the borrower to the participant of facility tranche or draw down contract Click on the Participant propagation if you want to transfer the fee to the participant An unchecked box will indicate that the fee collected from the borrower will not be passed to the participant sate ORACLE 3 10 Accounting Roles In this section we have provided a list of sample a
33. SDEs operators and logical operators available in the screen above vo ORACLE For details on building a condition using the options available in the screen refer the section titled Defining UDE Rules in the Maintenances and Operations chapter of this User Manual The system ensures that all accounting roles that are applicable for the Product and which have been used in the definition of the accounting entries are necessarily linked to an account head If the mapping is not complete an error message is displayed when you attempt to save the product 4 3 7 1 Dynamic creation of accounting roles for a component For each component you define for a product in the Main tab six accounting roles are dynamically created by the system For example if you have defined a component MAIN_INT the following accounting roles are created MAIN_INTINC MAIN_INTEXP MAIN_INTRIA MAIN_INTPAY MAIN_INTREC MAIN_INTPIA Component Income Component Expense Component Received in Advance Component Payable Component Receivable Component Paid in Advance For a detailed list of Events Advices Accounting Roles and Amount Tags refer Annexure 1 of this User Manual 4 3 7 2 Maintaining Events A contract goes through different stages in its life cycle In Oracle FLEXCUBE the different stages a contract passes through in its life cycle are referred to as Events At an event typically you would want to post t
34. The recalculation happens as and when a change in value occurs If maintained as Periodic the values and calculations of the elements will be refreshed on the last day of the period Formula Type You can specify the type of formula to be used for calculating the component This formula is applied for the component across all its schedules It can be one of the following e User Defined This can also include a combination of standard formulae for different schedules of the component or can have a completely user defined formula e Standard gt Simple gt Amortized Rule of 78 gt Discounted gt Amortized Reducing gt True Discounted gt Rate Only Note the following e This is not applicable for the PRINCIPAL component e For a commitment product the formula type cannot be Amortized Discounted or Simple en ORACLE Rate to Use Here you need to select the UDE which will define the rate to be used for computing the component The value of the selected UDE is picked up as per the maintenance in the UDE Values screen This is applicable only for components defined with Standard Formula Type Basis Element If you select the Standard formula type you have to specify the component upon which calculation should be performed The component is denoted by an SDE e g PRICIPAL_EXPECTED and you can select it from the option list provided For an overdue penalty compon
35. You cannot change the participants or their ratios in respect of borrower draw down contracts that you define for a borrower tranche contract using a product for which the Cascade Participation preference has been set Specifying the holiday default basis For a borrower product you can indicate whether the holiday treatment for schedule dates and maturity date applicable to tranche or draw down contracts using the product must be defaulted from the parent borrower facility product or from the borrower tranche or draw down product In the Holiday Default Basis field select Facility to indicate that the holiday treatment specified in the borrower facility product is applicable or select Product to indicate that the holiday treatment from the borrower tranche or draw down product is applicable Specifying exchange rate fixing details For borrower tranche products you can specify the number of days before the draw down date defined in the draw down schedule the exchange rate must be fixed for contracts wherein the draw down currency is different from tranche currency The Exchange Rate Fixing Date will be generated as a part of the online process based on this parameter You must also specify the currency for which the exchange rate fixing days you have specified would be applicable You can specify the applicable number of days for each required currency Indicating interest rate fixing details For borrower tranch
36. can designate one as the capitalized and the other as un capitalized schedule e ORACLE Interest Posting Req Check this box if interest posting is required for the component Component Type Indicate the nature of the component This is also known as the Reporting Type It defines the manner in which the component should be classified for reporting accounting purposes A component can be of one of the following types e Reimbursement these are components which have both Dr and Cr mapped to settlement accounts e Off Balance Sheet OBS An OBS Component will have balances but these need not be zero when an account is closed e Fund Interest This indicates the funding component e Ad hoc Charges e Charge e Tax e Insurance e Interest e Provisioning e Deposit Orre fund interest component gets liquidated on schedule even if the customer does not pay the other components Propagation Reqd Check this option to indicate that the interest amount collected from the borrower should be passed on to participants When you collect the Interest Charges Fees from the borrower you can choose to pass these to the participants of the facility tranche or drawdown contract In the product Components Tab when you are associating the interest components for the borrower tranche or draw down product you can choose a class for which the propagation to participants option has been indicated in the class definition if required
37. contract for which you want to initiate the asset transfer amongst the participants After you select the relevant contract Tranche or Drawdown click on the P button to populate all relevant facility Tranche and Drawdown Details as applicable To select the participants for the transfer click the add icon and in Transfer From LOV populates all participants involved in Tranche Drawdown Contract Existing Participants To select the participants for the transferee click the add icon and in Transfer From LOV populates all participants available at Facility Contract Both Active Participants and inactive participants Transfer Ratio and Transfer Amount Specify the ratio in which the asset should be transferred You can either specify the Transfer Ratio or the Transfer Amount If you specify the transfer ratio the system will compute and display the transfer amount Tab ORACLE Click on the Enrich button to populate Existing Ratio Components and entity Details of the participants as shown below Participant Transfer Contract Reference Branch Serial Number User Reference Value Date Facility Tranche Drawdown Contract Reference Contract Reference Contract Reference User Reference User Reference User Reference Borrower Cascade Participation Drawdown Number Borrower Name Detailed Instruction Enrich Detailed Consolidated Transferor Transfer
38. defined The ATM transaction amount cannot exceed the value given here Rounding Factor EMl Specify the rounding factor if the EMI is to be rounded It is mandatory for you to specify the rounding factor if you have maintained the rounding parameter Round Up Down EMI Indicate whether the EMI should be rounded up or down ii ORACLE e Choose UP in case you want to round the number to the next decimal value e Choose DOWN if you want to truncate the number to the previous decimal value The principal component of the EMI is adjusted based on the rounded EMI amount Numerator Method Specify the day count method for the numerator for each currency applicable to the product The following options are available in the drop down list e Actual e 30 Euro e 30US Choose the appropriate one This value will be used for calculation of the Net Present Value NPV Denominator Method Specify the day count method for the denominator for each currency applicable to the product The following options are available in the drop down list e 360 e 365 Choose the appropriate one This value will be used for calculation of the Net Present Value NPV 4 3 7 9 Maintaining Customer Category Restriction Details Just as you can maintain a list of allowed disallowed branches and currencies for a product you can maintain a list of allowed disallowed customer categories You can maintain several restrictions for each custo
39. e The type of data that can be entered in the user defined field as well as the date format if it is a date type field e ORACLE 3 8 3 9 Associating Message Types to Events for Module After you have defined the diary events to be applicable for a module and also made available the requisite message types in the Diary Event Maintenance you can associate the type message to be used to generate messages for each diary event in the Diary Event Message Linkage screen You can invoke this screen by typing CSDDRYMS in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button To an event code you can only associate a message type that has not been already mapped LBL_DIARY_CD Module Event _ Message Type Input By Authorized By Modification Authorized Date Time Date Time Number Open Maintaining Ad hoc Fee Components For all syndication contracts you can define ad hoc fee The ad hoc fee component facility is applicable to Syndication Facility LN Syndication Borrower LS and Syndication Participant LL module Invoke the Ad hoc Charges screen from the Application Browser to define ad hoc fee components e ORACLE You can invoke this screen by typing CFDADFEE in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Ad hoc Charges LBL_CLASS_CODE
40. for the borrower and the participants Summary screens are available listing the currently active contracts entered at each level These screens can be invoked from the respective contract input screens or from the application browser ee ORACLE 5 8 1 1 Viewing Contracts Entered under Main Borrower Facility Contract The Borrower Facility Contracts Summary screen lists the active facility contracts You can also invoke this screen by typing LSSBWRFC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Borrower Facility Contracts Summary E Contract Status ai Authorization Status Product az Facility Reference Number az Customer PHI Currency az i Search Advanced Search i Reset o Records per page 15 1 of a1 p i go Authorization Status Contract Status Product Facility Reference Number Customer Currency Amount I Participant Tranche Detail Authorization Status Contract Status A Authorized Active U Unauthorized H Hold V Reversed L Liquidated Yet to be Initiated 5 69 ORACLE 5 8 1 2 Viewing Contracts Entered Under Borrower Tranche Contract You can invoke this screen from the application browser in which case a list of active borrower tranche contracts under each borrower facility contract is displayed Invoke the Borrower Tranche Contracts Summary
41. screen by typing LSSBWRTR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Borrower Tranche Contracts Summary Authorization Status Contract Status Contract Reference Product Currency az Facility Reference Number LBL_PARTICIPANT_TRANCHE Customer Search Advanced Search Reset s Records per page of 1 p Authorization Status Contract Status Contract Reference Product Currency Facility Reference Number LBL_PARTICIPANT_TRANCHE lt Drawdown LBL_PARTICIPANT_TRANCHE Details j Authorization Status Contract Status A Authorized A Active U Unauthorized H Hold V Reversed L Liquidated Yet to be Initiated e To view a summary of borrower draw downs entered under a borrower tranche contract select the contract in the grid and then click the Drawdown button e To view a summary of participant contracts created under a borrower tranche contract select the contract in the grid and then click the Participant Summary button e To view a borrower tranche contract from the grid simply double click it or select it and click the Details button au ORACLE 5 8 1 3 View Summary of Borrower Draw Down Contracts You can invoke this screen from the application browser in which case a list of active borrower draw down contracts under each borrower tranche contract is displayed Invoke t
42. the agreement The syndication agreement with the borrowing customer is known as a borrower facility contract In a borrower facility contract the borrowing customers receive loans from any of the arms or tranches Each of the arms would have a set of participants who would pool in their contributions toward the borrowing requirement in a mutually agreed ratio The borrowing customer could receive loans towards the borrowing requirement as draw downs from a tranche Therefore a single tranche would have a specified number of draw downs Each of the players in a tranche i e the borrowing customer and the participants enters into a tranche contract The individual loans draw downs under each tranche are loan contracts Therefore a borrower facility contract under a syndication agreement involves the following contracts 1 The main borrower facility contract between the borrowing customers and the facilitating bank The contract officialises the agreement and makes the terms binding by law on all borrowers and participants entering into it For the main borrower facility contract contracts are drawn up for each of the participants to mirror the borrower facility contract 2 The tranche contracts at the level of a tranche opened under the main borrower facility contract for each of the borrower and the participants ORACLE 3 The actual loans disbursed to the borrowing customer as draw downs under a tranche of the main b
43. this is the Reference Number of the tranche under which drawdown loan contracts are initiated Component Name This is the fee component applicable for the borrower leg contract This is the component that is tracked across the borrower and the participant legs of the tranche or drawdowns under the tranche Tranche Currency The currency of the commitment contract at the level of a tranche that is opened under the main syndication contract Commitment Fees calculated for the period Amount Period Days Interest Rate Amount This is the fee amount calculated for a given period and distributed to each of the participants involved in the contract Period This is the period in days for which the fee is calculated Interest Rate This is the interest rate that is applied on the participant leg tranche or draw down contracts under the syndication contract Body of the Report The following details of the participants will be displayed in the report Participant Name Customer The number allotted to each participant of the drawdown contract Participant No Sort Field Customer Name of the participants in the tranche contract to which each of the drawdown loan contract is linked Contact Name This is the name of the entity for each participant All correspondence for the customer will be sent to this entity Fee Currency The currency in which the fee amount is computed
44. 1 Viewing ad hoc fee schedule processing details You can view the following details with respect to the ad hoc fee schedule defined for a contract from the Adhoc Fee Schedule Input screen e The schedule payment status for each component e The events processed in respect of the ad hoc fee schedule and the relevant accounting entries passed as well as overrides encountered for each event e The settlement details for each ad hoc fee component for which the schedule has been defined Click the Payment Schedules button in the Adhoc Charge Schedule Input screen to view the payment status for the schedules The Payment Schedule Status screen is opened with the payment details displayed Payment Schedule Details Payment Schedule Details E Component Due Date Status Amount Due Amount Settled Currency O rg ORACLE Click Events button in the Adhoc Charge Schedule Input screen to view the events processed in respect of the ad hoc fee schedules The Event Details screen is opened displaying the list of events with the relevant accounting entries if any that have been passed as well as the overrides encountered Event Details Web Page Dialog x al Reference Number Events O Event No Event Date Event Code Description EJ S B a Message Accounting Entries ea ORACLE 8 1 8 2 8 Rolling over a Drawdown Loan Introduction A rollover is
45. 6 Capturing Details for Draw Down Loan Contracts You capture the details for the actual loan disbursed to the borrowing customer as a draw down in the Drawdown Details screen You can invoke this screen by typing LSDDDONL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Drawdown Details Branch Account Number Facility Reference Number Main Rollover Renegotiation Amendments Account Details Account Details Customer id Cey 1 Amount Net Principal Customer Name Value Date Fie Maturity Date Maturity Type Fixed Call Account Statistics Component Name Expected MIS GL Balance Events Input By Date Time Authorized By Contracts Diary Borrower Participant Date Time Contract Status Process Status 5 40 Wi Authorized x KIKI of y Pi erer A Product Category Contract Status Application Number Alternate Account pes Number Product Code Ek User Ref No Default Check List Fields Components Charges Linkages Advices Tranche Swift Message Details Calculate Gross Principal l Commitment Type Revolving Non Revolving Facility apenes Number Amount in Tranche Currency Tranche Amount e Tranche Available Tranche Reference Amount Number Drawdown Number Promotions me Promotion Type Promotion id Beneficiary Priort lt gt Overdue Outstanding Advance Compensation Cey v
46. 9 2 1 Specify the following after unlocking the tranche Amendment Date By default the current system date will be displayed as the date of amendment You can change the date provided the date is e Not later than the maturity date of the tranche e Not earlier than the value date of the tranche e Not earlier than the last liquidation date of the unutilized fee e Not earlier than the latest amendment date After you specify the date you cannot change it Modifying tranche principal You can use the Tranche Value Dated Amendments screen to Increase the tranche principal When increasing the tranche principal the system will check for the following e The increase does not allow the sum of all tranches including the increased amount under the linked facility to exceed the Total Facility amount e The increase is not more than the maximum amount allowed for a tranche This amount is specified at the facility level Decrease the tranche principal When decreasing the tranche principal the system will check for the following e The decrease does not result in the principal being less than the sum of all outstanding drawdowns linked to the tranche e The decrease is not less than the minimum amount allowed for a tranche This amount is specified at the facility level To change the principal specify the following Change in Principal Specify the amount by which you want to increase or decrease the tranche principal
47. Compound Months Rounding Factor decimal Compound Years Expression 11 By tne conan reson conan foruatne 0 conditions B The SDEs available will be shown in the Condition Builder The Booked formula so created will be linked to a schedule The parameters required to create a Booked formula is similar to the ones explained for an Intermediate formula Amortized Select this option to specify that the schedules of the component should be amortized For Commitment products do not select this option Amortization Basis If you opt to Amortize the schedules of the component you have to identify the element based on which the component is amortized For example if it is deposit interest the amortization basis would be Principal The components are available in the option list provided 4 3 5 8 Moratorium Formula Moratorium refers to the repayment holiday given during the period between the value date of the loan and the first repayment date While no repayment will happen during this period computation will continue The Moratorium formula is used for the computation of interest for the moratorium period eG ORACLE To define the formula click the Moratorium Formulae button in the Component screen The Moratorium Formula Expression Builder screen is displayed Moratorium Formula Moratorium Liquidation Formula Liquidate Moratorium to Compound Days Installment De
48. Contact ID The ID of the borrower Name Address This is the name and address of the entity for each Sort Field borrower as defined in the main facility contract All correspondence for the customer will be sent to this ae ORACLE entity Description The description of the entity for each borrower as defined in the main facility contract axno FaxnoExt Telno Telno Ext F The address of the entity selected for the borrower The address can include the Telephone No Extn Fax No Extn Telex Code Answerback GCN The Telex code GCN etc of the borrower Country Faxind E mail address The Country ID e mail address etc 13 10 Tranche Borrower Contact Detail Report Just as you have contact details for a borrower facility contract you can maintain entities for borrower of a particular tranche as well The Tranche Borrower Contact Details report describes the entity for the borrower You can generate this report to obtain the borrower contact details for e A specific tranche if the product type is selected as Tranche in this case the reference number of the facility contract under which the selected tranche is booked will also be displayed o r e All tranche contracts disbursed at your bank till date 13 10 1 Contents of the Report The contents of the tranche borrower contact detail report are discussed under the following heads Header of the Report
49. Contract Record s Sold Amount Deal Rate This is the FX Contract Record s Exchange Rate 13 36 MM Contracts Cancelled Report after Cable Sent Report This report gives a listing of all MM contracts that have been reversed on the current business day in FLEXCUBE after a SWIFT message was sent against the corresponding contract A SWIFT message includes MT103 MT202 MT100 MT210 and MT104 The report is printed daily as part of the batch process You can configure this report to display details of MM Contracts Cancelled Report after Cable Sent Report from the Reports Browser You can configure this report to display details of MM Contracts Cancelled Report after Cable Sent Report You can generate the report based on the following criteria e This is the Branch for which the report is printed Select a branch from the option list provided e This is the Date for which the report is printed Enter a date 13 36 1 Contents of the Report The contents of the MM Contracts Cancelled Report after Cable sent Report are discussed below Counterparty Contract Record s Counterparty Counterparty Name This is the Customer Record name for the Contract Record s Counterparty ORACLE FLEXCUBE Reference Number This is the Contract Record s Reference Number Custom Reference This is the Contract Record s Custom Reference Number Number Contract Type Th
50. Definition LNDRCMNT Margin Maintenance LSDADSCH Ad hoc Charge Schedules Input LSDBRMNT Loan Syndication Branch Parameters LSDDDAMD Drawdown value Dated Amendment LSDDDONL Drawdown Details LSDFXRVN Fixed Interest Rate Revision LSDPATFR Participant Transfer LSDPCMAP LS CL Product amp Component mapping LSDPMNT LS Payment LSDPRMNT Loans Syndication Product 14 1 ORACLE Function ID Function Description LSDPXLOG Participant Exception Log LSDTRAMD Tranche value Dated Amendment LSDTRONL Tranche Details LSDUPLJB Participant Contracts Processing Job LSRBRDET Facility Borrower Contact Detail LSRDDBRC Drawdown Borrower Contact Detail LSRFCDET Facility Contact Detail LSRPDDID Drawdown Interest Due LSRPFDDT Facility Drawdown Detail LSRPFUTI Facility Utilization Detail LSRPPADC Participant Drawdown Contribution LSRPPRAM Participant Transfer Detail LSRPPTCO Participant Tranche Contribution LSRPTDDT Tranche Drawdown Detail LSRTBDET Tranche Drawdown Contact Detail LSSBWRDR Borrower Drawdown Contracts Summary LSSBWRFC Borrower Facility Contracts Summary LSSBWRTR Borrower Tranche Contracts Summary MSDFFT Free Format Message Maintenance 14 2 ORACLE ORACLE Loan Syndication May 2011 Version 11 3 Oracle Corporation World Headquarters
51. Definition screen are available in the option list provided You can select a currency from this list The UDE names alone are captured here To capture the values for the UDEs defined for a product you have to use the UDE Values screen S ORACLE Refer the section titled Providing UDE Values in the Maintenances and Operations chapter of this User Manual for more details 4 3 2 Maintaining Preferences Preferences are options that you can use to define specific attributes for a product which will be applied automatically to contracts that are entered and processed against the product You set up preferences for a borrower tranche draw down product in the LS Product Preferences screen Clicking Preferences button in the Loan Syndication Product screen Preferences Product Code Description Rate Account Preferences AccountPreferences Holiday Preferences Rate Liquidation Rate Plan Change Frequency Normal variance Liquidation Mode Tenor Maximum Variance Allow Partial Liquidation Unit Rate Type STANDARD Reset Retry Count for 2 diaud Oldie Ras Reversed Auto Liquidation Rate Plan Window Retries Auto Liquidation f Buy Sell Rate na Tenor Days Unit Account Preferences _ Pass Book Facility Track Receivable Auto ATM Facility Liquidate Back Valued Liquidation Schedules Amend Past Paid Schedule Back Period Entry Allowed Packing Credit Product Special Interest Accrual CL Against bil
52. During INIT O Capitalized C Funded During Rollover O Verify Fund Schedule E Schedule Type Schedule Flag Formula FirstDue Date Schedules Freq Unit Due Date On End Date Payment Normal o Previous Details E Schedule Number Due Date Amount Settled Amount Due EMI Amount Amortize Principal Accrued Amount Capitalized EN is x atnce J eves conracts Diar Borrower Pariciant orawaown Produc Pars Tape currency exchange Rate Dts em Input By Authorized By Contract C Authorized Date Time Date Time Status The following details are defaulted from the facility product used by the selected non revolving tranche e Holiday handling details e Prepayment method ag ORACLE You can change any of these details when you specify the repayment schedule Specifying the prepayment method The prepayment method identifies the allocation of the prepaid amount to the schedules defined for reduction of cumulative outstanding amounts in respect of non revolving tranches The specification made for the facility product is defaulted here and you can change it if required You can specify that the prepaid amount must be allocated to immediate schedules the last schedule or forward schedules Specifying how schedules falling on holidays must be handled
53. Exchange Rat Dean En Input By Authorized By Contract _ Authorized Date Time Date Time Status TR ORACLE Specifying Borrower Facility Contract Reference Number Under each borrower facility contract tranches are opened and draw down loans are disbursed against a tranche When you are opening a borrower tranche by entering a borrower tranche contract in the Tranche Details screen you must specify the Contract Reference Number of the main borrower facility contract against which the tranche is being opened You must also specify from the list of tranche products available under the main borrower facility contract the tranche product which is going to be availed Details for Main Borrower Tranche Contract In the Tranche Details screen you enter the borrower tranche contract against the Contract Reference Number of the main borrower facility contract You need to select the borrower tranche product that you have defined in the preferences for the borrower facility product used by the borrower facility contract under which the tranche is being opened Specify the following details for the main borrower tranche contract e Counterparty or customer e Currency of the tranche e Amount This is typically the amount being availed by the customer through the tranche e Settlement details e Maturity Date Fixed of the tranche depending upon the schedules e Tenor of the tranche e Type of the tranche whether revolving or n
54. Fee Amount This is the amount to be distributed to each of the participants out of the liquidated fee amount of the borrower leg contract Skim Margin Amount Typically all the participants would share the interest earned on the drawdown loans in the ratio of their participation However the syndication agency can decide to give a lesser percentage to each participant This difference between the asset share as per the participation ratio and income actual share received ratio is known as the skim margin amount The skim margin amount is the 13 8 ORACLE syndication agency s profit on the commitment The report will also display the totals of the fee amount that is distributed among all the participants 13 9 ORACLE 13 5 Commitment Fee Paid Report This report describes the details of fee amount that is actually collected from the borrowing customer over a given period and its actual distribution amongst the participants who had contributed in meeting the loan requirements of the customer You can generate this report based on the following preferences e The commitment fee paid by customers over a specific period i e the From and To dates e The Tranche Reference number for which commitment fee paid details have to be obtained If you select the ALL option the fee details for all the Tranche contracts will be included in the report 13 5 1 Contents of the Re
55. If so the Propagation Reqd box will be checked You can change this specification and uncheck the Propagation Reqd box if you wish to indicate that component propagation to participants is not applicable Alternatively if you have chosen a component for which propagation to participants has not been indicated you can check the Propagation Reqd box to indicate propagation of component to participants if required 4 3 5 2 Component Attributes The component attributes include the following ii ORACLE Special Component You can define a component as a Special Interest Component You can override such components at the account level You may need to apply a special interest component as a result of customer negotiations A special interest component is specified as an amount Penal Basis You may want to allot the penalty to the recovery of certain components Once a component is overdue an appropriate penalty is applied Therefore you need to identify the component which on becoming overdue will trigger the penalty computation However the system will calculate the penalty on the component you select in the Basis Element field For commitment products PRINCIPAL is not used for penal basis and for basis amount Periodicity The periodicity of the component can be either e Daily e Periodic If you choose the periodicity as Daily any changes to UDE and SDE values will result in recalculation of the component
56. Loan Syndication Introduction Before you can set up products for loan syndication contracts or process loan syndication contracts you need to maintain certain basic reference information that you might need in order to set up products and process contracts In the context of loan syndication for instance you may need to identify administrators among the officers of your bank to whom you could assign the administration of each loan syndication contract You may also need to define certain events that need to be processed for syndication contracts messages to be sent to the required parties and so on This chapter explains the maintenance of such reference information for the modules used for loan syndication contracts Reference information relating to the following needs to be maintained for loan syndication Administrators Parties Diary Events Messages User defined fields Ad hoc fee components 3 1 ORACLE 3 2 Maintaining Administrators Your bank may wish to assign appropriate administrators to loan syndication contracts You can maintain such administrators also called as Agents in the system in the Administrator Details screen by assigning a unique ID to the name of each administrator You can invoke this screen by typing CSDADMIN in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Administrator Maintenance Administrator
57. Maximum tenor that you specify Default Tenor The default tenor is the tenor that is associated with a loan account involving this product The value captured here should be greater than the minimum tenor and less than the maximum tenor You can change the default tenor applied on a loan account during loan processing However the new tenor should be within the minimum and maximum tenors maintained for the product Unit The tenor details that you specify for a product can be expressed in one of the following units e Days e Months e Year oe ORACLE 4 3 3 5 Recomputation of Amortization Loan at Amendments You have to indicate whether the tenor of the loan should be reduced or the installment should be recalculated whenever a maturity date principal change or a rate change is made against an amortized loan Recompuitation basis for amendments The possible amendments and the recomputation basis are given below e For amendment of maturity date of an amortized loan You can opt to change the tenor keeping the installment constant or change the Installment keeping tenor constant e For amendment of principal amount You can affect it either as a Balloon additional amount in the last schedule or apportion it across the installments e For interest rate change You can change the tenor keeping the installment constant or vary the EMI and keep the tenor same VAMI Installment Calculation Type For amendments if the recom
58. Product Code e 04096 is the date equivalent to 5 April 2004 04 Year and 096 is the number of days that have elapsed in the year e 0021 is the running sequence number Also if you maintain an account mask but do not opt to auto generate the account numbers then during account capture you have to conform to the account mask maintained for the branch If the account is not as per the mask the following error message is displayed Account number entered is not conforming to the account mask User Ref no in Msgs Check this box to indicate that the User Reference Number provided in the account screen has to be used in Tag 20 of MT103 and Tag 21 of MT202 If the box is unchecked the loan account number will be used instead of the User Ref no Auto Gen User ref Check this box to indicate that system should auto generate user ref no during account creation IRR Processing Check this option to trigger the YACR Yield Accrual event for the branch batch Accrual Entries on Holidays This option will determine whether the accrual entries due on the holidays should be passed as of the holiday itself or as on the working day before the holiday s after the holiday s depending on the Process Till Next Working Day 1 option Example Assume that the current system date is 15 May 05 Further 16 and 17 are holidays If you do not select Process Till Next Working Day 1 the EOD process for 15 May will
59. Report This reports describes the details of all the participants involved in the syndication contract their original commitment amount and the actual amount available 13 3 1 Selection Options You can generate this report to obtain the participant details for e A specific tranche in this case the reference number of the facility contract under which the selected tranche is booked will also be displayed or 13 5 ORACLE e All tranche contracts disbursed at your bank till date You can invoke this screen by typing LSRPPTCO in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Participant Tranche Contribution Facility Reference Tranche Reference 13 3 2 Contents of the Report The contents of the participant tranche contribution report are discussed under the following heads Header of the Report The Header carries the title of the Report information on the branch code the branch date the user ID the module name the date and time at which the report was generated and the page number of the report Body of the Report The following details of the participants will be displayed in this report Facility Ref No The Contract Reference Number of the borrower facility contract main syndication contract finalized between the borrowing customer and one or more participants Value Date The date on which the main syndication con
60. Start Date End Date Frequency Unit Number of Events Narratives Input By Date Time Modification Number WB authorized exit Authorized By Date Time W open In this screen you must select the reference number of the borrower contract for which you want to define events The details of the selected contract appear on the screen You must also indicate the code of the event which you wish to be processed for the contract in the Event Code field The option list in this field consists of diary events defined for the product that the selected contract uses You define the following details for each diary event that you associate for a contract in this screen Frequency of processing You must define the frequency at which the specified diary event must be processed for the selected contract Daily Monthly Quarterly Half yearly Yearly and Bullet If the selected event can only occur once as specified in the Event Maintenance the frequency is defaulted to Bullet and cannot be changed Frequency Unit You can specify the units in which the specified frequency will be reckoned that is the factor by which the frequency must be multiplied to arrive at the final diary event frequency If the event can only occur once as specified in the Event Maintenance the frequency is defaulted to Bullet and cannot be changed and the frequency unit can only be specified as 1 Start and end dates The start date i
61. The drawdown currency Optional Ccy and amount e The following Settlement Instructions details gt Acc with bank name and address gt The beneficiary account number at Account with bank e The purpose of the syndication The message type for the Borrower Drawdown Notice will be DRAWDOWN_NOTC and that for the Participant Drawdown Notice will be PART_DDOWN_NOTC 12 2 2 New Drawdown Notice to the participant bank 12 3 12 3 1 You can generate this notice to inform the participant bank about the new drawdown that is due to the customer All the fields available in the New Drawdown Notice to the Borrower will be available in this notice In addition the following fields will be included e The name of the borrowing customer e The amount contributed by the participant bank and the base currency in which it is expressed e The participant s amount in the optional currency e The following Settlement Instructions gt The name of the beneficiary s bank name account no and address If you have chosen the SWIFT media for sending the advice then instead of the above mail format the corresponding SWIFT message MT643 will be generated Exchange Rate Fixing Advices This section discusses the advices generated for exchange rates Exchange Rate Fixing Advice to Borrower for new Drawdown If the drawdown currency is different from the currency of the tranche under which it is initiated or the account to which
62. The following components cannot be considered for IRR calculation e Off balance sheet component e Provision component If you check this option then you have to check the Accrual Required option For bearing type of component formula you can check this option only if the Accrual Required option is checked his ORACLE For discounted or true discounted types of component formula this option will be enabled irrespective of the whether the Accrual Required option is checked or not If this option is checked and Accrual Required is not the discounted component will be considered as a part of the total discount to be accrued for Net Present Value NPV computation If both Accrual Required and IRR Applicable are checked then discounted interest will be considered for IRR computation 4 3 5 4 Moratorium Preferences The following parameters have to be specified Moratorium Period and Period Units If you wish to provide a moratorium on a loan you need to mention the moratorium period and moratorium unit for each component This refers to a repayment holiday at the beginning of the loan When you input a loan in Oracle FLEXCUBE the repayment start date of each component will be defaulted based on your specifications here The moratorium unit should be in terms of e Days e Months e Years 4 3 5 5 Prepayment Threshold Preferences This includes the threshold amount and currency explained below
63. The following fields will be displayed in the header of the report Facility Ref No Filter field The Contract Reference Number of the borrower facility contract main syndication contract under which the tranche contract is initiated Tranche ref no The Reference Number of the borrower tranche that is initiated Filter Field under the main borrower facility contract Customer The number and name of the borrowing customer taking part in the Borrower borrower facility contract No Name Body of the report The details of the borrower that would be displayed in the report are as follows ene ORACLE Contact This is the name of the entity for each borrower as defined in the name Sort borrower tranche contract All correspondence for the customer will be Field sent to this entity Contact The address details of the entity selected for the borrower The address Address can include the Telephone No Extn Fax No Extn the Telex Code GCN Country Id e mail address etc 12 ORACLE 13 11 Drawdown Borrower Contact Detail Report Just as you maintain entity details for customers taking part in facility and tranche contracts you can maintain entities for the borrower of a drawdown loan contract as well This report describes the entity selected for a borrower of a drawdown 13 11 1 Selection Options You can generate this report to obtain the borrower contact details for e A spec
64. The preferences made for the facility product used by the facility contract under which the non revolving tranche was opened are defaulted here You can change them if required Refer the chapter Defining Products for Loan Syndication in this user manual for details about specifying the holiday preferences Specifying Schedule Details You must specify the following details for reduction schedules for non revolving tranches First Due Date You must specify the date on which the first schedule would be processed for the non revolving tranche Schedule No You can specify the number of schedules that are being defined for the non revolving tranche Frequency You can specify the frequency of non revolving tranches for the selected contract The options are Daily Monthly Quarterly Half yearly and Yearly Unit Specify the units in which the specified frequency will be reckoned that is the factor by which the frequency must be multiplied to arrive at the final schedule frequency Amount You can specify the amount that must be reduced from the cumulative outstanding draw down amount when the non revolving tranche schedule is liquidated Viewing Schedule Details The system populates the following schedule details for the tranche based on the number of schedules you have indicated wee ORACLE e Schedule No e Due Date e Amount Settled e Amount Due e EMI Amount e Amort Prin e Accrued Amount e Capit e Waive 5 5
65. The repayment schedules that you define for a draw down loan product will apply to all draw down contracts involving the product When you are entering a draw down loan in the Contract Online screen the schedules defined for the product involving the contract will be displayed in the Schedules tab of the screen You can change some of the attributes of the schedule for an individual draw down loan contract that it inherits from the draw down loan product that it involves If you do so any schedules that are due on the system application date and on any past date will be erased and you can specify new schedules You can invoke the Drawdown Details screen by typing LSDDDONL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Drawdown Details Wa or P Branch Product Category Contract Status Account Number Application Number Facility Reference Number c Product Code Main Rollover Renegotiation Amendments Account Details Default Check List Fields Components Charges Linkages Advices Tranche Swift Message Details VICE Description Penal Basis Component Component Currency Service Branch Special Interest Amount Service Account Settlement Currency Compon Credit Payment Mode CASA z T Waive F Special interest IF Main Component i Funded During NT E Capitalized i Funded During Rollover IF Verity Fund E type Schedule Flag Formu
66. This check box will not be enabled if Accrual Frequency in the Consumer Lending Product screen is Daily Accounting Entries For each status of the installment you can specify the accounting entry preferences Whenever an installment attains a status the entries are passed as per the setup maintained for that status Therefore the entries will be moved from the active GLs to the status specific GLs However when the actual payment occurs the system will automatically resolve the appropriate GLs ae ORACLE For more details on setting up accounting entry preferences refer the section titled Maintaining Event details in this chapter 4 3 5 10 Specifying Policy Preferences You can associate policies at an installment level Policies are user defined validations that are fired when an event is triggered To link a policy click the Policies button in the Component Installment Status screen the following screen is displayed Policies 11 a Specify the following in this screen Policy Code The Standard Policies defined through the Policy Maintenance screen and the Policies associated with the product category are available in the option list provided Policies are used to handle special validations and operations on a loan Execution Type You can associate a policy at one of the following points in time in a loan event lifecycle e Before Event e After Event e Both T
67. Value New UDE Value ol E ees Input By Authorized By Modification Authorized exit Date Time Date Time Number Open You can revise the rate of the interest component by adding the new UDE value against the old one The modified schedules are displayed in the contract after the EOD batch en ORACLE 7 1 7 2 7 Processing Charges and Fees Introduction A tranche or draw down loan contract of a syndication contract could have various components other than the principal such as an ad hoc charge or fee In order to apply and process ad hoc fees levied on a syndication contract you must e Maintain appropriate ad hoc fee classes and link these classes to the respective syndication modules e Link the ad hoc fee components to the respective syndication products both borrower and participant products so that they would be applicable to contracts using the products e Enter schedules for ad hoc fee components associated with borrower participant contracts e Liquidate ad hoc fee components For details about maintaining ad hoc fee classes refer the chapter Reference Information for Loan Syndication in this user manual For details about linking ad hoc fee components to syndication products refer the chapter Defining Products for Loan Syndication in this user manual Entering Schedules for ad hoc Charge Components You can specify schedules for ad hoc fee components in the Ad hoc Charge Schedule
68. a syndication contract can be realized in as many tranches as required Each tranche will have the borrowing customer and may have either common or different participants Also each of the players in a tranche is under a commitment contract to fulfill their portion of the ratio of participation Draw Downs To recall the schedule defined for the actual loans to be made available to Mr Chad Jacobs according to his borrowing requirement under the contract is as follows oe ORACLE Tranche One e 30000 USD on 30 June e 35000 USD on 31 July e 35000 USD on 31 August Tranche Two e 30000 USD on 30th September e 35000 USD on 31st October e 35000 USD on 30th November This means that either on 30th June or any date following it up to 31st July Mr Jacobs can avail his first loan under the syndication contract to the tune of 30000 USD which is made available to him under tranche one Similarly either on 31st July or any date following it up to 31st August Mr Jacobs can avail his second loan under the syndication contract to the tune of 35000 USD which is made available to him under tranche one Therefore Mr Jacobs is given the opportunity according to the schedule to avail of the portion of the total loan amount made available under each tranche in a specified number of loans Each of these loans is called a draw down loan Therefore according to the schedule the draw down loans availed by Mr Jacobs under the syndic
69. accrue only for that day Accruals due on 16 and 17 will be done on the next working day 18 May 05 The EOD process of 18 May will accrue for all the three days i e 16 17 and 18 If you select Process Till Next Working Day 1 then the EOD process of 15 May will take care of accruals due on the 16 and 17 as well If you do not opt for Accrual Entries on Holidays the booking date of the entries will be the working day 15 or 18 in this example on which the accrual is processed The accrual entries are passed with the value date as of the working day If the Accrual Entries on Holidays option is selected the processing will continue to be on the working day before or after the holidays depending on your preference However the value date of the entries will be as of the corresponding holiday date i e 16 and 17 May respectively Reporting currency Specify the currency that will be displayed in the syndication contracts This is the currency in which the principal contract amount outstanding balance of tranches and draw downs is expressed ag ORACLE Reporting rate type This is the exchange rate type which will be used to convert the principal amount and outstanding balance in case the syndication contract currency is different from the reporting currency that you have specified in the previous field Choose the exchange rate type from the option list given Rounding participant The system cre
70. adhoc fee details report has been discussed below Body of the Report Borrower Participant Filter field The number allotted to each participant of the main syndication contract Date range Filter field The list of ad hoc fee that applied over a period in time specify the From and To date of the period Draw down No Sort field This is the contract reference number of the drawdown that is defined under a tranche of the main syndication contract Tranche ref no Under the main syndication contract this is the Reference Number of the tranche under which the drawdown loan contracts are initiated Facility Ref No The Contract Reference Number of the main syndication contract between the borrowing customer and one or more participants Customer Borrower No The number of the borrowing customer with whom you have finalized the syndication contract Customer Borrower Name The name of the borrowing customer with whom you have finalized the syndication contract Value Date The initiation date for ad hoc fee schedule Amount The amount agreed upon between the borrowing customer and the participants of the main syndication contract 13 30 ORACLE 13 19Participant Ad hoc Fee Report The participants in a syndication contract share the ad hoc fee in the ratio of their participation that was agreed upon at the time of entering the tranche You can
71. arrow button 13 36 ORACLE Participant Transfer Detail From Date To Date You can choose to generate the report to list the details of the transfer under a tranche anda facility as of a specific date or over a specified period in time by indicating the From and To date of the period 13 23 2 Contents of the Report The contents of the Participant Transfer Detail Report have been discussed below Header of the Report The Header carries the title of the Report information on the branch code the branch date the user ID the module name the date and time at which the report was generated and the page number of the report Body of the Report The following details of the participants will be displayed in this report Facility Ref The Contract Reference Number of the main syndication contract No between the borrowing customer and one or more participants Facility The name of the main syndication contract between the borrowing Name customer and one or more participants User Ref The User Reference Number No Drawdown This is the contract reference number of the drawdown that is defined Ref No under a tranche of the main syndication contract Tranche Under the main syndication contract this is the Reference Number of ee ORACLE Ref No the tranche under which the drawdown loan contracts are initiated Date of
72. automatic events due on a holiday will be processed as part of the batch program run at BOD on the next working day after the holiday Consider the example discussed above if you do not check this option the events due on 16 and 17 will be processed as part of BOD operations on 18 May 05 which the next working day after the holidays Netting Here you need to indicate the netting preference for posting entries during accrual liquidation and status change If you opt to net the system will post a single consolidated entry for a GL and Currency combination If you do not select this option entries are posted individually for each account The GL netting status change option can also be used to indicate installment level status change The Netting of Notices across Accounts can be used to indicate that for or all accounts for which the payments falls due on a particular date the requests for invoice generation should be consolidated The loan accounts for which the reminder or demand note should be sent is tracked based on the status of the account The SDE Next Schedule Date is set up to arrive at how many no of days in advance the payment notice should be generated Based on the status of the loan account the corresponding payment invoice format is set up The Auto allocate part payment option can be used if you want to do a partial payment through auto allocation For accounts which are marked for manual allocation of pa
73. be included in the report You can invoke this screen by typing LSRPTDDT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button a an ORACLE 13 6 2 Contents of the Report The contents of the tranche drawdown details report are discussed under the following heads Header of the Report The Header carries the title of the Report information on the branch code the branch date the user ID the module name the date and time at which the report was generated and the page number of the report Body of the Report The following details of the participants will be displayed in the report Facility Ref No The Contract Reference Number of the borrower facility contract and the name of the borrowing customer with whom you have finalized the syndication contract Tranche Ref No Filter field Under the main syndication contract this is the Reference Number of the tranche under which drawdown loan contracts are initiated User Ref No The User Reference Number Customer Ref No The Customer Reference Number of the borrower Total Amount settled The total loan amount settled Customer Name The name of the customer Commitment Fees for the This is the fee amount that is collected from the borrowing customer and calculated for a given period period Drawdown This is the contract reference number of the drawdown that is def
74. can enter backdated tranche borrower contracts For future dated contracts you cannot enter tranches before the contract actually comes into effect i e before the value date vay ORACLE Similarly when you enter the first draw down loan under the first tranche you would enter 31 January 2000 as the Value Date for the borrower loan contract according to the draw down schedule requested by Mr Carr Again the application date on the day you enter the contract which is the booking date could be earlier later or the same as this value date Specifying Maturity Type You can specify the maturity of a tranche or draw down loan contract as fixed which means that the date of maturity is fixed You can specify the date in the Contract Online main screen Call and notice types of maturity are not applicable for tranche borrower contracts or draw down loans Maturity Date If the maturity date is known at the time of disbursing the loan or creating the tranche fixed maturity you can specify it in the Contract Online main screen If the product has a standard tenor the maturity date will be defaulted by the system based on the tenor and the From Date of the contract You can change this defaulted date if necessary by specifying an override Specifying Commitment Type For tranche contracts you must specify whether the tranche is of revolving or non revolving type In the case of a revolving commitment the amount available is
75. can maintain a Settlement Sequence Number This will be defaulted to the drawdown The borrower settlement details of the drawdown will be picked up based on this Sequence Number oes ORACLE Click the Borrower button in the Tranche Details screen to invoke the Borrower Details screen where you can specify the borrowers Borrower Details Contract Reference User Reference Borrower Details E Customer Number C Customer Name Settlement Sequence Number Blocked o Entities Product And Currency Entity Details NM Entity Name Primary You can specify more than one borrower Entities for borrowers You can also specify the entities for the borrowers that you specify with a single primary entity to be the recipient of notices and messages for the borrower A primary entity must be designated for every customer who is allowed to be a borrower of the tranche contract Drawdown Product You need to specify the drawdown products available to the borrower under the tranche contract Limit Amount You need to specify the maximum amount that can be lent to a borrower for the selected drawdown product a ORACLE 5 5 5 3 Specifying Borrower Drawdown Products You can specify a list of allowed Borrower Drawdown Products under the Tranche contract through the DD Product screen You can invoke this screen by clicking the DD Product button in the Tranche Details screen
76. currency Revaluation Frequency If you have indicated revaluation of tranche amount utilization you must specify the frequency of revaluation The options available are Daily Monthly Half yearly Quarterly and Yearly For frequencies other than Daily you must also specify the month and the date for commencing the revaluation Revaluation Rate type You must also specify the type of exchange rate that must be used to convert the draw down amount from draw down currency to tranche currency The options are Buy Mid and Sell Specifying revaluation details for tranche utilization amount is not applicable for borrower draw down products Reval Start Month and Date Specify the month and the date for commencing the revaluation process for the frequency selected Utilization Reval Reqd Select whether tranche utilization should be revalued or not when drawdown currency is different from tranche currency The options available are e Yes e No balk ORACLE This is applicable only for tranche products Revaluation Rate Code If you have indicated revaluation of tranche amount utilization you must specify the code for the exchange rate that must be used to convert the draw down amount from draw down currency to tranche currency 4 3 3 1 Account Preferences As part of specifying the account preferences you can indicate the following Track Receivable aliq Whether the loan account holder can avail of the fo
77. defaulted from the participant details in the parent borrower tranche or draw down contract Click the UDF button the view these You can also make changes to them through an amendment MIS details for the contract defaulted from the participant details in the parent borrower tranche or draw down contract Click the MIS button the view these You can also make changes to them through an amendment The diary events defined for the participant contract defaulted from the parent borrower tranche or draw down contract Click the Diary button to view these You can also make changes to them through an amendment Tan ORACLE 5 6 1 3 Viewing Syndication Details To view the details of the syndication click LS button The Syndication Details screen is opened with the details displayed Borrower Details Asset Amount Facility Reference Number Facility Borrower Tranche Drawdown Number Drawdown Participant Details Facility Borrower Tranche Drawdown Number Drawdown x CHOSYN1001850012 0000001 CHODEFG001850014 Asset Ratio User Reference Number CHOSYN1001850012 CHODEFG001850014 5 6 1 4 Propagation of Events Processed on Parent Borrower Contracts After the participant contracts have been created in the system any subsequent events that are processed on the parent borrower contracts are propagated to the participant contracts provided the preference for propagation has been mad
78. draw down level under a tranche Tranche processing When you open a tranche under a syndication contract you input a commitment contract for the borrowing customer Based on this the system creates a commitment contract for each of the participants The borrower tranche contract involves the borrower tranche product that you have defined The participant commitment contracts involve the participant commitment products you have defined Though the tranche contracts may involve different products all the contracts involved in a particular tranche are processed simultaneously oe ORACLE 2 2 6 2 2 7 The tranche contracts may be revolving or non revolving according to the requirement of the borrower In a revolving commitment the commitment amount is reinstated when it is fulfilled Therefore the commitment amount pledged to a borrower is reinstated once the draw down loan availed has been repaid by the borrower If the commitment is non revolving the commitment amount is not reinstated on repayment of the draw down loan availed Draw Down processing After a tranche comes into effect i e on and after the value date of the borrower tranche contract the draw down loan contract for the borrower can be entered into the system When you input a draw down loan contract for the borrowing customer under a tranche the system creates a deposit contract for each of the participants The borrower draw down loan contract involves the b
79. e Ad hoc fees Defining Schedules for Product You can define the following attributes for repayment schedules when you define them for a draw down loan product e The mode of liquidation automatic or manual e Liquidation of schedules due before the date on which a loan is initiated e The type of schedule capitalized or normal You define these attributes in the Product Preferences screen that you invoke by clicking the Preferences Tab in the Loans Syndication Borrower Product Definition main screen If the mode of liquidation specified for a schedule is automatic it will be liquidated by the Automatic Contract Update function If the mode is specified as manual you must manually liquidate them through the Contract Schedule Payments function After specifying the attributes for repayment schedules you can specify the repayment details for each component of a draw down loan such as the reference date the frequency and the month and date in the Components Tab of the Loans Syndication Borrower Product Definition screen 2a ORACLE 6 3 These are the attributes for repayment schedules that would apply to all draw down loan contracts involving the draw down loan product for which they have been specified The manner in which you specify the attributes for the repayment schedules for a draw down borrower or participant product is much the same as for a normal loan product Defining Schedules for Contract
80. get the details of the projected future ad hoc fee allocation per participant in the Participant Ad hoc Fee Report This report describes the ad hoc details for a participant under the following search criteria 13 19 1 e The name of the participant in the tranche contract to which each of the drawdown loan contract is linked e The list of ad hoc fee that applied over a period in time specify the From and To date of the period e The request id number for the drawdown loan contract Contents of the Report The contents of the adhoc fee report for a participant have been discussed below Body of the Report Borrower Participant Filter field The number allotted to each participant of the main syndication contract Participant Filter field The name of the participant in the tranche contract to which each of the drawdown loan contract is linked Date range Filter field The list of ad hoc fee that applied over a period in time specify the From and To date of the period Draw down No Sort field The request id number for the drawdown loan contract Tranche ref no Under the main syndication contract this is the Reference Number of the tranche under which the drawdown loan contracts are initiated Facility Ref No The Contract Reference Number of the main syndication contract and the name of the borrowing customer with whom you have finalized the syndicatio
81. give an error if this validation fails When you specify payment schedules for the drawdown contract the system will validate to ensure that the interest period for any component does not exceed the maximum value specified at the tranche level Schedules tab The system will give an error if this validation fails Holiday validation and schedule movement for Maturity Date and Revision Schedules will be done based on the value of the respective holiday treatment fields Specifying revision schedules for fixed rate interest components You can specify rate revision schedules for repayment of fixed rate interest components Select F in the Rev field to indicate that the revision schedule is for repayment of fixed rate interest components Specifying revision schedules for interest margin components You can specify rate revision schedules for interest margin components Select M in the Rev field to indicate that the revision schedule is for interest margin components ot ORACLE 6 3 6 Processing Repayments Manually The components of a draw down loan contract can be liquidated either manually or automatically according to the definition you make for the product involving the contract or at time of entering the contract If you have defined automatic liquidation the Automatic Contract Update function will perform the same on the schedule payment day If you have defined auto liquidation for the contract you can manually liq
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83. instance when you enter your bank s facility contract with Mr Robert Carr specify 100000 USD as the total principal in the Contract Amount field When you specify the contract amount the system computes and displays the facility amount in reporting currency using the exchange rate maintained between the two currencies for the branch Specifying the Primary and Secondary Administrator You can indicate the officer assigned to be the primary and the secondary administrator for the borrower facility contract Specifying the Agreement Title A borrowing customer may avail a syndicated loan arrangement for a specific purpose such as beginning a new venture or a personal business project You can capture this information as part of the facility contract Adding remarks You can specify information about the facility contract that will be used for reference within your bank It will not be printed on any correspondence with customers but will be displayed when the details of the contract are displayed or printed ou ORACLE Tranche Details The following tranche details are maintained here Start Date Select the date from which the tranche becomes effective End Date Select the date till which the tranche is available Minimum Amount Specify the maximum amount that can be availed from that tranche Maximum Amount Specify the minimum amount that can be availed from that tranche Reporting Details The following re
84. it is linked you would use the exchange rates maintained at your bank for the currency conversions You can send an Exchange Rate Fixing Advice to the borrowing customer when a new drawdown is initiated for the customer Lai ORACLE The following details will be included in this advice The reference number of the tranche to which the new drawdown loan is linked The date on which the drawdown is booked in the system The period for interest calculation The Maturity Date of the drawdown The exchange rate used for the currency conversion The currency Base Ccy of the tranche contract to which the new drawdown is linked The Base currency equivalent of the amount in the drawdown currency The drawdown currency Optional Ccy The drawdown amount expressed in the optional currency The following Settlement Instructions gt Acc with bank name and address gt The beneficiary account number at Account with bank The purpose of the syndication The Message Type for the Borrower Exchange Rate Fixing Advice will be BORR_EXFX_ADV and that for the Participant Exchange Rate Fixing Advice will be PART_EXFX_ADV 12 3 2 Exchange Rate Fixing Advice to Participant for new drawdown When you initiate a new drawdown for the borrowing customer you can send an Exchange Rate Fixing Advice to the participant bank also To recall exchange rate is fixed only if the drawdown currency is different from the currency of the tranche un
85. loans under the tranche to be consolidated You must specify the following details for the consolidated rolled over contract 8 3 3 1 Maturity details You can indicate whether the consolidated contract has a fixed maturity date or matures at call or notice For contracts maturing at notice you can indicate the applicable notice days For fixed maturity type contracts you can specify the maturity date For fixed maturity type contracts you can specify the number of days to be added to the value date to arrive at the maturity date ep ORACLE 8 3 3 2 Schedule Basis You can indicate whether the repayment schedules for the consolidated contract must be defaulted from the tranche product or from the driver contract 8 3 3 3 Specifying draw down schedule to which consolidated contract must be linked You must specify the number of the draw down schedule of renewal type under the tranche to which the consolidated contract must be linked 8 3 3 4 Specifying automatic rollover You can indicate whether the rollover consolidation must be initiated automatically for the selected contracts The mode of rollover also depends on whether the mode of liquidation of the loan is automatic or manual Impact of liquidation mode on rollover The mode of liquidation of a loan automatic or manual has the following impact when the rollover is carried out Auto liquidation and auto rollover The old loan will be liquidated and a new one initiated on
86. option list Advance Booking Applicant Select YES to if the corresponding CL contract needs to be processed in advance for future dated draw downs The default value is YES If you select No the system creates the CL contract only after the Initiation event is triggered for the corresponding drawdown ae ORACLE Component Details The following details are captured here Component Type Select the type of component for the mapping from the drop down list The options in the drop down list are e Interest e Charge e Margin e Ad hoc Charges Syndication Component Select the syndication component from the option list The components associated with the selected Syndication Product are displayed in the option list Description The description of the selected syndication component is displayed here Loans Component Select the loans component from the option list System displays the components associated with the selected CL Product in the option list Description The description of the selected loan component is displayed here ie ORACLE 4 1 4 1 1 4 Defining Products for Loan Syndication Introduction In this chapter we shall discuss the manner in which you can define attributes specific to products that you could define which are to be used to process loan syndication contracts whether on the borrower side or the participant side A product is a specific service scheme
87. printed Enter a date You can invoke this screen by typing LSRFCDET in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 13 54 ORACLE Facility Contact Detail From Date To Date 13 39 2 Contents of the Report The contents of the Facility Contact Detail report are discussed under the following heads Header of the Report The Header carries the title of the Report information on the branch code the branch date the user ID the module name the date and time at which the report was generated and the page number of the report Body of the report The details of the borrower that would be displayed in the report are as follows From Date The From Date under which the facility contract is initiated To Date The To Date to which the facility contract is initiated Currency The currency of the facility contract Facility The Contract Reference Number of the main borrower facility Reference contract under which the tranche linked to the facility contract is Number initiated User Reference The User Reference Number Number Customer The Customer Reference Number Reference Number Facility Amount The amount of the facility contract as agreed upon by the players i e the borrowing customer and the participants Facility Start This is the date that indicates the beginning of the period for which
88. related to the borrower These include the main syndication agreement facility contract the borrower tranche that you enter when you open a tranche and any borrower draw down loan that you enter under a tranche These contracts constitute the borrower leg of the borrower facility contract Messages to the borrower are generated and transmitted through the borrower leg 9 Those related to the participants These include the participant facility contracts tranche tranches or draw down deposit contracts that are initiated by the system when the BOOK event for the corresponding borrower contract is triggered These contracts constitute the participant leg of the facility contract Tranche level contracts After a borrower facility contract has been initiated a number of arms or tranches can be opened under it as specified under the contract The processing of each tranche involves the creation of a simple tranche contract for the borrowing customer against the Reference Number of the borrower facility contract This contract constitutes the borrower leg of the processing of the tranche Sep ORACLE 5 5 2 When you create the borrower tranche tranche contract you must also specify the following details e The participants involved in the tranche such as the participants e The ratio of participation e The borrower details The system generates a Reference Number for the borrower tranche contract After you have entered a borrower
89. schedule from 29th to 30th the next schedule will remain on 29 May However when you cascade schedules the last schedule at maturity will be liquidated on the original date itself and will not be changed like the interim schedules Hence for this particular schedule the interest days may vary from that of the previous schedules e ORACLE 4 3 3 Adhoc Treatment Required Check this option to allow the movement of due dates of the schedules that fall on the newly declared holidays This option is enabled only if the options Ignore Holidays parameter and the Cascade Schedules parameter are not checked at the product level Move across Month Forward Backward If you opt to move the schedule date falling due on a holiday across months you need to specify whether the schedule date should move forward to the next working day in the following month or move backward to the previous working day of the current schedule month itself However if you opt to ignore the holidays and do not select the Move Across Months option the system Ignores the holidays and the due will be scheduled on the holiday itself Revaluation Preferences for Tranche Amount utilization Specifying revaluation preferences for tranche amount utilization For borrower tranche products you can indicate whether tranche amount utilization must be revalued for tranche contracts using the product for which the draw down currency is different from the tranche
90. the Maturity Date of the loan It is processed during the BOD run of the Automatic Contract Update function If the Maturity Date falls on a holiday then the liquidation and the rollover will be processed as per your holiday handling specifications in the Branch Parameters screen e If you specified that processing has to be done today the last working day before the holiday then for automatic events the schedule falling on the holiday will be liquidated today during End of Day processing e If you specified that processing has to be done only up to the System Date today then only the events scheduled for today the last working day before the holiday will be processed The events falling on the holiday will be processed on the first working day after the holiday during Beginning of Day processing Auto liquidation of principal and manual rollover The old loan will be liquidated automatically on the Maturity Date If the loan has to be rolled over the instructions should be specified before the Maturity Date At times the contract will not be liquidated because of the lack of funds in the repayment account In such cases you can give rollover instructions even after the maturity date saying that the contract has to be rolled over as of the maturity date Manual liquidation of principal Rollover has to be manual The loan will not be liquidated by the Auto Liquidation function You can either liquidate it or specify that it has
91. the add icon or delete icon you can add delete a branch or currency from the corresponding allowed disallowed column that you have maintained When you create a product it is by default available to all the branches of your bank in all currencies and for all customers unless restrictions are explicitly specified for the product Currency balance details You can maintain the following currency balance details Currency Code You can specify the transaction limit for a currency while defining currency restrictions for a product Choose the currency code from the option list Residue Amount Here you have to capture the minimum amount by which if a component of a schedule becomes overdue the system will consider it as paid Neg Residue Amount If the difference between the amount paid COMPONENT_EXPECTED and the amount due is less than the residue amount specified here then the difference is treated as an income otherwise the transaction is rejected In the case of an income the installment schedule is marked as completely settled paid and the income is posted to the residual suspense GL This triggers the event called RESD Residual and the following entries are passed Accounting Role Amount Tag Dr Cr Loan Account RESIDUAL_AMOUNT Cr Residual Suspense RESIDUAL_AMOUNT Dr ATM Cash Limit Here you can enter the maximum non Cash transaction amount for the currency that you have
92. the amount tag applicable for the Accounting Role An amount tag identifies the amount value that is actually due for a component Depending on the components defined for the product the system dynamically creates a set of amount tags For instance if the component is MAIN_INT the following amount tags are automatically created e MAIN_INT RESD Component Amount Residual e MAIN_INT_ADJ Component Amount Adjustment e MAIN_INT_LIQD Component Amount Liquidated e MAIN_INT ROLL Component Amount Rolled over e MAIN_INT_CAP Component Amount Capitalized e MAIN_INT_ACCR Component Amount Accrued e MAIN_INT_DLIQ Component Amount Paid against Due Schedules future not due schedules e MAIN_INT_OLIQ Component Amount Paid against Overdue Schedules The _DLIQ and _OLIQ tags will be generated only for the events LIQD and ROLL ii ORACLE Select the appropriate amount tag from this list D C Here you have to specify the type of accounting entry to be posted the entry can be a debit entry or a credit entry Transaction Code Every accounting entry in Oracle FLEXCUBE is associated with a Transaction Code that describes the nature of the entry Specify the transaction code that should be used to post the accounting entry to the account head You can group all similar transactions under a common transaction code The transaction codes maintained in the Transaction Code Maintenance screen are available in th
93. the participant contract is displayed here User reference number which is defaulted to the contract reference number You can change it if necessary and specify the appropriate user reference number System generated reference number for the borrower facility contract under which the participant contract was created System generated reference number for the borrower tranche contract under which the participant contract was created If it is a participant draw down contract the serial number of the draw down under the tranche Customer of the contract Contract currency Contract amount in contract currency and reporting currency Contract booking date value date and maturity date For participant tranche or draw down contracts whether collection from the participant must be initiated automatically auto collection You can change this specification through amendment Whether the amount repaid by the borrower must be disbursed automatically auto disbursement You can change this specification through amendment Remarks You can also view the following details Events and accounting entries for the contract Click the Events button Settlement details for the participant defaulted from the settlement sequence number for the participant in the borrower tranche contract Click on the E button to view the settlement details You can also make changes to them through an amendment User defined fields for the contract
94. the preferences for the consolidation contract you can identify contracts from which information such as settlement details schedules MIS details and so on can be defaulted These contracts are called driver contracts You can select the contracts to be used as driver contracts in the Participant Ref No field You must specify the following details for the driver contracts How the rolled over amount is reckoned This could be just the outstanding principal or outstanding principal together with interest Whether charges are applicable for the consolidated contract Whether old schedules for the contracts getting consolidated must be liquidated Advices for a rolled over loan In the Product Events Definition screen you can define the events for which advices are to be generated for loans involving a product An advice will be generated when a loan is rolled over if specified to do so for the product the loan involves Generation of advices upon rollover if specified will be as follows When the loan is rolled over with interest that is the entire outstanding amount in the original loan is rolled over without any component of the original loan being liquidated the liquidation advice for the original loan will not be generated Instead a rollover advice with the details of the liquidation of the original loan and its subsequent rollover into a new loan will be generated When the loan is rolled with an amount that is not th
95. the renewal of a loan Instead of liquidating a loan on maturity you can roll it over into a new loan The outstanding principal and other components of the old loan are rolled over with or without the interest outstanding on it In the context of loan syndication you may require to rollover a borrower draw down loan under a borrower tranche of a borrower facility contract You can rollover a loan that you are processing provided a rollover is allowed for the product the loan involves When a loan is rolled over it can be processed in the following manner depending upon your specification e Anew loan with a different contract reference number is initiated e The original loan could be split into multiple loans as a result of the rollover e The original loan could be consolidated along with other loans as a result of the rollover For a borrower draw down loan typically a new loan would be required to be initiated on rollover and further a split or consolidation may be required Features of the Product Rollover Details screen When defining a borrower draw down product you have to specify whether loans involving the product can be rolled over If rollover has been allowed for a product all the loans involving the product can by default be rolled over However a loan involving such a product will be rolled over only if it is not liquidated on it s Maturity Date You can choose not to rollover a loan involving a product wit
96. to be rolled over This can be specified at any time before or after the Maturity Date of the loan if the contract has not yet been liquidated If you have defined that the loan should be liquidated manually you cannot roll it over automatically When a loan is rolled over or renewed for interest charge or fee components it can assume the following attributes oe ORACLE e Those of the product involving the loan being rolled over e Those of the old loan itself 8 3 3 5 Updating credit limit utilization You can indicate whether the credit limit utilization is to be updated when the consolidation operation is performed That is the interest that has been accrued on a loan is also considered as a part of the utilized amount for the purpose of risk tracking This option applies only if you want to rollover a loan with interest 8 3 3 6 Settlement Basis You can indicate whether settlement details for the consolidated contract must be defaulted from the tranche product or the driver contract or must be user defined If user defined you can specify the details in the Settlement Message Details screen Click S button in the Consolidation Rollover screen and invoke the Settlement Message Details screen 8 3 3 7 MIS Basis You can indicate whether MIS details for the consolidated contract must be defaulted from the tranche product or the driver contract or must be user defined If user defined you can specify th
97. tranche or draw down product Click the Diary button in the Loan Syndication Product screen to invoke the Diary Event Association screen Z Diary Events Web Page Dialog E x i El Product Code Description Product Diary Event F mi Event Code Event Description E In this screen select the code of the diary event that you wish to associate with the product in the Event Code field Creating Participant Products You must define the products to be used for participant facility tranche and draw down contracts that will be created for participants under a borrower facility tranche drawdown contract Borrower products must be created before you can define Participant products You can create participant products in the Participant Product Definition screen In this screen you can specify the basic details such as the Product Code Group Description and so on You can then use the other product definition screens to set up preferences for the product You can invoke this screen by typing LLDPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button an ORACLE 4 4 1 Product Definition Product Definition Product Code Product Description Slogan Remarks Start Date End Date Product Group Product Type Linked Borrower Product Exchange Rate Variance Override Limit Stop Limit Rones J evens branches customers P
98. will be allowed to change the same This will be used while defaulting settlement instructions for the participant contract Self Participation This indicates whether the participant is the bank itself This can be defined only for the new participant Component Type This indicates the subsystem component type for which the ratios will be amended This can be interest charge or ad hoc charge Component These indicate the interest charge ad hoc charge components for which the ratios will be amended Income Ratio For each of the components this indicates the new income redistribution ratio It is possible for the user to maintain a different ratio than the asset ratio of the participant Also the sum of ratios for a component across all the participants need not be 100 When the income and asset ratio for a participant are different the difference between the ratios will be identified as skim margin amount and it would be posted to skim margin accounts based on the maintenance done for the participant product Entity Id This can be maintained only for new participant This indicates the customer entity id that would be used in advice generation and processing This will be defaulted from the facility Primary Entity This also can be maintained only for new participant This indicates the primary entity of the participant The ratios will be updated only when the transfer is authorized The following details are updated
99. would be applicable for the borrower tranche or draw down contract as well as the applicable parties belonging to the selected type in the Party Details screen The party types associated with the parent borrower facility contract are defaulted you can change them and specify the required types You can specify multiple parties for a selected type if allowed as specified in the Party Association specification for the borrower facility product used by the parent facility contract If multiple parties are not allowed you can specify only one party for the selected type If any mandatory party types have been specified in the Party Association for the borrower facility product used by the parent facility contract then you must specify at least one party for the party type Click the Party Type button in the Drawdown Details screen to invoke the Party Details screen The screen appears as shown below or ORACLE Party Details Web Page Dialog g x I Contract Reference Number Customer User Reference Number Customer Name Party Details sui bon fet 0 Party Type Party Identification Party Name EJ 5 6 Creating Participant Contracts To recall when the BOOK event for borrower facility tranche or draw down contract is triggered the system creates the related participant facility tranche or draw down contracts 5 6 1 1 Details for Participant Contracts Contract reference numbers When the p
100. 010630USD6000000 32N 20010630USD1 800000 33N 20010630USD106520 55 934A 1906520 55 72 PHON General Syndicated Facility Message SWIFT Field Name Mandatory M Field FFT Field FFT Tag Optional O Code Code name in Oracle Flexcube 20 Transaction M Field System reference Generated Number 21 Related O Field User Input Reference 88D Borrower M Field User Input 11 9 SWIFT Tags and Oracle FLEXCUBE Fields Linkage MT 649 ORACLE SWIFT Field Name Mandatory M Field FFT Field FFT Tag Optional O Code Code name in Oracle Flexcube 79 Narrative M FFT User Input 11 1 5 2 MT 649 A Sample Sample MT649 Message 1 FO1 AMBKWASHIXXX11111111114 2 1199BANKAMERXICAN 4 20 000ZFFT013650002 21 NONE 88D GE ELECTRIC CORPORATION INC 79 ATTN MR SMITH JOHNSON PLEASE ACKNOWLEDGE THE RECEIPT OF THE COPY OF GE S BOARD RESOLUTION FORWARDED TO YOU ON 29 12 2001 11 10 ORACLE 12 1 12 2 12 Customer Correspondence Introduction This chapter explains the various types of advices and notices generated at each stage for the type of contract that the Loans Syndication LS module handles The following fields are common to all the Advices Notices sent to the customer e The Standard FAX Header e The System Date e The name of the Contact
101. 28 5 5 4 Entering Borrower Tranche or Draw Down Contracts esesesssesseeeseeeseresrsrrerrereernsrrererrsrrerenrens 5 28 5 5 5 Capturing Details for Borrower Tranche Contracts ccccccescceseceseceseceseesseeeeeeceeeeeeeeeeeceaeenaeeneeeaes 5 29 5 5 6 Capturing Details for Draw Down Loan Contract o ccesccesesccesecese cece cnseeneeeseesaeesseeeeceseenaecnaeenaeeaas 5 40 5 5 7 Common Details for Borrower Tranche and Borrower Draw Down Contracts 5 43 3 6 CREATING PARTICIPANT CONTRACTS oi scssecssstissstescotsccescossocercseseceecocseceecesteseesseseceesecsubestossevessectebesbisrebeess 5 48 5 6 2 Specifying Interest Margins for CUStomers ccccsccesceeseeseeeseeseceesceseceseceaeceaecaaecaeeeseeeaeeeaeeseeeeeenaees 5 52 5 6 3 Amending Participant Details For Borrower Tranche or Draw Down Contracts 1 1 ccceeeerees 5 53 5 6 4 Specifying Diary Events for Borrower Syndication COntract ccccccesceseceteceseereerseeeeeseeseeennensees 5 60 3 7 PROCESSING PARTICIPANT CONTRACTS cccsscssssceecsseecsetossscecesssesectescocecdesevdestserodeessetobesteecouesisboseetssroseets 5 64 5 8 FREE FORMAT MESSAGES FOR LOAN SYNDICATION CONTRACTS ccscsscecsseseesenseseeecsesececscseceenacseceenaens 5 67 5 8 1 Viewing Syndication CONtrACts ccsccecesseesceseessesecssesecnseseceseeseesecaeesecsaesecsaseseesecaeesesaeeaeesecsaeeeeaeeaseas 5 68 6 PROCESSING REPAYMENTS seessesseseseeesoesosoesesesoecerosoeseseeceerosoesesesoeeesoroesesee
102. 9 MAINTAINING AD HOC FEE COMPONENTS scsccccecssssssececececsesseaesecececeeseseaesecececeesseaeeeeeeeesesseaeseeeceeeenenaeea 3 8 3 10 INDICATING BRANCH PARAMETERS FOR LOAN SYNDICATION cssscscsccecsesssseceeececsessaesecececeesenaeseseceesene 3 10 3 11 MAPPING LS AND CL PRODUCTS AND COMPONENTS ss ssscssceesesssseseceeecsesseaeseeececsenseaesececeeeesenaeeeeeeeesene 3 17 4 DEFINING PRODUCTS FOR LOAN SYNDICATION cssssccssssscccsscssccsssccccesssccscssseccscssscecssssccessnes 4 1 4 1 INTRODUCTION sesisicsses0ccscavsvescsndsehonseccnsvssous E E E E E EEE A 4 1 4 1 1 Product Ipea e A e E E E E E E E couete ase stt 4 1 4 1 2 GOREN ACIS sicine sbecees sotceitie noactebe sebcewinenaoseeee nuncenoeneseecee e E a a e a EEE EEE 4 1 4 2 PRODUCTS FOR LOAN SYNDICATION isis sisssacsecscseessie cenctecs cansacdecseeecss sosauccicsecdedesssdecdeccesesdavoadccds coveossevesdeceess 4 2 4 2 1 Products for Borrower Tranche Contracts and Draw Down Loans 4 2 4 2 2 Borrower Facility Product for Main Borrower Facility Contract 4 4 4 3 CREATING BORROWER TRANCHE DRAW DOWN PRODUCT ccccesessesseceeececeessececececeenesssaeceeececeenssaeeeeees 4 5 4 3 1 Maintaining User Data Elements isisisi sa an aE E ER AS 4 6 4 3 2 Maintaining Preference Socic ccs cscccscessieacestbevacassiiaanseesotgusaacaaci svacassgota siseaseacesadcaaaeedeacadeedieiasssnies tosedtedies 4 8 4 3 3 Revaluation Preferences for Tranche Amount utilization sosesseseeeee
103. Amount Due to Receiver gt The Charges Fees Taxes deducted if any gt The Net Interest Amount Due to Receiver gt The Total Amount Transferred The purpose of the syndication ORACLE or The message type for payment advice will be PART_PAYMENT_ADV In case you have chosen the media as SWIFT an MT646 will be generated instead of the above mail format 12 7 Billing Notice This section discusses the notices generated for bills 12 7 1 Billing Notice to Borrower This notice is sent to the borrower to indicate the amount due from him and the date on which it is due This is like a normal notice indicating that a schedule is falling due so that the customer borrower can arrange for funds to be made available in his account The Billing Notice to Borrower contains the following additional information apart from generic information already mentioned Facility Reference Number Tranche Reference Number Contract Currency Component Due Date Amount Due The message type for billing notice to borrower is LS_BILLNOTC 12 7 2 Billing Notice to Participant This notice is sent to the participant to indicate that a specified amount as was due and received from the borrower has been deposited into the participant s account The message type for billing notice to participant is LS_PARTBILLNOTC The Billing Notice to Participant contains the following additional information apart from generic information already mentioned R
104. By Authorized By Modification Authorized Date Time Date Time Number Open If you choose to specify free format text for the messages and choose from a list of pre defined loan syndication module tags click the option list button next to TAGS to view a list of such tags and select the required ones When you select one of the tags it is added at the current position of the cursor in the message body oe ORACLE When a free format message specification is authorized the pre defined event for free format messages ZFFT is triggered for the contract The pre defined tags available for the loan syndication modules are e SYNREFNO_ This tag denotes the facility reference number e TRREFNO_ This tag denotes the tranche reference number and is available only for draw down contracts e CREFNO_ This tag denotes the contract reference number e CAMT_ This tag denotes the contract amount e CCCY_ This tag denotes the contract currency e CDATE_ This tag represents the contract value date e DRDWNNO_ This tag represents the sequence number of the draw down This tag is available only for draw down contracts e BRREFNO_ This tag denotes the borrower contract reference number 5 8 1 Viewing Syndication Contracts At any point during the tenor or life cycle of a syndication contract you can view its status You can view the tranche contracts as well as the draw down contracts
105. Calculation Type Specify the manner in which the component should be calculated and liquidated You can choose one of the following options the applicable Component Type is also provided e Formula with schedule Component Type Interest e Formula without schedule Charge e Penal Interest e Prepayment Penalty e Discount e Schedule without formula Principal e Noschedule No formula Ad Hoc Charges e Penalty Charges Penalty Charges are calculated only once for a Penal Basis schedule Penal Basis is explained later in this user manual Main Component This option is used to designate a component as the Main Interest component If you enable the Main Component option for a particular component the system treats this component as the main component Also you are allowed to define the amortization schedules only for this component Principal is an implicit component that is automatically created for the product Capitalized You can indicate whether capitalization is required for all the schedules for various component of the loan At anytime the outstanding interest will be capitalized on the schedule date at the rate prevalent on that day You can opt for capitalization at the component level or opt for capitalization non capitalization for a particular schedule at the Schedule level You could have more than one type of schedules applicable on a product In such a case you
106. Category Contract Status Account Number Application Number Alternate Account Number Facility Reference Product User Reference Main Rollover Amendments Account Details Default CheckList Fields Components Charges Linkages Advice Tranche Swift Message Details Account Details Payment Mode Default Greate Active Account Calculate Gross Active Principal pike Create Inactive Account Net Principal Commitment Type Revolving O Non Revolving Facility Reference Customer Id Currency 1 Customer Name Amount in Facility Amount in Facility Value Date Value Date l Currency Currency A Maturity Date A P Amount in Tranche Facility Reference Amount in Tranche Currency Maturity Type Currency Tranche Reference Fixed Drawdown Number O Call Tranche Amount Tranche Amount Tranche Available Tranche Available Amount Amount Promotions L Promotion Type Promotion Id Account Statistics L Component Name Expected Overdue Outstanding Advance Compensation Currency ms x Bance events conracis bar Borrower Paricimant orawaoun Product Pars Type Curency
107. Date on which the transfer was initiated Transfer Transfer The amount that is transferred under each draw down loan linked to Amount the tranche Currency The currency in which the draw down loan amount is expressed Maker The Login ID of the user who has performed the activity or event on the bill Checker The Login ID of the user who has authorized the activity or event on the bill Drawdown This is the schedule number of the drawdown defined under a Number tranche of the main syndication contract Old The name of the previous participant customer in the drawdown loan Participant contract under a tranche and the name of the contact person for that customer participant no Name and Contact name New The name of the new participant customer taking part in the Participant drawdown loan contract under a tranche and the name of the contact customer person for each participant in the drawdown no Name and Contact name 13 24Fiscal Diary Report A diary event signifies occurrences other than accounting entries being passed in the life cycle of acontract at which appropriate messages would need to be generated This report displays the details of the fiscal diary events associated with each of the loan syndication modules This reports describes the activities under the following search criteria 13 24 1 e The type of the customer for the facility i e borrower or participant e The Contract Reference
108. Details report describes the entity for the borrower for a particular facility 13 9 1 Selection Options You can generate this report to obtain the borrower contact details for facility contracts e A specific tranche in this case the reference number of the facility contract under which the selected tranche is booked will also be displayed You can invoke this screen by typing LSRBRDET in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 13 9 2 Contents of the Report The contents of the Facility Borrower Contact Detail report are discussed under the following heads Header of the Report The Header carries the title of the Report information on the branch code the branch date the user ID the module name the date and time at which the report was generated and the page number of the report Body of the report The details of the borrower that would be displayed in the report are as follows Facility Ref No The Contract Reference Number of the borrower facility filter field contract main syndication contract finalized between the borrowing customer and one or more participants User Ref No The User Reference Number of the borrower facility Customer No The number and name of the borrowing customer taking part in the borrower facility contract Customer Name The name of the borrowing customer taking part in the borrower facility contract
109. E this manual is meant for and its expected audience organization of this manual and the related documents Chapter 2 Loan Syndication an overview it is a snapshot of the features that the module provides Chapter 3 Reference Information for Loan Syndication this chapter explains the maintenance of reference information for loan syndication processing Chapter 4 Defining Products for Loan Syndication this chapter details the procedure to set up Loan Syndication products as well as Tranche Draw Down products Chapter 5 Loan Syndication Contracts deals with the procedure involved in entering the details of a syndication contract as well as tranche and draw down contracts r ORACLE Chapter 6 Processing Repayments this chapter discusses the setting up of repayment schedules for the loans that are disbursed Chapter 7 Processing Charges and Fees this chapter takes you through the procedures involved in applying charges and fees to a draw down loan contract as well as the sharing of fee income among participants of a syndication contract Chapter 8 Rolling over a draw down loan explains the process of rolling over draw down loans Chapter 9 Making additional disbursements and rate changes deals with the additional details and changes that you can effect on a loan Chapter 10 Appendix A Events Advices and Accounting Entries for Loan Syndication Products contains a list of
110. IQ Dr DR_SETTL_BRIDGE lt interest_component gt _LIQD MLIQ Cr SYN_POOL lt interest_component gt _LIQD ADCH Dr DR_SETTL_BRIDGE lt adhoc_fee_component gt _ADCH idl ORACLE Event Dr Cr Accounting Role Amount Tag ADCH Cr SYN_POOL lt adhoc_fee_component gt _ADCH ROLL Dr DR_SETTL_BRIDGE PRINCIPAL_LIQD ROLL Cr SYN_POOL PRINCIPAL_LIQD ROLL Dr DR_SETTL_BRIDGE lt interest_component gt _LIQD ROLL Cr SYN_POOL lt interest_component gt _LIQD ROLL Dr SROL_SUSPENSE PRINCIPAL_ROLL ROLL Cr SYN_POOL PRINCIPAL_ROLL ROLL Cr SYN_POOL lt interest_component gt _ROLL ROLL Dr SROL_SUSPENSE lt interest_component gt _ROLL ROBK Dr SYN_POOL PRINCIPAL ROBK Cr SROL_SUSPENSE PRINCIPAL For automatic liquidation products the following entries should be maintained Event Dr Cr Accounting Role Amount Tag ALIQ Dr DR_SETTL_BRIDGE PRINCIPAL_LIQD ALIQ Cr SYN_POOL PRINCIPAL_LIQD ALIQ Dr DR_SETTL_BRIDGE lt interest_component gt _LIQD ALIQ Cr SYN_POOL lt interest_component gt _LIQD These following accounting entries are specific to tranche product BOOK Accounting Role Amount Tag Dr Cr Indicator ASSETGL PRINCIPAL_FWD Debit ASSETOFF PRINCIPAL_FWD Credit LINK Accounting Role Amount Tag Dr Cr Indicator ASSETGL COMMUTIL_INCR Credit 10 2 ORACLE
111. Interval No of Parallel Jobs Intraday Accrual Processing Process Till Next Working Day 1 Intermediate Schedule Gap Treatment Maker Checker Branch Code Name IRR Processing Accrual Entries On Holidays Create New Schedule Advance Current Schedule Extend Previous Schedule Date Time Date Time Schedule Structure First Payment Schedule Gap Treatment Non Frequency Based Frequency Based Treat As Payment Treat As Moratorium Mod No Record Status Authorization Status You have to indicate the code of the branch for which the parameters have to be maintained The codes of the various branches of your bank are available in the option list provided When you select the code the branch name is also displayed alongside Process Till Next Working Day 1 This specification will determine the day on which automatic events such accrual liquidation etc falling due on a holiday should be processed If you select this option events scheduled for a holiday will be processed on the last working day before the holiday 3 11 ORACLE Example Assume that the current system date is 15 May 05 Further 16 and 17 are holidays If you select Process Till Next Working Day 1 when you execute the batch program during EOD of 15 May the events due on 16 and 17 will also be processed If you do not select this option processing will be done upto the system date i e the current date The
112. Loan Syndication Oracle FLEXCUBE Universal Banking Release 11 3 0 May 2011 Oracle Part Number E51536 01 ORACLE FINANCIAL SERVICES ORACLE Loan Syndication Table of Contents 1 ABOUT THIS MANUA Divssisccssscsosscesscsssvecsscsssconsecsesscsseseasessvaccssensvessdeccnssebusineseb esse scebaasesstocsesssissivessdevassenseeds 1 1 1 1 INTRODUC HION crire E R ES 1 1 1 2 AUDIENCE eue a e S 1 1 1 3 ORGANIZATION scsi r eee a E ea RE Eea EE e ER e a N e S 1 1 1 4 RELATED DOCUMENTS cccsssssssssetececeesesesesececeesesseaeseeececsesseaesesececeeseaaecesececeesssaesesecseseseueaeseeeeeeseseaaeeeeees 1 2 1 5 GLOSSARY OB ICONS erderen e sschoteecatsteheoacsttebsbspausacnusenncdnesbuse Sennen deneousbes seseuedceheaetaeees 1 3 2 LOAN SYNDICATION OVERVIEW iisssssccssscssccssestesessossssssconsessesosessssscdsesoesssescocssseesessssenasedsssosssssnesassocess 2 1 2 1 TINTRODUCTION 8 lt i sc5sncviccsseccesasaa sed E E 2 1 2 2 POAN S YNDICATION cy scvesuciedesdeces iatuce sors Guelonuecache sus deelials Gets de dhebeeanceevetes E A 2 1 2 2 1 Process of Disbursing Syndicated Loan ccsccccsccssesssssecssessceseeneeseeseesecseeseesecaeesecaceeecsaseeesaeeaeesesaaeeeees 2 1 2 2 2 Tranche Sieen a E E a a a a a a a a e uve 2 2 2 2 3 Dr w D w LONS neonan eee E e A E 2 2 2 2 4 DefiniNe PRODUCES riren e e S A E a E E A ved A SE 2 6 2 2 5 Processing Tranche or Draw Down COntracts 1cccccsccescesecsseenseereeeseeeseeeeeeseeesecesecs
113. NPD000310001 000SNPD000310002 000SNPD000310002 The relationship of the draw down contracts in each draw down would be similar to the structure depicted above with the appropriate tranche reference numbers and the draw down contract numbers a ORACLE Tranche One Second Draw Down Loan 28 February e Borrower Mr Carr Draw Down Loan OOOSNBL000590001 You enter this contract into the system after specifying the Facility Contract Reference Number of the main facility contract against which the tranche was being opened which is OOOSNEW000010001 as well as the Contract Reference Number of the borrower tranche contract against which the draw down loan is being entered which is OOOSNBC000150001 e Participant Your Bank Deposit OOOSNPD000590001 This contract is created by the system when the BOOK event is triggered for the draw down loan contract OOOSNBL000590001 e Participant Brinsley Bank Deposit OOOSNPD000590002 This contract is created by the system when the BOOK event is triggered for the draw down loan contract OOOSNBL000590001 e Participant Dayton Commercial Bank Deposit OOOSNPD000590003 This contract is created by the system when the BOOK event is triggered for the draw down loan contract OOOSNBL000590001 Tranche One Last Draw Down Loan 31 March e Borrower Mr Carr Draw Down Loan OOOSNBL000900001 As explained earlier e Participant Your Bank Deposit OOOSNPDO00900001 As explained earlier e Part
114. Notice Id Notice Rule Number Condition Format Frequency Start Date Tenor No of Days Transaction Code Direct Debit Notice Rule Number Condition No of Days Transaction Code Format Delinquency Notice Rule Number Condition No of Days Format Frequency Statement Others Rule Number Condition Frequency Start Date Liquidation Frequency Days Message Type Format In this screen you need to maintain the preferences for Billing Notices Delinquency Notices Rate Revision Notice Direct Debit Notice and Statements Also you can associate multiple formats for the generation of notices and statements The selection of a particular format is based on the condition Rule No Condition No You can assign a unique number for each rule condition that is being maintained for notice and statement generation En ORACLE Condition Define the conditions rules for notice and statement generation The system will evaluate the conditions and based on the one that is satisfied the corresponding advice format is selected for notice statement generation To maintain a condition click the Condition button in the screen above The Condition Builder is displayed For details on building a condition using the options available in the screen refer the section titled Defining UDE Rules in the Maintenances and Operations chapter of thi
115. OWER FACILITY PRODUCTS csccsssessescssessescseseeecsseseeecnseseeecseeseeesnaeseeesnaeseeesnaeneeeenaenees 4 59 4 6 1 Defining Generic Attributes of Loan Syndication Product csccsscsscsscssesecsseesceseesesecnsesscuseseenaeeneeas 4 60 4 6 2 Specifying Preferences for Syndication Products csccscesseesesssssecssesecsceescuseceeeceseeeeeseeseeesteeeenaes 4 61 4 6 3 Specifying Ad hoc fee Components for Borrower Facility Product essee 4 65 4 6 4 Associating Appropriate Party Types for Borrower Facility Products sss 4 65 4 6 5 Associating Diary Events for Borrower Facility Products oseese 4 66 dT SAVING LOAN SYNDICATION PRODUCT cc ccssssessseseesenseseeecsseseeecnseseeecnseseeecnseseeeenseseeeeneeseceenesneseeneenees 4 67 5 LOAN SYNDICATION CONTRACTS uu cssssssscssesscsscscssscsssnsssesssesessssssssssensssssnsssesssssesssssnessnssessossessosees 5 1 5 1 TINTRODUGTION cesera jioni e aE K EEEREN ANAEONEKANA DEENEN 5 1 3 2 BORROWER FACHITY CONTRACT s cstcsce caisciscenssdysoviseesisuseccssovtstevssucesdstovepseseSteptes EROSPEN AERE EENES A 5 1 5 3 PRODUCTS FOR LOAN SYNDICATION CONTRACTS ccccccssescscssesecsensesececseeseceesseseceesacsececsassececsassesecsesaeeesnaens 5 7 5 4 CAPTURING DETAILS FOR BORROWER FACILITY CONTRACT cccccscscsseseceeeseeceensesececssesececesseseseeseeesnaeas 5 8 5 4 1 Features of Loan Syndication Contract Input SCreenu cccscccccsccsssscssecssesecnseescnseeceeseeeesecseeeenaeeaeeaees 5 8 5 4 2 Contra
116. SD Again each of the participants enters into a commitment contract committing to provide their portion of funds as agreed This arrangement forms the second tranche under the syndication contract Since the second installment set is required to be made available according to the schedule falling between 1 September and 30 November the participants are reminded to fulfill their commitments just before each schedule is due This would mean that the approved contributions from each participant would be credited into a common syndication pool before each schedule is due The schedule dates according to the agreement are 30 September 31 October and 30 November The tenor of each of the commitment contracts with the participants would be in the case of the second tranche as given above three months Mr Chad Jacobs requirement of 200000 USD under the syndication contract has now been mobilized under two separate tranches with the main players as follows Tranche One 1 June to 31 August Tranche Two 1 September to 30 November Mr Chad Jacobs Borrowing customer Mr Chad Jacobs Borrowing customer Your bank Participant 35000 USD Your bank Participant 25000 USD Fargo Eastern Bank Participant 35000 North American Overseas Bank Participant USD 40000 USD Gold Crest Commercial Bank Banco Italia Participant 35000 USD Participant 30000 USD Therefore the borrowing requirement in
117. The screen appears as shown below DD Product Product User Reference Product Type Customer Contract Reference Customer Name Facility Products Description Components E Component Type DD Component Description Interest v You can maintain the following details here Drawdown Product You need to specify the drawdown products available under the tranche contract from the option list provided Component You need to specify the interest component for the selected drawdown product ae ORACLE 5 5 5 4 Specifying Currency Details You can specify the different currencies that are allowed for drawdown products under the tranche contract The list of currencies Exchange Rate and Interest Rate Fixing days for each currency get defaulted from the tranche product but can be changed here The notification days currencies get defaulted from the facility product but can also be changed The Exchange Rate Fixing Holiday Currencies and Interest Rate Fixing Holiday currencies get defaulted from the tranche product The Notification Holiday currencies get defaulted from the facility product You cannot add any new currency if it is not already present at the tranche facility product level To specify the Currency Details click the Currency button in Tranche Details screen The screen appears as shown below Product Code L d Product Description Product Type sid Description User Reference Cont
118. Time Authorized By Date Time Contract Status WB Authorized Process Status 9 2 4 1 Impact of amendment The system redefines the fee schedules and reduction schedules on increase decrease of principal maturity date as mentioned below e f amount is decreased reduction schedules are redefined on FIFO basis e f amount is decreased amount gets added as a bullet reduction schedule e If basis amount for the fee changes fee repayment schedules are redefined as per the new amount e f maturity date is increased and if fee bullet schedule falls on the earlier maturity date the bullet fee schedule and bullet reduction schedule will move to the new maturity date e f maturity date is decreased one bullet schedule for fee and reduction will be inserted with the sum of reduction fee amount which falls after the new maturity date 9 2 5 Viewing MIS details To view the MIS details for the amended tranche click the MIS button r ORACLE Input Floating Rate Related Reference Number Related Account Cost Code Rate At Pool Code Contract Level Transaction MIS Code Composite MIS Code Funds MIS Code MIS Group Rate Amendment Rate Change Log Balance Transfer Log For more details on this screen refer the MIS Management Information System User Manual 9 2 6 Maturity Date Change 9 3 If you change the maturity date of the borrower tranche contract or the borrower draw down l
119. able for the combination You must also specify an effective date on and beyond which the specified interest margin is valid for the selected combination 5 6 3 Amending Participant Details For Borrower Tranche or Draw Down Contracts If you wish to make changes to participant details for a borrower tranche or draw down contract use the Participant Transfer Contract screen You can invoke this screen by typing LSDPATFR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 5 6 3 1 Participant Transfer If you wish to make changes in the asset ratio of participants for a borrower tranche or drawdown use the Participant Transfer Details screen You can invoke this screen by typing LSDPATFR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button ae ORACLE You can use the Participant Transfer Details screen for the following purposes e To transfer assets from an existing participant to another e To add new participants and transfer assets from an existing participant to new Participant Transfer x Contract Reference F Branch Serial Number o User Reference Value Date Facility Tranche Drawdown Contract Reference Contract Reference Contract Reference User Reference User Reference Borrower Cascade Participation Drawdown Number Borrower Name Detailed Instruction Detailed Consolidated Transfe
120. ach draw down loan For instance for draw down loans under the tranches you would need to create the following products BDFT for draw down borrower loan contracts e PDFT for draw down participant deposit contracts These products can have similar attributes as BDFT This pattern of product definition will enable your bank to process the different types of contracts under the facility contract with Mrs Crenshaw Borrower Facility Product for Main Borrower Facility Contract At the first level you must define a borrower facility product for borrower facility contracts The example given below will illustrate this Example Your bank has decided to make available the facility of entering into a loan syndication contract with customers You can define a product for this facility Let us assume that the product you define has been given the code SYN1 Now any syndication facility contracts that are entered into by your bank with any borrowing customer can be processed against this product You can define more than one syndication facility product For instance you can define a general syndication product and a special syndication product Let us suppose that you have entered into a syndication contract with one of your customers Mr John Baldwin After identifying the participants for a tranche under this contract you want the participants in a tranche to fulfill their commitments five days in advance before each draw down sch
121. acility contract Participant Facility Contracts Summary Web Page Dialog 2 x Auth Status z Contract RefNo CHOPDR1001850001 F Product Code 7 Counterparty 7z Amount 7 Currency 72 Participant Facility Ref No 25 Search Advanced Search Reset Records per page fis 7 1 of 1 P Go to Page Auth Status Contract Ref No Product Code Counterparty Amount Currency Participant Facility Ref No Detailed Tranche Summary e To view a summary of participant tranches created under a participant facility contract select the contract in the grid and then click the Tranche Summary button e To view a participant facility contract from the grid simply double click it or select it and click the Detailed button 5 8 1 5 Viewing Summary of Participant Tranche Contracts To view a summary of participant tranche contracts created under a borrower facility contract select the contract in the grid in the Participant Facility Contract Summary screen and then click the Tranche Summary button The Participant Tranche Contracts Summary screen is opened displaying a list of active participant tranche contracts entered under the selected borrower facility contract Invoke the Participant Tranche Contracts Summary screen oe ORACLE You can also invoke this screen by typing LLSPRTTR in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button in w
122. allment Status Note that the components defined in the Main tab are displayed in the form of a list in the screen above From the component list highlight a component and then go on to define the features for the selected component e g highlighting the Fund Interest component will treat the component as Funding Interest component The relevant accounting entries will be maintained for ACCR and MLIQ ALIQ events With this maintenance the system will pass accounting entries for accrual Component Definition Parameters The basic information for a component is specified here This includes the following Component The Components which are defined in Main Tab are available in Component list The Component which is selected in the list appears in Component field For e g PRINCIPAL INTEREST PENALTY etc Subsequently you have to define the parameters for these components in the Components Tab of the screen For Commitment products the MAIN_INT component is used for defining periodic fees on the unutilized commitment amount ORACLE Description The Description of the component which is defined in Main tab for the component will appear in this field once you select the component in component list Currency Associate the component with a currency The component is expressed in the currency selected here You can select the currency of your choice from the option list provided
123. alue selected here corresponds to the Numerator part of the Interest method ss ORACLE Days in Year You can specify the number of days to be considered for a year during computation of a particular component This could be e 360 This means that only 360 days will be considered irrespective of the actual number of calendar days e 365 In this case leap and non leap year will be 365 e Actual In this case leap year will be 366 and non leap year will be 365 This value corresponds to the denominator part of the interest method Verify Funds You can indicate whether the system should verify the availability of sufficient funds in the customer account before doing auto liquidation of the component Interest Method You also have the option to use the interest method defined for the currency of the component In this case the interest method defined in the Currency Definition screen for the component currency will become applicable to the loan By default this option is checked IRR Applicable Check this option to indicate that the chosen component needs to be considered for Internal Rate of Return IRR calculation This option is applicable to interest charge ad hoc charge prepayment penalty penalty and upfront fee components This option should not be checked for Commitment products If a charge component is to be considered for IRR the charge will be accrued using the FACR Upfront Fee Accrual batch
124. an generate the report based on the following criteria e The Branch for which the report is printed Select a branch from the option list provided e The Date for which the report is printed Enter a date 13 28 2 Contents of the Report The contents of the Outstanding FX Contracts Report are discussed below Counterparty This is the counterparty of the Contract Record Counterparty This is the Customer Record name for the Contract Record s Name Counterparty Contract This is the Contract Record s Reference Number Reference Number a ORACLE Counterparty This is the counterparty of the Contract Record Custom Reference This is the Contract Record s Custom Reference Number Number Trade Date This is the FX Contract Record s Trade Date Value Date This is either the Contract Record s Bought Value Date or Sold Value Date which ever is later Buy Currency This is the FX Contract Record s Bought Currency Buy Amount This is the FX Contract Record s Bought Amount Sold Currency This is the FX Contract Record s Sold Currency Buy Amount This is the FX Contract Record s Bought Amount Deal Rate This is the FX Contract Record s Exchange Rate 13 29Outstanding FX Contracts with NPV Profit Loss Report This report displays a listing of all FX contracts that are not yet matured grouped by counterparty It also displays additional details such as value dat
125. and you can specify the preferences in the same manner as you would for a normal loan contract You will need to specify a special rollover amount for the rollover contract whether it is a normal split or consolidated rollover The rolled over contract will have the same product as that of its parent contract The rolled over contact will also have a Value Date equal to the Maturity Date of the parent contract Back dated rollovers are also not permitted for any type of rollover You can rollover a loan from the Contract Online screen In the Contract Online screen click on the Roll over icon to rollover a contract Subsequently you can change the rollover instructions When you click the Roll over icon the Default Tab is shown in the edit mode You can specify the rollover instructions including interest rate of the main component and the refinance rate for the rolled over contract oa ORACLE For details refer the section Rollover Preferences in the chapter Defining Product Categories and Products in the Retail Lending user manual Only those preferences specific to loan syndication draw down loans are explained here Specifying the maturity days For fixed maturity types you must specify the number of days to be added to the new value date of the rolled over contract to arrive at its maturity date Specifying the maturity basis You must indicate the tenor basis upon which the maturity days spec
126. ands for the year 2000 and 059 would stand for number of elapsed days in the year 2000 The number of elapsed days in January would be 31 followed by 59 31 days in February which computes to 28 The User Reference Number The reference number is the identification that you specify for the borrower facility contract You can specify any identification number In addition to the Contract Reference Number generated by the system for the contract this number will also be used to retrieve information about the contract By default the Contract Reference Number generated by the system is considered to be the User Reference Number for the contract You can use the User Reference Number to uniquely identify as well as classify the borrower facility contract for the internal purposes of the bank For instance you may want to identify all facility contracts entered into with all customers borrowers of a certain net worth or all customers in a particular nationality or a particular industry and so on In such a case you can supply a unique prefix to the user reference number to identify and classify the contract Specifying the Product Code The syndication contract facility is a service you offer to customers which you have defined as a product When you are inputting a borrower facility contract in this screen you must specify the facility product that it involves Example For instance taking the example of your bank s facility contra
127. ant s contribution in the currency of the tranche Base Currency under which the drawdown contract is linked tea ORACLE The Participant s contribution in the drawdown currency Optional Currency i you have chosen the SWIFT media for sending the advice then instead of the above mail format the corresponding SWIFT message MT644 will be generated 12 5 Ad hoc Fee Due Notice This section discusses the notices generated for Ad hoc fees 12 5 1 Ad hoc Fee Due Notice to Borrower You can generate this notice to inform the borrowing customer when an ad hoc fee is due The ad hoc fee due notice to the borrower contains the following information The reference number of the Tranche contract The reference number of the Drawdown Contract only if applicable The ad hoc Fee Amount The Currency of Fee The Value Date of contract The Settlement Instructions details gt Acc with bank name and address The Account number at Account with bank The purpose of the syndication o The Message Type for Borrower Ad Hoc Fee Due Notice will be ADHOC_FEE_NOTC and that for Participant Ad Hoc Fee Due Notice will be PART_ADHOC_NOTC 12 5 2 Ad hoc Fee Due Notice to Participant You can generate this notice to inform the participant about the ad hoc fee that is due to him The ad hoc fee due notice to the participant contains the following information The reference number of the Tranche contract The reference number of the Dr
128. articipant contracts are initiated the system generates reference numbers for them in the same manner as for normal borrower contracts For the purpose of tracking a borrower tranche the reference numbers of the resultant participant tranche contracts are linked to the reference number of the parent borrower tranche contract For the purpose of tracking a borrower draw down loan the reference numbers of the resultant participant draw down deposit contracts are linked to the reference number of the parent borrower draw down contract as well as to its parent borrower tranche contract Product and contract details During participant product definition a borrower product is linked with each participant product This is the product that would be used for the creation of the participant facility contract along with the participant details specified in the borrower facility contract Similarly Tranche drawdown products are used for creation of participant tranche drawdown contracts along with the participant details specified in the borrower tranche drawdown contract 5 6 1 2 Viewing and Amending Participant Contracts You can view the participant contracts created with respect of a borrower contract in the Participant Contract screen You can also amend the details if required in this screen The following details are displayed for the participant contract one ORACLE Code of the product being used System generated reference number for
129. as per the modified maturity date For more information on modifying the maturity date for drawdown contracts refer Modifying Maturity Date under the section Making Value Dated Amendments for a Tranche in this chapter Te ORACLE 10 Annexure A 10 1 Events Advices and Accounting Entries When you create products for borrower facility tranche or draw down contracts you must maintain the following accounting roles and amount tags Borrower Facility Product Dr Cr Event Accounting Role Amount Tag Dr ADCH CUSTOMER adhoc_fee_component_ADC H Cr ADCH adhoc_fee_component adhoc_fee_component_ADC INC H 10 1 1 Events for borrower facility products ADBK Triggered when ad hoc fee schedules are maintained for a contract that uses the product ADNT Triggered when an ad hoc fee notice is sent to the customer ADCH Triggered when ad hoc fees are liquidated for a facility contract that uses the product RADC Triggered when the liquidation of an ad hoc fee in respect of a facility contract that uses the product is reversed 10 1 2 Advices for borrower facility product The advices for borrower facility products are as follows Borrower Tranche or Draw Down Product Event Dr Cr Accounting Role Amount Tag DSBR Dr SYN_POOL PRINCIPAL DSBR Cr CR_SETTL_BRIDGE PRINCIPAL MLIQ Dr DR_SETTL_BRIDGE PRINCIPAL_LIQD MLIQ Cr SYN_POOL PRINCIPAL_LIQD ML
130. associate with the event 4 3 7 7 Branch Ccy Rest The loan products created in the Head Office Bank HOB are available across all the branches subject to the branch restrictions maintained for the product Likewise you also restrict the products to select currencies To achieve this you can maintain a list of allowed disallowed branches and currencies Click on the Branch Currency Restriction button in the Loans Syndication Product screen K3 Branch Currency Restriction Product Code Description Branch Currency Restriction Currency Balances Class Code Class Description Branch Currency Branch Restrictions Allowed Currency Restrictions Allowed Disallowed Disallowed Branch Restrictions Currency Restrictions 10f1 10f1 0 L Moving a branch or currency to the Allowed Disallowed column Under Branch and Currency Restrictions respectively two columns are displayed e Allowed List e Disallowed List The allowed or disallowed column that is displayed would depend on the list type that you choose to maintain For instance if you choose to maintain an allowed list of branches the column would display the branches that you can opt to allow In the Branch Restriction and Currency Restriction Section click on adjoining option list to invoke a list of bank codes and currencies codes respectively that you have maintained in your bank Select an appropriate code jii ORACLE 4 3 7 8 Using
131. ate Basis Amount Participant Amount No of Days Beneficiary Institution t ORACLE 12 8 Rate Revision Notice This section discusses the notices generated for rate revisions 12 8 1 Rate Revision Notice to Borrower This notice is sent to the borrower to indicate the interest rate fixing date The Rate Revision Notice to Borrower will include the following details The reference number of the tranche to which the drawdown loan is linked The date on which the drawdown is booked in the system The period for interest calculation The maturity date of the drawdown The amount of the drawdown loan The interest fixing date The message type for rate revision notice to borrower will be LS_REVN_NOTC and that for the participant will be LS_PART_RVNNTC 12 8 2 Rate Revision Notice to Participant ice ORACLE 13 1 Introduction 13 Reports You can generate the following reports for the Loans Syndication LS module of Oracle FLEXCUBE Participant Drawdown Contribution Report Participant Tranche Contribution Report Commitment Fee Due Report Commitment Fee Paid Report Tranche Drawdown Detail Report Drawdown Interest Due Report Participant Drawdown Repayment Detail Report Facility Borrower Contact Detail Tranche Borrower Contact Detail Drawdown Borrower Contact Detail Active Facility Drawdown Detail Facilities Detail Report Participant Facility Detail Report User Operations Detail Administrator Facility Detai
132. ate falling on a holiday for any of the currencies the holiday is handled according to the holiday handling preferences you specify nen ORACLE 4 6 3 4 6 4 Specifying Ad hoc fee Components for Borrower Facility Products Your bank may need to levy fees on facility contracts on an ad hoc basis When you define a borrower facility product you can indicate the applicability of such ad hoc fees All borrower facility contracts using the product will inherit the ad hoc fee components that you have specified for the product You can indicate the applicability of ad hoc fees by associating the appropriate ad hoc fee class that you have defined for borrower facility contracts Click the Adhoc Charges button in the Facility Product Definition screen The Adhoc Charges screen is opened Product Code Product Description Component Class Description Propagation Required Propagation to Participant Contracts The ad hoc fee component that you have associated will apply to all borrower contracts using the products and the accounting entries relating to the fee will be propagated to all participant contracts arising from the borrower contract if so specified in the Adhoc Fee Class Definition If so when you associate the class with the product in the Adhoc Fee Association screen the Propagation Reqd check box will be selected Associating Appropriate Party Types for Borrower Facility Products You can also specify the different
133. ate for the tranche as per you requirement whether you want to extend or reduce the maturity date Capture the date in DD MMM YYYY format Saving amendment The amendment becomes effective only after you save the details To save click save icon in the toolbar of the screen or select Save from the Actions Menu On successful save the system displays a message to confirm the same The Current Values section of the Amendments tab displays the new values for the tranche The details are updated e Principal Old Principal Change in Principal e Maturity Date New Date a ORACLE 9 2 4 Viewing schedule details After the amendment you can view the existing schedules as well as the one for the principal for the increased decreased amount in the Amendment tab of the screen Tranche value Dated Amendment x me ot p Pe torsce Branch Account Number Alterni Facility Reference Number Main Rolover Renegotiation Amendments Account Details Default Check List Fields Components Charges Linkages Advices Tranche Swift Message Details Modify Unapplied Amendments Crerar Create New Amendment Effective Date Effective Date o r i r MIS GL Balance Events Contracts Diary Borrower Participant Drawdown Product Party Type Currency Exchange Rate Details Entity m li omiinsa aa a a an SS ae re ee eR ee Date
134. ate of 5 and collected as bearing e For the second tranche he desires interest to be applied as a floating rate Tranches Mr Chad Jacobs syndicated loan is therefore required to be disbursed in two different sets of tranches as seen above The syndication contract also involves a commitment from Mr Chad Jacobs as the borrowing customer as well as from willing participants who undertake to meet the borrowing requirement and to disburse the loan after pooling together resources For the first installment wherein an installment principal of 100000 USD is to be lent at 5 fixed rate of interest your bank has now identified Fargo Eastern Bank and Gold Crest Commercial Bank as potential sources from whom funding may be obtained to meet Mr Chad s borrowing requirement The funding load is proposed to be shared in the following pattern which is known as the ratio of participation e Your bank Participant 30000 USD e Fargo Eastern Bank Participant 35000 USD e Gold Crest Commercial Bank Participant 35000 USD The ratio of participation could also be expressed through percentages Each of the participants enters into a commitment contract pledging to provide the portion of funds agreed upon by them Since the first installment set is required to be made available according to the schedule falling between 1 June and 31 August the participants are reminded to fulfill their commitments just before each schedule i
135. ates a new participant contract to route the rounding difference amount that was created due to rounding difference between the amount collected and the amount disbursed When the amount collected from the borrower is disbursed to the participants you could encounter rounding differences You need to choose the rounding participant from the option list to indicate that the participant to whom the rounding difference between amounts collected is to be routed Participant process Select the mode in which the participation propagation process has to be done You can opt to do it in either of the two modes e Job e Online When you BOOK a borrower contract Facility Tranche Drawdown the system will create the related participant contracts It will pick up the participant product linked to the borrower product in the Facility Tranche Drawdown Product Preferences screen and the participant details maintained for the borrower contract to create the corresponding participant contract This processing of participant contracts depends on the Participant Process mode whether Job or Online set for your branch You have to specify this as part of defining parameters for your branch in the Branch Parameters LS Detailed screen Schedule Structure This option is used to indicate if the schedule definitions should honor the end dates or honor the frequencies when the two contradict The options are e Freque
136. ation If you have maintained a limit on the number of retries for auto liquidation this option will reset the retries count to zero during reversal of auto liquidation This will be applicable from the date of reversal of payment Hence the system will once again attempt auto liquidation till the number of retries allowed The system will update the status of the reversed payment to Unprocessed after which it again attempts auto liquidation a ORACLE 4 3 2 3 Retries Auto Liq Days Capture the number of working days for which the system should attempt auto liquidation The number of retries per day will depend on the configuration maintained for the Liquidation Batch Process during BOD EOD or both For instance if the batch is configured for both EOD and BOD and the number of retry days is 1 then auto liquidation is attempted twice on the same day i e once during BOD and another retry at EOD Holiday Treatment Preferences for Schedules The value date schedule date revision date or the maturity date of a contract might fall on a local holiday defined for your branch or on a holiday specified for the currency involved in the contract You need to specify the following holiday parameters which has to be considered for holiday handling Ignore Holidays If you check this option the schedule dates will be fixed without taking the holidays into account In such a case if a schedule date falls on a holiday the a
137. ation contract and under each tranche could be as follows Value Date of the Syndication Contract 1 June 2000 Loan Loan Contract Amount Tranche Participant break up number Date USD 1 30th June 2000 30000 1 As agreed for tranche one 2 31st July 2000 35000 1 As agreed for tranche one 3 31 August 35000 1 As agreed for tranche one 4 30 September 30000 2 As agreed for tranche two 5 31 October 35000 2 As agreed for tranche two 6 30 November 35000 2 As agreed for tranche two Each of the draw down loans can have independent life cycles and different tenors However all six draw down loans must mature before the end date of the syndication contract which is 31 June 2001 Each of the participants in a tranche will share the interest income derived from any loans availed by Mr Chad Jacobs under the syndication contract In this manner your bank has fulfilled Mr Chad Jacobs borrowing requirement under the syndication contract dated 1 June 2000 eo ORACLE 2 2 4 Defining Products In Oracle FLEXCUBE any service or scheme that you want to make available to your customers can be defined as a product For instance your bank may be entering into lending agreements with other lending banks to disburse loan requests as a syndicate This facility of disbursing syndicated loans can be defined as a product Going further your bank could be offering borrowing customers loan
138. awdown Contract only if applicable The name of the Borrower customer The Fee Amount Due to or Due from Participant The Currency of Fee is ORACLE 12 6 The Value Date of the contract The Settlement Instructions in case the ad hoc fee is due from Participant gt The Acc with bank name and address The Account number at Account with bank The purpose of the syndication In case you have chosen the media as SWIFT an MT645 will be generated instead of the above mail format Advice of Payment of Principal and or of Interest This notice is generated to inform the participant about the payments and or prepayments of principal and or payment of interest on the same value date and which belong to the same drawdown contract The agent of a facility sends this notice to the participants and the notice specifies the amounts with respect to principal and or interest The advice notice to the participant contains the following information The Tranche reference number The Drawdown Reference Number The CIF id of the Borrower The Optional Currency and Drawdown amount The Base Currency and Base Amount The details of the Interest Calculation gt The Interest rate gt The Computation Base Amount gt The Interest Period gt The Interest Amount The details of the Principal Payment Sum of Interest Due gt The Total Principal Amount Repaid Prepaid gt The Principal Amount Due to Receiver gt The Gross Interest
139. been designated 5 5 7 Common Details for Borrower Tranche and Borrower Draw Down Contracts Contract Reference Number The Contract Reference Number is a unique identification generated automatically by the system for each borrower tranche contract or borrower draw down loan contract The system combines the following elements to form the Contract Reference Number e The branch code 3 digit code e The product code 4 digit code e The value date of the borrower facility contract in 5 digit Julian format e A running serial number for the booking date 4 digits The Julian date is expressed in the following format YYDDD Here YY represents the last two numerals of the year and DDD the number of elapsed days in the year Example For instance if you are entering the tranche contract with Mr Robert Carr as in our first example the Contract Reference Number generated by the system for the borrower tranche first tranche was 000SNBC000150001 oa ORACLE e The first three digits are the code of the branch of your bank where the contract was entered into the system e SNBC is the code of the borrower tranche product that you have set up against which you are entering your tranche borrower contract for Mr Robert Carr e 00015 refers to January 15 2000 in Julian format when the contract was booked e 0001 is a running serial number incremented by 1 for each contract entered on the booking date for the product code and
140. by typing CSDPARDF in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Party Type Definition Party Type Party Description Input By Authorized By Modification Authorized ext Date Time Date Time Number Open The different types of entities that you might want to define could include e Originator e Arranger e Borrower e Participant For each party type you must specify an appropriate and typical description Maintaining Diary Events You can define the diary events to be associated with each of the loan syndication modules in the Diary Event Maintenance screen A diary event signifies occurrences other than accounting entries being passed in the life cycle of a contract at which appropriate messages would need to be generated You can invoke this screen by typing CSDDIAEV in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button After you have identified the diary events in the Diary Event Maintenance screen you must also e Define the message types and message formats to be available for the module ORACLE e For each module associate the appropriate message type to be generated at the occurrence of each diary event You can do this in the Diary Event Messages screen discussed later in this chapter In the Diary Event Maintenance screen you must first specif
141. cated either forward or backward movement and the moved schedule date crosses over into a different month you can indicate whether such movement is allowable it will be allowable only if you indicate so in the Move Across Months field Cascading schedules If one schedule has been moved backward or forward in view of a holiday cascading schedules would mean that the other schedules are accordingly shifted If you do not want to cascade schedules then only the schedule falling on a holiday is shifted as specified and the others remain as they were vee ORACLE Specifying how maturity dates falling on holidays must be handled The maturity date for a contract could fall on holidays defined for your branch In the Product Preferences you can specify whether the system should check for maturity dates falling on holidays and how such dates must be handled These specifications would default to any borrower facility contract using the product and also to underlying borrower tranche or draw down contracts that are opened under the facility contract You can specify that e Holidays must be ignored e The maturity date falling on a holiday must be moved according to the holiday handling preferences that you specify Holiday handling preferences for maturity date You can indicate that the maturity date falling on a branch holiday should be moved either backward or forward as required and also if it can be moved across months Moving t
142. ccounting roles that can be used for each of the ad hoc components Accounting Role Description Role Type ComponentINc GL Account Income ComponentEXP GL Account Expense ComponentMIN LS module Skim Margin Income Account Income Indicating Branch Parameters for Loan Syndication In the Loan Syndication Branch Parameters screen you can define loan syndication details to be applicable for your branch such as the reporting currency for syndication contracts and the exchange rate that would be used to convert outstanding contract balances to reporting currency equivalent You can also indicate the participant to whom the rounding difference between amounts collected and amounts disbursed must be routed 3 10 ORACLE You can invoke this screen by typing LSDBRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Branch Parameters Branch Details Branch Code Branch Name GL Netting Accrual GL Netting Liquidation GL Netting Status Change Netting of Notices across Accounts Auto Allocate Part Payment Statement Debit Settlement Bridge GL Credit Settlement Bridge GL User Ref Details User Reference in Messages Auto Generate User Reference LS Parameters Reporting Currency Reporting Rate Type Rounding Participant Participant Process Job Online Intraday Jobs Intraday Job
143. ceseroroeseeecosoeseeecoeeosoesesoeseseeeee 6 1 6 1 REPAYMENTS sssssevesecceccscosncutsdesvsduncaness tsncevesdeesavsotescsnts sveseuseovasseesvesacvvedsesstewadcevveoseaivesceeceveedsestibeesusentescodes 6 1 6 2 DEFINING SCHEDULES FOR PRODUCT os cscsscs csesvesetscssesccvcsueseti castes cesueseducstessovestesedicsiebesvesuesediestescovesvesesseses 6 1 6 3 DEFINING SCHEDULES FOR CONTRACT x sci cscssesetscssesecscsuessescsuesscvesuesedicstescovestesesvesuedecvesueseovestescosesseseoseses 6 2 6 3 1 Specifying how schedules falling on holidays must be handled u s ccesccscecceseseceseeseeseeseeseeseenseseeneeees 6 3 6 3 2 Specifying how maturity dates falling on holidays must be handled n os 6 5 6 3 3 Specifying how Rate Revision Schedules scscssccscescesssseeseeseseccessesecacescseeeeaeeseesecateseeaaeeeeeaeenseas 6 6 6 3 4 Specifying revision schedules for fixed rate interest components 6 7 6 3 5 Specifying revision schedules for interest margin Components 6 7 Ls ORACLE 6 3 6 Processing Repayments Manually cccccccesccesccesecesecnseenseessesseeaseeseesaeesseeseeeeeeesecesecaecaecsaeeaaesaaeeaeees 6 8 6 3 7 PROCESSING Prepayments sccccsnsccutvesinnsdssnes se en iE e e E E E a E E a te 6 9 6 3 8 Specifying rate revision for fixed rate interest Components c scceceseseccsceeseeseeeeeeeseesecnseeecnaeeeeeaenees 6 10 7 PROCESSING CHARGES AND FEES 0 cccscssscsscsscsssscsssssssnssccsnsesescsssessescssssesssenesscsse
144. che contract Specifying Agreement Title Specify the agreement title here If this field is not maintained a configurable override will be displayed oo ORACLE 5 5 5 1 Participant Details for Borrower Tranche Contract You must also identify the participants who contribute to the amount being committed for disbursement under the borrower tranche contract and specify the contribution details To do this use the Participant Ratio Details screen You can invoke this screen by clicking the Participant button in the Tranche Details screen Participant Ratio Details Contract Reference User Reference Participant Details i Participant Code C Participant Name Asset Amount Asset Ratio Self Participant settle o E lt il gt Component Details Entity Details 3 Hi Component Type Component Ratio L Entity Code C Remarks o o Le o When you open this screen the reference number of the borrower tranche contract for which you are specifying the participant details is displayed in the Tranche Reference Number field You can specify the following details for each participant e The ID of the participant e Contribution of the participant to the tranche contract known as the asset ratio or asset amount You can specify the participant contributions either as an amount or a percentage If specified as amounts the sum of all contributions must not be greate
145. cilities No as of month end The number of active facilities at the end of each month Billings Re Principal Interest The number of billing notices sent to the borrower for re principal or interest Drawdowns The number of new drawdown schedules booked for the New Requests contract each day for cash Rollovers The number of contract rollovers occurred for the day Extension of Above Repayments To Include Pre Payments Partial Payments The number of payments made for each Drawdown for the day Rate Fixings count 1 per loan The number of exchange rate fixing applied for the loan Participant Amendments Tr ansfers The number of participant amendments everyday No of Participants The number of newly added participants during participant amendment every day 13 23 Participant Transfer Detail Report The user can amend participants of a tranche or a drawdown After capturing the transfer details the system will amend the corresponding facility tranche and drawdown contract and apply the transfer ratios to the relevant participants This report displays all such transfer details 13 23 1 Selection Options You can configure this report to display details for participant transfer detail report from the Reports Browser You can invoke this screen by typing LSRPPRAM in the field at the top right corner of the Application tool bar and clicking on the adjoining
146. contract In the Product Preferences you can specify whether the system should check for schedule dates falling on holidays and how such schedule dates must be handled These specifications would default to any borrower facility contract using the product and also to underlying borrower tranche or draw down contracts that are opened under the facility contract You can specify that e Holidays must be ignored e Checks must be made for schedule dates falling on holidays If you specify that checks must be made you can also specify the corresponding treatment for schedule dates falling on holidays Holiday Treatment Type The Holiday Treatment Type is the parameter that defines how the system checks for schedule dates falling on holidays You can specify one of the following options ree ORACLE Local Select this option to indicate that you want the system to check whether a schedule date falls on a local holiday defined for the branch You will not be able to specify a check for currency holidays if you choose this option The system checks the holiday table for your branch If it encounters a contract entered in your branch with a schedule date falling on a branch holiday the holiday is handled according to the holiday handling preferences you specify Currency Select this option to indicate that the system must check whether the schedule date falls on a holiday defined for the currency of the contract You must specify the co
147. contracts for your bank and for South American Overseas Bank and Banco Milan based on the borrower tranche contract Let us suppose that the second tranche is booked on 15 April Let us suppose that the following Contract Reference Numbers are generated by the system for the contracts e Borrower Mr Carr Tranche OOOSNBC001050001 You enter this contract into the system after specifying the Facility Contract Reference Number of the main facility contract against which the first tranche is being opened which is OOOSNEW000010001 e Participant Your Bank Tranche OOOSNPC001050001 This contract is created by the system when the BOOK event is triggered for the borrower tranche contract OOOSNBC001050001 e Participant South American Overseas Bank Tranche OOOSNPC001050002 This contract is created by the system when the BOOK event is triggered for the borrower tranche contract 000SNBC001050001 e Participant Banco Milan Tranche OOOSNPC001050003 This contract is created by the system when the BOOK event is triggered for the borrower tranche contract OOOSNBC001050001 Since the principal amount in each tranche is scheduled to be made available during a fixed period between 1 January and 31 March for the first tranche and between 1 April and 30 June for the second the participants are reminded to fulfil their tranches just before each schedule is due This would mean that the approved contributions from each participant would be cr
148. correspondence for Name the customer will be sent to this entity Fee Currency The currency in which the fee amount is paid Fee Amount This is the amount that is paid to each participant out of the liquidated Paid fee amount of the borrower leg contract Skim Margin The difference between the asset share as per the participation ratio Amount and income actual share received ratio is known as the skim margin amount The skim margin amount is the syndication agency s profit on the commitment The report will also display the totals of the fee amount that is paid to each participant taking part in the drawdown contracts 13 6 Tranche Drawdown Detail Report A facility is a specific service scheme or product that you make available to customers Also you can disburse loans through a draw down from any of the tranches under a facility contract The Tranche Drawdown Detail Report describes the drawdown details for a Facility and a Tranche over a given period 13 6 1 Selection Options e You can choose to generate the report to list the drawdowns under a tranche and a facility as of a specific date or over a specified period in time by indicating the From and To date of the period e The Tranche Reference number for which the drawdown details have to be obtained If you select the ALL option the details of all the drawdowns booked under all the tranche contracts initiated at your bank will
149. crual Execution Dates gt 31 Jan 06 gt 28 Feb 06 If the installment status or account status changes on 15 Jan 06 Oracle FLEXCUBE will trigger catchup accrual if Complete Pending accrual is checked ce ORACLE Note the following e An installment status change will not change the next execution date of unprocessed ACCR events e A status change is applicable for both manual and automatic installment status e Ifyou delete an Installment level status change it will delete the catch up accrual accounting entries also e You can reverse an installment level status change by inputting another installment level status change For example if installment status changes from NORM to OVD1 reversal of the same can be done by doing installment status change from OVD1 to NORM In this case no processing will be done Maintaining Notices and Statements Just as you define components that should become a part of the product so also you can associate Notices and Statements with a product The actual communication correspondence however is handled by the Messaging Module of Oracle FLEXCUBE Click the Notices and Statements button in the Loan Syndication Product screen Notices and Statements Product Code Billing Notice Rule Number Condition No of Days Format Generic Notice Product Description Rate Revision Notice Rule Number Condition No of Days Format
150. ct Tabene a E E E E E ER E EE a 5 9 5 4 3 Holiday Preferences TAD oraora E e e E A EEE E EERE E E 5 14 5 4 4 Specifying Currency Details sooren r o E E E E E E E E E E A E R 5 16 5 4 5 Speciyine Borrower Detal Seserepan i e a e E E alates 5 17 5 4 6 Specifying Paracipant DeidilSisireine rodine i e e E E E E 5 18 5 4 7 Specifying Party Type Details rosenrod i i e E E E N INE 5 20 5 4 8 Specifying Settlement Instructions ssssessessesesseeesseesssrrsresrsresrsresrssersrsresreserreesrresrsrenenserrressrsree 5 22 5 4 9 SPCCH YING MIS DEALS iks daea aE E A E E E E E E E E 5 23 5 410 Specifying Adhoc Charges sisetenasairoini vaca genedyahbsundkeheenozeed N E NE E 5 23 JAIL Viewing Diary Events sroine an eE E E E E E E T A cues 5 24 5 4 12 Viewing EVentS 22 scesiscescesenceinasiienionstassssarsdonscnnstoudesenionsisasedeepideesseonienscagndandnaseaseStapedsesenwetmudsapedeoenastads 5 25 5 4 13 Capturing User Defined Ficlds cccccecscceseessssscssesscnsesesecsceeneseccsesecacesecaeeeeesaeesesaesatesesaeeneenaseneeaees 5 25 5 5 PROCESSING LOAN SYNDICATION CONTRACTS cccccsssssessssesseesseeaseessssaseesseeaseessecasessasaseessaeaseessasaseesiaeas 5 26 5 5 1 Tr anche level Contracts sissies snini a e sa a E eare a aiie aieeaii 5 26 5 5 2 Draw Down Contracts orisiirisii n aa Ea aA Eo E EERE I ENA 5 27 5 5 3 P rticipant Contracts sisisi sente siatisdotosdeosncoendsineondenicasengsseavsdseseenssinitbos dbteedesdoepsdeenieens ostesndenseaseaseses 5
151. ct with Mr Robert Carr let us suppose that you have set up the facility product SNEW to process all facility contracts with customers You can select SNEW from the option list Contract Details In the Contract Details section you must specify the following Specifying the Customer You must specify the customer with whom the facility contract has been finalized This typically is the borrowing customer The customers allowed to be counterparty to a facility contract are defined for the facility product Select the code of a customer with whom the contract has been entered into from a list of these A primary entity must be defined for every customer who is allowed to be a borrower of the facility contract in the Borrower Details screen P ORACLE Example When you are entering a borrower facility contract that we saw in the first example with Mr Robert Carr you can select the code assigned to Mr Carr in the system from the option list You must also designate a Primary Entity to whom advices and notices related to the contract would be sent Specifying the tenor of the contract To indicate the tenor of the contract you must specify the Facility Start Date and the Facility End Date of the contract Facility Start Date This is the date on which the contract is effective in the system On any date following this the tranche level tranche contracts and the individual draw down loans can be inputted into the system
152. cts e User Defined Fields e Settlements Sop ORACLE 4 6 2 Specifying Preferences for Syndication Products Preferences are those options you can use to specify attributes for a product These attributes will be picked up and applied automatically to any contracts involving the product For instance for contracts under a borrower facility syndication product you can define when intimation must be sent to participants to fulfill their commitments towards a scheduled draw down Click the Preferences button to specify certain preferences unique to the product The Product Preferences screen is invoked where you can specify your preferences Facility Product Preferences Product Offset Participant Product Tranche Product 10f1 Drawdown Product 10f1 By orensomPoac Oessnton Patopanrat Desoto T O O OOOO O O O Rekey Fields Holiday Treatment For Schedules Holiday Treatment For Maturity Date Currency Ignore Holidays Ignore Holiday Amount Cascade Schedules Move Across Months Counterparty Move Across Months Include Branch Holiday Start Date Include Branch Holiday Move Forward End date Move Forward Move Backward Move Backward Apply Facility Currency Apply Facility Currency Apply Local Currency Apply Local Currency Holiday Currency Holiday Currency EN Borrower Tranche Linkages You need to specify the borrower tranche products available for the selected facility tranche product If the borrower tra
153. customer category CORPORATES from availing a certain loan product However you may want to allow Cavillieri and Barrett belonging to the category CORPORATES to avail the product Select the name of the customer from the option list provided The Customer Name is displayed after you select the customer id If the selected customer belongs to a category which is Disallowed for the product but you want to allow the customer check the Allowed option Similarly if the customer belongs to a category that is Allowed but you want to disallow the customer do not check the Allowed option oa ORACLE 4 3 7 11 Maintaining UDF 4 3 8 UDFs are additional fields that are available for use depending on the bank s requirement You can define UDFs in the User Defined Fields screen by clicking on the Fields button in the Loan Syndication Product screen In the UDF screen you can associate these custom fields with the product User Defined Fileds x 1 of1 UDF Details Field Name x Value per The UDFs are segregated based on the Field Type into the following e Character Fields e Number Fields e Date Fields Field Name and Description When you select an UDF from the option list the description is also displayed in the adjacent field Associating Ad hoc fee Components Your bank may need to levy fees on borrower tranche or draw down contracts o
154. d ae ORACLE e Local currency If you choose this option the system checks whether the Rate Revision Schedule should be based on a holiday defined for the local currency if the local currency is different from the holiday currency facility currency and contract currency you have indicated The system checks the holiday table for the currencies you have specified If it encounters a contract using any of the specified currencies with a Rate Revision Schedule falling on a holiday for any of the currencies the holiday is handled according to the holiday handling preferences you specify here Cascading schedules If one schedule has been moved backward or forward in view of a holiday cascading schedules would mean that the other schedules are accordingly shifted If you do not want to cascade schedules then only the schedules falling on a holiday are shifted as specified while the others remain as they are 6 3 3 2 Validations for Rate Revision Schedules 6 3 4 6 3 5 When you specify rate revision schedules for the drawdown contract the system will validate whether the Rate Revision Period matches with at least one of the allowed Rate Revision Periods specified at the tranche level Schedules tab If the validation fails the system will give an override The system will also validate that the duration between Rate Revision Dates for any component does not exceed the maximum value specified at the tranche level The system will
155. d according to the holiday handling preferences that you specify 6 3 2 1 Holiday handling preferences for maturity date You can indicate that the maturity date falling on a branch holiday be moved either backward or forward as required and if it is allowed to move across months Moving the Maturity Date backward or forward You can indicate whether the maturity date falling on a holiday must be moved forward to the next working day or backward to the previous one Moving across Months If you have indicated either forward or backward movement of the maturity date such that the moved maturity date crosses over into a different month you need to indicate whether such a movement is allowed Check this option to indicate that it is allowed Holiday Currency You need to specify the holiday currency the system must check against when applying the maturity date of the contract Select a holiday currency code from the option list provided You also need to indicate the categories the system must check against for applying the maturity date e Facility Currency If you choose this option the system checks whether the maturity date should be based on the holiday defined for the facility currency in case the holiday currency maintained is different from the facility currency e Contract Currency If you choose this option the system checks whether the maturity date should be based on the holiday defined for the contract currency in case
156. d be moved either backward or forward depending on the requirement or if it can be moved across months Moving the Rate Revision Schedule backward or forward You can indicate whether the Rate Revision Schedule falling on a holiday must be moved forward to the next working day or backward to the previous one Moving across months If you have indicated either forward or backward movement of the Rate Revision Schedule such that the moved maturity date crosses over into a different month you need to indicate whether such a movement is allowed Check this option to indicate that it is allowed Holiday Currency You need to specify the holiday currency the system must check against when applying the Rate Revision Schedule for the contract Select a holiday currency code from the option list provided You also need to indicate the currency categories the system must check against for applying the Rate Revision Schedule e Facility currency If you choose this option the system checks whether the Rate Revision Schedule should be based on the holiday defined for the facility currency in case the holiday currency maintained is different from the facility currency e Contract currency If you choose this option the system checks whether the Rate Revision Schedule should be based on the holiday defined for the contract currency in case the contract currency is different from both the holiday currency and the facility currency you have indicate
157. d in the Diary Event Maintenance for the diary event you have specified are displayed in the Details tab and you can specify appropriate values for these tags up to a maximum of 35 alphanumeric characters aoe ORACLE 5 6 4 1 Amending Diary Events for Syndication Contract After you have identified the diary events to be processed for a syndication contract you can amend them suitably if required in the Contract Diary Event Status screen You can invoke this screen by typing CSDDRYST in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Contract Diary Event Status Contract Reference Sequence Number Effective Date i Sub Sequence Number Event Code Generate Messages Status User Reference FieldTags UserDefinedFields Receiver Field Tags o Input By Authorized By Modification Authorized Exit Date Time Date Time Danta Open In the Contract Diary Event Status screen the details for the diary event which were specified in the Contract Diary Event maintenance are displayed The system also displays the status of the event whether it has been processed for the contract as until the application date You can make changes to e Any of the narratives in the UDFs tab e Any of the user defined field tags in the Field Tags tab Effective date for amendment You must specify the effective date on which
158. de of the holiday currency if you select this option Further you have the following options to specify the specific currency for which the check must be done e Facility currency If you choose this option the system checks whether the schedule date falls on a holiday defined for the currency of the facility borrower contract if this currency is different from the holiday currency you have indicated e Local currency If you choose this option the system checks whether the schedule date falls on a holiday defined for the local currency if this currency is different from the holiday currency facility currency and contract currency you have indicated The system checks the holiday table for the currencies you have specified If it encounters a contract using any of the specified currencies with a schedule date falling on a holiday for any of the currencies the holiday is handled according to the holiday handling preferences you specify Holiday handling preferences for schedule dates If you have specified that the system check for schedule dates falling on holidays you must also specify the treatment for schedule dates encountered by the system that do fall on holidays The following preferences can be set Moving the schedule date backward or forward You can indicate whether the schedule date falling on a holiday must be moved forward to the next working day or backward to the previous one Moving across months If you have indi
159. der which is initiated or the account to which it is linked The exchange will be used for currency conversions All the fields excluding Standing Instructions fields available in the Exchange Rate Fixing Advice sent to the borrowing customer will be available in this advice also In addition the following informations will also be included The name of the borrowing customer The participant s contribution in the currency of the tranche Base Currency under which the drawdown contract is linked The participant s contribution in the drawdown currency Optional Ccy Settlement Instructions like gt The name of the Beneficiary s bank the beneficiary account number and address If you have chosen the SWIFT media for sending the advice then instead of the above mail format the corresponding SWIFT message MT644 will be generated oe ORACLE 12 4 Interest Rate Fixing Advices This section discusses the advices generated for interest rates 12 4 1 Interest Rate Fixing Advice to borrower for new drawdown If the product specified for the tranche or draw down loan has a Fixed rate of interest the same will be applicable on the drawdown loan However you can change this rate at the contract level If a Floating rate has been defined for the product the rate attached to the specified Rate Code in the Floating Rates table will be applicable You can change the rate code by using the Value Dated Changes functi
160. do need only to specify the following details these are not inherited from the product e Counterparty or customer details e Loan Amount This is typically the amount being availed by the customer through the draw down loan e Currency of the loan e Repayment account for the loan Any details of schedules you have maintained for the loan product will apply to the loan contract Son Call and notice maturity types and amortized schedules are not supported for borrower draw down loans Product Code You need to select the code of the borrower drawdown product from the list of drawdown products defined in the facility contract being used for creation of the drawdown oa ORACLE Account Details The following details are captured here Customer id When you enter a borrower drawdown contract under a borrower tranche contract the system defaults the borrower customer of the tranche contract to the drawdown If you wish to change the borrower customer you can select the required customer The customer you select must be in the list of the borrowers identified for the parent borrower facility contract Settlement details for the customer Select the borrower customer to easily obtain the settlement details defined for the selected customer 5 5 6 1 Viewing Participant Details for Borrower Draw Down Contract You can view the participant details in the Participant Ratio Details screen which you can invoke by clicking the
161. down list In case of pre closure of the loan prepayment of the total outstanding amount the fund interest will also get liquidated and thus the accrual entries will get reversed Acquisition Type Specify the acquisition type for the product You can specify any of the following options e Par e Par Discount e Par Premium e Par Discount Premium Maintaining LS Preferences You can specify the following additional details regarding syndication for borrower tranche or draw down products in the LBL_LS Preferences screen Click LBL_LS Preferences button in the Loan Syndication Product screen Preferences LS Preferences Currency Preferences Participant Product Cascade Participation Product Description Holiday default Basis Revaluation Required Revaluation Frequency Revaluation Start Date Revaluation Rate Code Utilization Revaluation equired Revaluation Start Month on Product for resultant participant contracts For a borrower tranche drawdown product the corresponding participant product to be used for participant borrowing line contracts that will be created under the borrower tranche drawdown contracts that use the product ii ORACLE 4 3 5 Cascading Participation For a borrower tranche product you can indicate whether any changes to participant details in respect of a borrower tranche contract that uses the product must be propagated to all related and active draw down contracts
162. draw down loan under a tranche in a borrower facility contract is entered into the system against a borrower leg draw down loan product When Oracle FLEXCUBE processes the contract it will apply all the attributes and specifications made for the product against which the contract was entered You can enter more than one contract against a product T ORACLE 4 2 4 2 1 Products for Loan Syndication Products for borrower side contracts When you define products for the processing of borrower tranches and draw down loans under a borrower facility contract you would need to do so at two levels e Products that contain attributes and preferences by which all commitments and the resulting draw down loans under borrower tranches of borrower facility contracts will be processed e Product with attributes and preferences for processing the main level syndication agreement facility contracts with the borrowers Products for Participant Contracts You also need to define products containing attributes and preferences for processing participant facility tranche or draw down deposit contracts that will be created under the related borrower facility tranche or draw down loan contracts Products for Borrower Tranche Contracts and Draw Down Loans At the second level for the borrower tranche contracts under a main borrower facility contract you will need to define a commitment type of product for the borrowing customer The commitmen
163. dseasasenaeas essce 10 1 10 1 EVENTS ADVICES AND ACCOUNTING ENTRIES c ccccccssessssscecececeesesseaesecececeesenaeceeeeecsesseaeseseeseeeseneaeseeees 10 1 10 1 1 Events for borrower facility products cccccsccesesssesscssesetsseescuseeseeseeseesecaeesecsaeesesaeeaeeseeaeeaeeaeeaeeseeneeees 10 1 10 1 2 Advices for borrower facility PrOUUCE c scsccesesscesecssesecnseescuseeceeseescesecaeesecsaeeseaeeaesecaeesecseeeeeaseneegs 10 1 10 1 3 Participant facility tranche or draw down product csccscssseseseseeseesecnseescuseesceseeseusecaceeceeeeeenaeeneeas 10 3 10 1 4 List of events available for loan syndication modules s 10 7 11 SWIFT MESSAGES FOR LOAN SYNDICATION ccsccsscscsssssessssscssssssesessssnsssescssssssssenessesserees 11 1 PGT SWART IVIESSAGES sireci eienen eneee e ccstewiesbewst venss EEE T E e S TEE E E odeodaesreusoxapsena tess eases 11 1 11 1 1 SWIFT Tags and Oracle FLEXCUBE Fields Linkage MT 643 eener 11 2 11 1 2 SWIFT Tags and Oracle FLEXCUBE Fields Linkage MT 644 11 4 11 1 3 SWIFT Tags and Oracle FLEXCUBE Fields Linkage MT 645 eeen 11 5 11 1 4 SWIFT Tags and Oracle FLEXCUBE Fields Linkage MT 646 11 7 11 1 5 SWIFT Tags and Oracle FLEXCUBE Fields Linkage MT 649 11 9 12 CUSTOMER CORRESPONDENCE ssccscsssssssscssesssscsnsscessessescssssssssensssssnessesssssssssssnesssssessesssssosenees 12 1 V2 INTRODUCTION svcenssccsscoscssvennssecussveconssntin coves occsavsers tesncavecseus
164. e forward rate and net NPV profit or loss This report is printed once a month as part of the batch process 13 29 1 Selected Options You can configure this report to display details of FX Contract with NPV Profit Loss Report You can generate the report based on the following criteria e The Branch for which the report is printed Select a branch from the option list provided e The Date for which the report is printed Enter a date 13 29 2 Contents of the Report The contents of the FX Contracts with NPV Profit Loss Report are discussed below Counterparty This is the Contract Record s Counterparty Counterparty This is the Customer Record name for the Contract Record s Name Counterparty Contract This is the Contract Record s Reference Number Reference Number R ORACLE Custom This is the Contract Record s Custom Reference Number Reference Number Trade Date This is the Trade date of the FX Contract Record Value Date This is either the FX Contract Record s Bought Value Date or Sold Value Date whichever is later Buy Currency This is the FX Contract Record s Bought Currency Buy Amount This is the FX Contract Record s Bought Amount Sold Currency This is the FX Contract Record s Sold Currency Buy Amount This is the FX Contract Record s Bought Amount Deal Rate This is the FX Contract Record s Exchange Rate NPV profit l
165. e simple Debit Credit advices when any payment or disbursement is made Rate Revision advices etc To specify the advices for an event click the Advices button in the Events screen of the Loan Syndication Product screen the following screen is displayed Advice Rules E 10f1 O Condition lt Advices 10f1 a The following advice details have to be maintained in the screen e ORACLE Message Type Select an advice from the option list provided The advices applicable for the module are available in this list When you select an advice the description is displayed in the adjacent field Generation Time The Trigger indicates the appropriate time at which the advice is to be generated You can indicate whether the advices specified for the product should be generated when the event takes place Input or at authorization Suppress This option may be used if you want to suppress the generation of some advices Priority You can indicate the importance of the advice generation The priority may be e High e Medium e Low Charges You may check this option to collect charges for advice generation You can specify a definite format for advice generation The formats maintained through the Format File Maintenance are available in the option list Select the appropriate format from this list For a detailed list of Events Advices Accounting Roles and Amount Tags r
166. e New Schedule e Advance current schedule e Extend previous schedule Example Assume that the following are the two payment schedules for a loan e 1 May to 25 May e 5 June to 25 June Therefore the gap between the two schedules is 10 i e from 26 May to 4 June To handle this gap you can instruct the system to do any one of the following e Create a new schedule in which case a new schedule is defined for the gap period i e 10 days e Advance the current schedule wherein the second schedule will start from 26th May instead of 5th June and go upto 25th June e Extend the previous schedule in which case the first schedule goes upto the 4th of June instead of 25th May After setting up the branch parameters you have to save the details Click on save icon to save the details in the system However the parameters take effect only after your supervisor authorizes the same Refer the Procedures User Manual for details on common operations like authorization deletion closure etc 3 11 Mapping LS and CL Products and Components If Syndication bank is also one of the participants called as Self participant then a contract is created in Consumer lending CL module for the participation share of Self Participant LS CL mapping is used to define the mapping of Drawdown product components to the CL product components This would facilitate automatic creation and subsequent processing of CL contract during corresponding operatio
167. e a single schedule i e the number of schedules is one the system initiates one schedule on the start date mentioned not taking into account the frequency and the frequency unit If you define more than one schedule the system initiates the first schedule on the start date mentioned and subsequent schedules based on the frequency and the frequency unit specified Schedule Frequency You must specify the frequency at which the schedules must be initiated with the first schedule on the start date mentioned If you define a single schedule i e the number of schedules is one the system initiates one schedule on the start date mentioned not taking into account the frequency and the frequency unit If you define more than one schedule the system initiates the first schedule on the start date mentioned and subsequent schedules based on the frequency and the frequency unit specified The options available are Daily Monthly Quarterly Half yearly and Yearly Unit You can specify the units in which the specified frequency will be reckoned that is the factor by which the frequency must be multiplied to arrive at the final ad hoc component frequency Currency You must specify the currency in which the ad hoc fee amount is reckoned for the schedule defined for the ad hoc fee component Schedule Amount You must also specify the amount that is to be liquidated towards the ad hoc fee component on the schedule date oc ORACLE 7 2
168. e actual loans to be made available to the customer under the tranche are also finalized according to the requirement of the borrower The participants are directed to fulfil their commitments whenever a schedule is due Draw Down Loans When the commitments are fulfilled the borrower may avail the funds made available under a tranche as draw down loans Depending upon the requirement the borrower may avail of the tranche amount in a specified number of draw down loans These loans may have a term or tenor that is independent of the tranche tenor The tenor of the draw down loans will fall within the period between the start date and the end date of the main syndication contract Also the tenor of the draw down loans will begin within the tenor of the tranche Therefore the main borrowing requirement or total principal in a syndication contract may be disbursed to the borrower through one or many tranches instalments and each tranche may be split down into a specified number of draw down loans A tranche amount could also be disbursed through a single draw down loan if so required by the borrower This chapter explains each of the features of the Loan Syndication module of Oracle FLEXCUBE enabling you to understand how you can use the system to process syndicated loans The following example illustrates the concept of loan syndication Example The syndication contract Your bank offers the facility of entering into syndication con
169. e date on or before which all tranches and draw downs under the borrower facility contract mature a ORACLE You can enter any future date as the facility end date It must be later than the Start Date defined for the product involving the borrower facility contract and earlier than the End Date of the same product The Facility End Date must be later than the Facility Start Date defined for the borrower facility contract Example For instance when you enter the borrower facility contract with Mr Robert Carr the customer indicates that the tenor of the contract must be a year i e the maturity date of the facility contract must be 1 January 2001 This means that all tranches and draw downs entered must mature on or before that date Specifying the Currency Specify the currency of the borrower facility contract This is the currency in which the contract amount is expressed Specifying the contract amount You must specify the total principal that is to be lent to the borrowing customer through the facility contract The value you enter here is taken to be in the currency specified for the facility contract You can specify T or M to signify thousand or million respectively For instance 10T would mean ten thousand and 5M five million The total principal that you specify here must be greater than or equal to the sum of all the amounts proposed to be disbursed through draw downs in all tranches of the contract Example For
170. e details in the MIS screen Click on the M button in the Consolidation Rollover screen to invoke the MIS screen 8 3 3 8 UDF Basis You can indicate whether user defined fields for the consolidated contract must be defaulted from the tranche product or the driver contract or must be user defined If user defined you can specify the details in the User Defined Fields screen Click on the F button in the Consolidation Rollover screen to invoke the User Defined Fields screen 8 3 3 9 Refinance Rate You must indicate the refinance rate for the consolidated contract 8 3 3 10 Holiday Treatment You can indicate whether the system must check for maturity dates of the consolidated contract falling on holidays If the holiday check is indicated you can also specify whether maturity dates falling on holidays must be moved forward to the next working day or backward to the previous working day You can also indicate whether the moved maturity date is allowed to cross over months ee ORACLE 8 3 3 11 Interest components for the consolidated contract You can define the interest components to be applicable for the consolidated contract The interest rate can be defaulted from either the tranche product or the driver contract or a special rate can be entered If a special rate is to be entered you can specify the required rate in the Rate field 8 3 3 12 8 3 4 Consolidation preferences for driver contracts As part of
171. e entire outstanding amount in the original loan the liquidation advice s for the original loan will be generated along with the rollover advice ORACLE 8 3 5 Authorizing a manual roll over The operations on a loan like input modification manual liquidation and manual rollover have to be authorized by a user other than the one who performed the operation All the loans should be authorized before you can begin the End of Day operations When a loan has been rolled over manually you have to do two authorizations e One for the liquidation of the original loan e Two for the initiation of the new loan When you call such a loan for authorization the details of the liquidation of the original loan will be displayed At the time of authorizing rolled over contracts you need to enter the values for the re key fields specified at the product level a0 ORACLE 9 1 9 2 9 Making Additional Disbursements and Rate Changes Introduction The Value Dated Changes function of Oracle FLEXCUBE enables you to make changes to borrower tranche or draw down loan contracts under a syndication contract which will impact the financial details and accounting entries Through this function you can make changes to an authorized borrower tranche or draw down loan before its maturity date The changes that are made through this function will take effect on a date known as the Value Date which is why it is known as the Value Dated Changes funct
172. e explained under the previous schedule dates section oe ORACLE 5 4 4 Specifying Currency Details You can specify the different currencies that are allowable for the borrower facility contract for tranches and draw downs created under it When you enter a tranche or a draw down under the facility contract the allowable currencies are those defined in this list To specify the allowable currencies click the Currency button in the Loans Syndication Contract Input screen The Currency Details screen is opened where you can specify the required currency list Currency Details Contract Reference User Reference Product Customer Description Customer Name Currency Details l Tp Doescton Oo laz The following information gets defaulted here e Contract Reference Number e User Reference Number e Product Code and Description e Customer and Customer Name The following details need to be captured here Currency Select the currency that can be allowed for the borrower facility contract for tranches and draw downs created under it The adjoining option list will have all the currencies maintained in the system Description The description for the selected currency is defaulted here a ORACLE 5 4 5 Specifying Borrower Details You must specify the borrowers for the facility contract who will actually be availing the draw down loans under the facility contract Click the
173. e in any other module You should also enter a brief description of the product This description will be associated with the product for information retrieval Product Type The product type is the first attribute that you specify for a borrower tranche or draw down product It indicates the category under which the product can be placed and the type of contract that will be processed against the product Each borrower tranche level or draw down level product that you define could be placed under any of the following categories e Drawdown Select this option to define a borrower draw down in a borrower tranche under a borrower facility contract e Tranche Select this option to define a tranche under a facility contract Product Category Products can be categorized into groups based on the common elements that they share For example Vehicle Loans Personal Loans Home Loans and so on You must associate a product with a category to facilitate retrieval of information for a specific category The categories defined through the Product Category Maintenance are available in the option list provided Product End Date A product can be defined to be active for a specific period When you create a product you specify an End Date for it The product can only be used within the specified period i e within the Start Date the date on which the product is created and End Date If you do not specify an end date for a product i
174. e in the syndication module event information Each propagated event is identified in the database with a borrower reference number and an event sequence number For automatic liquidation events a payment message would be generated if specified in the diary event If any accounting entries have been passed due to the processing of the events the details of the entries such as the amount tag amount and currency are also maintained in the database for propagation to the participant contracts To view details of events processed on borrower contracts which have been propagated to the related participant contracts use the Participant Contract Liquidation screen Spp ORACLE You can also invoke this screen by typing LLSCOAMT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Participant Contract Liquidation Authorization Status Borrower Reference Number Borrower Event Sequence Number 72 Participant Participant Reference Number aE Search Advanosd Search Beset Records per page 4of af i Authorization Status Borrower Reference Number Borrower Event Sequence Number Participant Participant Reference Number Maker Date SS Authorization Status A Authorized U Unauthorized The following details are displayed for the event processed for the borrower contract which is propagated to the related participant contract e Refere
175. e of the facility Customer Name The name of the borrowing customer taking part in the borrower drawdown contract Counterparty The name of the counterparty Contact ID The contact ID of the borrower Name Sort Field This is the name of the entity for each borrower as defined in the borrower tranche contract All correspondence for the customer will be sent to this entity Telno Telno Ext F axno FaxnoExt The address of the entity selected for the entity The address can include the Telephone No Extn Fax No Extn Telex Code Answerback GCN The Telex code GCN etc of the entity Country Faxind E mail address The Country ID e mail address etc of the entity 13 12Active Facility Drawdown Detail Report A facility product is used to process participant borrower facility contracts This is parent contract under which you can process borrower tranche or draw down contracts This report describes the drawdown details for a particular facility that is still active in the system It is sorted based on the value date and request date Selection Options You can generate this report to obtain the details of drawdowns under a facility contract that is still active The report can be generated for a specific facility contract or all facility contracts initiated at your bank as on the date of report generation 13 22 ORACLE You can invoke this screen by typing LSRPFDDT
176. e option list provided Netting Indicator Specify whether accounting entries should be netted at an event You can net the accounting entries that are generated at an event by selecting Yes from the drop down list The system will then net the entries and show the resultant value in account statements If you do not net the entries will be shown separately in the statements MIS Head An MIS Head indicates the manner in which the type of entry should be considered for profitability reporting purposes This classification indicates the method in which the accounting entry will be reported in the profitability report It could be one of the following e Balance e Contingent Balance e Income e Expense You can also link a product to an MIS Group if you do not want to define individual entities for the product Refer the section titled Associating an MIS Group with the product in this chapter for more details Revaluation Required Online Revaluation refers to revaluation done on transaction amounts during transaction posting and not as part of an end of day process The Revaluation profit loss are booked to the Online Profit GL or Online Loss GL that you maintain for the GL being revalued You can opt for online revaluation by selecting the Reval Reqd option ad ORACLE Profit GL and Loss GL If you have opted for online revaluation and the result of revaluation is a profit the profit amount is cr
177. e product You will not be allowed to save the product until you have specified all the mandatory information When you save the product the following information is updated and displayed in the status bar of the Product Definition main screen e Your User ID in the Input By field e The date and time at which you entered the product in the Date Time field ER ORACLE 5 1 5 2 5 Loan Syndication Contracts Introduction A contract is a specific agreement or transaction entered into between two or more entities A customer who approaches your bank to avail of any of the services offered by your bank enters into a contract with your bank In the case of a syndication facility contract the entities involved in a contract are the borrowing customer and the participants for any tranche of the agreement Similarly any specific loans draw downs disbursed by your bank under a tranche in the facility contract are also contracts Borrower Facility Contract A facility contract is reached between a borrowing customer and a bank or financial institution which arranges or provides facility for the syndication The lead bank identifies one or more participants who pool funds to meet the borrowing requirements The lead bank disburses the loan after receiving the contributions of the other participants The participants share the interest and other income accruing from the loan in the ratio that was agreed upon at the time of entering
178. e products you can specify the number of days before the draw down date defined in the draw down schedule the interest rate must be fixed The Interest Rate Fixing Date will be generated as a part of online process based on this parameter You can specify the applicable number of days for each required currency Maintaining Components Details The component details for the Borrower tranche drawdown product that you are defining are captured in the Components screen Click Components button in the Loan Syndication Product screen ne ORACLE 4 3 5 1 Class Code Class Code Class Description Moratorium Period Period Unit Component Attributes Penal Basis Periodicity Rate To Use Basis Element Balance Type Schedule Component Details Component Description Currency Calculation Type Component Defaults Special Component Days in Month Days in Year Grace Days Debit Credit Main Component Capitalized Interest Posting required Component Type Propagation Required Accruals Provisioning Accrual Required Frequency Start Month Verify Funds Start Date Interest Method Default From Currency Definition Internal Rate of Return Applicable Prepayment Threshold Amount Currency 11 m Sequence Number Scheduletype Start Reference Frequency Unit Start Day StartDate StartMonth Due Date On L lt Book Formulae f Intermediate Formulae Moratorium Formulae Inst
179. e the user e The list of user operation details over a period in time specify the From and To date of the period This period should be specified by providing the From and To dates of the period 13 15 1 Contents of the Report The contents of the User Operations Detail Report have been discussed below Body of the Report Number Of activities The number of events input or authorized by the user depending upon whether it is a maker or checker report Of activities The percentage of the total events for the number of activities No of O S Advances The number of active drawdowns input by the user Drawdowns not matured Of O S Advances The percentage of the total active drawdowns 13 16 Administrator Facility Detail Report Your bank may wish to assign appropriate administrators to loan syndication contracts This reports describes the details of all such administrators of the loan You can choose to generate the report to list the administrator facility details as of a specific date or over a specified period in time by indicating the From and To date of the period 13 16 1 Contents of the Report The contents of the report have been discussed below Body of the Report Facility Ref The Contract Reference Number of the main syndication eer ORACLE No sort contract between the borrowing customer and one or more field partic
180. ecaecaeenaeeaecaaeens 2 6 2 2 6 Processing Repay Ments a incccensceoizesuinstsnnnecss s eiptosisseessnncdenedowtened ve cou REEN E E EROE SE E EERE E E R 2 7 2 2 7 Sharing of Fee or Charge Income sscessesscesssessesscesseesecevecssecssecaecnaecnasenaeensesseessesseeesessseeseeeneesaes 2 7 3 REFERENCE INFORMATION FOR LOAN SYNDICATION 0u cccsssssccssssecesssscccsssscccsssccccessscsscssnees 3 1 3 1 INTRODUCTION cere inireseta eea a a cde eaadacdasehge seeuveessesvendesdassbacdgeseevvets TERT EENE EEST 3 1 32 MAINTAINING ADMINISTRATORS cecs1ss3isieececedesean sndeveescessaadacedsensesedeneeseedeenvessasoucgcceevevsssenoecedegesususncseecaceees 3 2 3 3 MAINTAINING SELF PARTICIPANTS aaa seasbeesseseeevessasoncgcadsversssenesousceeaususteneecesedes 3 3 3 4 MAINTAINING PARTY TYPES vi2sshescceskciesiecnene cadestananceveescsdeseducedenesascsenedsecaeanvessesauagaceevevssadueecudedeswasnseeeacedes 3 4 3 5 MAINTAINING DIARY EVENTS vissicscccssdsssiachescccdescanacdsueesssaescduec d0e0se seasbeeaseseaneessasoucgcadevevssseneecusceeuusesteneecesenes 3 4 3 6 MAINTAINING MESSAGE TYPES FOR MODULE scccccccececsessseceecceceessaececececsesssaecesececeeneaeeeeeecesenenssaeeeeees 3 5 37 MAINTAINING USER DEFINED FIELD TAGS cccssssscecececsesssceceeececeeseeaececececsessaaecesececseneaaeaeseecesensneaeeeenee 3 7 3 8 ASSOCIATING MESSAGE TYPES TO EVENTS FOR MODULE cccesssscecseseececseceeceeueeecsesaeeecsneeecessaeeeessnaees 3 8 3
181. ecececececeseceaeeees 12 5 12 5 2 Ad hoc Fee Due Notice to PAarticipant c ccecccscssesscssesscsseesceseeseeseeseesecsceecnsessesaeceeesecaeeseeeeeaeeseenaeens 12 5 12 6 ADVICE OF PAYMENT OF PRINCIPAL AND OR OF INTEREST ccccccccecececececececececececececececececececececeeeceseeecs 12 6 1227 BILLING NOTICE 5 45 250030s00se0avencbssevbe soe vevencbesavsosvosevsnes sopveesvedevansvedevesycaevs obpsseveesbsdersndbeseveesnedevs nveeeuensvrdeess 12 7 12 7 1 Billing Notice to BOrOWED cesccesceeeceeeeseeeseeeseeseeeeececeesccsecaeceaecacesaecaecauecaeecaeeeaeeeaeeeaeeeeaeeeseeeeeaes 12 7 12 7 2 Billing Notice to PArtiCipAnt cceccecceeseeseesseeseeeeeeeecesecesecaeceaecaaecacecaeeeasenseeceeeeeeeaeseaeeeeseeeseeeaes 12 7 12 8 RATE REVISION NOTICE ssissecvenz54s0s secs v evs odvesausouvesevsnevsedvsncvecevansdssavosteevs o3 ssbvbnsvedevsnsbeuavevvedevencveseuvncvedess 12 8 12 8 1 Rate Revision Notice to BOLOWED wiccccccccccccsscccccsscccccuscccccsceccccueecsccuuessecsecccusecssceuuesssceeccceueessseuuessecees 12 8 12 8 2 Rate Revision Notice to PArticipant cccccscccescceesecessceensecesceeeseeceeeeeacecencecscecseneeeaueceeneeesaeseeeeeeneeeees 12 8 13 REPORTS A E A E 13 1 13 1 INTRODUCTION ssriesnriosdore tinin rosno aeoe ee EO EE EEO E EE EIES ENEO EKE R 13 1 13 2 PARTICIPANT DRAWDOWN CONTRIBUTION REPORT ccscecececeeececeeecececeeecececececececeeeeeeeeeeeseceeeeeeeeeeeeeeess 13 2 132 1 Selection Opt ONS scissione re
182. edited into a common syndication pool before each schedule is due The schedule dates according to the agreement are 30 January 29 February and 31 March for the first tranche and 30 April 31 May and 30 June for the second SR ORACLE Therefore the relationship of the tranche contracts under a main facility contract can be seen below using our example Main Syndication Contract QOOSNEW000010001 Borrower Contract Borrower Contract 000SNBC000150001 000SNBC001050001 Participant Contracts Participant Contracts OOOSNPC000150001 OOOSNPC001050001 000SNPC000150002 000SNPC001050002 000SNPC000150003 000SNPC001050003 Draw Down Contracts On any date including and following the 31 of January Mr Robert Carr can avail of his first draw down loan of 20000 USD under the first tranche Similarly on any date including and following the 30 of April Mr Robert Carr can avail of his first draw down loan of 20000 USD under the second tranche You can enter each of Mr Carr s draw down loans into the system The system defaults the details like as the start date of the draw down the maturity date currency interest rate and amount You can modify these details The system saves the loan contract with a unique reference number When the BOOK event for each of the loans is triggered the system initiates deposit contracts for the participants of the tranche based on the draw down loan reference number Let us suppose that the follow
183. edited to the Profit GL you select here Similarly if the result of revaluation is a loss the loss amount is credited to the Loss GL you specify here Reval Txn Code If you opt for online revaluation you need to associate the transaction code to be used for booking revaluation entries The system will use this transaction code to track the revaluation entries Holiday Treatment Specify whether holiday treatment is applicable for processing accounting entries falling due on holidays Select one of the following e Yes e No GAAP Indicate the GAAP indicators for which the accounting entry is required for reporting under multi GAAP accounting The adjoining option list shows all the GAAP indicators maintained in the system Choose the appropriate one The system will then post entries into the specified books GAAP indicators during the different events that occur in the lifecycle of the loan You can retrieve the balance for a certain component in an account in a specific status for a given GAAP indicator in a certain branch reporting to a certain GL The system will show the real and contingent balances accordingly Split Balance Specify whether you need the balances to be split or not If you check this option the system will store the balance break up for the specified GAAP indicators You can then retrieve the balances separately for the different GAAP indicators to which accounting entries are posted for the loan Balance C
184. edule e Rate Revision schedules This will capture the schedule at which the rates applicable to the component should be revised Start Reference This is used to capture the reference to arrive at the due date of the schedule The options are e Calendar If you select this option you should also specify the Start Date for the schedule For example if an account is created on 15 Sept with a Monthly schedule frequency and the Start Date is 1 then the schedule due dates would be 1 Oct 1 Nov and so on e Value Date If you select value date the schedule due dates will be based on the Value Date of the account For instance if an account is created on 15 Sept and the schedule frequency is Monthly then the schedule due date would be 15 October 15 Nov and so on For a component you can define schedules based on both value date and calendar date Frequency Unit Here you have to capture the unit to define the schedule The unit can have the following values e Daily e Weekly i ORACLE e Monthly e Quarterly e Half Yearly e Yearly e Bullet If the schedule unit is Weekly you should also capture the Start Day Similarly for units Quarterly Half Yearly and Yearly you should also specify the Start Month Frequency This is used in combination with Unit explained above to define non standard frequencies For instance a Monthly unit and frequency 2 im
185. edule under the tranche falls due You could define a general syndication facility product to enter a contract of this nature specifying the required number of notice days as five Your bank has also entered into an agreement with one of your corporate customers Equinox Consultants Let us suppose that for this contract you do not need to notify the participants in advance of a schedule You could define a special syndication facility product to enter agreements of this nature with the number of notice days as zero i ORACLE 4 3 Creating Borrower Tranche Draw down Product When you define a borrower facility product you must specify the corresponding borrower tranche and draw down products to be used for borrower tranche or draw down contracts that will be processed under the parent borrower facility contract that uses the borrower facility product Therefore it becomes necessary for you to create borrower tranche and draw down products before creating borrower facility products In this section the creation of borrower products at tranche level and draw down level is explained To create a borrower tranche or draw down product you can specify the basic details such as the Product Code Group Description and so on in the Tranche Drawdown Product Definition screen You can invoke this screen by typing LSDPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button
186. ee HSE E Sequence Number Transfer From Particil E Transfer To Participant Name Transfer Ratio Transfer Amount l Jl Jaz Existing Ratio Components E E Participant Participant Name A m Component Component Type Ratio Total o o lt ji 3 Entity Details E o az Ic Pending Transfers Processed Transfers Input By Authorized By Contract authorized Date Time Date Time Status The Participant Transfer Detailed screen will now display the following details e Participants involved in the transfer e Asset Sharing Ratio and Current Asset Amount for each participant e Fee Charge and Interest along with the respective components for each participant if applicable e The SSI Mnemonics for each participant Entity Details You have the option to capture a consolidated type of transfer instruction or a detailed instruction for each participant By default the system takes you to the Consolidated tab of the Participant Transfer Details screen oe ORACLE Click save icon to save the transfer details The screen appears as shown below The existing participant asset ratios do not get updated upon save The ratios will be updated only on authorization of the instruction Participant Transfer
187. eeaeeceseseeeaeeneeeeeeeeeeaes 13 31 13 20 FACILITY TRANCHE VOLUME DETAIL REPORT ccccccccecececececececececececececececececececesececseeeseeseeseseeueeses 13 33 13 20 1 Contents of the REPOrt ccsccesccssesseesseessesseeeseesceesecesecaecaecuaecaaecaaecseesaeeeaeeseeeeeseseeeaeeeeeseeeneenaes 13 33 13 21 FACILITY UTILIZATION DETAIL REPORT cccccccccececececececececececesecececececesecececesececesaceeeceeeuessseueseesueeees 13 33 13 211 Selecon OPONSE s e EE EEE SES E E E 13 34 13 21 2 CONLENES Of the Repoti fe 42ssceeerssoieentdaniesneassisepsavdaneeinedvonadendoueedsadcepsdebenesudeuseondeeceasndseesdvaseasiions 13 34 13 22 SYNDICATION VOLUME DETAIL REPORT ccccccccececececececececececececececececececececececececececececececececeeeceeeeeeess 13 35 13 22 1 Contents Of ThE REPOIE is 05 sc0cceennseisantdeneesieaisiesesdvdineseuseddossSenseiieedcodoepsdebuctouteosnaosdeescs eds E A EA 13 35 13 23 PARTICIPANT TRANSFER DETAIL REPORT ccccccccecececececececececesecececececscecececscecasecacseaeeeaseeaeseseeeseeeaes 13 36 13 23 1 Selection OPHONS sassis rerea a Ri EN EE E deo A E E E E EEEE E E E ESA 13 36 13 23 2 CONLENES Of the REPOIE sescscs ssceocnseccenedonsenteninasupsaposavoossndssnsSendoueenseseepsSenssesanesinaondees oatsdsessduosuaotvess 13 37 13 24 FISCALADIARY REPOR T vscoicsazicacevecscadeseaysnanvesscueusedscactvacebeeuseds soaedonswsledaedeseceuneeveaused aare Ea EOE e 13 38 13 24 1 C ntents of the RepOTt i201 2
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189. eeeeeeseeessereeesrreresesreerrereens 4 11 4 3 4 Maintaining LS Preferences siorcanna na aA a E EE AR E ERRES 4 15 4 3 5 Maintaining Components Details cccccccescscceesseesceseceseeeecesecesecuaecaaecaaeeaeeeseeeaeeceeeeeeeeeeeseseaesnaeenas 4 16 4 3 6 Maintaining Notices and Statements 1 cccccscesseesseeseeeseeeeceeecesecuaecaaecaeeeseeeaecaaecsaeeaeeeseeeseeeeeneeags 4 34 4 3 7 Mainataining Role to Hedd siinne a A E E R RES 4 37 4 3 8 Associating Ad hoc fee COMpPONneNts cccccccceccesscesecesecesecusecseeeseeeseeceeeeeeeseceeessecnsecaecaeeaaeeseseneens 4 53 4 3 9 Speciyine MIS Details nise a e ER E A aecteuetoueestsoassecenss 4 54 4310 Associating Parnes ceuni e A R E RR 4 55 43 11 Associating Diary Events csset EN N ENAERE ENEE 4 56 A ORACLE 4 4 CREATING PARTICIPANT PRODUCTS ccccccccececececececececececececesecececececacecececscesscecasecacecacaceuecausuacseseaeaeeeeuans 4 56 4 4 1 Defining Generic Attributes of Participant Product c cccccssesccesessseseessesecnseeseuseeseesecaseecnsenesnaeeaeees 4 57 4 5 SETTING PREFERENCES FOR PARTICIPANT PRODUCTS ccsccccsssseescseeseeecsesseecsessesecsesesessesesesseeesessesaenees 4 58 4 5 1 Associating Diary Events for Participant Products cccccsscceseessesecsseeecuseeneeseeseesecaseeseeeneeeeneeeens 4 59 4 5 2 Associating Ad hoc CRArges ccccsccesceessessseeeeescesscesecusecaecaecaaecaeeeseecseeeeeeseeeaeeeeeeeeeeeceaeseaesnaeeaeeas 4 59 4 6 CREATING BORR
190. eenseceescesseceeneecssecseceeessecesseeeacecseneeeaeeceeeesaaecteneeeaeceeneeeesaees 8 10 9 MAKING ADDITIONAL DISBURSEMENTS AND RATE CHANGES esesseserseseseseeoesoroesesecceoesoroeseseseee 9 1 9 1 INTRODUCTION lt 0 EE E cusneses sxeseuscsssegees E ev seddesesocs thensevedves 9 1 9 2 MAKING VALUE DATED AMENDMENTS FOR A TRANCHE cccccsscsseescsseescssecssesecsesscesesssaesesesessessseneeesegs 9 1 9 2 1 Modifying tranche Principal c ccccccscesesscssscsseeecsseescesecssescssecseesecscesecuseenesaeeseesecaeeseenaseeesaecaeeaeseeseaeeaes 9 3 9 2 2 Modifying maturity Ate cecccccescscesecssessesscssesecuseeseeseeseesecseesecsseeseaeeseesecseeseesaeeeesaseseeaeeseeseceesaeeseenaes 9 4 9 2 3 Saving AIMENAMENE 0 eeeeeeceecceecceescesecesecesecusecaceeseeeseeeseeseeeseceseceaecuaecuaecsaecaaecsaeeaeeeaseceseneeeeeesaeseaesnaeenas 9 4 9 2 4 Viewing Schedule details esen ae e ae a eae EE eas SE E EES 9 5 9 2 5 Viewing MIS detailse eee ne a a a aeae sud eaa a e aaia Eae I eE E 9 5 9 2 6 Mat rity Date Chan p ssion EE E EE a N A E E EE E 9 6 9 3 MAKING VALUE DATE AMENDMENTS FOR A DRAWDOWN c ccccsscsssescsseescesecesesecseseseeceessaesesesesseseeeneesesngs 9 6 9 3 1 Modifying maturity date cccccccccccecccesssescesscesecsecnseesseeseesseescesceeseceeesesecaeceaecaaecseecaeecseenseeeseeaeeeaeennees 9 8 10 ANNEXURE A viscssccsssscccccccciccesssatacccacstecscseotscssedesccanscedascsiacaccossscsanssacedseossasseassesedieassssscencecoase
191. efer Annexure A of this User Manual 4 3 7 5 User Defined Policies Policies are user defined validations that will be fired when any event is triggered These can even be policies which govern the firing of an event under certain conditions For example if an operation called payment is being done and the customer is paying an amount greater than his current overdue and one additional installment you can associate a policy to disallow the payment Therefore you have to associate policies to an event Click on the Policies button in the Events screen to define the policies that should be executed for an event an ORACLE Policies Policies 10f1 m Policy Code Execution Type You can select the appropriate policy from the option list provided The policies defined in the User Policy screen are available in this list You should also specify the instance when the policy should be triggered for the event The options are e Before Event e After Event e Both 4 3 7 6 Charge You can associate charges to an event Linking a charge to an event implies calculating the value of the charge Click the Charges button in the Event screen to associate charges Charges 10f1 ml craveconsonn iii ORACLE The charge type of components defined for the product in the Components screen are displayed in the option list Select the component you wish to
192. el should not be greater than the value specified here If the exchange rate exceeds the maximum variance that you have defined for the product the system will not allow you to save the loan The transaction is rejected This value should be greater the value for Normal Variance Rate Type You have to select the code that should be used for the product from the option list provided The Rate and Rate Type are used in combination to determine the actual rate applicable for currency conversion The default value for Rate Code is STANDARD This means that if you choose Mid Rate the mid rate maintained for the STANDARD code is used for the loans created under the product Rate You have to indicate the exchange rate applicable for the product you are maintaining The available options are e Mid Rate e Buy Sell Rate By default the Buy Sell Rate is used 4 3 2 2 Liquidation Preferences Liquidation preferences include the following Liquidation Mode You can specify the mode of liquidation to be either Auto Liquidation or Manual Liquidation Allow Partial Liquidation In case of insufficient funds in the account you can instruct the system to perform partial auto liquidation to the extent of funds available in the account However if this option is not selected the schedule amount due will not be liquidated if sufficient funds are not available in the account Retry Count for Reversed Auto Liquid
193. enor e The syndication agreement may provide for different interest application calculation and collection methods for each of the instalments e Also it could provide for revolving or non revolving commitments while availing the instalments The identification of the participants who would share the load of meeting the borrowing requirements depends upon all these factors Accordingly it is possible due to the nature of the borrowing requirement eu ORACLE 2 2 2 2 2 3 e That a different set of participants may be identified to share the funding for each instalment of loan principal borrowed e On the other hand the same set of participants could also fund each instalment in different ratios if so dictated by the nature of the borrowing requirement Tranches Each instalment of the syndicated loan that is made available to the borrower is funded by a set of participants Each such instalment is known as a tranche Therefore under a tranche a specified portion or the entire amount depending upon the arrangement of the total loan is made available to the borrower The tranche takes the form of a commitment on the part of each of the participants to grant in principle the provision of funds for the amount being made available under the tranche It also involves a commitment on the part of the customer to avail the funds made available under the tranche When the terms of a tranche are finalized the schedules for th
194. ent this is the element on which penalty is applied This is not applicable if Formula Type is User Defined The Basis Element for computing fund interest will always be Principal Outstanding and the Formula Type will be Simple independent of the main interest component The liquidation mode for funding component will always be Auto independent of the Product Account Liquidation mode Balance Type Identify the nature of the balance that the component would hold This can be represented through this field For instance for a loan product the Principal component is expected to have a Debit balance 4 3 5 3 Interest Computation Methods For computing interest you have to specify the following Days in Month Here you have to specify the number of days to be considered in a month for component computation The options available are e Actual This implies that the actual number of days is considered for calculation For instance 31 days in January 28 days in February for a non leap year 29 days in February for a leap year and so on e 30 EURO In this case 30 days is considered for all months including February irrespective of leap or non leap year e 30 US This means that only 30 days is to be considered for interest calculation for all months except February where the actual number of days is considered i e 28 or 29 depending on leap or non leap year The v
195. er the tranche specified in the Draw Down Contract 31F Interest M Field The Value date and Period Maturity date of the draw down is specified in the Draw Down Contract 37G Basis Rate M Field The Interest rate specified in the 11 4 ORACLE SWIFT Field Name Mandatory Field FFT Field FFT Code name Tag M Code in Oracle FLEXCUBE Optional O Participant Leg Contract 72 Sender to O Field The Sender to Receiver Receiver Information maintained in Information the Settlement at Instructions Settlement Instructions 11 1 2 2 MT 643 A Sample Sample MT644 Message 1 F01AMBKWASHIXXX1111111111 2 1644BANKAMERXICAN 4 20 000DFPN013650007 21 88D GENMOO1 32A 2001 1226USD2000000000 26N USD 2 31F 2001123120020331 37G 18 72 PHON 11 1 3 11 1 3 1 Notice of Fee Due SWIFT Field Name Mandatory M Field Field FFT Code Tag Optional O FFT Code name in Oracle FLEXCUBE SWIFT Tags and Oracle FLEXCUBE Fields Linkage MT 645 ORACLE SWIFT Field Name Mandatory M Field Field FFT Code Tag Optional O FFT Code name in Oracle FLEXCUBE 20 Transaction M Field Contract reference Reference Number Number 21 Related O Field Related Reference Reference Number if specified in the contract 88D Borrower M Field CIF
196. estacentsvesucusevscosteucuscensouscainescssceveesscasesatecverceness 12 1 12 2 DRAWDOWN NOTICES sscccsccsessccvssseconesntsscevessecusvseessechtoucossesedvacsnssvecacveevscssteuscsdensoustasnes tescevsedecasasans vencewees 12 1 12 2 1 New Drawdown Notice to the BOrrOW c sscssccesceesceesceeensecusetunecasecacecaeeeseeeseescenaceeeeeeaeeeaeenasenaeents 12 1 12 2 2 New Drawdown Notice to the participant DANK ccccscceceeccesesseeseessesecnseeecuseeseseeaeesecacesecuaeeeseaeeaeeas 12 2 12 3 EXCHANGE RATE FIXING ADVICES sccsviscosessccssvsnnssccnedvecssesnosassnisvesasveevsessteseveceeseusesansstescensesscstasansseeveonees 12 2 12 3 1 Exchange Rate Fixing Advice to Borrower for new Drawdown 12 2 12 3 2 Exchange Rate Fixing Advice to Participant for new drawdown soseer 12 3 12 4 INTEREST RATE FIXING ADVICES sss cosesuvsacscosccrsesnesscthesvcessesnavasseiovesnevsevscestestosvensebacainests stensedecseesats AENEA 12 4 12 4 1 Interest Rate Fixing Advice to borrower for new AraWdOWN s cseseseseeecesesneeteeneeeceeseeseeneeseenseees 12 4 ta ORACLE 12 4 2 Interest Rate Fixing Advice to Participant for new Drawdown csssecssessesseeseeeesecneeeecuseeeeeseeseens 12 4 12 5 AD HOC FEE DUE NOTICE ccccccccececececececececececececececececececececececececscecececececececececececececeeececececececececesesessss 12 5 12 5 1 Ad hoc Fee Due Notice to BOrrOWETD u 1 scscsesesessscssssssecececececececececececececececececececececec
197. ettlement Message Details screen to do this Based on the sequence number for each borrower the system obtains the settlement details Click the Settlements button in the Loans Syndication Contract Input screen The Settlement Details screen is opened where you can specify the settlement details Settlement Details Reference Number Component Account Details Message Details Parties Parties CoverParties Other Details Clearing Details Local Clearing IBAN Account Number Settlement Details Currency Branch Account Account Currency DriCr Original Exchange Rate Exchange Rate lt Settlement Direction D Debit Component Description C Credit Signature Verification For details about the Settlement Message Details screen refer section Processing Settlements in the Settlements User Manual under Modularity DeF ORACLE 5 4 9 Specifying MIS Details Click MIS button in the Loans Syndication Contract Input screen to invoke the MIS screen This is a view only screen which provides a MIS details for a contract Contract Reference Number MIS Group Link To Group Input Floating Rate Related Reference Number Related Reference Rate Code Related Account purer Spread Related Account MIS Head Cost Code Rate At Rate Type Interest Method Poo
198. event e Due amount on the component for which accounting entries were booked as a result of processing the propagated borrower contract event e Rounding difference between the amount collected from the borrower due to the event that was processed and the amount disbursed to the participant e Difference between the asset ratio and the income ratio defined for the participant in the borrower contract in which the propagated event was processed 5 6 2 Specifying Interest Margins for Customers For each customer involved in contracts for loan syndication either as a borrower or as a participant you can indicate the margins for interest components applicable for such contracts You can specify the applicable interest margins in the Margin Maintenance screen vee ORACLE You can also invoke this screen by typing LNDRCMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Margin Maintenance Contract Details User Reference Contract Reference H Currency S Component laz lt Customer Number la Effective Date HAE Oa L Input By Authorized By Modification Authorized Date Time Date Time Number Open You must specify the combination for which the margin must be applicable in the Customer Contract Ref No Component fields In the Margin Rate field specify the interest margin to be applic
199. f the total loan principal in the following manner e Total syndicated loan principal 100000 USD in two tranches with a total tenor of six months Tranche contracts Mr Robert Carr s total syndicated loan principal is therefore required to be disbursed in two different sets of tranches as seen above The tranche involves a tranche from Mr Robert Carr as the borrowing customer as well as a tranche from your bank as the lead bank in the contract to disburse the loan after pooling together resources from any willing participants Each of the participants enters into a tranche contract committing to provide the funds as agreed For the first tranche wherein a principal of 50000 USD is to be disbursed your bank has now identified Brinsley Bank and Dayton Commercial Bank as potential sources from whom funding may be obtained to meet Mr Carr s borrowing requirement The funding load is proposed to be shared in the following pattern which is known as the ratio of participation e Your bank Participant 10000 USD e Brinsley Bank Participant 20000 USD e Dayton Commercial Bank Participant 20000 USD When you open the tranche in the system you input a borrower tranche for Mr Robert Carr When the BOOK event is triggered for the borrower tranche contract the system creates tranche contracts for your bank and for Brinsley Bank and Dayton Commercial Bank based on the borrower tranche contract Let us suppose that the
200. fault Moratorium Formula Formula Name Compound Months Compound Years Round Up Down decimal Rounding Factor decimal Expression 11 jm oe l comano D Resu comano romua O M The procedure is as explained for Intermediate and Booked formulae The following additional fields are also applicable for a moratorium formula Formula Name Here you specify a suitable name to identify the formula that you are defining After you specify the name you can define the characteristics of the formula in the subsequent fields You have to use the name captured here to associate a formula with a schedule The name can comprise of a maximum of 27 alphanumeric characters Moratorium Liquidation Formula The formula used for computation of interest for the moratorium period is called Moratorium Formula The Interest calculated using the moratorium formula should be liquidated for the lifetime of the loan by apportioning it across all the installments Therefore you need to maintain a formula for liquidating the moratorium interest Check this option to indicate that the formula being maintained is for Moratorium liquidation Liquidate Moratorium to Installment This option is applicable only if you are defining a Moratorium Liquidation Formula If you check this option the moratorium interest amount is added to the first installment amount and collected along with the schedule on the day the schedule falls due If
201. first tranche is booked on 15 January Let us suppose that the following Contract Reference Numbers are generated by the system for the contracts a ORACLE e Borrower Mr Carr Tranche OOOSNBC000150001 You enter this contract into the system after specifying the Facility Contract Reference Number of the main facility contract against which the first tranche is being opened which is OOOSNEW000010001 Participant Your Bank Tranche OOOSNPC000150001 This contract is created by the system when you the BOOK event is triggered for the borrower tranche contract OOOSNBC000150001 Participant Brinsley Bank Tranche OOOSNPC000150001 This contract is created by the system when the BOOK event is triggered for the borrower tranche contract OOOSNBC000150001 e Participant Dayton Commercial Bank Tranche OOOSNPC000150002 This contract is created by the system when the BOOK event is triggered for the borrower tranche contract 000SNBC000150001 For the second tranche wherein a principal of 50000 USD is to be disbursed your bank has identified South American Overseas Bank and Banco Milan as funding partners The ratio of participation is finalized as follows e Your bank 10000 USD e South American Overseas Bank 25000 USD e Banco Milan 15000 USD When you open the tranche in the system you input a borrower tranche for Mr Robert Carr When the BOOK event is triggered for the borrower tranche contract the system then creates tranche
202. following error message is displayed Input for component is not as per schedule frequency Case 2 Schedule structure is non frequency based If the schedule structure is non frequency based you can define schedules with contradicting end dates refer the schedule structure given in Case 1 above First Payment Schedule Gap Treatment Here you have to specify the manner in which you would like to treat the period gap between the loan disbursement date and the first payment The options are e Treat as Payment e Treat as Moratorium ay ORACLE Example Assume that you make a disbursement on 1 January and the first payment is due on 1 March This means that there is a gap of two months between the disbursement and the first payment schedule You can treat this gap either as a Payment schedule or a Moratorium schedule If you opt to treat it as a Payment schedule then during product creation you should define the payment schedule with the Schedule Flag being Normal You should also specify a separate formula for this schedule This is also done at the product level Similarly if the gap is treated as a Moratorium you should define a schedule with type Moratorium and also define a moratorium formula for the schedule Intermediate Schedule Gap Treatment Here you have to specify the manner in which the system should handle gaps between two schedules The available options are e Creat
203. h the rollover facility This can be indicated when processing the loan The rollover details for the borrower draw down product that you are defining can be specified in the Preferences button of the Loan Syndication Product screen You can invoke the screen Loan Syndication Product screen by typing LSDPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button P ORACLE 8 3 Preferences x Product Code Rate Account Preferences Rate Normal variance Maximum Variance Description Account Preferences Holiday Preferences Liquidation Liquidation Mode Allow Partial Liquidation a Rate Plan Change Frequency Tenor Unit Rate Type STANDARD es fi ts Reset retry count for Rate Plan Window Middle Rate Middle Rate reversed auto liquidation menue Buy Sell Retries Auto Liquidation Day ie Rate Account Preferences Pass Book Facility Track Receivable Auto Atm Facility Liquidation e Liquidate Back Valued es Cheque Book Schedules Amend Past Paid Schedule 3 Interest Statement Back Period Entry Allowed Packing Credit Product Limits Product Special Interest Accrual CL Against bill Schedule Basis Product Notice day Basis Contract v lt gt to tiad You define the rollover preferences for a borrower loan product in the same manner as you would for a normal loan product For details refer the section Rollover Preference
204. he Borrower Drawdown Contracts Summary screen by typing LSSBWRDR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Borrower Drawdown Contracts Summary x al Authorization Status vij PS Contract Status S Contract Reference a Product az Currency az Tranche Reference Number EHI i Search Advanoed Search Reset j Records per page Ja of a I NGF mi an E Y a a k Pi s zz oO Authorization Status Contract Status Contract Reference Product Currency Tranche Reference Number Counterparty Amount D lt iv Detailed Participant Drawdown Summary Authorization Status Contract Status A Authorised Active U Unauthorised H Hold V Reversed L Liquidated Yet to be Initiated P ORACLE 5 8 1 4 Viewing Participant Contracts Entered under Main Borrower Facility Contract To view a summary of participant facility contracts created under a borrower facility contract click the Participant Drawdown Summary button in the Borrower Drawdown Contracts Summary screen The Participant Facility Contracts Summary screen is opened listing all active participant facility contracts created under the selected borrower facility contract You can also invoke this screen from the application browser in which case it will display a list of all active participant facility contracts under each borrower f
205. he Report The contents of the Drawdown Interest Due report are discussed under the following heads oe ORACLE Header of the Report The Header carries the title of the Report information on the branch code the branch date the user ID the module name the date and time at which the report was generated and the page number of the report Body of the Report The following details of the participants will be displayed in this report Facility Ref The Contract Reference Number of the borrower facility contract No main syndication contract finalized between the borrowing customer and one or more participants Tranche The Reference Number of the borrower tranche under which the Ref No drawdown loan contracts is initiated Drawdown The request ID number for the drawdown loan contract No Filter field User Ref The User Reference Number No Borrower The ID of the borrower ID Base This is the currency in which the borrower tranche contract amount is Currency defined Borrower The name of the borrower Name Component The name of the interest component that is applied to the borrower Name leg as well as the participant leg contracts Base This is the name of the currency in which the Interest Amount is Currency specified This could be the local currency or the contract currency Name Drawdown The date on which each draw down loan defined under the borrower date tra
206. he accounting entries to the appropriate account heads and generate the required advices When setting up a product you can define the accounting entries that have to be posted and the advices that have to be generated at the various events in the life cycle of loans involving the product Therefore for the required events you have to specify the Accounting entries Charges Policies and Advices To do this click the Events button in the Loan Syndication Product screen the following screen is displayed on ORACLE Events Product Code Product Description Class Details Class Code Class Description Events 10f1 Bf Encase Po vesaer T Event Code and Event Description These are the events for which the accounting entries advices policies and charges will be maintained individually The event codes applicable for the module are available in the option list provided Select the relevant events for the product from this list The description for the event chosen is also displayed For a commitment product the following events are used e LINK e DLNK e CLOC The following events should not be maintained for a commitment product e BADJ e CLOS e REOP e RNOG e ROLL e SROL ai ORACLE e YACR e NOVA e REVV e REVL 4 3 7 3 Accounting Entries To define accounting entries for an event click the Accounting Entries button in the Events screen the Product Even
207. he borrower facility contracts initiated at your bank whose maturity date falls within the specified date range Tranche Ref No The Reference Number of the borrower tranche under which the drawdown loan contracts is initiated User Ref No The User Reference Number Facility Name The name of the facility contract used to process the facility contract Tranche The name of the tranche contract used to process the facility Name contract Customer Name of the borrower in the tranche contract to which each of the Name drawdown loan contract is linked Counterparty The name of the counterparty Contact ID The contact ID of the borrower Address The address of the entity selected for the entity 13 57 ORACLE 14 Screen Glossary 14 1 Function ID List The following table lists the function id and the function description of the screens covered as part of this User Manual Function ID Function Description CFDADFEE Ad hoc Charges CSDADMIN Administrator Maintenance CSDDIAEV Diary Event Maintenance CSDDRYMS Diary Event Message Linkage CSDDRYST Contract Diary Event Status CSDPARDF Party Type Maintenance LLDSPMNT Self Participant Maintenance LLSCOAMT Participant Contract Liquidation LLSPRTTR Participant Tranche Contracts Summary LNDCONON Loan Syndication Contract Input LNDPRMNT Facility Product
208. he maturity date backward or forward You can indicate whether the maturity date falling on a holiday must be moved forward to the next working day or backward to the previous one Moving across months If you have indicated either forward or backward movement of the maturity date such that the moved maturity date crosses over into a different month you need to indicate whether such a movement can be allowed Check this option to indicate that it is allowed Maturity Holiday Currency You need to specify the holiday currency the system must check against when applying the maturity date of the facility product Select a holiday currency code from the option list provided You also need to indicate the currency categories the system must check against for applying the maturity date e Facility currency If you choose this option the system checks whether the maturity date should be based on the holiday defined for the facility currency in case the holiday currency maintained is different from the facility currency e Local currency If you choose this option the system checks whether the maturity date should be based on a holiday defined for the local currency if the local currency is different from the holiday currency facility currency and contract currency you have indicated The system checks the holiday table for the currencies you have specified If it encounters a contract using any of the specified currencies with a maturity d
209. he policy is executed appropriately To ORACLE For details on maintaining policy details refer the section titled Maintaining User Defined Policies in the Maintenances and Operations chapter of this User Manual 4 3 5 11 Schedule Preferences In the Component section of the screen you need to maintain the applicable schedule details for each component Sequence Number You can define more than one schedule for a component The sequence number determines the order in which the individual schedule should be applied on a component For instance you can define a schedule structure consisting of a moratorium schedule and a normal schedule The moratorium schedule if defined for a component should necessarily be the first schedule You cannot have moratorium schedules in between normal schedules Type This is the kind of schedule you want to define The options are e Payment This is used to define a repayment schedule You can capitalize a payment schedule If the Capitalized option under Component Definition is checked the Capitalized option at the schedule level will also be checked for payment schedules You can however uncheck check this option for a schedule e Disbursement You can maintain a disbursement schedule for loan disbursal if the Disbursement Mode is automatic this is maintained on the Preferences tab For auto disbursement you have to maintain at least one disbursement sch
210. heck in Batch Indicate whether the balance check is required for the batch operations online processing The options available are e Reject The transaction is rejected if there is insufficient fund to process the transaction e Delinquency Tracking The transaction is processed If you have specified delinquency tracking for the accounting entries the tracking is done according to the parameters you have defined for the Delinquency Product e Force Debit The transaction is processed However no delinquency tracking is done even if the account goes into overdraft ae ORACLE e Partial Liquidation The transaction is processed If you have specified partial delinquency the system liquidates upto the available amount and the delinquency tracking is done on the remaining amount only Delinquency Product In case you have specified delinquency tracking for balance check type you need to specify the delinquency product under which the entry is tracked The option list displays all the delinquency product codes maintained in the Oracle FLEXCUBE Select the appropriate from the option list Settlement This field is used to settle the amount If it set as yes while doing settlement system uses the Account during amount settlement If it is no it will use default account which is mapped in role to head 4 3 7 4 Advices for Event You can select the advices that should be triggered for various events These advices can b
211. hich case a list of active participant tranche contracts under each borrower tranche contract is displayed Participant Tranche Contracts Summary x Authorization Status yi Contract Status w fee Contract Reference Number az Product Code az Counterparty Amount EH Currency Participant Facility Reference Number EH Participant Tranche Reference Number Borrower Tranche Reference Number Search J Advenced Search i Reset Records per page Ja of 1 j l o Authorization Status Contract Status Contract Reference Number Product Code Counterparty Amount Currency Participant Facility Semm gt Detailed Drawdown Authorization Status Contract Status A Authorized A Active U Unauthorized H Hold V Reversed L Liquidated Yet to be Initiated e To view a summary of participant draw downs created for a borrower tranche contract select the contract in the grid and then click the Drawdown button e To view a participant tranche contract from the grid simply double click it or select it and click the Detailed button 5 8 1 6 Viewing Summary of Participant Draw Down Contracts To view a summary of participant draw down contracts entered under a borrower tranche contract select the contract in the grid in the Participant Tranche Contract Summary screen and then click the Drawdown button The Participant Drawdown Contract Summary screen is opened displaying a list of par
212. his arrangement forms the first tranche under the syndication contract You will need to define products for the tranche contracts of the borrower and commitments for the two participants You will need to define products with the specific attributes required for each tranche For instance for the tranches you would need to create products for the tranche contracts You could create the following products e _ BSFT for tranche borrower commitment contracts e PSFT for tranche borrowing line participant contracts These products could have similar attributes as the product BSFT To meet the borrowing requirement of the second tranche your bank has again approached the Far East Bank of Commerce and Gold Crest Bank to create a pool of funds to disburse the tranche amount This arrangement forms the second tranche under the syndication contract Draw Down Products Let us suppose that Mrs Crenshaw proposes to avail the actual draw down loans from each tranche in the following pattern a ORACLE 4 2 2 Tranche One e 15000 USD on 30 June e 20000 USD on 31 July e 15000 USD on 31 August Tranche Two e 20000 USD on 30 September e 20000 USD on 31 October e 1000 USD on 30th November You will need to define products for the draw down loan contracts of the borrower and the participants of the tranche and deposit contracts for the two participants You will need to define products with the specific attributes required for e
213. ich the report is printed Select a branch from the option list provided e The Message Group Select a group from the option list provided e The Counterparty Type either Bank Transfer or Customer Transfer e The Unconfirmed Days that is the number of days up to which the contracts are not confirmed Enter a value e The Date for which the report is printed Enter a date 13 31 2 Contents of the Report The contents of the FX Unconfirmed Contracts Report are discussed below Message Group This is the Message Group for the Contract Record s Counterparty Reference Number Counterparty This is the Contract Record s Counterparty Counterparty This is the Customer Record s name for the Contract Record s Name Counterparty ORACLE This is the Contract Record s Reference Number FLEXCUBE Custom Reference Number This is the Contract Record s Custom Reference Number Trade Date This is the FX Contract Record s Trade Date Value Date This is the FX Contract Record s Bought Value Date or Sold Value Date whichever is later Buy Currency This is the FX Contract Record s Bought Currency Buy Amount This is the FX Contract Record s Bought Amount Sold Currency This is the FX Contract Record s Sold Currency Buy Amount This is the FX Contract Record s Bought Amount Deal Rate This is the FX Contract Record s Exchange Rate Our Receive Thi
214. icipant Brinsley Bank Deposit OOOSNPDO00900002 As explained earlier e Participant Dayton Commercial Bank Deposit OOOSNPDO000900003 As explained earlier Tranche Two First Draw Down Loan 30th April e Borrower Mr Carr Draw Down Loan 0OOOSNBLO001200001 As explained earlier for tranche two e Participant Your Bank Deposit OOOSNPD001200001 As explained earlier e Participant South American Overseas Bank Deposit OOOSNPD001200002 As explained earlier e Participant Banco Milan Deposit OOOSNPD001200003 As explained earlier Tranche Two Second Draw Down Loan 31 May e Borrower Mr Carr Draw Down Loan 0O0OOSNBL001510001 As explained earlier for tranche two e Participant Your Bank Deposit OOOSNPD001510001 As explained earlier e Participant South American Overseas Bank Deposit OOOSNPD001510002 As explained earlier e Participant Banco Milan Deposit OOOSNPD001510003 As explained earlier Tranche Two Last Draw Down Loan 30 June e Borrower Mr Carr Draw Down Loan 0OOOSNBLO001810001 As explained earlier for tranche two e Participant Your Bank Deposit OOOSNPD001810001 As explained earlier e Participant South American Overseas Bank Deposit OOOSNPD001810002 As explained earlier e Participant Banco Milan Deposit OOOSNPD001810003 As explained earlier 7 ORACLE 5 3 Products for Loan Syndication Contracts A product is a specific service scheme or fac
215. id of the borrower specified in the Tranche contract 32A Original M Field The value date Facility and Amount Amount specified in the Syndication contract to which the present Tranche is attached 23 Type of Fee M Field The Fee component as described by the user in the charge definition screen of the Participant Product 31F Fee Period M Field The Value date of Fee Liquidation 34B Fee Amount M Field Fee Credited to the Customer 33A Total Fees M Field Fee Credited to the Customer 72 Sender to O Field The Sender to Receiver Receiver Information at Information Settlement maintained in the Instructions Settlement Instructions 11 6 ORACLE 11 1 3 2 MT 645 A Sample Sample MT645 Message 1 FO1 AMBKWASHIXXX11111111114 2 1645JARDINEFXXXXN 4 20 000LNCP010010018 21 88D IBNINO1 32A 19900101USD1000000000 23 Syndication non rev fees 31F 2001 123120011231 34B USD600 33A 600 72 PHON 11 1 4 SWIFT Tags and Oracle FLEXCUBE Fields Linkage MT 646 11 1 4 1 Payment of Principal and or Interest SWIFT Field Name Mandatory Field Field FFT Code Tag M Optional FFT name in Oracle O Code FLEXCUBE 20 Transaction M Field Contract Reference reference Number Number 21 Related O Field Related Reference Reference Number if specified in the contract 23 Type of M Field The type of transaction transacti
216. ies the borrower facility contract in the system It is generated by the system automatically for every borrower facility contract The system combines the following elements to form the Contract Reference Number e The branch code 3 digit code e The product code 4 digit code e The value date of the borrower facility contract in 5 digit Julian format e A running serial number for the booking date 4 digits Example For instance if you are entering the facility contract with Mr Robert Carr as in our previous example the Contract Reference Number generated by the system was OOOSNEW000010001 e The first three digits are the code of the branch of your bank where the contract was entered into the system e SNEW is the code of the borrower facility product that you have set up against which you are entering your facility contract with Mr Robert Carr e 00001 refers to January 1 2000 in Julian format when the contract was booked see example given below to understand how the Julian date is interpreted e 0001 is a running serial number incremented by 1 for each contract entered on the booking date for the product code and the booking date combination The Julian date is expressed in the following format YYDDD Here YY represents the last two numerals of the year and DDD the number of elapsed days in the year a ORACLE Example For instance 00059 in Julian format would mean the 28 of February 2000 Here 00 st
217. ific drawdown if the product type is selected as Drawdown in this case the reference number of the facility contract and the tranche contract under which the selected drawdown is booked will also be displayed You can invoke this screen by typing LSRDDBRC in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Drawdown Borrower Contact Detail Drawdown Reference 13 11 2 Contents of the Report The contents of the Drawdown Borrower Contact Detail report are discussed under the following heads Header of the Report The Header carries the title of the Report information on the branch code the branch date the user ID the module name the date and time at which the report was generated and the page number of the report eat ORACLE 13 12 1 Body of the report The details of the borrower that would be displayed in the report are as follows Facility Ref No Filter field The Contract Reference Number of the main borrower facility contract under which the tranche linked to the drawdown contract is initiated Tranche Ref No Filter Field The Reference Number of the borrower tranche under which the borrower drawdown contract is initiated Drawdown Ref No Filter Field The Reference Number of the drawdown loan contract initiated under the tranche contract User Ref No The User Reference Number Facility Name The nam
218. ifications would default to any borrower facility contract using the product and also to underlying borrower tranche or draw down contracts that are opened under the facility contract You can make changes to the specifications defaulted from the borrower facility product and specify that e Holidays must be ignored OR e Checks must be made for schedule dates falling on holidays If you specify that checks must be made you can also specify the corresponding treatment for schedule dates falling on holidays The system checks the holiday table for the currencies you have specified If it encounters a contract using any of the specified currencies with a schedule date falling on a holiday for any of the currencies the holiday is handled according to the holiday handling preferences you specify ORACLE 5 14 Holiday Currency Currency Select the type of currency you want to use The options are e Facility Currency e Local Currency e Holiday Currency If you have specified that the system check for schedule dates falling on holidays you must also specify the treatment for schedule dates encountered by the system that do fall on holidays The following preferences can be set Moving the schedule date backward or forward You can indicate whether the schedule date falling on a holiday must be moved forward to the next working day or backward to the previous one Moving across months If you have indicated either forward or backwa
219. ified for the rolled over contract will be reckoned in the Roll By field The options are Days Months Quarters Semi annuals and Years If you specify the days maturity basis and do not specify the maturity days the system rounds the tenor of the original contract to the nearest maturity days basis The rounded tenor is considered as the new tenor of the rolled over contract Example For a draw down loan the value date of the original contract is 1 April 2001 and the maturity date is 15 March 2002 The maturity basis Roll By option is Months and no maturity days have been specified The maturity date for the rolled over contract is arrived at as follows Tenor of the contract Rounded off number of months between 15 March 2002 and 1st April 2001 11 Maturity date of the rolled over contract 15 March 2002 Tenor 15 March 2002 11 15 February 2003 If the maturity basis for the same contract would have been Months and the maturity days is 10 the maturity date of the rolled over contract would be computed as Maturity date of rolled over contract 1 5 March 2002 maturity days taken in terms of the maturity basis 15 March 2003 10 months 15 January 2003 Specifying the Refinancing Rate You need to specify the refinancing rate for the rolled over contract Specifying the Margin for the Interest Basis You need to specify the margin for the corresponding component
220. ility that you make available to customers For instance the facility of a syndication agreement between your bank and other banks or financial institutions for the purpose of pooling funds to disburse loans is a specific service you could offer This service can be thought of as a product Similarly the facility of availing loans through a draw down from any of the tranches under the borrower facility contract is another specific service that you offer to customers This could also be thought of as a product In Oracle FLEXCUBE a contract is entered into the system against a product and is specific to a customer For instance a draw down loan for a borrowing customer under a tranche of a borrower facility contract is entered into the system against a borrower leg draw down loan product Defining a product simplifies the process of entering a contract since you can define certain attributes for a product that will be applied to all contracts entered against the product automatically saving your effort to specify them afresh each time you input a contract When Oracle FLEXCUBE processes the contract it will apply all the attributes and specifications made for the product against which the contract was entered You can enter more than one contract against a product Before you enter any contracts for a facility contract whether the main contracts or the tranches or loan contracts you should have already defined the following products
221. ined Reference under a tranche of the main syndication contract Number Drawdown This is the schedule number of the drawdown defined under a tranche Schedule No of the main facility contract Sort field Drawdown This is the drawdown amount Amount Drawdown Date The date on which each draw down loan under the tranche will be requested by the borrower based on the syndication contract Maturity date The date on or before which all drawdowns under a tranche are scheduled to mature expire 13 12 ORACLE Borrower Name of the borrowing customer for each drawdown contract defined under a tranche The report also gives the totals of all the drawdown loan amounts under the tranche 13 7 Drawdown Interest Due Report The participants in a syndication contract share the interest in the ratio of their participation that was agreed upon at the time of entering the tranche You can get the details of the projected future interest allocation per participant in the Drawdown Interest Due Report 13 7 1 Selection Options You can generate this report to obtain the interest due on e A specific drawdown or e All drawdowns disbursed at your bank till date You can invoke this screen by typing LSRPDDID in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Drawdown Reference Settlement Due 13 7 2 Contents of t
222. ing Contract Reference Numbers are generated for the loans and the contracts for the participants Tranche One Draw Down Loan e Borrower Mr Carr Draw Down Loan OOOSNBL000310001 You enter this contract into the system after specifying the Facility Contract Reference Number of the main borrower facility contract against which the tranche was being opened which is OOOSNEW000010001 as well as the Contract Reference Number of the borrower tranche contract against which the draw down loan is being entered which is OOOSNBC000150001 e Participant Your Bank Deposit OOOSNPD000310001 This contract is created by the system when the BOOK event is triggered for the draw down loan contract OOOSNBL000310001 e Participant Brinsley Bank Deposit OOOSNPD000310002 This contract is created by the system when when the BOOK event is triggered for the draw down loan contract OOOSNBL000310001 e Participant Dayton Commercial Bank Deposit OOOSNPD000310003 This contract is created by the system when when the BOOK event is triggered for the draw down loan contract 000SNBL000310001 Therefore the relationship of the draw down contracts under the first tranche can be seen below using our example za ORACLE Main Syndication Contract OOOSNEW000010001 Tranche One First Draw Down Tranche Reference Number Borrower Contract 000SNBC000150001 M Draw Down Loan Contract Borrower 000SNBL000310001 Participant Deposit Contracts 000S
223. ion The Value Date could be e A past date e The application date e A Future Date You make value dated changes to a borrower tranche or draw down loan contract in the same manner as you would for a normal commitment or loan contract Only those aspects that apply specifically to borrower tranche or draw down loan contracts are explained in this chapter Any changes that you make to a borrower tranche will be automatically applied to the participant leg commitment contracts Similarly any changes made to a borrower draw down loan contract are automatically applied to the participant leg draw down contracts Making Value Dated Amendments for a tranche Using the Value Dated Changes function you can make changes to different components of a borrower tranche contract e The maturity date e Tranche Fee rate e Charge amount or waiver Any changes to any of these components will be automatically applied to the participant leg tranche contract under the tranche You can also enter values for any component that was not used at the time of entering the borrower tranche contract or draw down loan contract ad ORACLE You can enter value dated changes to a borrower tranche in the Tranche Value Dated Amendments screen You can invoke this screen by typing LSDTRAMD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Tranche value Dated Amendment x Branch
224. ions must be done to arrive at the Interest Rate Fixing Date Notification Holiday Currencies You need to specify the list of currencies for which holiday validations must be done to arrive at the drawdown notice date wor ORACLE 5 5 5 5 Defining schedules for non revolving tranches In the case of non revolving tranches under a borrower facility contract the cumulative outstanding draw down amounts would need to be reduced when prepayments are made You can define schedules for this purpose in the Components Tab of the Tranche Details screen Account Details Branch Product Category Contract Status Account Number Application Number Alternate Account Number Facility Reference Product P User Reference Main Rollover Amendments Account Details Default CheckList Fields Components Charges Linkages Advice Tranche Swift Message Details D Description Penal Basis Comp Component Currency Service Branch Special Interest Amount Service Account Settlement Currency Credit Mode Details Debit Mode Details Component Type Debit Payment Mode Formula With Schedule v CrPaymentMode CASA v Disbursals O Waive O Special Interest Revisions E Main Component C Funded
225. ipants Customer The number and name of the borrowing customer with whom Borrower you have finalized the syndication contract No Name Facility Start Date The date on which the main syndication contract is initiated in the system Facility Ref The value date and Amount specified in the Syndication No Amount contract to which the present tranche is attached No Of O S The number of outstanding drawdowns under the facility Active The status of the facility contract active matured Loan The unique ID assigned to the name the administrator of the Administrat tranche or drawdown contract or 13 17 Borrower Facility Detail Report In the case of a syndication contract the entities involved in a contract are the borrowing customer the lead agent and the participants for any tranche of the agreement You can view the details of the borrowing customer with whom you have finalized the syndication contract through this report This reports describes the borrower details under the following search criteria 13 17 1 e The type of customer whether he is a borrower or a participant e The facility Reference number for which borrower facility details have to be obtained If you select the ALL option the fee details for all the facility contracts will be included in the report Contents of the Report The contents of the borrower report have been discussed below Body of the Report
226. is is the MM Contract Record s Product Type Trade Date This is the MM Contract Record s Trade Date Value Date This is the MM Contract Record s Value Date Maturity Date This is the MM Contract Record s Maturity Date Ia ORACLE Amount This is the MM Contract Record s Amount Deal Currency This is the MM Contract Record s Deal Currency Interest Rate This is the MM Contract Interest Record s Interest Rate 13 37NPV Handoff Exceptions Report This report gives 2 kinds of exceptions which would have occurred during the NPV handoff e The first section lists all the FX contracts on FLEXCUBE yet to mature but not present on the NPV handoff e The second section lists all contracts that are present in the NPV handoff but are not present in FLEXCUBE The report is printed daily as part of the batch process 13 37 1 Selected Options You can configure this report to display details of NPV Handoff Exceptions Report You can generate the report based on the following criteria e This is the Branch for which the report is printed Select from the option list provided e This is the Date for which the report is printed Enter a date 199 ORACLE 13 37 2 Contents of the Report The contents of the NPV Handoff Exceptions Report are discussed below Reference This is the Contract Record s Custom Reference Number Number Customer This is the Contract Rec
227. is the Reference Number of the tranche under which drawdown loan contracts are initiated Draw Down ref This is the contract reference number of the drawdown that is No defined under a tranche of the main syndication contract Event Seq No The sequence number of the drawdown loan under a tranche Event Description The description of the draw down loan under a tranche Diary Details The diary event that is allowed for the facilities 13 25Fiscal Documentation Diary Detail Report All the details for the fiscal diary detail will be recorded in the user defined fields for the diary events You can generate the documentation details report to view the documentation diary details applicable for facilities You can get the Fiscal Documentation Diary Detail Report based on the following criteria e The customer for the contract whether the customer is a borrower or a participant e The product type of the loan Select the type facility tranche or Drawdown ee ORACLE e The document received over a specific period i e the From and To dates 13 25 1 Contents of the Report The contents of the fiscal documentation diary detail report are discussed under the following heads Header of the Report The following fields will be displayed in the header of the report Status Actioned The status of the facility contract whether it is active Unactioned Both matured or both Facility Ref N
228. ity Events MIS Settlements Fields Diary LS iB Date Time IE Authorized 5 75 Branch CHO Contract Details Reference Humbers Customer 7878787 Facility Reference Number CHOMURF001850006 Description BM Tranche Reference Number CHOLSD1001850013 Currency USD Drawdown Number Description U S DOLLAR JIZ Auto Collection Amount 25 JF Auto Disbursement Booking Date 7 3 2000 Reporting Details Value Date 7 4 2000 A usp mount 95 Maturity Date 7 4 2001 Remark ORACLE 6 1 6 2 6 Processing Repayments Repayments When you disburse loans to a borrowing customer through a draw down loan contract against a tranche under a borrower facility contract you also define the terms according to which the loan components will be repaid You can define your own repayment schedules For instance you could choose to have the principal repaid at maturity with the interest component being repaid monthly You could also define the repayment terms to suit your customer In Oracle FLEXCUBE you can define the repayment schedules when you define a product They will be applied to any contracts involving the product If you need to change the schedule for a specific contract you could do so Repayments in the context of a syndication contract involve liquidation of the following components For tranche contracts e Interest Charge applicable e Ad hoc fees For draw down contracts e Loan Principal e Interest Charge applicable
229. l ai Schedule Basis Product Notice day Basis Contract You set up the general preferences for a borrower tranche or draw down product in the LS Product Preferences screen in the same manner as you would for a normal commitment product or loans depending upon the product type you have specified in the Loan Syndication Borrower Product Definition screen Refer the Retail Lending User Manual for a detailed description In this section we will discuss only those preferences that are specifically used by borrower tranche or drawdown products 4 3 2 1 Rate Preferences The exchange rate preferences include the following Normal Variance You also need to specify the minimum normal variance allowed for the rate If the exchange rate variance between the exchange rate specified for the product and the rate captured for a loan exceeds the value specified here the system will display an override message before proceeding to apply the exchange rate The normal variance should be less than the maximum variance For back valued transactions the system applies the rate on the basis of the exchange rate history The variance will be based on the rate prevailing at that time k ORACLE Maximum Variance When creating a product you can capture the maximum limit for rate variance This is expressed in percentage The variance between the exchange rate specified for the product and the rate captured for a loan at the account lev
230. l Borrower Facility Detail Ad hoc Fee Detail Report Participant Ad hoc Fee Report Facility Tranche Volume Detail Report Facility Utilization Detail Report Syndication Volume Detail Report Participant Transfer Detail Report Fiscal Diary Report Fiscal Documentation Diary Detail Report New Base Records Report FX Unconfirmed Analysis 1 Day Report Outstanding FX Contracts Report 13 1 ORACLE e Outstanding FX Contracts with NPV Profit Loss Report e MM Unconfirmed Contracts Report e FX Unconfirmed Contracts Report e Comfort Potential Errors Report e FX Summary Report e MM Summary Report e FX Contracts Cancelled Report after Cable Sent Report e MM Contracts Cancelled Report after Cable Sent Report e NPV Handoff Exceptions Report e Reversed MM Contracts Report Each of the above reports is discussed in detail in the following sections of this document 13 2 Participant Drawdown Contribution Report The banks or financial institutions that pool funds to meet the borrowing requirements of customers along with the syndication agency are known as participants This report gives the details of all the participants involved in disbursing the loan and the amount contributed by each participant towards the drawdowns 13 2 1 Selection Options You can indicate preferences for the generation of the report The contents of the report will be determined by the preferences that you indicate You can invoke this screen by typing
231. l Code Pool Code Contract Level Reference Rate Transaction MIS Code Composite MIS Code Funds MIS Code MIS Group lt Ra o Amendment Rate Change Log Balance Transfer Log Exit For more details on this screen refer section Defining MIS details for an account or contract in the chapter Defining MIS Details for a Customer Account Class Account Product and Contract in the Management Information System User Manual 5 4 10 Specifying Adhoc Charges Click Adhoc Charges button in the Loans Syndication Contract Input screen to invoke the Adhoc Charges Schedule screen This is a view only screen which provides the Adhoc charge schedule details for a contract Ad hoc Charges Schedules Contract Reference User Reference Schedules ol I vie ORACLE The following details are defaulted Contract Reference The contract reference number is defaulted here User Reference The user reference number of the contract is defaulted here Schedules The following schedule related details are defaulted e Component e Due Date e Amount Due e Amount Settled e Currency e Status 5 4 11 Viewing Diary Events The diary events defined for the contract can be viewed in the Contracts Diary Events Summary screen which can be invoked by clicking the Diary button in the Loan Syndication Con
232. la FirstDue Date Schedules Frequency Unit DueDateOn EndDate Amount EMiAmount Compounds Days Compounds mela E Schedule Number Due Date Amount Settied Amount Due EMI Amount Amort Prin Accrued Amount Capitalized MIS GL Balance Events Contracts Diary Borrower Participant Drawdown Product Party Type Currency J Exchange Rate Details Entity Authorized By Date Time Contract Status Bl Authorized Process Status oe ORACLE 6 3 1 6 3 1 1 Click Components tab to define schedule details The schedule payment type that is defined for a draw down loan product capitalized or normal is inherited by all draw down loan contracts involving it This attribute cannot be changed when you enter a draw down loan contract The manner in which you specify the attributes for repayment schedules for a draw down loan contract is the same as for a normal loan contract For a detailed description refer to the chapter Operations in the Retail Lending user manual Only those aspects of specifying attributes for repayment schedules that are specific to borrower tranche or draw down contracts are explained in this chapter Specifying how schedules falling on holidays must be handled Schedule dates for a contract could fall on holidays defined for your branch or on holidays defined for the currency of the contract In the Product Preferences for the borrower facility product you can specify whether the system sh
233. lated to syndicated facilities for which no specific messages has been defined 11 1 1 SWIFT Tags and Oracle FLEXCUBE Fields Linkage MT 643 11 1 1 1 Notice of Draw Down Renewal SWIFT Field Name Mandatory Field Field FFT Code name in Tag M FFT Code Oracle FLEXCUBE Optional O 20 Transaction M Field Contract Reference Number reference Number 21 Related O Field Related Reference Number if Reference specified in the contract 23 Further M Field Syndication Contract Identification reference to which the present tranche is attached 88D Borrower M Field CIF id of the borrower specified in the tranche contract 32A Original M Field The value date and Amount Facility specified in the Syndication Amount contract to which the present tranche is attached 26N Drawing M Field The Draw Down Currency and Identification number specified in the LS Draw Down schedules Screen 11 2 ORACLE SWIFT Field Name Mandatory Field Field FFT Code name in Tag M FFT Code Oracle FLEXCUBE Optional O under Borrower leg contract 31F Draw Down M Field The draw down date and Period tenor specified in the LS Draw Down schedules Screen under Borrower leg contract The end date of the draw down is arrived at using the draw down date and tenor 32B Amount of M Field The Amount specified in the Draw Down LS Draw Down schedules Screen under Borrower leg contract 33B Receiver s M Field The Amount arrived u
234. ll la Promotions Promotion Type Promotion Id Beneficiary Priori lt gt Account Statistics Component Name Expected Overdue Outstanding Advance Compensation Coy SS S DODO O POD SODO SE DE DO MIS GL Balance Events Contracts Diary Borrower Partici nt Drawdown Product Pa T Currency Exchange Rate Details Enti p Evert Cerone en CAAA er Input By Date Time Authorized By Date Time Contract Status WB authorizes Process Status The following details are displayed e Name of the product e Counterparty Id and Name e Contract Reference Number e Start date of the drawdown e Currency of the drawdown e Reference Number of the facility under which the tranche is processed e Number of drawdowns processed under the tranche The Amendment tab will display the following e Current Principal e Current Maturity Date To make an amendment select the reference number of the drawdown you wish to amend and then click the Unlock button to unlock the same Alternatively you can also select Unlock from the Actions Menu ae ORACLE 9 3 1 Modifying maturity date Specify the new maturity date for the drawdown as per you requirement You can extend the maturity date to a later date or decrease the maturity date to an earlier date The date should be specified in the DD MMM YYYY format In the case of cross currency draw downs a change in the maturity date will repopulate the schedules
235. llowed to define Fee Notice Advice for this event MLIQ ALIQ You can associate the Principal or Interest Payment MT646 for this event 10 1 3 Participant facility tranche or draw down product Dr Cr Event Accounting Role Amount Tag Dr INIT CUSTOMER PRINCIPAL 3 ORACLE Dr Cr Event Accounting Role Amount Tag Cr INIT SYN_POOL PRINCIPAL Dr LIQD SYN_POOL PRINCIPAL_LIQD Cr LIQD CUSTOMER PRINCIPAL_LIQD Dr LIQD SYN_POOL iccf_component_LIQD Cr LIQD CUSTOMER iccf_component_LIQD Dr ROLL SYN_POOL PRINCIPAL_LIQD Cr ROLL CUSTOMER PRINCIPAL_LIQD Dr ROLL SYN POOL iccf_component_LIQD Cr ROLL CUSTOMER iccf_component_LIQD Dr ADCH SYN_POOL adhoc_fee_component_ADCH Cr ADCH CUSTOMER adhoc_fee_component_ADCH Dr RNDP SYN_POOL PRINCIPAL Cr RNDP SYN_RNDINC PRINCIPAL Dr RNDP SYN_POOL PRINCIPAL_LIQD Cr RNDP SYN_RNDINC PRINCIPAL_LIQD Dr RNDP SYN_POOL PRINCIPAL_ADDL Cr RNDP SYN_RNDINC PRINCIPAL_ADDL Dr RNDP SYN POOL Iccf_component_LIQD Cr RNDP SYN_RNDINC Iccf_component_LIQD Dr RNDP SYN_POOL Adhoc_fee_component_ADCH Cr RNDP SYN_RNDINC Adhoc_fee_component_ADCH Dr RNDL SYN_RNDEXP PRINCIPAL Cr RNDL SYN_POOL PRINCIPAL Dr RNDL SYN_RNDEXP PRINCIPAL_LIQD Cr RNDL SYN_POOL PRINCIPAL_LIQD 10 4 ORACLE
236. llowing facilities e A checkbook facility determines if Checks can be written against the Loan account e A passbook facility indicates that Passbook can be issued to the loan account holder e An ATM facility makes the Loan account accessible for ATM operations By default all the above facilities are allowed for a loan account product Amend Past Paid Schedule This option if checked allows you to perform value dated amendments to interest rate installment amount etc with effective date beyond the last paid schedule In such a case the increase decrease in the interest amount as a result of the amendment will be adjusted against the next available schedule after the current system date date on which the amendment was performed even if unpaid overdue schedules are present for the loan Liquidate Back Valued Schedules If you select this option on initiation of a back value dated loan all the schedules with a due date less than the system date will be liquidated Back Period Entry Allowed This option facilitates back valued transactions If you select this option you will be allowed to process transactions with a value date less than the current system date Specifying the notice days basis You can indicate whether the notice days applicable for borrower draw down contracts using the product must be defaulted from the product preferences or from the parent tranche or facility contract The notice days refe
237. ls for e A specific drawdown or e All drawdowns disbursed at your bank till date The contents of the participant drawdown repayment detail report are discussed under the following heads 13 8 1 Contents of the Report Header of the Report The following fields will be displayed in the header of the report Facility Ref The Contract Reference Number of the borrower facility contract No main syndication contract finalized between the borrowing customer and one or more participants Customer The number and name of the borrowing customer taking part in the Borrower drawdown loan contract under a borrower tranche No Name Tranche Ref No The Reference Number of the borrower tranche under which the drawdown loan contracts is initiated Component The name of the interest component that is applied to the borrower Name leg as well as the participant leg contracts Base This is the currency in which the borrower tranche contract amount Currency is defined Currency This is the name of the currency in which the Interest Amount is Name specified This could be the local currency or the contract currency Drawdown The date on which the draw down loan defined under the borrower date tranche is requested by the borrower based on the main borrower facility contract Maturity Date The date on or before which all tranches and drawdowns under the borrower facility contract is scheduled to mature
238. marks Currency Paricipants Borrowers Pari Type settements is aanoc Charges ary evens Fis Input By Authorized By Contract Authorized Date Time Date Time Status Throughout our discussion of how borrower facility contracts are entered in this chapter we will be referring to the example given at the beginning of the chapter Features of Loan Syndication Contract Input Screen In the Loan Syndication Contract Input screen you capture the following details to input the borrower facility contract e The main borrower facility product against which the contract is being entered e The counterparty customer with whom the borrower facility contract has been finalized e The currency associated with the customer e The date of value of the contract e The date on which the contract matures e The amount being transacted in the contract 7 ORACLE e Earliest possible value date for Tranches under the Facility e Latest possible maturity date for Tranches under the Facility e The minimum amount that would be allowed for Tranches created under the Facility e The maximum amount that would be allowed for Tranches created under the Facility e The purpose for the borrower facility contract e Any narrative regarding the contract remarks 5 4 2 Contract Tab You can specify the details regarding the facility contract in the Contract Tab The Contract Reference Number The Contract Reference Number uniquely identif
239. mer category Click on the Customer Category Restriction button in the Loan Syndication Product screen ma ORACLE Customer Category Restriction Product Code Product Description Class Details Class Code Class Description Customer Category Allowed Restriction Disallowed Category Restrictions Customer Restrictions 10f1 10f1 OE OE O CJ Customer Category Restriction You can restrict customers from availing a product by maintaining an allowed list or a disallowed list of customer categories Only customer categories that are a part of an allowed list maintained for a product can avail the product Likewise customer categories that are part of a disallowed list cannot avail the product or service The allowed or disallowed column that you view depends on the list type that you choose to maintain For instance if you choose to maintain an allowed list the column would display those customer categories that you choose to allow You can move a category to the allowed disallowed column using the add icon or delete icon 4 3 7 10 Allowing Access to Special Customers Depending on the customer restriction you specify allowed or disallowed you can further maintain a list of customers who are allowed for a Disallowed list or specific customers who are not allowed to use the product in the case of an Allowed list For example you may disallow the
240. n contract Customer Borrower No The number of the borrowing customer taking part in the drawdown loan contract under a tranche Customer Borrower Name The name of the borrowing customer taking part in the drawdown loan contract under a tranche Value Date The value date of the last ad hoc fee schedule Amount The amount agreed upon between the borrowing customer and the participants of the main syndication 13 31 ORACLE Borrower Participant Filter field The number allotted to each participant of the main syndication contract contract 13 32 ORACLE 13 20 1 13 20Facility Tranche Volume Detail Report A facility is a specific service scheme or product that you make available to customers Also you can disburse loans through a draw down from any of the tranches under a syndication contract The Facility Tranche Volume Detail Report describes the details for a Facility and a Tranche over a given period This report describes the activities under the following search criteria e The number allotted to each participant of the main syndication contract e The Facility Reference number for which facility details have to be obtained If you select the ALL option the details for all the contracts will be included in the report Contents of the Report The contents of the Facility Tranche Volume Detail Report have been discussed below Body
241. n an ad hoc basis When you define a borrower tranche or draw down product you can indicate the applicability of such ad hoc fees All borrower contracts using the product will inherit the ad hoc fee components that you have specified for the product You can indicate the applicability of ad hoc fees by associating the appropriate ad hoc fee class that you have defined for borrower facility contracts You can invoke this screen by typing CFDADFEE in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button bs ORACLE Adhoc Charges Participation Propagation Input By Date Time Modification Number Wh Authorized Exit Authorized By Date Time H open You can capture the following details here Class Code Specify a class code for which you want to maintain ad hoc charges Description Give a small description for the class code entered Module Specify the module for which you want to maintain ad hoc charges Module Description Give a small description for the module entered Participation Propagation The ad hoc fee component that you have associated will apply to all borrower contracts using the product and the accounting entries relating to the fee will be propagated to all participant contracts arising from the borrower contract if so specified in the Adhoc Fee Class Definition If so when you associate the class with the product in the Adhoc Fee Association
242. n date For a payment type of product you should define the action to be Event date taken when an instruction is not executed because of lack of funds The date specified for this instruction is shown here Event The description of the event you specified in the earlier field is Description displayed here Diary Details The diary event that is allowed for the facilities Tags and values 13 26New Base Records Report This report displays all the new customer records opened on the current business date It is printed everyday during the batch process You can generate the report based on the following criteria 13 26 1 The Branch for which the report is printed Select a branch from the option list provided The Date for which you wish to generate the report Enter the date Contents of the Report The contents of the New Base Records Report are discussed below Branch Code This is the local branch where the Customer Record has been opened Customer This is the customer number of the Customer Record Number Customer This is the customer name as per the customer record Name Domicile This is the domicile as recorded in the customer record 13 27FX Unconfirmed Analysis 1 Day Report This report displays a listing of all customers against whom FX contracts were booked on the current business date It also displays the number of deals booked against these customers the n
243. n interest fee or ad hoc fee amount is disbursed to the participant and there is a skim margin profit associated with the disbursement You must associate the skim margin amount tags as part of this event e RNDP Triggered on the rounding participant contract whenever the amount collected from the borrower for a component is more than the amount disbursed to the participants because of rounding differences e RNDL Triggered on the rounding participant contract whenever the amount collected from the borrower for a component is less than the amount disbursed to the participants because of rounding differences 10 1 3 2 Advices for participant facility tranche or draw down products The following advices are available e Contract Booking or Renewal MT643 You can set up this advice to be generated as part of the DNOT event e Interest Rate Fixing or Exchange Rate Fixing MT644 You can set up these advices to be generated as part of the EXFX and IRFX events respectively e Fee Liquidation MT645 You can set up this advice to be generated as part of the ADNT event 102 ORACLE e Principal or Interest Payment MT646 You can set up this advice to be generated as part of the LIQD events 10 1 4 List of events available for loan syndication modules The following table lists the details of all events in loan syndication modules with the appropriate propagation type for each
244. n on the Drawdown contract one ORACLE The Drawdown products that you create are mapped to the Consumer Lending product and its components through the LS CL Product and Component Mapping screen You can invoke this screen by typing LSDPCMAP in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button LS CL Product amp Component mapping Syndication Branch Loans Branch Syndication Product Loans Product al Self Participant Advance Booking Applicant Yes GH Component Details oO x laz el Fal G Input By Authorized By Modification Authorized Date Time Date Time Number Open The following details need to be captured here Syndication Branch Select the transaction branch for initiating the LS contract on the agency side Syndication Product Select the drawdown product to be used for creating the drawdown contract All valid drawdown products defined in the system are displayed in the option list provided Self Participant Select the self participant from the option list All self participants maintained in the Self Participant Maintenance screen are displayed in the option list Self participant branch is displayed by the system Self Participant can be chosen as ALL in case of a generic maintenance Loans Product Select a CL product from the
245. nance screen You can specify up to 30 field tags Diary Event Maintenance Module Description Events Message Fields Field Tag 16 Field Tag 17 Field Tag 18 Field Tag 19 Field Tag 20 Field Tag 21 Field Tag 22 Field Tag 23 Field Tag 24 Field Tag 25 Field Tag 26 Field Tag 27 Field Tag 28 Field Tag 29 Field Tag 30 Field Tag 1 Field Tag 2 Field Tag 3 Field Tag 4 Field Tag 5 Field Tag 6 Field Tag 7 Field Tag 8 Field Tag 9 Field Tag 10 Field Tag 11 Field Tag 12 Field Tag 13 Field Tag 14 Field Tag 15 oOo wle ea elula eee OO oo owe swe eulw ale fle User Defined Field Details 2 od x 5 Input By Authorized By Modification Authorized exe Date Time Date Time Number Open 3 7 Maintaining User Defined Field Tags You can maintain field tags for user defined information to be available for each loan syndication module in the Diary Event Maintenance screen Up to 10 different such tags can be maintained in the User Defined Fields section in the Message Fields tab in the Diary Event Maintenance screen For each field tag you must specify e A serial field number and tag name which forms the identification for the user defined field
246. nce number for the borrower contract event e Sequence number for the borrower contract event e Code of the event that was processed for the borrower contract e Date on which the event was processed for the borrower contract e Value date of the event that was processed for the borrower contract e The participant in the participant contract to which the event that was processed in the corresponding borrower contract was propagated e Reference number of the event propagated to the participant contract e Date on which the event which was processed for the borrower contract was propagated to the participant contract e Value date on which the event which was processed for the borrower contract was propagated to the participant contract FR ORACLE e Reference number of the borrower facility contract in respect of which the propagated event was processed e Reference number of the borrower tranche contract in respect of which the propagated event was processed e Serial number of the borrower draw down contract in respect of which the propagated event was processed e Reference number of the borrower draw down contract in respect of which the propagated event was processed e The receivable component for which accounting entries were booked as a result of processing the propagated borrower contract event e Currency in which accounting entries were booked for the component as a result of processing the propagated borrower contract
247. nche is requested by the borrower based on the syndication contract Base The drawdown amount for each participant expressed in the Currency currency of the tranche under which it is defined Amt Maturity The date on or before which all tranches and drawdowns under the Date borrower facility contract is scheduled to mature Exchange The exchange rate that is used if the draw down currency is different rate from the currency of the tranche contract or the account to which it is linked 13 14 ORACLE Request ID The ID of the requester Component The name of the component that is applied to the borrower leg as well as the participant leg contracts Drawdown The amount that is drawn under each draw down loan linked to the Amt tranche Interest The interest rate that is applied on the participant leg tranche or draw Rate down contracts under the facility borrower contract Interest The method according to which the number of days is computed for Basis interest calculation This is applied specifically for the interest derived by each participant as per the bower facility contract Period This is the period in days for which interest on the drawdown loan is days calculated Interest The date range for which interest is calculated on the drawdown loan Calculated contract From To Party ID Name and ID of the participants in the tranche contract to which each Pa
248. nche or draw down contract under a syndication contract are detailed in this annexure SWIFT Related Purpose When Generated Events in Mail Messag to Oracle Equivale e Type FLEXCUB nt E MT 643 Particip Provides N days prior to the DNOT SWIFT ant side notice of the value date of the MT643 Drawdo borrower s draw down where N wn request for is the notice days Input draw specified on defining down s ren_ the Syndication ewal s ona_ Product given date MT644 Particip Specifies the On initiation of a IRFX EXFX SWIFT ant side interest rate draw down under MT644 Draw and if tranche or on value Down applicable dated amendments input the exchange rate for the next interest period MT645 Fee Specifies flat On Manually MLIQ LIQ SWIFT Liquidat and variable liquidating the Fees D MT645 ion fees related to one facility due to the Receiver MT646 Tranch Advises of On Repayment or ADNT SWIFT e Fee Payments prepayment of the MT646 Notice and or draw down Advice prepayment s of principal and or interest on the same value date not related to any subsequent drawings or 11 1 ORACLE SWIFT Related Purpose When Generated Events in Mail Messag to Oracle Equivale e Type FLEXCUB nt E renewal MT649 Free Provides for At the discretion of NA NA Format communicati the sender ons re
249. nche product is mapped against a participant tranche product then the corresponding participant tranche product and its description is displayed Tranche contracts can be created only with the products linked with the Facility product A ORACLE Borrower Drawdown Linkages You need to specify the borrower drawdown products available under each tranche product If the borrower drawdown product is mapped against a participant product then the corresponding participant product and its description is displayed Rekey Fields You can specify those values in a borrower facility contract that must be keyed in when a user is authorizing it You can use the rekey feature to ensure that the right contract is being authorized It requires the authorizer to key in the values of certain fields during authorization You can select the fields for which the values must be entered in the Auth Rekey Fields option in the Loan Syndication Product Preferences screen The user that authorizes a contract cannot be the same user that entered the contract All operations on a syndication contract as well as the tranche contracts and the draw down loan contracts under a tranche of the agreement contract must be authorized before the End of Day procedures are begun at the branch Specifying how schedules falling on holidays must be handled Schedule dates for a contract could fall on holidays defined for your branch or on holidays defined for the currency of the
250. ncy Based e Non Frequency Based the end dates contradict each other Example For a product you can define payment schedules based on the value date of the loan and or based on the calendar date Assume that you have a housing loan product HOME with the following payment schedule details ote ORACLE e Unit Monthly e Frequency 1 e Schedule Basis Value Date e Tenor 12 months Case 1 Schedule structure is frequency based A housing loan is initiated on a April 2004 As per the above details the following schedule dates are defaulted e First Due Date 4th May 2004 one month after the disbursement date e End Date 4th Mar 2005 in between schedules being 4th June 4th July and so on for 11 months e The last schedule is always a Bullet schedule Note that the schedule dates are driven by the value date of the loan At the account level you can however change the defaulted schedules But the end dates should not contradict for the schedules For instance you cannot define schedules with the following details First Due Date No of Schedules Frequency End Date 04 MAY 2004 5 Monthly 04 SEPT 2004 01 OCT 2004 5 Monthly 01 FEB 2005 04 APR 2005 1 Bullet 04 APR 2005 Note that for the first and second schedules the end dates are contradicting 4th Sep and 1st Feb respectively This is not allowed if the schedule structure is Frequency Based The
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253. ntract Drawn Total The total amount that is drawn under the main syndication base contract Undrawn The total amount that is under the main syndication contract that Total base is not utilized 13 22 Syndication Volume Detail Report The Loan Syndication module of Oracle FLEXCUBE addresses loan operations of a bank or a financial institution that enters into loan syndication contracts with borrowing customers borrowers and plays the role of a lead agent in the contract This report details the total volume of loan operations undertaken by the bank This report describes the activities under the following search criteria e The unique ID assigned to the name the administrator e The loans disbursed over a specific period i e the From and To dates Contents of the Report The contents of the Syndication Volume Detail Report have been discussed below Body of the Report From and To Date Filter The loans disbursed in a period of time From and To date of the period Filter Administrator The unique ID assigned to the name the administrator Number Of facilities initial The number of facilities active as of the start date given in the report date range New Facilities The number of new facilities input each day Close outs matured The number of facilities maturing each day 13 35 ORACLE Facilities Current Fa
254. number for which fiscal diary details have to be obtained If you select the ALL option the fiscal details for all the contracts will be included in the report e The fiscal diary details over a specific period i e the From and To dates Contents of the Report The contents of the fiscal diary report are discussed under the following heads 13 38 ORACLE Header of the Report The following fields will be displayed in the header of the report Facility Ref No The Contract Reference Number of the borrower facility contract main syndication contract finalized between the borrowing customer and one or more participants Diary Report The fiscal diary details over a specific period i e the From and To From Date To dates date Body of the Report The content of the Fiscal Diary Report has been discussed below Event date Sort The system date on which the diary event is defined Field Loan The unique ID assigned to the name the administrator Administrator Facility ref no The Contract Reference Number of the main syndication contract between the borrowing customer and one or more participants Customer name The Contract Reference Number of the main syndication of default contract and the name of the borrowing customer with whom borrower you have finalized the syndication contract Tranche ref no Under the main syndication contract this
255. o The reference number of the contract for which you are generating the report Date To date Diary Report From The diary report generated over a specific period i e the From and To dates Body of the Report The contents of the Fiscal Documentation Diary Detail Report have been discussed below Administrator Action date For a payment type of product you should define the action to be Event date taken when an instruction is not executed because of lack of funds The date specified for this instruction is shown here Loan The unique ID assigned to the name the administrator Facility Ref No The Contract Reference Number of the main syndication contract between the borrowing customer and one or more participants Tranche Ref Under the main syndication contract this is the Reference Number No of the tranche under which the drawdown loan contracts are initiated Start date The date on which the main syndication contract is initiated in the system Follow Up This is the reason for which the notice was sent It can be acknowledgment confirmation or outstanding charges Date Indicates the date on which the documents were received Received Date Sent Indicates the date on which the documents were sent to the customer Event Seq This is the sequence number of the event used to uniquely identify No the diary event ao ORACLE Actio
256. oan contract the changed maturity date is applied to all the participant leg contracts under the tranche The changed maturity date must fall within the tenor of the main syndication contract Making Value Date Amendments for a drawdown In Oracle FLEXCUBE you can change values of the following components using the value dated amendment function for a drawdown e Modify the interest rate for fixed rate type e Modify the spread for floating rate type e Change the maturity date You can enter value dated changes to a borrower drawdown in the Drawdown Value Dated Amendments screen You can invoke this screen by typing _SDDDAMD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button ae ORACLE Drawdown value Dated Amendment x ne or gt i oeer a Branch Product Category Account Number Application Number Facility Reference Number fe Product Code Er Main Rollover Renegotiation Amendments Account Details Default Check List Fields Components Charges Linkages Advices Tranche Swift Message Details Account Details Customer id rayrrenr Tees L coy 1 Posen Amount Calculate Gross Principal Net Principal Customer Name Commitment Type Revolving ES Facility Reference Value Date Non Revowing Number Amount in F Maturity Date Tranche Amount Maturity Type Tranche Available Fixed Amount Ca
257. odules of Oracle FLEXCUBE address loan operations of a bank or a financial institution that enters into loan syndication contracts with borrowing customers borrowers The loan syndication modules are the Syndication Facility LN Syndication Borrower LS and Syndication Participant LL modules Loan Syndication A syndication agreement is reached between a borrower and a bank or a financial institution which arranges the syndication The arranger bank identifies one or more banks or financial institutions that pool funds to meet the borrowing requirements These banks or institutions are known as participants The arranger bank actually disburses the loan after receiving the contributions of the other participants The participants in the syndication share the interest and other income accruing from the loan in the ratio of their participation that was agreed upon at the time of drawing up the loan syndication agreement Process of Disbursing Syndicated Loan The process in which the loan is disbursed or the customer avails the loan under a syndication agreement depends upon many factors The most important factor is the nature of the requirement of the customer The other factor is the identification of the participants who would share the load of funding the borrowing The customer could choose to avail the loan e Either entirely in one instalment or borrow a fixed instalment amount at a desired frequency over a specified t
258. of contracts that are created under a corresponding borrower contract as applicable at each level e Facility products for processing participant facility contracts that are created under corresponding borrower facility contracts en ORACLE 4 5 e Tranche products for processing participant tranche contracts that are created under corresponding borrower tranche contracts e Draw down products for processing participant draw down contracts that are created under corresponding borrower draw down contracts You can select the required product type in the Product Type field in the Participant Product Definition screen Linking the Borrower Product for the Product Type Select the borrower product to be linked to the participant product The borrower product that you choose should be of the same type Drawdown or Tranche or Facility as that of the participant product that you are defining Setting Preferences for Participant Products Preferences are those options you can use to specify attributes for a product These attributes will be picked up and applied automatically to any contracts involving the product For instance for participant contracts using a participant facility product you can define whether collection from the participants towards a draw down must be initiated automatically or whether the amount repaid by the borrower must be disbursed automatically to participants Click the Preferences Tab to specify cer
259. of the Report Customer The number allotted to each participant of the main syndication Borrower contract No Name Facility Ref The Contract Reference Number of the main syndication contract No between the borrowing customer and one or more participants Facility Start Date The date on which the main syndication contract is initiated in the system Facility End The date on which the main syndication contract is scheduled to Date mature Facility The amount agreed upon between the borrowing customer and amount the participants of the main syndication contract Facility The currency of the main syndication contract in which the Currency contract amount is expressed No Of The number of tranches under the facility Tranches The report will also display the totals of the number of outstanding facilities and on the number of outstanding tranches 13 21 Facility Utilization Detail Report A facility is a specific service scheme or product that you make available to customers Also you can disburse loans through a draw down from any of the tranches under a syndication contract The Tranche Drawdown Detail Report describes the drawdown details for a Facility and a Tranche over a given period 13 33 ORACLE This report gives the volume of the utilization of this facility by the customers 13 21 1 Selection Options You can configure this report to display details for facility utilization de
260. of the participants in the tranche contract to which each of the drawdown loan contract is linked Contact This is the name of the entity for each participant of the Name drawdown All correspondence for the customer will be sent to this entity Optional The currency in which the draw down loan amount is expressed Currency for each participant Optional The drawdown amount expressed in the drawdown currency that Currency is contributed by each participant in the facility borrower contract Allocation i e the amount being disbursed in each draw down Amt Interest The interest amount sum of all the interest components received Amount by each participant in the ratio of his or her participation Skim margin amount The difference between the asset share as per the participation ratio and income actual share received ratio is known as the skim margin amount The skim margin amount is the syndication agency s profit on the commitment The report also displays the totals of the allocation amount and the sum of the interest amount received by each participant 13 17 ORACLE 13 9 Facility Borrower Contact Detail Report For each participant and borrower you can maintain several different entities When you initiate a borrower facility contract you have to specify the name of the entity for each borrower All customer correspondence will be sent to this entity The Facility Borrower Contact
261. of the rolled over contract Specifying the Drawdown Schedule Number You need to specify the drawdown schedule number of renewal type under the tranche which must be applied on the rollover contract in the case of a normal contract being rolled over 8 3 3 Specifying Details for Rollover Consolidation i ORACLE If you have chosen the rollover method as Consolidation then you must enter the corresponding details for the consolidation in the Consolidation Rollover screen which you can invoke from the application browser o 5 Consolidated Rollover Web Page Dialog Rotover Amt 5000 Consot Rot Ace Vee Date TOOK R USE BASIS MS Basn Scheduie Basis UOF Bases SETTLEMENT BASS Effective Date tim i Qi UDE Values Ettectrve Date o WEL UDE Vake Rate Code RATE Usage Consolidated Details Account Number Rotover Asnourt Type Driver Contract O cHoxcasootssaae Branch s Consol Txn Ret No nS a JEH In this screen you must specify the reference number of the tranche under which you wish to consolidate draw down contracts as part of the rollover operation For a borrower tranche you can only consolidate draw down contracts of the same customer maturing on the same date of the same currency if the Cascade Participation preference has been set for the tranche When you select the tranche reference number the draw down product code for the tranche is displayed You can select the draw down
262. on After the appropriate interest rate has been fixed for the new drawdown loan initiated at your bank you can send an Interest Rate Fixing advice to the borrowing customer The Interest rate fixing advice will include the following details e The reference number of the tranche to which the new drawdown loan is linked e The date on which the drawdown is booked in the system e The period for interest calculation e The maturity date of the drawdown e The amount of the drawdown loan e If you have applied a floating interest rate on the drawdown the Spread LIBOR basis that is applied over the floating interest rate e The margin applied on the interest rate e The interest lending rate applied on the drawdown e The purpose of the syndication The Message Type for the Borrower Interest Rate Fixing Advice will be BORR_IRFX_ADV and that for the Participant Interest Rate Fixing Advice will be PART_IRFX_ADV 12 4 2 Interest Rate Fixing Advice to Participant for new Drawdown Just as you send an Interest Rate Fixing Advice to the borrowing customer you may send an Interest Rate Fixing Advice to the participant bank as well at the time of initiating a new drawdown for the borrowing customer All the fields available in the advice sent to the borrower will be available in the advice to the participant bank also In addition the following additional fields will be included e The name of the borrowing customer e The Particip
263. on 88D Borrower M Field CIF id of the borrower specified in Be ORACLE SWIFT Field Name Mandatory Field Field FFT Code Tag M Optional FFT name in Oracle O Code FLEXCUBE the Drawdown contract 32A Original M Field The value date and Facility Amount specified in Amount the Syndication contract to which the present Tranche is attached 26P Drawing M Field Contract Reference Identification Number of the Borrower Leg 32A Total M Field The Value date and Principal Total amount Paid in Amount the Borrower Leg Repaid Paid Contract 32N Principal O Field The Value Date of Amount Due the payment and to the The share of Receiver Principal Paid due to the receiver 33N Gross O Field The Value Date of Interest the payment and Amount Due The share of Interest to the Paid due to the Receiver receiver 34A Total O Field The sum of Amount receiver s share of Transferred Principal and Interest Paid 72 Sender to O Field The Sender to Receiver Receiver Information Information maintained in the at Settlement Settlement Instructions Instructions 11 8 ORACLE 11 1 4 2 11 1 5 11 1 5 1 MT 646 A Sample Sample MT646 Message 1 FO1 AMBKWASHIXXX11111111114 2 1646BANKAMERXICAN 4 20 000DFNP010010001 21 23 000LGEN010010001 88D GEINDO1 32A 19990101USD1000000000 26P 000LFNB010010001 32A 20
264. on for automatic generation of account numbers The system generates the account numbers automatically when you create customer accounts through the Account Details screen If this option is not checked you have to capture the account number yourself For details on creating an account refer the Account Creation chapter of this User Manual Accounting Mask Required and Account Mask To maintain uniformity in the account numbers generated captured across a branch you can specify a format mask for account numbers If you specify that account numbers should conform to a specific format you have to specify the mask in the Account Mask field Example You may want the account numbers of your branch to be a combination of e Branch Code 3 Characters e Product 4 Characters e Currency 3 Character currency code e 5 digit running sequence number The account mask in this case would be BRN PROD CCY SEQ 5 An example of an account number conforming to the above mask would be DOC3ROLUSD60021 If you opt for auto generation of account numbers but do not specify a mask the generated number will by default conform to the following format e 3 character Branch Code e 4 character Product Code e Date in Julian format YYDDD e 4 digit running sequence number An example of an account conforming to the above format is DOCVSIM040960021 where a ORACLE e DOC is the Branch Code e VSIM is the
265. on revolving e Participant details e Borrower details e Facility reference number The tranche contract is created for this facility number The amount for which you need to create the tranche contract in facility currency is displayed in the Amount Facility Currency field Any details of repayment schedules you have maintained for the tranche product will apply to the tranche contract You can change these details if necessary in the Contract Online Schedules screen Borrower Tranche Product You need to select the code of the borrower tranche product from the list of tranche products defined in the facility contract being used for creation of the tranche le ORACLE Specifying Customer When you enter a borrower tranche contract under a borrower facility contract the system defaults the borrower customer of the facility contract to the tranche If you wish to change the borrower customer you can select the required customer The customer you select must be in the list of the borrowers identified for the parent borrower facility contract The customer you select will default to any borrower draw down loans you enter against the tranche Specifying Last Drawdown Date You must specify the date beyond which further draw downs under the tranche contract are not allowable The system does not calculate any tranche fee beyond this date For tranche contracts the last drawdown date is defaulted to the maturity date of the tran
266. or utility that you make available to customers of your bank For instance the facility of a syndication contract between your bank and other banks or financial institutions for the purpose of pooling funds to disburse loans is a specific service you could offer This service can be thought of as a product Similarly the facility of availing loans through a draw down from any of the tranches under the syndication contract is another specific service that you offer to customers This could also be thought of as a product Product Type The first attribute of a product is the Product Type which categorizes the product It also indicates its nature and the kind of contracts that could be entered against the product For instance a borrowing line commitment contract would be entered against a borrowing line type of product Contracts A contract is a specific agreement or transaction entered into between two or more entities A customer who approaches your bank to avail of any of the services offered by your bank enters into a contract with your bank In the case of a borrower facility contract the entities involved in a contract are the borrowing customer and the participants for any tranche of the agreement Similarly any specific loans draw downs disbursed by your bank under a tranche in the borrower facility contract are also contracts In Oracle FLEXCUBE a contract is entered into the system against a product For instance a
267. ord s Counterparty Number Customer This is the Customer Record Name for Contract Record s Counterparty Name Book Date This is the Contract Revaluation Record s Revaluation Date Maturity This is either the FX Contract Record s Bought Value Date or Sold Value Date Date whichever is later Bought This is the FX Contract Record s Bought Currency Currency Bought This is the FX Contract Record s Bought Amount Amount Sold This is the FX Contract Record s Sold Currency Currency Sold This is the FX Contract Record s Sold Amount Amount 13 38 Reversed MM Contracts Report This report gives a listing of all MM contracts that were reversed in the system and had one or more interest liquidation events These would include back valued contracts with liquidated back valued interest schedules which were reversed subsequently The report would show all basic details of the contract plus the amounts of the Interim Interest entries and the account numbers to which FLEXCUBE had posted the entries The report would be printed daily as part of the batch process You can configure this report to display details of the Reversed MM Contracts Report You can generate the report based on the following criteria e The Branch for which the report is printed Select a branch from the option list provided e The Date for which the report is printed Enter a date 13 38 1 Contents of the Report The conten
268. ormal Status Code The status that an installment will go through is specified here The sequence number determines the order when the installment would attain this status The status codes defined in the Status Codes Maintenance screen are available in the option list provided en ORACLE Status Rule The rule defined here will determine the movement of the installment to the selected status in the Status field You can build multiple conditions for a rule To do this click on the Condition button in the screen above The Condition Builder is displayed Z Condition Builder Web Page Dialog x 4 Field z Operator X Condition Value And Element z Or Logical Op ba Accept Mathematical Op v Clear Condition You can build the conditions using the elements SDEs operators and logical operators available in the screen above For details on building a condition using the options available in the screen refer the section titled Defining UDE Rules in the Maintenances and Operations chapter of this User Manual The installment will move to the status selected if the associated status rule is satisfied Complete Pending Accruals Check this box to indicate if the pending interest accruals need to be completed before the Installment status changes This is applicable only if Accrual Frequency is any one of the following e Monthly e Quarterly e Half yearly e Yearly
269. orrower on behalf of the participants in the syndication The collected ad hoc fee would be disbursed back to the participants that contributed to the syndication When you define a participant product you can indicate the applicability of such ad hoc fees All participant contracts using the product will inherit the ad hoc fee components that you have specified for the product You can indicate the applicability of ad hoc fees by associating the appropriate ad hoc fee class that you have defined for participant contracts Click the Ad hoc button in the Participant Product Definition screen Creating Borrower Facility products After you have created products to process borrower side contracts in respect of a syndication agreement such as borrower tranches and draw downs you must define products that would be used to process the main syndication agreement facility contract with the borrower Such products are called Borrower Facility products hie ORACLE 4 6 1 To create a borrower facility product you can specify the basic details such as the Product Code Group Description and so on in the Facility Product Definition screen You can then use the other product definition screens to set up preferences for the product You can invoke this screen by typing LNDPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Facility Product Definition Product Code
270. orrower draw down loan product that you have defined The participant deposit contracts involve the participant deposit products you have defined Processing Repayments Repayments as well as interest payments on a borrower draw down loan are distributed to the participants A common loan syndication pool is maintained to which contributions towards the borrower loan principal would be credited and from which the borrower avails draw down loans Repayments of principal are also credited into this common syndication pool from where they are distributed to the participant nostro accounts A common loan syndication interest pool is maintained to which repayments of interest due on the loans are credited From this pool the interest due to each participant is distributed to the participant nostro accounts You can maintain a GL in Oracle FLEXCUBE that would serve the purpose of a common syndication pool as well as another to serve the purpose of a loan syndication interest pool These GLs would be known as Bridge GLs Sharing of Fee or Charge Income The participants share income from the liquidation of charges or fees that are applicable to borrower contracts according to the ratio of participation agreed upon when the syndication contract is drawn up You can liquidate these charges or fees online in Oracle FLEXCUBE and apportion the liquidated fee income to the participants net of tax ea ORACLE 3 1 3 Reference Information for
271. orrower facility contract The example given below illustrates the concept of syndication and the contracts involved This example will be referred throughout this chapter as a reference contract to illustrate the concept of the contracts Example The main syndication facility contract One of your customers Mr Robert Carr has approached you for a loan of 100000 USD on 1 January 2000 You enter into a syndicated contract with him on the same date with a view to meeting his funding requirement by identifying other banks or institutions that can share the load of funding The agreement is booked on 1 January 2000 and the end date by which all components of the borrowed amount will be repaid to be 1 January 2001 The main borrower facility contract is the one under which all subsequent tranche draw down contracts will be processed When you enter this contract with Mr Robert Carr into the system it saves the contract and generates a unique identifier for it known as the Facility Contract Reference Number i e the Contract Reference Number of the main borrower facility contract Let us suppose the Facility Contract Reference Number assigned to this contract is OOOSNEW000010001 Whenever you enter a tranche or draw down contract against this main borrower facility contract you will have to specify this number as reference information Getting back to Mr Robert Carr s borrowing requirement let us suppose that he wants to avail o
272. oss This is the FX Contract Revaluation Record s Net Present Value in LCY in Local currency eee This is the FX Contract Revaluation Record s NPV in USD in 13 30 MM Unconfirmed Contracts Report This report gives details of all unconfirmed MM contracts It is printed daily as part of the batch process 13 30 1 You can configure this report to display details of MM Unconfirmed Contracts Report You can generate Selected Options the report based on the following criteria 13 30 2 e The Branch for which the report is printed Select a branch from the option list provided e The message group Select from the option list provided e The Counterparty Type either Bank Transfer or Customer Transfer e The Unconfirmed Days which is the number of days up to which the contracts are not confirmed Enter a value e The date for which the report is printed Enter a date Contents of the Report The contents of the MM Unconfirmed Contracts Report are discussed below 13 44 ORACLE Message Group This is the Message Group for the Contract Record s Counterparty Counterparty This is the Contract Record s Counterparty Counterparty This is the Customer Record name for the Contract Record s Name Counterparty Oracle FLEXCUBE This is the Contract Record s Reference Number Reference Number Custom Reference This is the Contract Record s Custom Reference Number
273. ould check for schedule dates falling on holidays and how such schedule dates must be handled These specifications would default to any borrower facility contract using the product and also to underlying borrower tranche or draw down contracts that are opened under the facility contract You can specify either of the following e Holidays must be ignored e Checks must be made for schedule dates falling on holidays If you specify that checks must be made you can also specify the corresponding treatment for schedule dates falling on holidays Holiday Treatment Type The Holiday Treatment Type is the parameter that defines how the system checks for schedule dates falling on holidays You can specify one of the following options Local Select this option to indicate that you want the system to check whether a schedule date falls on a local holiday defined for the branch You will not be able to specify a check for currency holidays if you choose this option The system checks the holiday table for your branch If it encounters a contract entered in your branch with a schedule date falling on a branch holiday the holiday is handled according to the holiday handling preferences you specify a ORACLE 6 3 1 2 Currency Select this option to indicate that the system must check whether the schedule date falls on a holiday defined for the currency of the contract You must specify the code of the holiday currency if you select this o
274. participants Tranche Ref Under the main syndication contract this is the Reference Number of the Reference No No Filter tranche under which the drawdown loan contracts are initiated field Drawdown This is the contract reference number of the drawdown that is defined under a tranche of the main syndication contract participant Name User Ref No The User Reference Number Counterparty The counterparty name Drawdown The currency in which the draw down loan amount is expressed Currency Drawdown The amount that is drawn under each draw down loan linked to the Amount tranche Customer Name of the participants in the tranche contract to which each of the drawdown loan contract is linked Base Amount Drawdown The currency in which the draw down amount allotted to each participant Base is expressed Currency Drawdown The drawdown amount for each participant expressed in the currency of the tranche under which it is defined Drawdown The date on which each draw down loan defined under the tranche is Date requested by the borrower based on the syndication contract Tenor The tenor of a scheduled draw down loan under a tranche 13 4 ORACLE Maturity Date The date on or before which all tranches and drawdowns under the syndication contract is scheduled to mature Exchange The exchange rate that is used if the draw down cu
275. person and his address may include Fax Phone No e The name of the customer addressee e The Ref No of the facility contract the facility amount and currency and the date on which the contract is booked in the system e The name of the borrowing customer e The details of sender of the advice notice Administrator s name and address The following details will form the part of all the drawdown notices generated at your bank e Interest rate fixing date e Exchange rate fixing date Please note that the default borrower of a facility may be different from the default borrower of its tranche Likewise the default borrower of a tranche may be different from the default borrower of its drawdown Hence the borrower field in all the advices will be populated based on the type of the contract whether facility tranche or a drawdown for which the advice is being sent Drawdown Notices This section discusses the notices generated for Drawdowns 12 2 1 New Drawdown Notice to the Borrower You can generate this notice to inform the borrowing customer about the new drawdown that is due to him The drawdown notice to the borrower contains the following information e The reference number of the tranche to which the new drawdown loan is linked ORACLE e The date on which the drawdown is booked in the system e The period for interest calculation e The Maturity Date of the drawdown e The tranche currency Base Ccy and amount e
276. plies that the schedule is bi monthly occurring every two months Start Day If the schedule unit is Weekly you should specify the start day to initiate the schedule The drop down box lists the days of the week Start Month This is applicable if the schedule unit is one of the following e Quarterly e Half Yearly e Yearly The drop down box lists the months in a year Start Date Here you can specify a value between 1 and 31 This is applicable if the schedule unit is Monthly Due On You can use this to define a schedule on a particular date of the month A value between 1 and 31 can be used for this purpose If you specify a value here the system will build the schedules based on this date even if you have indicated the Start Date for the schedule Formula You have to select the formula applicable for component value calculation The Booked and Intermediate formulae defined for the component are available in the option list With a user defined formula maintained through the rule builder you can define a schedule with multiple formulae oe ORACLE Flag You can define a non repayment schedule or a repayment schedule This field is used to identify the schedule type e Normal This refers to a repayment schedule Repayment happens as and when the schedule falls due e Moratorium This refers to a non repayment schedule or a repayment holiday at the beginning of a loan Number of schedules
277. port The contents of the commitment fee paid report are discussed under the following heads Header of the Report The following fields will be displayed in the header of the report Facility Ref The Contract Reference Number of the borrower facility contract and the No Borrower name of the borrowing customer with whom you have finalized the Name syndication contract Tranche Ref No Under the main syndication contract this is the Reference Number of the Filter Field tranche under which drawdown loan contracts are initiated Component This is the fee component applicable for the borrower leg contract This Name is the component that is tracked across the borrower and the participant legs of the tranche or drawdowns under the tranche Tranche The currency of the commitment contract at the level of a tranche that is Currency opened under the main syndication contract Commitment Fees that is received from the borrowing customer towards the Fees Received commitment contract Body of the Report The following details of the participants will be displayed in the report Customer The number allotted to each participant of the drawdown contract Participant No Sort Field Customer Name of the participants in the tranche contract to which each of the Participant drawdown loan contract is linked Name oe ORACLE Contact This is the name of the entity for each participant All
278. porting detail is maintained here Amount Specify the amount here 5 13 ORACLE 5 4 3 Holiday Preferences Tab You can maintain holiday preferences for schedule dates and maturity dates in the Holiday Preferences Tab Loan Syndication Contract Input Product Description Product type Contract Holiday Preferences Holiday Treatment For Schedules O Ignore Holidays O Include Branch Holiday O Use local Currency O Use Facility Currency C Cascade schedules C Move Across months Move Backward Contract Reference User Reference _ a E Holiday Treatment For Maturity Date E ignore Holidays O Use Facility Currency O Include Branch Holiday Use Local Currency C Move Across Months Move Backward Move Forward Move Forward Holiday Currency aal Holiday Currency C 7 Currency Paricipants Borrowers Pari Type settoments is aac Chrges parn eens rios Input By Date Time Authorized By Date Time Contract Authorized Status Holiday Treatment For Schedules Schedule dates for a contract could fall on holidays defined for your branch or on holidays defined for the currency of the contract In the Product Preferences the borrower facility contract the specification as to whether the system should check for schedule dates falling on holidays and how such schedule dates must be handled would have been defined These spec
279. ption Further you have the following options to specify the specific currency for which the check must be done e Facility currency If you choose this option the system checks whether the schedule date falls on a holiday defined for the currency of the facility borrower contract if this currency is different from the holiday currency you have indicated e Contract currency If you choose this option the system checks whether the schedule date falls on a holiday defined for the currency of the draw down contract if this currency is different from both the holiday currency and the facility currency if any you have indicated e Local currency If you choose this option the system checks whether the schedule date falls on a holiday defined for the local currency if this currency is different from the holiday currency facility currency and contract currency you have indicated The system checks the holiday table for the currencies you have specified If it encounters a contract using any of the specified currencies with a schedule date falling on a holiday for any of the currencies the holiday is handled according to the holiday handling preferences you specify Holiday handling preferences for schedule dates If you have specified that the system check for schedule dates falling on holidays you must also specify the treatment for schedule dates encountered by the system that do fall on holidays The following preferences can be set
280. putation basis is Change Installment then the Installment calculation can be e Single Installment e Multiple Installment based on multiple future rates 4 3 3 6 Account Opening Installment Calculation Type The Account Opening Installment Calculation Type based on future rates can be e Single Installment A single installment is computed using the future rates e Multiple Installments Multiple EMls are defined as per the future rates Auto Liquidation Check this box if you want the system to track receivables for auto liquidation This value gets defaulted at the account level If this box is unchecked at the account level and the account is used for settlement then receivable tracking is not done for the settlement account 4 3 3 7 Accrual Preferences If IRR computation is applicable for the product that you are defining you need to specify the accrual preference for the same You can do this through the Accrual Preference part of the preferences screen Here you can specify the following details ii ORACLE 4 3 4 Accrual Frequency Specify the frequency at which IRR accrual should be performed This can be either Daily or Monthly Choose the appropriate option from the adjoining drop down list Handling of Foreclosure Specify how foreclosures in respect of the loan contracts under the product must be handled You can opt for complete accruals or refund Choose the appropriate option from the adjoining drop
281. r than the tranche borrower tranche contract amount If a percentage is specified the sum of percentages for all participants must sum upto one hundred percent e Settlement sequence number of the participant which the system will use to obtain the settlement details for the participant e Whether the lead bank is also a participant in the syndication self participant vee ORACLE e Interest charge and ad hoc fee components levied on the contract the receivables from which are due to the participant you can only specify those components marked for propagation to participants in the product preferences of the borrower tranche product used by the contract e Proportion of income from the interest charge and ad hoc fee components which is due to the participant This can be specified either as a percentage 5 5 5 2 Borrower Details for Tranche Contract You must specify the borrowers for the borrower tranche contract who will actually be availing the draw down loans under the tranche The borrowers defined for the borrower facility contract under which the tranche is being entered will be defaulted to the tranche and you can change them if required You will be allowed to add borrowers provided the borrower is allowed for the facility During amendment operations you can add or delete a borrower While deleting a borrower the system will validate that there are no outstanding draw downs for the borrower For each of the borrowers you
282. r E E AE E EE AA ER ERENS 13 22 13 12 2 Gontents of the Reportsi 3 acini as bia nn aaae aR aaaea 13 23 13 13 FACILITIES IDETAILIREPORT aaa a E aaa a E E EEEE IE a AEE 13 25 13 13 1 Contents of th Report sca isiapsiiein ec Ria a ha he ae ees aeaeaie 13 25 13 14 PARTICIPANT FACILITY DETAIL REPORT cccccccccccecececesesececesecececesecececesececesececeseceseeecaceseeaseeeseususeaes 13 26 13 14 1 Gontents of the Reportsc icine e il Ria ae hn he ace ees led 13 26 13 15 USER OPERATIONS DETAIL REPORT cccccccececececececececececesecececececececasececececececeesescasececacesecasaueeeusuaeaes 13 27 1315 1 Contents of the Report iiaeiai Gd aah eae a aei e a E aaae RENES 13 27 13 16 ADMINISTRATOR FACILITY DETAIL REPORT ccccccecccececececececececececacecscecececacecececaceeasaceuseasseasseauaeaes 13 27 13 161 Contents Of the Report sirieias ainiaan oinei Eaa aaea E S aaO REEERE 13 27 13 17 BORROWER FACILITY DETAIL REPORT cccccccccececececececececececececececacecscecacecscecacecasecasseaseeacseaeseaeeeaes 13 28 13 171 Contents of the RepOTt sestrici ien eee E ENRE ERREEN sede reesvaesebeveds 13 28 13 18 AD HOC FEE DETAIL REPOR T rcir eierne E AEAEE 13 30 13 18 1 Contents of the REDOPE sisirin eneee EERE ERRER 13 30 13 19 PARTICIPANT AD HOC FEE REPORT ooer eren un eiee KoA EASE Eie KEDEK EEEE AEE EEE i 13 31 E ORACLE 13 19 1 Contents of the Repoftt ccscccsccsscsseeseesseeseesseeeseesecesecusecaecuaecaaecaaecaaesseeeae
283. r Name and number of the participants in the tranche contract to Participant which each of the drawdown loan contract is linked No Name Customer The country name of the participant Participant Country GFCID The customized UDF maintained under customer maintenance Customer The number and name of the borrowing customer with whom you Borrower No Name have finalized the syndication contract Base Currency The currency of the contract This is the currency in which the amount of the borrower tranche contract is expressed Outstanding Balance This is the balance amount that is outstanding Facility Ref No The Contract Reference Number of the main syndication contract between the borrowing customer and one or more participants Contact Name of the contact person for each participant in the drawdown 13 26 ORACLE 13 15User Operations Detail Report All operations of a user maker or checker on a syndication contract as well as the tranche contracts and the draw down loan contracts under a tranche of the agreement contract at the branch can be viewed through the User Operations Details report This report gives the details of all the operations performed by user This report describes the activities under the following search criteria e The identity of the user who has performed the activity or event on the bill i e maker or the checker e The unique ID assigned to the nam
284. r facility contract amount as on today s date The value you enter here is taken to be in the currency specified for the tranche or loan contract You can specify T or M to signify thousand or million respectively For instance 10T would mean ten thousand and 5M five million Example For instance when you open the tranche under the main borrower facility contract OOOSNEW000010001 with Mr Robert Carr you can specify 50000 USD as the total principal in the Contract Amount field since that is the amount proposed to be disbursed through draw down loans under the first tranche Similarly when you enter the first draw down loan under the first tranche you can specify 20000 USD as the loan amount since this is the amount Mr Carr will be availing through the first draw down a ORACLE Contract amount in reporting currency When you specify the contract amount the system computes and displays the equivalent amount in reporting currency using the exchange rate maintained between the two currencies for the branch The outstanding amount in reporting currency is also computed and displayed Specifying Tenor The tenor of a borrower tranche contract or a borrower draw down loan contract cannot be greater than that of the main borrower facility contract However each tranche or draw down loan may have a different tenor and independent life cycle Booking Date This is the date on which the tranche or loan is entered into the system I
285. ract Record s External Broker Code Counterparty This is the Contract Record s Counterparty Counterparty This is the Customer Record name for the Contract Record s Name Counterparty ORACLE This is the Contract Record s Reference Number FLEXCUBE Reference Number it ORACLE Custom This is the Contract Record s Custom Reference Number Reference Number Trade Date This is the FX Contract Record s Trade Date Value Date This is either the FX Contract Record s Bought Value Date or Sold Value Date whichever is later Buy Currency This is the FX Contract Record s Bought Currency Buy Amount This is the FX Contract Record s Bought Amount Sold Currency This is the FX Contract Record s Sold Currency Buy Amount This is the FX Contract Record s Bought Amount Deal Rate This is the FX Contract Record s Exchange Rate 13 33FX Summary Report This report gives a listing of the summary of all FX contracts booked on the current business day grouped by Counterparty This report is printed daily as part of the batch process You can configure this report to display details of FX Summary Report You can generate this report based on the following criteria e This is the Branch for which the report is printed Select from the option list provided e This is the Message Group for which the report is printed Select a message group from
286. ract Reference Customer Customer Name Facility Currency Details E E Currency 1 Currency Description Exchange Days Interest Rate Fix Days Notification ol asl L Exchange Rate Fixing Interest Rate Fixing Notification 2 2 E la a a You can maintain the following details here Currency You need to specify the list of allowed currencies for drawdown products under the tranche contract Exchange Rate Fixing Days You need to specify the number of working days before the drawdown date when the exchange rate should be fixed for the selected currency Jah ORACLE Interest Rate Fixing Days You need to specify the number of working days before the drawdown date when the interest rate for the drawdown product should be fixed Notification Days You need to specify the number of working days before the drawdown date when the notification for the drawdown should be sent to the customer Exchange Rate Fixing Holiday Currencies You need to specify the list of currencies for which holiday validations must be done to arrive at the Exchange Rate Fixing Date Interest Rate Fixing Holiday Currencies You need to specify the list of currencies for which holiday validat
287. raw down contract in reporting currency as on the current date For a detailed description of the rest of the fields refer to the chapter Operations in the Retail Lending user manual Processing Prepayments Prepayments are repayments of principal before it falls due to be repaid Typically a penalty is imposed on prepayments since they are a violation of the contract When you define products for borrower leg contracts you can choose to specify levying a penalty on prepayments in the Product Preferences screen You can also specify that the interest on any future schedules must be recomputed when a prepayment is made You specify the prepayment penalty as a percentage in the Payment Schedules screen when you enter the prepayment Interest is calculated on the prepaid portion of the principal from the value date of the last liquidated schedule till the value date of the prepayment The penal percentage is also applied on the prepaid principal after adjusting the interest due The system uses the amount tag INTEREST_ADzJ to post interest accounting entries due to prepayment Example Let us suppose that for a draw down loan under a tranche of a syndication contract has the following schedule for repayment Total Loan Principal 100000 USD Value Date of the contract 1 December 1999 Schedule ius January 2000 20000 USD 1 February 2000 20000 USD 1 March 2000 20000 USD 1 April 2000 20000 USD 1 March 2000 20000 USD
288. rd movement and the moved schedule date crosses over into a different month you can indicate whether such movement is allowable it will be allowable only if you indicate so in the Move Across Months field Cascading schedules If one schedule has been moved backward or forward in view of a holiday cascading schedules would mean that the other schedules are accordingly shifted If you do not want to cascade schedules then only the schedule falling on a holiday is shifted as specified and the others remain as they were Holiday Treatment For Maturity Date The maturity date for a contract could fall on holidays defined for your branch In the Product Preferences the specification as to whether the system should check for maturity dates falling on holidays and how such dates must be handled would have been defined These specifications would default to any borrower facility contract using the product and also to underlying borrower tranche or draw down contracts that are opened under the facility contract You can make changes to the specifications defaulted from the borrower facility product and specify that e Holidays must be ignored OR e The maturity date falling on a holiday must be moved according to the holiday handling preferences that you specify You can indicate that the maturity date falling on a branch holiday be moved either backward or forward as required and if it is allowed to move across months These preferences ar
289. references ms bar Even eds hah craraes Maker Date Time Mod No Checker Date Time Record Status Authorization Status Defining Generic Attributes of Participant Product After specifying all the basic details of a participant product you can indicate certain specific attributes for the product Each of these attributes can be defined in the corresponding screen that you can invoke from the Participant Product Definition main screen by clicking the appropriate icons Attributes with common characteristics are grouped together in common screens simplifying the process of defining them You can define generic attributes such as branch currency and customer restrictions by clicking on the appropriate icon in the horizontal array of icons in this screen For a participant product in addition to these generic attributes you can specifically define other attributes These attributes are discussed in detail in this section For further information on the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals e Products e User Defined Fields e Settlements Product Type The product type is the first attribute that you specify for a participant product It indicates the category under which the product can be placed and the type of contract that will be processed against the product Each participant level product that you define could be used to process any of the following types
290. rent business day in FLEXCUBE after a SWIFT message was sent against the corresponding contract A SWIFT message includes MT103 MT202 MT100 MT210 and MT104 The report is printed daily as part of the batch process You can configure this report to display details of FX Contracts Cancelled Report after Cable Sent Report You can generate the report based on the following criteria e This is the Branch for which the report is printed Select from the option list provided e This is the Date for which the report is printed Enter a date 13 35 1 Contents of the Report The contents of the FX Contracts Cancelled Report after Cable sent Report are discussed below Counterparty This is the Contract Record s Counterparty Counterparty This is the Customer Record s name for the Contract Record s Name Counterparty ORACLE This is the Contract Record s Reference Number FLEXCUBE Reference Number Custom Reference This is the Contract Record s Custom Reference Number Number Trade Date This is the FX Contract Record s Trade Date Value Date This is either the FX Contract Record s Bought Value Date or Sold Value Date whichever is later Buy Currency This is the FX Contract Record s Bought Currency Buy Amount This is the FX Contract Record s Bought Amount 10 ORACLE Sold Currency This is the FX Contract Record s Sold Currency Sold Amount This is the FX
291. restored when a loan linked to the commitment is paid out In the case of a non revolving commitment the amount available is not restored A tranche contract can be of either type Specifying Margin You can specify the margin applicable for interest components associated with the borrower tranche or draw down contract Specifying Margin Application You need to specify the method of applying interest margin for the selected interest component for contracts using the product The available options are e Periodic application e Automatic application e None ae ORACLE The net interest rate For fixed rate components the net interest rate is computed as the sum of the fixed interest rate and the specified margin For floating rate components it is computed as the sum of the base rate spread and the specified margin Specifying Administrator You can indicate the officer assigned to be the administrator for the borrower tranche or draw down contract Specifying Agreement Title Specify the agreement title here This defaults from the tranche contract but can be modified here if required 5 5 7 1 Viewing Diary Events The diary events defined for the borrower tranche or draw down contract can be viewed in the Diary Contracts Summary screen which can be invoked by clicking the Diary button in the Contract Online screen 5 5 7 2 Specifying Parties You can also specify the different types of entities or parties that
292. ror E transferee H Sequence Number Transfer From Participant Nan Transfer To Participant Name Transfer Ratio Transfer Amount lt gt Participant Participant Name Asset Ratio Amo Component Component Type Ratio Total lt a gt Entity Details Entity Identification Remarks Primary Pending Transfers Processed Transfers Input By Date Time Authorized By Date Time Contract Status I Authorized Process Status You can maintain the following details here Contract Ref No This indicates the facility tranche or the drawdown reference for which the participant amendment is being done You will be allowed to choose a tranche or a drawdown only if participant amendment is allowed for the contract Drawdowns that are linked to tranches with cascade participant amendment option cannot be chosen as participant amendment is propagated from the tranches for all such drawdowns Transferor is the Participant of the Reference number chosen from whom the Amount is Transferred Transferee is the participant to whom the Amount is transferred ia ORACLE Sequence number is automatically incremented by the system Either the transfer ratio or the transfer amount is required to be input by you The system will validate that the sum of asset ratios for all the participants is 100 Settlement Sequence No This can be defined amended only for new participant This will be defaulted from the facility and you
293. rrency is different Rate from the currency of the tranche contract or the account to which it is linked Component The type of component Rate The interest rate that is applied on the participant leg tranche or draw down contracts under the syndication contract Interest Type The method according to which the number of days is computed for calculation of interest for each participant in the syndication contract Participant The number allotted to each participant of the drawdown contract Number Name The name of the participant Contact You can maintain several entities for each participant borrower An entity Name is an additional dimension in the customer address eg Admin Finance HR etc may different dimensions of a corporate customer This is the name of the entity for each participant All correspondence for the customer will be sent to this entity Allocation The drawdown amount contributed by each participant in a syndication Amount contract DD Currency This is the currency in which the amount of the borrower tranche contract is expressed Base This is the currency amount in which the borrower tranche contract Currency amount is expressed Amount Base This is the currency in which the borrower tranche contract amount is Currency expressed The report also gives the sum total of the allocation participant amount and the totals of the allocated amount in the tranche currency 13 3 Participant Tranche Contribution
294. rs to the number of days before a schedule payment date a payment notice is to be sent to the borrowing customer for the borrower draw down contract This would apply to ad hoc fee interest and principal schedules defined for the contract ba ORACLE 4 3 3 2 Readjustment Entry Preferences You have to specify the manner in which adjustment entries passed due to back dated adjustments should be handled The options are e Settlement This means that the adjustment is settled directly e Adjust In this case the entries are tracked as a receivable Cr or a payable Dr to be settled later 4 3 3 3 Specifying Rollover Details Allow Rollover Select Yes to indicate that the loan can be rolled over This preference is defaulted at the account level and can be overridden Other rollover preferences can be maintained only if this option is checked If you select No validation is done during save to disallow setup of ROLL event 4 3 3 4 Tenor Preferences You can set the minimum and maximum tenor limits for a product You can also specify a standard or a default tenor Minimum Tenor You can fix the minimum tenor of a product The tenor of the loan account that involves the product should be greater than or equal to the Minimum tenor that you specify Maximum Tenor Likewise you can also specify the maximum tenor for a product The tenor of the loan accounts that involve the product should be less than or equal to the
295. rtial amount the payment can be done in bulk using the Consumer Lending Bulk Payments screen For more details on Bulk payments refer section Bulk Payments in the Operations chapter of Retail lending module Settlement The settlement accounts for processing lending transactions have to be specified here You have to specify the Bridge GL Account to be used for the settlement of the debit and credit legs of transactions that would be processed at your branch You can select the accounts from the option lists provided for the same ae ORACLE Intraday Jobs Typically accruals are processed either at BOD or EOD However you have the option to facilitate accruals any time during the day i e during the normal transaction input itself You have to check the Intraday Accrual option to avail this feature If you opt for intraday accrual you also have to specify the following e Intraday Job Interval This is the interval in hrs at which the Intraday Job should be executed during the day e Num Parallel Jobs This indicates the actual number of jobs to be processed at the same time when the Intraday Job is executed For example if the number of parallel jobs is 5 the system will group the accounts into 5 different jobs to be processed simultaneously by the Intraday Job The system automatically groups the accounts based on the number of parallel jobs maintained Account Auto Generated You can select this opti
296. rticipant of the drawdown loan contract is linked Name Contact This is the name of the entity for each participant in the drawdown All Name correspondence for the customer will be sent to this entity Currency The currency in which the draw down loan amount is expressed Allocation The drawdown amount expressed in the drawdown currency Amt contributed by each participant in a syndication contract i e the amount being disbursed in each draw down Interest The interest amount received by each participant in the ratio of his or Amount her participation Skim The difference between the asset share as per the participation ratio margin and income actual share received ratio is known as the skim margin amount amount The skim margin amount is the syndication agency s profit on the commitment Total The total of the allocation amount and the sum of the interest amount received by each participant 13 8 Participant Drawdown Repayment Detail Report When one or more participants join together to meet the funding requirements of a borrowing customer the interest earned on the loans are distributed between the participants in the ratio of their participation You can generate the Participant Drawdown Repayment Detail report to view the allocation of interest and principal repayments made by the borrower between the various participants 13 15 ORACLE You can generate this report to obtain the participant repayment detai
297. s in the chapter Defining Product Categories and Products in the Retail Lending user manual Only those preferences that you would define specifically for loan syndication borrower draw down loan products are explained in this chapter Specifying contract roll over details Instead of liquidating a borrower draw down loan on maturity date you can renew it into a new borrower draw down loan contract or split it into multiple borrower draw down contracts or consolidate it into a single new borrower draw down contract along with other borrower draw downs As part of rolling over a contract the original contract should be liquidated and a new contract should be initiated In Oracle FLEXCUBE these two processes are done in a single step A borrower draw down loan contract inherits the rollover preferences defined for the borrower draw down loan product it uses These preferences are displayed in the Default Tab of the Drawdown value Dated Amendment screen ORACLE You can invoke this screen by typing LSDDDAMD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Drawdown value Dated Amendment x Acco Facility Reference Number Main Rollover Renegotiation Amendments Account Details Default Check List Fields Components Charges Linkages Advices Tranche Swift Message Details Rollover Amend Past Paid Schedule Rollover Mode Auto Roll B
298. s due This would mean that the approved contributions from each participant would be credited into a common syndication pool before each schedule is due The schedule dates according to the agreement are 30 June 31 July and 31 August ORACLE This arrangement wherein the participants commit to provide the funding as per their pledge and then proceed to fulfill their commitment is known as a tranche It is under the auspices of a tranche that the principal of the syndicated loan amount is actually made available to the customer The tenor of each of the commitment contracts with the participants would be in the case of the first tranche as given above three months Let us suppose that the value date of the tranche contracts with each participant is 1 June 2000 The approved contributions would then need to be credited into a common syndication pool in the mutually agreed ratio before each schedule date i e before 30 June 2000 before 31 July and before 31 August The above arrangement for the first tranche meets the borrowing requirement of the first installment To meet the remaining portion of the requirement wherein an installment principal of 100000 USD is lent at floating interest rates your bank has identified North American Overseas Bank and Banco Italia as funding partners The ratio of participation is finalized as follows e Your bank 25000 USD e North American Overseas Bank 40000 USD e Banco Italia 35000 U
299. s Input screen You can invoke this screen by typing LSDADSCH in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Ad hoc Charge Schedules Input Contract Reference User Reference Product Code Currency Counterparty alue Date Description Maturity Date Explode Edit Payment Schedule Details Treep e e e a azl ml Payment Schedules Events Input By Authorized By Contract Authorized Date Time Date Time Status a ORACLE In this screen you must first specify the reference number of the syndication contract for which you want to specify the ad hoc fee schedules When you do so the details of the contract such as the product used by the contract customer value date and maturity date and contract currency are displayed The ad hoc fee components that have been associated with the product used by the contract are also displayed For each component you can define a schedule with the following details The start date This is the date on which the schedule for the ad hoc fee component for the borrower or participant contract is to begin The first schedule would fall due on this date Number of schedules You must specify the number of schedules that are to be applicable for the ad hoc fee component of the borrower or participant contract If you defin
300. s User Manual Number Days The Number of days indicates the period before the due date when the system starts sending the Billing Delinquency notices to customers This period is defined as a specific number of days and will begin before the date the repayment becomes due Format For the condition defined select the format in which the advice should be generated The system will select the specific format of the message type when the condition maintained evaluates favorably Frequency Days Specify the frequency in days for generation of Delinquency Notices The first notice is sent on the basis of the Num Days maintained For instance if the Num Days is four and the payment due date is 4 April 2004 the first notice will be sent on 31 March 04 4 days before due date Subsequent generation of the same notice is based on the frequency days maintained If the Frequency Days is 2 the second notice will be sent on 2 April 04 i e the notice is sent once in two days only The following information is applicable to Statement generation Frequency Indicate the frequency in which the Statements have to be generated The available options e Daily e Monthly e Quarterly e Half Yearly e Yearly Frequency Days The frequency captured here is used to get the next date for statement generation subsequent to the first statement This will be used in combination with the Frequency explained abo
301. s is the Contract Settlement Record s Our Receive Account account 13 46 ORACLE Their Receive This is the Contract Settlement Record s Their Receive Account Apart from this there will be summary information specifying the number of unconfirmed transactions for the following buckets 11 Less than or equal to 7 days 12 Greater than 7 days and less than or equal to 14 days 13 Greater than 14 days and less than or equal to 28 days 14 Greater than 28 days and less than or equal to 42 days 15 Greater than 42 days and less than or equal to 91 days 16 Greater than 91 days and less than or equal to 180 days 17 Greater than 180 days 13 32 Comfort Potential Errors Report This report gives listing of all the FX contracts grouped by Broker that are not yet confirmed It is printed daily as part of the batch process You can configure this report to display details of Comfort Potential Errors Report You can generate the report based on the following criteria e This is the Branch for which the report is printed Select a branch from the option list provided e This is the Date for which the report is printed Enter a date 13 32 1 Contents of the Report The contents of the Comfort Potential Errors Report are discussed below Broker Code This is the FX Contract Record s External Broker Code Broker Name This is the External Broker Record Name for the Cont
302. s of a Condition optional and a Result There is no limit to the number of expressions in a formula For each condition assign a unique sequence number formula number The conditions are evaluated based on this number To define a condition click on the Condition button in the screen above The following screen is displayed Fields Operator Condition value Element Logical Op Mathematical Op In this screen you can use the elements operators and logical operators to build a condition Although you can define multiple expressions for a component if a given condition is satisfied subsequent conditions are not evaluated Thus depending on the condition of the expression that is satisfied the corresponding formula result is picked up for component value computation Therefore you have the flexibility to define computation logic for each component of the product The result of the formula may be used as an intermediate step in other formulae ee ORACLE 4 3 5 7 Booked Formula Booked Formula refers to the formula used to compute a component value for a particular schedule You can use intermediate formulae to create a Booked formula To create the formula click the Book Formulae button in the Component of the screen The following screen is displayed Book Formula Amortized Amortization Basis Element Formula Name Jp Dow cimal Compound Days Round Up Down decimal
303. s the date on which the specified diary event would be processed for the first time in the life cycle of the selected contract For events with multiple occurrences as specified in the Event Maintenance based on the frequency the event would be repeated as many times as possible till the end date that you define in this screen a ORACLE The end date is the date beyond which the selected diary event will not be processed again for the selected contract For events with multiple occurrence as specified in the Event Maintenance you Can specify an appropriate end date which is later than the start date If the event can only occur once as specified in the Event Maintenance the end date is the same as the start date and cannot be changed Number of events You can specify the number of times the specified diary event must be repeated for the selected contract For events with multiple occurrences as specified in the Event Maintenance based on the frequency the event would be repeated as many times as specified in this field before the end date that you define in this screen If the event can only occur once as specified in the Event Maintenance the number of events is defaulted as one and cannot be changed Narratives for the event You can also specify appropriate narratives if required for the selected diary event that you have specified for the selected contract User defined fields for the event The field tags maintaine
304. s through any tranche of a syndication contract framework To recall a tranche is a channel through which a borrowing customer could receive the required loan as a draw down This facility that you want to offer to your customers of availing loans through a tranche arm of the syndicate agreement could also be defined as a tranche product Defining products simplifies the task of disbursing syndicated loans Typically you would need to specify the following information about a tranche product each time you process a draw down under the tranche e The preferences with regard to interest applicable e The payment schedules e The liquidation schedules for ICCF components You can define a product with all the specifications listed above Each time you enter a draw down under the product into Oracle FLEXCUBE they will be automatically applied to it and you need not specify them afresh In Oracle FLEXCUBE you can define two levels of products for syndication contracts e The main syndication product This level establishes a blueprint for capturing details for all syndication contracts e The tranche and draw down level products This level enables you to capture details for all tranches under a syndication contract as well as the draw downs under each tranche 2 2 5 Processing Tranche or Draw Down Contracts Oracle FLEXCUBE processes syndication contracts by allowing you to capture contracts at both the tranche level as well as the
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306. screen the Propagation Reqd check box will be selected 4 3 9 Specifying MIS Details To specify MIS details for the product you need to invoke the MIS Details screen To invoke this screen click MIS button on the Loan Syndication Product Definition screen aa ORACLE MIS Details Product Code MIS Group Pool Code MIS Classes Cost Code 10f1 bay uscass uscoce B 4 3 10 Associating Parties You can also specify the different types of entities or parties that would be applicable for the borrower tranche or draw down product in the Party Association screen Click the Party button in the Loan Syndication Product screen to invoke the Party Association screen e Party Association Web Page Dialog E x E Product Code Product Description Party Details n E F l D Party Type Description Multiple Party Allow Mandatory E For each party type that you associate in this screen you can specify e Whether more than one party belonging to the associated type may be specified for contracts using the product vo ORACLE e Whether specification of a party belonging to the associated type is mandatory for contracts using the product 4 3 11 Associating Diary Events 4 4 In the Diary Event Association screen you can also specify the different diary events that would need to be processed for borrower tranche or draw down contracts using the borrower
307. scription Role To Head Mapping 10f1 E Map Type Accounting Role Role Description Account Head Head Description Rue O Rute The following details are captured in this screen Map Type The mapping between an accounting role and account head can be of the following types e Static If the map type is static you can link an accounting role to only one accounting GL head one to one mapping er ORACLE e User Defined For a user defined map type you can maintain multiple linkages under different conditions using a case result rule structure one to many accounting Accounting Role and Description Accounting role is used to denote the accounting function of a GL or Account To map an accounting role to an account head select a valid accounting role from the option list provided This list will display the roles available for the product being maintained Once you choose the accounting role the description maintained for the role is also displayed in the adjacent field If you do not want to select a role from the option list you can also create an accounting role for a product and specify a brief description for the same ror The GLs Account Heads for the Dr Cr Settlement Bridge Role will default as per your selection in the Branch Parameters screen Account Head and Description The account head identifies the GL or Account to which the accounting entries would be posted Based on the type of acco
308. se attributes would be arranged to suit the borrower s requirement da ORACLE Accordingly you will need to define borrower tranche products with specific attributes to process borrower tranche contracts with specific requirements Similarly you will need to define borrower draw down products with specific attributes to process borrower draw down loans with specific requirements Consider the example given below Example Facility Product One of your customers Mrs Catherine Crenshaw has approached you for a loan of 100000 USD and entered into a syndication contract with your bank The agreement is booked on 1 June 2000 and the end date by which all components of the borrowed amount will be repaid to be 1 June 2001 For the purpose of processing the syndication contract you can create a facility product Let us assume you have created a facility product SYN1 for this purpose and you have entered the agreement as a contract under it Tranche Products Mrs Crenshaw proposes to avail the total loan principal in the following manner e Total syndicated loan principal 100000 USD in two tranches with a total tenor of six months Portion of loan desired in the first tranche 50000 USD e Portion of loan desired in the next tranche 50000 USD To meet the borrowing requirement of the first tranche your bank has identified the Far East Bank of Commerce and Gold Crest Bank to create a pool of funds to disburse the tranche amount T
309. sfers button in the Participant Transfer Details screen Pending Transfer History Contract Reference User Reference Pending Transfer History 2 ol j l l l lt Pending Consol Transfer History ol 5 6 4 Specifying Diary Events for Borrower Syndication Contract For a borrower facility tranche or draw down contract you can specify diary events to be processed A diary event signifies occurrences other than accounting entries being passed in the life cycle of a contract at which appropriate messages would need to be generated The details for processing diary events are defined in the Diary Event Maintenance where the appropriate message types formats tags and user defined fields are maintained When you maintain products for borrower contracts you also associate the diary events to be applicable to contracts using the products To specify the details of processing diary events for a borrower contract you can use the Contract Diary Event screen You can invoke this screen by typing CSDDIAEV in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button ep ORACLE Contract Dairy Events User Reference Number Event Dakcroton Main Field Tags User Defined Fields Receiver Facility Reference Tranche Reference Number Number Drawdown Number Drawdown Reference Number
310. sing the Participation draw down amount and the participation ratio specified in the Participant Receiver leg of the tranche contract 72 Sender to O Field The Sender to Receiver Receiver Information maintained in the Information Settlement Instructions at Settlement Instructions 11 1 1 2 MT 643 A Sample Sample MT643 Message 1 FO1 AMBKWASHIXXX11111111114 2 1643JARDINEFXXXXN 4 20 000LRCP010010009 21 23 000LGEN010010003 88D BAKERO1 32A 19990101USD1000000000 ORACLE Sample MT643 Message 26N USD 1 31F 2001010120020101 32B USD100000 33B USD80000 72 PHON 11 1 2 11 1 2 1 SWIFT Tags and Oracle FLEXCUBE Fields Linkage MT 644 Advice of Rate and Amount Fixing SWIFT Field Name Mandatory Field FFT Field FFT Code name Tag M Code in Oracle FLEXCUBE Optional 0 20 Transaction M Field Contract Reference reference Number Number 21 Related O Field Related Reference Reference Number if specified in the contract 88D Borrower M Field CIF id of the borrower specified in the Draw Down contract 32A Original M Field The value date and Facility Amount specified in the Amount Syndication contract to which the present draw down is attached 26N Drawing M Field The Draw Down Currency Identification and number of Draw Downs und
311. ssosssssnsssssseseesnosees 7 1 7 1 INTRODUCTION nsii renei ee a tane E testes E A E EET E AE EEN EE EE 7 1 7 2 ENTERING SCHEDULES FOR AD HOC CHARGE COMPONENTS csscescsseessesessseseceeescseeseesaeseuesecseeseenenesegs 7 1 7 2 Viewing ad hoc fee schedule processing details c sccesccesccsseesseesseesseeseeesceeeceeceseeeeceeeeseeeeeeaeenneees 7 3 8 ROLLING OVER A DRA WDOWN LOAN sssesesesseeesessesesecceoerosoesesecoeeososoeseseecesososoeseeeeoeroroesesecoecesorosseseeeee 8 1 8 1 INTRODUCTIONS 8isssssceenssinsssbishtvesustcaniontteaessescssssauiestcweveStuevsesbasonedsesbtoeseveaenedsesttonapasnesedecoeensepabsntedes saessnntess gt 8 1 8 2 FEATURES OF THE PRODUCT ROLLOVER DETAILS SCREEN s ccscescsssescesessseseceeeseceeeecseeesesesssesssnesseeneesess 8 1 8 3 SPECIFYING CONTRACT ROLL OVER DETAILS sccssceseessesecssesecseseseseesessesssesecsessecsessscsaeeeasessuesssseseeeseesese 8 2 8 3 1 Rollover preferences for borrower draw down loan contract sssr 8 3 8 3 2 Specifying Details for Normal ROOVeCr cccccccccesccessceseceseceseesecesecuseceecaeecaeeeaeeeaeeeneeseseeeenseeseseaeeass 8 4 8 3 3 Specifying Details for Rollover Consolidation cccccesccesecese ces cuse cess cusecaeecaeeeaeeseeeseeeeeeteeeaeeeseeeaeeaas 8 5 6 3 4 Advices for a rolled Over loan essssesccsseveceeeseescusesecuseesceseeseesecasesscuceeeesaeescsaecatesecaeesecnaeaceseeaeeneeaeenes 8 9 6 3 5 Authorizing a MANUAL roll over o eeceeesecesec
312. suggested accounting entries events and advices used by the loan syndication modules Chapter 11 Appendix B S W I F T Messages for Loan Syndication lists the S W I F T messages generated by the system during the life cycle of a tranche or draw down contract under a syndication contract Chapter 12 Customer Correspondence enumerates the different advices that are sent to customers involved in loan syndication contracts Chapter 13 Reports provides a list of reports that can be generated in this module and also explains their contents 1 4 Related Documents This user manual must be used in conjunction with the following Oracle FLEXCUBE user manuals e Core Services e Core Entities e Retail Lending e Procedures e Products e Interest e Charges e Settlements 1 2 ORACLE 1 5 Glossary of Icons Icons Function New oy Copy Save x Delete amp Unlock Print Close 2 Re open pn Reverse R Template S Roll over M Hold E Authorize Liquidate Exit Sign off Help Add row Delete row a Option List e Confirm 9 Enter Query 1 3 ORACLE Icons Function Fe Execute Query 1 4 ORACLE 2 1 2 2 2 2 1 2 Loan Syndication Overview Introduction The Loan Syndication m
313. system will use to obtain the settlement details for the participant e Whether the lead bank is also a participant in the syndication self participant e Interest charge and ad hoc fee components levied on the contract the receivables from which are due to the participant you can only specify those components marked for propagation to participants in the product preferences of the borrower facility product used by the contract e Proportion of income from the interest charge and ad hoc fee components which is due to the participant This can be specified either as a ratio or an amount e Location IDs for the participant where notices and advices related to the contract will be sent A primary location must be designated The Asset Amount Ratio is not allowed to be input at Facility Contract level This however is allowed at Tranche Drawdown level ai ORACLE 5 4 7 Specifying Party Type Details You can also specify the different types of entities or parties that would be applicable for the borrower facility contract as well as the applicable parties belonging to the selected type in the Party Details screen The party types associated with the borrower facility product used by the contract are defaulted you can change them and specify the required types You can specify multiple parties for a selected type if allowed as specified in the Party Association specification for the borrower facility product used by the contract If m
314. t Rule Based Entries screen is displayed Accounting Entries Accounting Rules 10f1 a L Condition lt Accounting Entry 10f1 m Entry Pair Number Accounting Role Amount Tag Debit Credit Indicator Transaction Code With the Rule definition builder you can maintain different set of accounting entries for different conditions Rule Number Every rule condition you define for a product should be assigned a unique number The rule number can consist of a maximum of 5 digits Case You can use the Condition Builder to define a rule Click on the Condition button in the above screen to invoke it ii ORACLE Fields Operator Condition value Element Logical Op Mathematical Op You can define a rule using the SDEs like Tenor Customer Risk Category and other UDFs If you do no specify a rule condition the accounting entries become applicable to all conditions For details on building a condition using the options available in the screen refer the section titled Defining UDE Rules in the Maintenances and Operations chapter of this User Manual Accounting Role Specify the accounting role that should be used at the event The option list displays all the accounting roles specified for the product in the Role To Head tab of the Consumer Lending Product screen Select the role appropriate for the event Amount Tag Specify
315. t as drawdowns under a Amount tranche of the main syndication contract The report will also display the totals of the original commitment amount and the sum of the available commitment amount as of date 13 4 Commitment Fee Due Report The Commitment Fee Due Report describes the fee amount due from the borrowing customer over a given period and its logical distribution amongst the participants who had contributed in meeting the loan requirements of the customer If you generate the report manually from the Reports Browser you can specify preferences for the generation of the report The content of the report is determined by the following preferences e The commitment fee due from customers over a specific period i e the From and To dates e The Tranche Reference number for which commitment fee details have to be obtained If you select the ALL option the fee details for all the Tranche contracts will be included in the report 13 4 1 Contents of the Report wey ORACLE The contents of the commitment fee due report are discussed under the following heads Header of the Report The following fields will be displayed in the header of the report Facility Ref No Borrower Name The Contract Reference Number of the borrower facility contract and the name of the borrowing customer with whom you have finalized the syndication contract Tranche Ref No Filter Field Under the main syndication contract
316. t can be used for an indefinite period and the product becomes open ended in nature Maintaining User Data Elements The main details are defined in the User Data Elements screen which you can invoke the screen by clicking User Data Elements button The header section of the screen is used to define the basis details of a product The main details include the definition of User Data Elements ae ORACLE User Data Elements Product Code Product Description User Data Elements 10f1 ry User Data Elements Id UserDataElements Description User Data Elements Type User Data Elements Currency O To define a User Data Element UDE you have to specify the following details UDE ID and Description Data elements like the rate at which interest has to applied the tier structure based on which interest needs to be computed etc are called User Data Elements UDEs These are in effect elements for which you can capture the values You have to specify a unique ID to identify the UDE in the system The UDE maintained here will be available for defining product rules You can also provide a brief description of the UDE being defined UDE Type UDE Type will describe the nature of the UDE An UDE can fall into one the following types e Amount e Number e Rate e Rate Code UDE Currency If the UDE type is Amount you should specify the currency of the UDE The currencies maintained in the Currency
317. t contract for the borrower at tranche level is processed in the same manner as a normal commitment contract in Oracle FLEXCUBE Also for the actual borrower draw downs in a borrower tranche under a borrower facility contract you would need to define a loan type of product for a loan advanced to the borrowing customer draw down The loan contract at draw down level for the borrowing customer is processed in the same manner as normal loans in Oracle FLEXCUBE The process in which the loan is disbursed or the borrowing customer avails the loan principal under a borrower facility contract depends upon many factors The most important factor is the nature of the requirement of the borrowing customer The other factor is the identification of the participants who would share the load of funding the borrowing Under a syndication contract the borrower may need to avail the loan principal in many tranches Under each tranche the borrower may avail the total tranche amount through a specified number of draw down loans The deployment of the total syndication amount in as many tranches is done according to the requirement of the borrower Similarly the deployment of the tranche amount in a specified number of draw down loans is also decided by the requirement of the borrower Each tranche amount as well as each draw down loan may have different processing attributes with regard to components such as interest fees tax applicable and so on and the
318. t is taken to be today s date by default This date is only for information purposes and the actual accounting entries will be passed only as of the Value Date of the contract Value Date This is the date on which the tranche or loan contract comes into effect The tenor of the contract begins on this date and accounting entries with respect to the contract are passed as of this date You can specify any date as the Value Date However it must be e Later than the Value Date of the main borrower facility contract e Later than the Start Date of the tranche or loan product involving the contract e Earlier than the Maturity Date of the tranche Maturity date of the draw down can be later than that of the tranche or draw down product involving the contract e Earlier than the Maturity Date of the main borrower facility contract An override would be displayed if the specified Value Date falls on a holiday of the local currency Example For instance when you open a tranche under the main borrower facility contract OOOSNEW000010001 with Mr Robert Carr you can enter 15 January 2000 as the Value Date for the borrower tranche contract If you do so on any date including and following 15 January a draw down loan can be entered for Mr Robert Carr if requested by him The application date on the day you enter the contract which is the booking date could be earlier later or the same as this value date For backdated contracts you
319. tail report from the Reports Browser You can invoke this screen by typing LSRPFUTI in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Facility Utilization Detail Facility Reference The report can be generated for a specific facility contract or all facility contracts initiated at your bank as on the date of report generation 13 21 2 Contents of the Report The contents of the Facility Utilization Detail Report have been discussed below Header of the Report The Header carries the title of the Report information on the branch code the branch date the user ID the module name the date and time at which the report was generated and the page number of the report Body of the report The details of the borrower that would be displayed in the report are as follows Facility Ref By default the Contract Reference Number generated by the No User system is considered to be the User Reference Number for the Reference m ORACLE 13 22 1 Number contract Sort field Borrower The name of the borrower Name Signing Date The facility contract book date Maturity The date on or before which the facility contract gets matured Date Domicile The country to which the facility customer belongs Facility Amt The amount agreed upon between the borrowing customer and the participants of the main syndication co
320. tain preferences unique to the product The Product Preferences screen is invoked where you can specify your preferences Preferences Product Code Product Description Auto Collection Auto Disbursement Auto Collection You can indicate whether collection from the participants towards a borrower draw down must be initiated automatically Your specification is inherited by all participant contracts using the participant product oe ORACLE 4 5 1 4 5 2 4 6 Auto Disbursement You can indicate whether the amount repaid by the borrower must be disbursed automatically to the respective participants Your specification is inherited by all participant contracts using this product Associating Diary Events for Participant Products In the Diary Event Association screen you can also specify the different diary events that would need to be processed for participant contracts using the participant product Click the Diary Event button in the Participant Product Definition screen to invoke the Diary Events screen Z Diary Events Web Page Dialog xi aes aj Product Code Description Product Diary Event F Ei Event Code Event Description E fa In this screen select the code of the diary event that you wish to associate with the product in the Event Code field Associating Ad hoc Charges Your bank may need to collect fees on an ad hoc basis on syndication contracts from the b
321. te that indicates the beginning of the period for which the facility product is available for use Facility End Date This is the date that indicates the end of the period for which the facility product is available for use The report also displays the totals of the facility amount grouped by their currencies iea ORACLE 13 14Participant Facility Detail Report To view the details of the lead agent and the participants involved in each facility generate the participant facility detail report This report displays the record of all the participants contributing for the facility If you generate the report manually from the reports Browser you can specify preferences for the generation of the report You can choose to generate the report to list the activities and events that were performed on syndication contracts as of a specific date or over a specified period in time This report describes the activities under the following search criteria 13 14 1 e The type of customer whether he is a borrower or a participant e The product type of the loan Select the type facility tranche or Drawdown e The participant facility detail over a specific period i e the From and To dates Contents of the Report The contents of the Participant Facility Detail Report have been discussed below Body of the Report Report Date Date on which the report is being generated Custome
322. te the report based on the following criteria 13 34 1 e This is the Branch for which the report is printed Select from the option list provided e This is the Message Group for which the report is printed Select from the option list provided e This is the Date for which the report is printed Enter a date Contents of the Report The contents of the MM Summary Report are discussed below Message Group This is the Message Group for the Customer Record s Counterparty Counterparty This is the Contract Record s Counterparty Counterparty This is the Customer Record name for the Contract Record s Name Counterparty ORACLE This is the Contract Record s Reference Number FLEXCUBE Reference Number Custom This is the Contract Record s Custom Reference Number Reference Number Contract Type This is the MM Contract Record s Product Type eae ORACLE Trade Date This is the MM Contract Record s Trade Date Value Date This is the MM Contract Record s Value Date Maturity Date This is the MM Contract Record s Maturity Date Amount This is the MM Contract Record s Amount Deal Currency This is the MM Contract Record s Deal Currency Interest Rate This is the MM Contract Interest Record s Interest Rate 13 35FX Contracts Cancelled Report after Cable Sent Report This report gives a listing of all FX contracts that have been reversed on the cur
323. terest rate is received a few days before the scheduled revision date the interest rate code of the loan account is changed by value dated amendment with the effective date as the scheduled interest revision date On the effective date the system changes the rate code and picks up the new interest rate e Condition 3 If the request is for a future dated prepayment of the loan account there is no change in the interest rate the principal is changed depending on the prepaid amount and once the payment is available in the settlement account you can liquidate the loan manually with the requested effective date oe ORACLE An outstanding component breakup of prepayment penalty charges if applicable is sent to the customer e Condition4 If the request for interest rate revision is made much before the scheduled revision date you can change the interest rate code of the loan account by value dated amendment with effective date as requested The rate revision will be applicable on the total principal outstanding amount 4 3 7 Mainataining Role to Head You can define the accounting roles for a product by clicking Role to Head button in the Loan Syndication Product screen A list of accounting roles that are applicable to the product being maintained is provided This is a pre defined list and you can add roles to it too Role To Head Mapping Product Code Product Description Class Details Class Code Class De
324. the contract currency is different from both the holiday currency and the facility currency you have indicated e Local Currency If you choose this option the system checks whether the maturity date should be based on a holiday defined for the local currency if the local currency is different from the holiday currency facility currency and contract currency you have indicated es ORACLE 6 3 3 6 3 3 1 The system checks the holiday table for the currencies you have specified If it encounters a contract using any of the specified currencies with a Maturity Date falling on a holiday for any of the currencies the holiday is handled according to the holiday handling preferences you specify here Specifying how Rate Revision Schedules The Rate Revision Schedule for a contract could fall on holidays defined for your branch You can specify whether the system should check for Rate Revision Schedules falling on holidays and how such dates must be handled These specifications will default from the tranche to the underlying drawdown contract However you can modify them at the drawdown contract level if required You can specify that e Holidays must be ignored Or e The Rate Revision Schedule falling on a holiday must be moved according to the holiday handling preferences that you specify Holiday handling preferences of Rate Revision Schedules You can indicate whether the Rate Revision Schedules falling on a branch holiday shoul
325. the booking date combination Similarly the reference number generated by the system for the first draw down loan under the first tranche was 000SNBL000310001 which can be interpreted in the same manner explained above User Reference Number The reference number is the identification that you specify for the borrower tranche contract or borrower draw down loan contract You can specify any identification number In addition to the Contract Reference Number generated by the system for the contract this number will also be used to retrieve information about the contract By default the Contract Reference Number generated by the system is considered to be the User Reference Number for the contract Specifying Currency Specify the currency of the borrower tranche contract or a borrower draw down loan contract This is the currency in which the contract amount is expressed You can only select a currency that is in the list of currencies defined for the parent borrower facility contract Specifying Contract Amount You must specify the total amount being disbursed under the tranche for borrower tranche contracts or the draw down loan for borrower draw down loan contracts The amount you enter must be e Lesser than or equal to the total borrower facility contract amount if no tranches have as yet been opened or borrower draw down loans disbursed as on today s date e Lesser than or equal to the unused portion of the total borrowe
326. the changes will come into effect for the contract Generation of Messages When you amend the diary event details you can indicate whether appropriate messages are to be generated for the processing of the event with the new details If you indicate generation of messages you must specify the customer that would be the recipient of the messages as well as the entities for the recipient customer with one primary entity You can specify the recipient customer details in the Receiver tab in the Contract Diary Status screen wee ORACLE Contract Diary Event Status Contract Reference Sequence Number Effective Date Sub Sequence Number Event Code C Generate Messages Status User Reference Field Tags User Defined Fields Receiver Receivers Receiver Location 25 o laz o Input By Authorized By Modification Authorized Date Time Date Time Number Open 5 7 Processing Participant Contracts You can set your preference as to how the system should process participant contracts in the Loan Syndication Branch Parameter screen You can either set the contract processing to be done in Job mode or else in Online mode You can start or stop the processing job through the Participant Contracts Processing Job screen You can invoke this screen by typing LSDUPLJB in the field at the top right corner of the Applica
327. the option list provided e This is the Date for which the report is printed Enter a date 13 33 1 Contents of the Report The contents of the FX Summary Report are discussed below Message Group This is the Message Group for the Contract Record s Counterparty Counterparty This is the Contract Record s Counterparty Counterparty This is the Customer Record s name for the Contract Record s Name Counterparty ORACLE This is the Contract Record s Reference Number FLEXCUBE Reference Number Custom This is the Contract Record s Custom Reference Number Reference Number eae ORACLE Trade Date This is the FX Contract Record s Trade Date Value Date This is either the FX Contract Record s Bought Value Date or Sold Value Date whichever is later Buy Currency This is the FX Contract Record s Bought Currency Buy Amount This is the FX Contract Record s Bought Amount Sold Currency This is the FX Contract Record s Sold Currency Sold Amount This is the FX Contract Record s Sold Amount Deal Rate This is the FX Contract Record s Exchange Rate 13 34MM Summary Report This report gives a listing of summary of all MM contracts booked on the current business day grouped by Counterparty It is printed daily as part of the batch process You can configure this report to display details of MM Summary Report You can genera
328. this tab appears disabled 5 4 5 2 Entity Tab You can specify the following entity related details of the borrower Entity You can also specify the entities for the borrowers that you specify with a single primary entity to be the recipient of notices and messages for the borrower Primary A primary entity must be designated for every customer who is allowed to be a borrower of the facility contract 5 4 6 Specifying Participant Details You must also identify the participants who contribute to the syndication agreement for the borrower facility contract To do this use the Participant Ratio Details screen which you can invoke by clicking the Participants button in the Loans Syndication Contract Input screen vue ORACLE Participant Ratio Details Contract Reference Number User Reference Number Pariticipant Details zd m oO Participant Code C Participant Name Asset Amount Asset Ratio Self Participant Settlement Sequence Number Component Detaiis Entity Details Fl O Component Type Component Ratio Oo Entity Code C Remarks Primary Entity When you open this screen the reference number of the borrower facility contract for which you are specifying the participant details is displayed in the Contract Reference Number field You must specify the following details for each participant e The ID and Name of the participant e Settlement sequence number of the participant which the
329. ticipant draw down contracts created under the selected borrower tranche contract ote ORACLE You can invoke the Participant Drawdown Contract Summary screen by typing LLSPRTTR in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button A list of active participant draw down contracts under each borrower tranche contract is displayed Participant Drawdown Contracts Summary Authorization Status _ _ Contract Status _ E Contract Reference Number 25 Branch a Product Code az Counterparty EH Amount az Currency aE Participant Tranche Reference Number Fal Borrower Contract Reference Number FE azi Search Advanced Search Reset Records perpage l 1 of 1 p E Soe Page Sa lt a See aneneen Prees Oo Authorization Status Contract Status Contract Reference Number Branch Module ProductCode Counterparty Amount Currency RA Detailed Authorization Status Contract Status A Authorized A Active U Unauthorized H Hold R Reversed L Liquidated Yet to be Initiated ves ORACLE To view a participant draw down contract from the grid simply double click it or select it and click the Detailed button Zj Pa Web Page Dialog 2 x pant Contract Product MURT Description Participant Tranche Product Contract Ref No CHOMURTOO1850002 User Ref CHOMURTOO1850002 Ent
330. tion tool bar and clicking on the adjoining arrow button ae ORACLE Participant Contracts Processing Job Job Status Start Job Refresh Stop Job If the Participant Process is selected as Job in the LS Branch Parameter screen then you can choose to start or stop the job by clicking Start Job and Stop Job buttons respectively If you have chosen Online mode for Participant Process the Start and Stop buttons will be disabled and the Job Status is displayed as Online On Click of Start Button system will pick up the participant contracts created in the system for further processing and process them On successful process of Participant Contracts the Process Status of Borrower contracts facility tranche or drawdowns will be marked at Processed and then borrower contracts are allowed to be authorized oe ORACLE The status of the Participant contracts processed is displayed in the Participant Exception Log screen You can invoke this screen by typing LSDPXLOG in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Job Process Status Branch Code Branch Name Borrower Transaction Process Details E Borrower Reference Counterparty User Reference Short Name Participant Transaction Process Details
331. tract Input screen a Contract Dairy Events Summary Web Page Dialog a 2 x Authorization Status z Record Status zi al Frequency Daily zi Number of Events 2 Contract Reference 25 Event Sequence Number 2 Event Code 72 Start Date kl End Date Maker ID S h Advanced Search Reset of 1 GotoP earcl anced Searcl eset Records per page 15 v ja f v o to Page Authorization Status Record Status Frequency Number of Events Contract Reference Event Sequence Number Event Code Start Date EndC E H Authorization Status Record Status A Authorized C Closed U Unauthorized O Open vee ORACLE 5 4 12 Viewing Events To view the events applicable for the contract click the Events button in the Loans Syndication Contract Input screen The Event Details screen is opened where the events defined for the contract are displayed and defaulted from the facility product used by the contract Event Details Reference Number Events E Event Number Event Date Event Code Description 5 4 13 Capturing User Defined Fields To view the user defined fields applicable for the contract click the Fields button in the Loans Syndication Contract Input screen The Fields screen is opened where the UDFs defined for the contract are displayed and defaulted from the facility product used by the contract
332. tract is initiated in the system Amount The amount agreed upon between the borrowing customer and the participants of the main syndication contract oe ORACLE User Ref No The User Reference Number Maturity Date The date on or before which all tranches and drawdowns under the borrower facility contract is scheduled to mature Counterparty The name of the counterparty Tranche Ref Under the main syndication contract this is the Reference Number of No Filter the tranche under which the draw down loan contract is initiated Field Participant ID The ID allotted to each participant of the main syndication contract Participant Name of the participants involved in the main syndication agreement Name with the borrowing customer Contact Name This is the name of the entity for each participant All correspondence for the customer will be sent to this entity Address The address of the participant for correspondence The address can include Telephone number Telex Code GCN Code Fax No e mail address of the participant Commitment The currency in which the commitment contracts between each player Currency in a tranche i e the borrowing customer and the participants is entered into Original The contribution of each participant as agreed upon at the level of a Amount tranche opened under the main syndication contract Available The actual amount contributed by a participan
333. tracts with customers who request loans You have identified other banks or financial institutions for the purpose of pooling in resources to meet the borrowing requirements of the loan syndication contract oe ORACLE One of your customers Mr Chad Jacobs has approached you for a loan of 200 000 USD on 1 June 2000 You enter into a syndication contract with him on the same date with a view to meeting his funding requirement by identifying other banks or institutions that can share the load of funding The agreement is entered into on 1 June 2000 and the end date by which all components of the borrowed amount will be repaid is 1st June 2001 Mr Chad Jacobs borrowing requirement is as follows e Total syndicated loan principal 200000 USD in two tranches with a total tenor of six months e Portion of loan desired in the first tranche 100 000 USD Mr Jacob desires to completely avail of this first tranche amount in the following pattern gt 30 000 USD on 30 June gt 35 000 USD on 31 July gt 35 000 USD on 31 August e Portion of loan desired in the next tranche 100 000 USD Mr Jacob desires to completely avail of this first tranche amount in the following pattern gt 30 000 USD on 30th September gt 35 000 USD on 31st October gt 35000 USD on 30th November Also the details of interest applicable on each tranche is as follows e For the first tranche Mr Jacobs desires interest to be applied as a fixed r
334. tranche contract when the BOOK event of the contract is triggered the system automatically initiates tranche contract for the participants These contracts constitute the participant leg of the processing of the tranche The system also generates SWIFT messages to each participant according to the draw down schedule intimating them to fulfil their tranche and disburse the funds to the nostro account of the lead bank Draw Down Contracts After the tranche contracts have been entered the lead bank typically disburses the loans to the borrowing customer against the Reference Number of the borrower tranche contract as well as the Reference Number of the main facility contract The borrower loan contract constitutes the borrower leg of the processing for draw downs To disburse the draw down loan you must enter the borrower loan contract and specify the following details for the participants e The participants involved in the draw down You can change the participants if required only if the Cascade Participation preference is set to No for the borrower tranche contract under which the draw down has been entered e The ratio of participation Again the ratio specified for the participants defined in the borrower tranche contract will be defaulted to the draw down and you can change it if required only if the Cascade Participation preference has been set to No for the borrower tranche under which the draw down has been entered
335. ts of the Reversed MM Contracts Report are discussed below aoe ORACLE Counterparty This is the Contract Record s Counterparty Counterparty This is the Customer Record name for the Contract Record s Name Counterparty ORACLE This is the Contract Record s Reference Number FLEXCUBE Reference Number Custom This is the Contract Record s Custom Reference Number Reference Number Contract Type This is the MM Contract Record s Product Type Trade Date This is the MM Contract Record s Trade Date Value Date This is the MM Contract Record s Value Date Maturity Date This is the MM Contract Record s Maturity Date Amount This is the MM Contract Record s Amount Deal Currency This is the MM Contract Record s Deal Currency Interest Rate This is the MM Contract Interest Record s Interest Rate Interest Amount This is the MM Contract Amount Due Record s Amount Settled for Liquidated the Interest Component Settlement This is the MM Contract Amount Due Record s Account Settled for Account the Interest Component 13 39Facility Detail Report This report gives details of all facility contracts It is printed daily as part of the batch process 13 39 1 Selected Options You can configure this report to display details of facility contract You can generate the report based on the following criteria e The Date for which the report is
336. ty contracts that are initiated at your bank The Facilities Detail Report gives you this information This report describes the details of facilities whose maturity date falls within a given period You can generate this report to obtain the details of e A specific facility contract or e All facility contracts initiated at your bank as on the date of report generation Contents of the Report The contents of the facilities detail report are discussed under the following heads Header of the Report The following fields will be displayed in the header of the report From Date To Date Filter field To recall you can generate this report for a given maturity date range This is the From and To dates as specified by you for which the facilities report is to be generated Body of the report The details of the facilities that would be displayed in the report are as follows Facility Ref No Sort field The Contract Reference Number of the borrower facility contracts initiated at your bank whose maturity date falls within the specified date range Facility Name The name of the facility product used to process the facility contract Facility The amount of the facility contract as agreed upon by the players i e Amount the borrowing customer and the participants Currency The currency in which the facility contract amount is expressed Facility Start Date This is the da
337. types of entities or parties that would be applicable for the borrower facility product in the Party Association screen Click the Party Details button in the Facility Product Definition screen to invoke the Party Association screen one ORACLE 4 6 5 Party Association Product Product Description Party Details 10f1 Mm panre Descoson iun paryarow uaran o r vov J For each party type that you associate in this screen you can specify e Whether more than one party belonging to the associated type may be specified for contracts using the product e Whether specification of at least one party belonging to the product is mandatory for contracts using the product Associating Diary Events for Borrower Facility Products In the Diary Event Association screen you can also specify the different diary events that would need to be processed for borrower facility contracts using the borrower facility product Click the Diary Events button in the Facility Product Definition screen to invoke the Diary Events screen Diary Events Product Code Product Description Product Diary Event 10f1 In this screen select the code of the diary event that you wish to associate with the product in the Event Code field i ORACLE 4 7 Saving Loan Syndication Product After you have specified all the mandatory information required for the product in the product definition screens you could save th
338. uidate the components before the liquidation schedule falls due Also if for reasons of non repayment if the liquidation does not take place you can manually liquidate the components when the repayment is made If you have defined manual liquidation for the contract then you must manually liquidate the components a day before the schedule date You perform manual liquidation through the Loan Syndication Schedule Payment screen You can invoke this screen by typing LSDPMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Ls Payment x Account Details Installment s Prepayment of Amortized Loan Recomputation Basis Recomputation Effective Payment Details Reversed Payment Mode Settlement Currency Amount Setted Loan Currency Equivalent Exchange Rate SetComponent Settlement Branch Settlement Account tA Component Details Component Name Currency Amount Due Adjustment Due Amount Overdue Amount Not Due Amount Waived Amount Capitalized Amount Paid input By Date Time Authorized By Date Time Contract Status Reversal The manner in which you perform manual liquidation for a draw down contract in the Schedule Payments screen is the same as for a normal loan contract The following details are displayed captured here e Account Number ae ORACLE 6 3 7 e Branch e Value Date e The outstanding balance on the borrower tranche or d
339. ultiple parties are not allowed you can specify only one party for the selected type If any mandatory party types have been specified in the Party Association for the borrower facility product used by the contract then you must specify at least one party for the party type Click the Party Type button in the Loan Syndication Contract Input screen to invoke the Party Details screen Party Details Contract Reference Customer User Reference Customer Name Party Details The following details are defaulted Contract Reference The contract reference number is defaulted here User Reference The user reference number of the contract is defaulted here Customer The customer number gets defaulted here oe ORACLE Customer Name The customer name gets defaulted here Specifying Party Details You need to maintain the following details here Party Type Select the party type to be associated with the borrower facility contract The party type associated to the product is defaulted here However you can modify it Party Identification Select a party belonging to the selected party type to be associated with the borrower facility contract Party Name The name of the selected party is displayed here ve ORACLE 5 4 8 Specifying Settlement Instructions You must specify the settlement instructions to be used for the borrower of the contract You can use the S
340. umber of unconfirmed deals and the percentage of unconfirmed deals This report is printed everyday during the batch process You can configure this report to display details of FX Unconfirmed Analysis 1 Day Report You can generate the report based on the following criteria 13 41 ORACLE e The Branch for which the report is printed Select a branch from the option list provided e The Date for which the report is printed Enter a date 13 27 1 Contents of the Report The contents of the FX Unconfirmed Analysis 1 day Report are discussed below Counterparty This is the counterparty of the Contract Record Counterparty This is the name of the Customer Record for the Contract Record s Name Counterparty Contracts This is the number of contracts booked for the counterparty for the booked date for which the report is being generated today Contracts This is the number of unconfirmed contracts booked for the unconfirmed counterparty on the report date Percentage This is the percentage of unconfirmed contracts booked for the unconfirmed counterparty on the report date 13 28 Outstanding FX Contracts Report This report displays a listing of all FX contracts that are not yet liquidated and are grouped by counterparty It is printed every month during the batch process 13 28 1 Selected Options You can configure this report to display details of Outstanding FX Contracts Report You c
341. unting role you select Asset Liability etc the list of Account Heads General Ledger heads that are of the same type as that of the accounting role becomes available in the option list provided You can select an accounting head from this list and thus create a role to head mapping On selection of the Account Head the description is also displayed in the adjacent field Click the Add icon to create subsequent mappings for the product If you would like to delete a role to head mapping click the Delete icon button Rule If the Map Type is User Defined you can create a case result rule structure based on which the entries are posted to the appropriate account head To create a rule click the Rule button in the Role to Head screen vee ORACLE Role Mapping Expression 10f1 Bete conan nccurties conten You can define multiple conditions and for each condition you can specify the resultant Account Head This way you can maintain one to many mappings between an accounting role and an account head Depending on the condition that is evaluated favorably the corresponding account head is used for posting the entries To build a condition click on the Condition button in the screen above The Condition Builder is displayed Condition Builder Fields Operator Condition value Element Logical Op Mathematical Op You can build the conditions using the elements
342. useeuseeeanaes 13 56 13 40 1 Selected OP TONS aeaaaee a D Ee AAE e a E T EEEo e a A EEEE i a ES 13 56 13 40 2 Contents Of the REPOTE iis ssescascieocseseaudecoiedstdsapedensanseswedvaprdnnsedenuis T Ee NE e ER E a aE 13 56 14 SCREEN GLOSSARY vssssssssssssssssssssacssssssscsesssesssseassessecctsassessssisssscssassesessesnss sasnseeccasscssacsesscsasssesssasesesscase s 14 1 V4 1 FUNCMON ID LIST sorier eSEE E EE EEA 14 1 t3 ORACLE 1 About this Manual 1 1 Introduction This manual is designed to help acquaint you with the Loan Syndication Modules of Oracle FLEXCUBE It provides an overview of the modules and guides you through the various steps involved in granting syndicated loans to the customers of your bank You can further obtain information about to a particular field by placing the cursor on the relevant field and striking the lt F1 gt key on the keyboard 1 2 Audience This manual is intended for the following User User Roles Role Function Back office data entry clerk Input functions for contracts Back office managers officers Authorization functions Product Managers Product definition and authorization End of Day operators Processing during End of Day Beginning of Day Financial Controller Product Generation of reports Managers 1 3 Organization This manual is organized into the following chapters Chapter 1 About this Manual explains in short which module of Oracle FLEXCUB
343. ussed later in this chapter Entering Borrower Tranche or Draw Down Contracts To enter borrower tranche or draw down contracts you can use the Contract Online screen As mentioned earlier when the BOOK event is triggered for the borrower tranche or draw down contract the corresponding participant tranche or draw down contract is initiated by the system Participant contracts initiated by the system can be viewed and amended using the Participant Contract screen which is discussed later in this chapter A borrower drawdown contract under a tranche of a borrower facility contract is entered in the same manner as a normal tranche contract in the system For a detailed description of how tranches are entered refer the chapter Account Creation in the Retail Lending user manual A borrower draw down loan contract under a tranche of borrower facility contract is entered in the same manner as a normal loan contract in the system Only those aspects of tranche or loan processing that are specific to contracts for loan syndication are discussed here vee ORACLE 5 5 5 Capturing Details for Borrower Tranche Contracts You capture the details for the borrower tranche contract in the Tranche Details screen You can invoke this screen by typing LSDTRONL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Account Details Branch Product
344. uthorize the record You can then select the tranche processed under the facility to which new participants have been added and transfer the assets appropriately between the existing and new participants FPE ORACLE 5 6 3 3 Viewing Details of Processed Transfers You can view all Detailed authorized transfer instructions in the Processed Transfer Details screen To invoke this screen click the Processed Transfers button on Participant Transfer screen Transfer History Contract Reference User Reference Transfer History 5 ol Lal I I L lt gt Eois Transfer History 35 a Value Date Sequence Number Participant Participant Name Transfer Amount Participant Old A ol In this screen you can view the following details of a transfer transaction e The value date of the transfer e The customer code associated with the transferor e The name of the transferor e The customer code associated with the transferee e The name ofthe transferee e The amount transferred e The transfer ratio You can also view the net amount transferred from to each participant FoR ORACLE 5 6 3 4 Viewing Details of Pending Transfers You also have the facility to view details of all unauthorized transfer instructions in the Pending Transfers Detailed screen To invoke this screen you have to click the Pending Tran
345. utomatic processing of such a schedule is determined by your holiday handling specifications for automatic processes as defined in the Branch Parameters screen Move Across Month If you have chosen to move the schedule date of a loan falling due on a holiday either to the next or previous working day and the movement crosses over into a different month then this option will determine whether the movement should be allowed or not Cascade Schedules If you check this option when a particular schedule falls due on a holiday and hence is moved to the next or previous working day based on the Branch Parameters the movement cascades to other schedules too If not selected only the affected schedule will be moved to the previous or next working day as the case may be and other schedules will remain unaffected Example Assume that you have opted to move holiday schedules to the next working day and a schedule falling due on 29 April is moved to 30 April 29 being a holiday The schedule date for May depends on whether you have chosen to cascade schedules If you have chosen to cascade schedules the schedule date for May will be set as 30 May since the frequency has been specified as monthly All subsequent schedules will be moved forward by a day If you have not specified that schedules have to be cascaded the date originally specified will be the date for drawing up the remaining schedules Even if you move the April
346. ve Sa ORACLE Start Date The date entered here is used as a reference to start generation of the statement The following example illustrates the manner in which the Frequency Frequency Days and Start Date are used together Assume that you have maintained the following preferences for Statement generation e Frequency Monthly e Frequency Days 2 e Start Date 1 Jan 2005 You open a loan account on 15 Jan 2005 The first statement for this loan will be generated on 1 February 2005 Based on the Start Date and at a Monthly frequency The second statement will be generated on 1 April 2005 once in two months based on the frequency days Message Type Specify the type of Statement that should be generated Statements are of the following types e Interest Statements e Loan Statements 4 3 6 1 Interest Rate Revision within Rate Revision Period The Rate Revision Notice section allows you to maintain the number of days for the generation of the advice prior to the scheduled date of rate revision During End of Day if the notification date is less than or equal to schedule date a Rate Revision Advice is generated The four different conditions for the rate revision will be handled in Oracle FLEXCUBE as follows e Condition 1 Once the interest revision date is reached the system continues to use the same interest rate code till the next revision date e Condition2 If the request for change in in
347. will be displayed as Work In Progress On Successful process of Job you have to manually stop the Job by clicking on Stop Job button If Job Status is Running branch will work as an Online Branch Free Format Messages for Loan Syndication Contracts You can enable the system to generate free format messages with respect to loan syndication contracts by using either of the following options e Selecting a template containing pre defined contract tags for the message e Specifying free format text choosing from pre defined tags defined for the loan syndication module In the Free Format Messages screen select the loan syndication module in the Module ID field and the reference number of the loan syndication contract in respect of which you wish to generate free format messages in the Contract Ref No field You can import a loan syndication contract template using the Import option if you choose to select a template containing pre defined contract tags You can also invoke this screen by typing MSDFFT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Free Format Message Reference Number Name Module Address Customer Media Location Node Date Hold Test Word Required Contract Reference TAGS a Import File e Message Swift Message Details Free Format Text El Input
348. y Liquidate Back Valued Sch Manual Rollover Type gt Special UDE Rollover Product Custom Contract Rollover Allowed es Schedule Basis Product No Contract Liquidation Rollover Components HSE Auto Liquidation Component Name Auto Ligd Reversed Pmt Partial Liquidation Retries for Auto Liquidation Track Receivable Auto Liquidation Manual Liquidation MIS GL Balance Events Contracts Diary Borrower Participant Drawdown Product Party Type Currency Exchange Rate Details Entity Input By Date Time Authorized By Date Time Contract Status Wi Authorized Process Status 8 3 1 Rollover preferences for borrower draw down loan contract By default for a borrower draw down loan the rollover mechanism is defaulted as New Contract and cannot be changed This indicates that rolling over the contract will create a new borrower draw down loan contract The rollover method indicates e whether a single new contract must be created when the original contract is rolled over e whether the original contract must be split into multiple contracts when rolled over e whether the original contract must be consolidated into one single contract along with other contracts when rolled over The rollover method specified for the product used by the contract is defaulted and you can change it when you enter the contract if required oe ORACLE 8 3 2 Specifying Details for Normal Rollover
349. y the module to which the diary events you are defining will apply Diary Event Maintenance Module Description Events Message Fields Event Details Fj v Message Details o Input By Authorized By Modification Authorized Exit Date Time Date Time Number Open For each diary event you specify the following details e Name and description e Whether the event occurs once or multiple times in the life cycle of a contract 3 6 Maintaining Message Types for Module You can maintain the message types that are to be available for generation at the occurrence of a diary event for each loan syndication module in the Diary Event Maintenance screen When you make the appropriate message types available for each module in this manner you can associate the available message type with the appropriate diary event applicable to a contract using the module in the Diary Event Messages screen discussed later in this chapter os ORACLE In the Messages section in the Events tab of the Diary Event Maintenance screen you can specify the type of message that is to be available along with a description of the message type oe ORACLE You can also maintain the desired format for each of the message types that are available for a module by specifying the appropriate field tags Click on the Message Fields tab in the Diary Event Mainte
350. you do not check this option the moratorium amount is allocated from the Installment due The principal component of the EMI is liquidated towards the moratorium Therefore Principal repayment does not begin until complete settlement of the moratorium amount one ORACLE Default Moratorium Formula If you want to create a default moratorium formula check this option By default the system will attach this formula to a moratorium schedule You can however change it to a different moratorium formula 4 3 5 9 Installment Level Status For a component you can maintain Schedule Installment level status change parameters You can also specify the account Heads and Roles to be used whenever an installment changes from one status to the other To define the installment level status change details click the Installment Status button in the Components screen the Component Installment Status screen is displayed installment Status Installment Status Status Rule Sequence Number Status Code Complete pending Accruals Description Accounting Entry 11 m Entry Pair Number Accounting Role Amount Tag Debit Credit Netting Indicator E The following details have to be captured here Seq No The number you capture here is used to identify the adversity level of an installment It should not overlap with that of an account status expect for the first factory shipped status NORM N

Loan Syndication User Manual

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