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Securitization of Islamic Assets User Manual

1. SPV SETTLE ACC SALE PROFIT DR PLAC INC SALE PROFIT CR For immediate realization SPV SETTLE ACC SALE PROFIT AC DR PLAC RIA SALE PROFIT AC CR For periodic realization PLAC EKP SALE LOSS DR For immediate realization SPV SETTL BRIDGE CR SALE LOSS CR PLAC PIA SALE LOSS AC DR For periodic realization SPV SETTL BRIDGE CR SALE LOSS AC CR SECR_CONTINGENT_PO LOAN_OUTSTANDING DR For tracking the OL book balance in off balance SECR_CONTINGENT_ASS LOAN OUTSTANDING CR sheet ET 8 8 ORACLE AMND It is an event for Amendment of Securitization Contract The system does not allow modifying the Pool details The table below describes the accounting entries for Charges incurred during Amendment Role Amount Tag Debit Credit SPV_SETTLE_ACC CHARGES Dr CHARGE CHARGES Cr COMPONENT_INC The table below describes the accounting entries for Securitization Pool Amendment CC Role Amount Tag Debit Credit SPV SETTLE A SALE PROFIT DR For immediate CC PLAC INC SALE PROFIT CR SPV_SETTLE_A SALE PROFIT AC DR For periodic realization CC PLAC RIA SALE PROFIT AC CR PLAC EKP SALE LOSS DR For immediate SPV SETTLE A SALE LOSS CR CC PLAC PIA SALE LOSS AC DR For periodic realization SPV SETTLE A SALE LOSS AC CR 8 9 ORACLE REVP It is an event for Reversal of Payment The table below describes the accounting entries for
2. Branch code This is the branch code for which the report is generated Securitization ref This is the securitization reference number for which the report is number generated Account number This is the account number for which the report is generated Product code This is the product code for which the report is generated Product category This is the product category for which the report is generated Customer ID This is the customer ID for which the report is generated Disbursement due date This is the disbursement due date for which the report is generated Disbursement amount This is the disbursement amount for which the report is generated Disbursement currency This is the disbursement currency for which the report is generated 7 1 6 Viewing Summary of Profit Loss Details for the securitization Contract You can manually generate a report that displays the summary of profit loss accrual details for the securitization contract in the Summary of profit and loss accrual details for the Islamic securitization contract screen You can invoke this report screen by typing IZRPLACR in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Summary of profit and loss accrual details for the Islamic securitization contract I Enter Query Branch Code Securitization ref No From Date To Date Report Format Printer At Report Output Printer Y
3. 7 8 ORACLE Operation This is the operation Buy back amendment sale for which the report is generated Account number desc order This is the account number in descending order for which the report is generated Product code This is the product code for which the report is generated Product category This is the product category for which the report is generated Customer ID This is the customer ID for which the report is generated Finance amount This is the finance amount for which the report is generated Currency This is the currency for which the finance amount is disbursed Lcy amount This is the local currency amount for which the finance amount is disbursed Currency This is the currency for which the finance amount is disbursed Value date This is the value date of the finance for which the report is generated Maturity date This is the maturity date of the finance for which the report is generated Fund ID This is the fund id of the finance for which the report is generated 7 1 3 Viewing Summary of Payment Received by SPV You can manually generate a report that displays the summary of payment received details participating Cl Accounts for the securitization contract SPV for the specified period in the Summary of Payment Received screen You can invoke this report screen by typing IZRSPVPY in the field at the top right corne
4. PLAC_INC SALE_PROFIT CR SPV SETTLE ACC SALE PROFIT AC DR For periodic realization PLAC RIA SALE PROFIT AC CR PLAC EXP SALE LOSS DR For immediate realization SPV SETTL BRIDG SALE LOSS CR E CR PLAC PIA SALE LOSS AC DR For periodic realization SPV SETTL BRIDG SALE LOSS AC CR E CR SPV SETTLE ACC PRCH CHG DR CHG INC PRCH CHG CR SECR CONTINGEN LOAN OUTSTANDING DR For tracking the book T ASSET balance in off balance sheet SECR CONTINGEN LOAN OUTSTANDING CR T POOL BAMD It is an event for Buyback of finance accounts from SPV removal of finance accounts from securitization pool During this event the system computes the total profit loss of the transaction Depending on the type of profit loss accrual mode set for product contract the system will either post the entries to contingent GL for periodic accrual of Profit Loss to Balance sheet or post it directly to the income expense GL The system triggers the CI status change activity from SECR to NORM The table below describes the accounting entries for Charge components during Buyback Role Amount Tag Debit Credit SPV SETTLE ACC CHARGES Dr CHG INC CHARGES Cr The table below describes the accounting entries for the Buyback Activity Role Amount Tag Debit Cr edit Remarks SPV SETTL BRIDGE DR LOAN OUTSTANDING Dr SPV SETTLE ACC LOAN OUTSTANDING Cr 8 7 ORACLE
5. 8 26 ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description Maturity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying _ Finance s Borrower Name _LBID_ Multiple Underlying Finance s Borrower ID Securitizatio IZ_CLSR IZ_CLSR_A Single Securitization n Closure _ADV DV_FMT _IZBRANC Branch Date Advice HDATE BRANCH Single Securitization NAME Branch Name _IZSPV Single SPV Customer NAME Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ USERRE Single IZ User F Reference Number _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date _SMDATE Single IZ Contract Maturity Date 8 27 ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description _SPVID_ Single Special Purpose Vehicles ID _SPVNAM Single SPV Name E SPOOLA Single Securitized Pool MT Amount SPOOLC Single Securitized Pool CY Currency _SALEAM Single Securitized Pool T Sale Amount _SALECC Single Securitized Pool Y Sale Currency SALE DA Single Securitized Pool TE Sale Date _SECLNFL Single Finance Exists AG_ Flag _ACCNUM Multiple Underlying _ Finance s Accou
6. Message Message Type Message Format Tag Name Tag Type Tag Description _SPVNAM E Single SPV Name _SREFNO Single IZ Contract Reference Number DATE Single Underlying Finance s Pre Payment Date _LNFLAG_ Single Finance Exists Flag _LNACCN UM_ Multiple Underlying Finance s Account Number _LNACUS ERREF_ Multiple Underlying Finance s User Reference _LNAMT_ Multiple Underlying Finance s Amount _LNCCY_ Multiple Underlying Finance s Finance Currency _LNSTATU S Multiple Underlying Finance s Account Status LNDATE Multiple Underlying Finance s Date LNMDAT E Multiple Underlying Finance s Maturity Date _LNTENO R Multiple Underlying Finance s Tenor _LNBNAM E Multiple Underlying Finance s Borrower Name _LNBID_ Multiple Underlying Finance s 8 35 ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description Borrower ID _SECLNFL Single Finance Exists AG_ Flag _ACCNUM Multiple Underlying _ Finance s Account Number _AC Multiple Underlying USERREF Finance s User _ Reference LOAMT Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Currency _LSTATUS Multiple Underlying Finance s Account Status _LDATE_ Multiple Underlyi
7. Sum of newly added Simple and amortized finances Outstanding Principal Profit Accrued till sale date Compensation accrued till sale date Overdue components Sum of newly added Discounted type finances Outstanding Principal RIA Balance Sum of excluded finance Simple and amortized finances TE ORACLE Outstanding Principal Profit Accrued till sale date Compensation accrued till sale date Overdue components Sum of Discounted type finances Outstanding Principal RIA Balance Amount tags LOAN_OUTSTANDING_CR and LOAN_OUTSTANDING_DR are available for returning the credit or debit balance of replaced Finance Accounts The amount tags provide the netted value of newly added Finance Accounts and removed Finance accounts 1 If securitization product is set to realize the profit loss immediately then the system posts the calculated profit loss directly to the bank s INCOME EXPENSE GL directly 2 If the securitization product is set to realize the profit loss over a pre defined period then the system computes the profit loss schedule internally and posts the entries accordingly during the EOD cycle 3 Consolidated balance of newly added removed finance accounts will be posted to securitization accounts 4 The system generates the Recourse Advice Message Impact on CI contracts e For all newly added Finance Accounts the system triggers the Cl status change event and changes the statu
8. zn ORACLE 5 2 2 Customer Name Specify the name of the SPV customer Profit Loss Accrual Accrual Required Check this box to indicate whether accrual required or not Accrual Start Date The system displays the current date as the accrual start date for the contract Accrual End Date Specify the end date of the accrual Based on the accrual end date the system populates the schedule to accrue the profit and loss during the EOD cycle Fund Details You can maintain the following fund details here Fund ID Specify a valid fund ID you need to maintain for the specified contract The adjoining option list displays a all valid fund IDs maintained for Islamic securitization You can select the appropriate one Description The system displays the description maintained for the specified Fund ID Specifying Advice Details Click on the Advice tab to get a list of the latest 25 contract advices generated ie ORACLE E Contract Details New 3 Enter Query Branch Contract Reference Product Code User Reference il Gala Product Description Operation Coda Y service Charge ProfitLoss Accrual Advice Details 10710 gt i Advice Name Party Type Party Id Party Name Medium Priority B Pool Details Pool Addition Pool Deletion Recourse Event History Maker Date Time Status Authorization Status Checker Date Time Here you can view the
9. CR PLAC The system triggers the event during EOD for realizing the Profit Loss on the scheduled date The table below describes the accounting entries for realize the profit loss in real GL from the receivables Role Amount Tag Debit Credit PLAC RIA PLAC PROFT Dr PLAC INC PLAC PROFT Cr PLAC PIA PLAC LOSS Dr PLAC EXP PLAC LOSS Cr Note the following e Received in advance e Paid in Advance RECR The system supports this event in securitizing product and is triggered whenever the replacement of finance transaction is securitized 8 11 ORACLE The system compute the profit loss for the securitization contract amendment and pass the accounting entries accordingly Role Amount Tag Debit Credit SPV_SETTLE_ACC LOAN_OUTSTANDING_CR DR SPV SETTL BRIDGE CR LOAN OUTSTANDING CR CR SPV SETTL BRIDGE DR LOAN OUTSTANDING DR DR SPV SETTLE ACC LOAN OUTSTANDING DR CR PLAC EXP SALE LOSS DR SPV SETTLE ACC SALE LOSS CR PLAC PIA SALE LOSS AC DR SPV SETTLE ACC SALE LOSS AC CR PLAC EXP SALE LOSS BR DR SPV SETTL BRIDGE CR SALE LOSS CR PLAC PIA SALE LOSS BR AC DR SPV SETTL BRIDGE CR SALE LOSS BR AC CR SPV SETTLE ACC SALE PROFIT DR PLAC INC SALE PROFIT CR SPV SETTLE ACC SALE PROFIT AC DR PLAC RIA SALE PROFIT AC CR SPV SETTL BRIDGE DR SALE PROFIT BR DR PLAC INC SALE PROFIT BR CR SPV SETTL BRIDGE DR SAL
10. 4 7 1 4 Viewing Summary of Over Due Payment Received by SPV sss 7 6 7 1 5 Viewing Summary of Disbursement Details for the Islamic Securitization Contract 7 8 7 1 6 Viewing Summary of Profit Loss Details for the securitization Contract eese 7 9 7 1 7 Viewing Summary of Securitization History details eee renes 7 10 7 1 8 Viewing Summary of Islamic assets under securitization for the specific fund 7 12 7 1 9 Viewing Summary of Payments Disbursemenr of lalamic assets under securitization for the Specific Fund 7 13 M o 8 1 8 1 ACCOUNTING ENTRIES FOR SECURITIZATION OF ISLAMIC 8 1 8 25 ABVENT Ses ie 8 1 5 3 AMOUNT ied oie eU AA EA 8 2 8 4 COMPUTING ISLAMIC SECURITIZATION POOL VALUE NPV sse enne enne nnns 8 4 8 5 ACCOUNTING ROLES e TOES Eee ea bte ERES pe iier E See SE 8 4 8 06 EVENT WISE ACCOUNTING ENTRIES eee e een n en n nene nennen ener entere nere 8 5 8 77 FORMULA BEEMENTS dedii reet tts eset ied 8 13 ES ONDVICE MESSAGES cao eaae Ree BEAL ede dei e AEs LRN TAS deed duties 8 14 PEMOnrnr X 9 1 9 1 EUNCTION ID LIST eit ot ee ie te ae ae tid ed 9 1 1 1 Introduction 1 About this M
11. 8 18 ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description _SMDATE Single IZ Contract _ Maturity Date _SPVID_ Single Special Purpose Vehicles ID SPVNAM Single SPV Name E SPOOLA Single Securitized Pool MT Amount SPOOLC Single Securitized Pool CY Currency SECLNFL Single Finance Exists AG Flag _ACCNUM Multiple Underlying u Finance s Account Number _AC Multiple Underlying USERREF Finance s User yA Reference _LOAMT_ Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Currency _LSTATUS Multiple Underlying E Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s Maturity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying Finance s 8 19 ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description _LBID_ Multiple Underlying Finance s Borrower ID Securitizatio IZ SAMD IZ SAMD A Single Securitization n Contract ADV DV FMT _IZBRANC Branch Date Sale HDATE Amendment Advice _BRANCH Single Securitization NAME Branch Name _IZSPV Single SPV Customer NAME Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV
12. Event wise Accounting Entries In this section we will discuss the suggested events and advices that should be generated for that particular event in the life cycle of Securitization of Islamic assets INIT The system executes the INIT event when a contract is initiated on value date If the value date is application date then system triggers the BOOK and INIT event while booking the contract During this event system computes the total profit loss of the transaction Depending on the type of profit loss accrual mode set for product contract the system either posts the entries to RIA PIA GL for periodic accrual of Profit Loss to Balance sheet or posts it directly to the income expense GL The system generates the configured advices and sends as part of the INIT authorized The system triggers the Cl status change event and changes the status from NORM to SECR It does not allow backdated future dated contract booking of securitization The table below describes the accounting entries for Processing Fee Components and Sale Activities Role Amount Tag Debit Credit Remarks SPV_SETTLE_ACC CHARGES Dr CHG INC CHARGES Cr SPV SETTLE ACC LOAN OUTSTANDING Dr 8 5 ORACLE Role Amount Tag Debit Credit Remarks SPV_SETTL_BRIDGE_CR LOAN_OUTSTANDING CR SPV_SETTLE_ACC SALE_PROFIT DR For immediate realization PLAC_INC SALE_PROFIT CR SPV_SETTLE_ACC SALE_PROFIT_AC DR
13. For periodic realization PLAC_RIA SALE_PROFIT_AC CR PLAC_EXP SALE_LOSS DR For immediate realization SPV_SETTL_BRIDGE_CR SALE_LOSS CR PLAC PIA SALE_LOSS_AC DR For periodic realization SPV_SETTL_BRIDGE_CR SALE LOSS AC CR SECR CONTINGENT ASSET LOAN OUTSTANDING DR For tracking the book balance in SECR CONTINGENT POOL LOAN OUTSTANDING CR off balance sheet SAMD It is an event for sale of additional finances accounts to SPV Addition of finance accounts to securitization pool During this event the system computes the total profit loss of the transaction Depending on the type of profit loss accrual mode set for product contract the system will either post the entries to RIA PIA GL for periodic accrual of Profit Loss to balance sheet or post it directly to the income expense GL The system triggers the CL status change event and changes the status from NORM to SECR The table below descries the accounting entries for Charges incurred during amendment Role Amount Tag Debit Credit SPV SETTLE ACC CHARGES Dr CHARGE CHARGES Cr COMPONENT_INC The table below describes the accounting entries for Securitization Pool Amendment Role Amount Tag Debit Credit Remarks SPV_SETTLE_ACC LOAN_OUTSTANDING DR SPV SETTL BRIDG LOAN OUTSTANDING CR E CR SPV SETTLE ACC SALE PROFIT DR For immediate 8 6 ORACLE realization
14. Frequency Frequency of the charge schedule is defaulted based on the values maintained at product level Amount Specify the amount of the service charge di ORACLE 5 2 4 Currency Currency of the service charge is defaulted based on the values maintained at product level Details Start Date Specify the start date of the service charge Due Date Specify the due date of the service charge Amount Due Specify the amount due of the service charge Amount Settled Specify the amount settled of the service charge Currency Specify the currency of the service charge LCY Amount Specify the LCY amount of the service charge The system computes the service charge schedule during authorization of the contract Specifying Profit Loss Accrual Details You can define the profit loss realization period for transactions such as Sale Sale Amendments Buyback and Recourse Based on the schedule definition system computes the detailed schedules for profit loss realization The system triggers the Profit Loss accrual event during the EOD cycle and passes the accounting entries accordingly is ORACLE Click on the Profit Loss Accrual tab to capture the schedule details for the Profit loss realization Contract Details New 3 Enter Query Branch Contract Reference Product Code n User Reference i Sale Product Description Operation Code Main Advices Service Charge ProfitiLoss Sc
15. From Class Add Subtract SWIFT Qualifier Event For Application Description Basis Amount Tag Description Discount Basis 4 11 Default Waiver Capitalize Collect LC Advising Charges in Bills Amend After Application Consider as Discount ORACLE For further information on this screen refer chapter the Product Definition under Modularity User Manual 4 2 7 Capturing MIS Details You can retrieve MIS related information for a product by linking it to a Warehouse Code Linking a product to a warehouse code ensures that all contracts processed under the product are automatically tracked under the specified Warehouse Code Click MIS button to define the MIS details for the product you are creating MIS Details Product Code MIS Group Pool Code Default From MIS Group MIS Classes Cost Code 1010 MIS Class MIS Code o La For further information on this screen refer chapter the Product Definition under Modularity User Manual 4 2 8 Specifying User Defined Fields You need to click on Fields button to link the user defined fields to the product that you are defining 4 12 ORACLE Product User Defined Fields Fields Product Code Product Description 100 C Field Number Field Name For further information on this screen refer chapter the Product Definition under Modularity User Manual 4 2 9 Accounting Roles and Amount Tags for Se
16. Pool the system triggers the change status event for the newly added finance contract changes the status from NORM Status which are supporting continue accrual status to SECR and passes the below accounting entries e The system transfers the new finance contracts outstanding balance from the bank s ASSET GL LOAN_ACCOUNT to SPV_SETTL_BRIDGE GL e It changes the new finance account s GL for the profit penal profit from the bank s Income GL to the Bridge Income GL e Accrual is similar like SALE event 5 1 1 4 Amendment for Removal of Finance Accounts BAMD Removal of Finance Account from Securitization Pool During the course of the SPV contract SPV can reduce the participating finance contracts in Securitization Contract e You can amend the contract through the Islamic Securitization Contract Online screen e The system computes the Profit Loss for the transaction based on the outstanding principal profit payment as mentioned below Profit or Loss of contract SALE_AMOUNT sum of excluded loan Simple and Amortized type Loans outstanding Principal Interest Accrued till sale date Penalty accrued till sale date ve ORACLE Overdue components Sum of excluded loan Discounted type Loans Outstanding Principal RIA Balance e If securitization product is set to realize the profit loss immediately then the system posts the calculated profit loss directly to the bank s Income Expense
17. _LNBNAM E Multiple Underlying Finance s Borrower Name _LNBID_ Multiple Underlying Finance s Borrower ID _SECLNFL AG_ Single Finance Exists Flag _ACCNUM Multiple Underlying Finance s Account Number _AC USERREF Multiple Underlying Finance s User Reference _LOAMT_ Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Currency _LSTATUS Multiple Underlying Finance s Account Status 8 33 ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description _LDATE_ Multiple Underlying Finance s Date MDATE Multiple Underlying Finance s Maturity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying _ Finance s Borrower Name _LBID_ Multiple Underlying Finance s Borrower ID Consolidate 12 IZ_PPAY_A Single Securitization d Finance _ADV DV_FMT _IZBRANC Branch Date Account HDATE pre payment Advice _BRANCH Single Securitization NAME Branch Name _IZSPV Single SPV Customer NAME Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ USERRE Single IZ User F Reference Number _SPVID_ Single Special Purpose Vehicles ID 8 34 ORACLE
18. branches of your bank to use the product or restricting its use to only some branches 4 4 ORACLE By default when a new product is created no branches will be disallowed 9 Branch Currency Restriction Product Code Product Description Class Code Default From Class Class Description Branch Restrictions Disallowed Currency Restrictions Disallowed Allowed Allowed Branch Code Currency H 4 1005 gt zz 14 4 4070 gt Branch Code Branch Name E Currency Code Currency Name u u For further information on this screen refer chapter the Product Definition under Modularity User Manual 4 5 ORACLE 4 2 4 Maintaining Customer Restriction Click Customer button to invoke the Customer Restrictions screen In this screen you can specify the categories of customers or the customers themselves with whom you can enter into securitization involving the product Customer Restrictions Product Code Product Description Class Details Default From Class Class Code Class Description Branch restriction Categories List Disallowed Allowed Customers 1010 d gi Description Customer Id Customer Name Restrit Disall For further information on this screen refer chapter the Product Definition under Modularity User Manual 4 6 ORACLE 4 2 5 Maintaining Preferences You need to maintain the common attributes which are used to defi
19. forms part of the securitization pool 3 2 Maintaining Rule Formula Details Oracle FLEXCUBE allows you to capture rule condition which is used to identify the finance contracts to form the securitization pool You can maintain the formula details in the Islamic Securitization Formula Maintenance screen You can invoke this screen by typing IZDFRMNT in the field at the top right corner of the Application toolbar and clicking on the adjoining arrow button Formula Maintenance Formula Name Description Rule Expression 100 L1 Condition Id Description Condition Rule Condition Maker Date Time Checker Date Time Record Status Authorization Status Here you can capture the following details Formula Name Specify the formula name 3 1 ORACLE Description Specify the description for the formula Condition ID Specify the condition ID Description Specify the description for the condition Rule Condition Specify the rule condition The system provides the following pre defined elements to form the rule expression Outstanding Principal Disbursed Amount Un Disbursed Principal future scheduled disbursement amount Finance Type Discounted True Discounted Amortized Amortized 78 Outstanding Tenor Rate of Profit Type of Profit Floating Fixed Payment Frequency Customer Type Customer City Location Collateralized Non collateralized Collateral Amount Credit Rating
20. on Remove all From Pool button The system allows only finances for which Continue accrual flag is set to Y for the current status to participate in the Securitization pool 5 2 6 2 Removal of Finances from Pool You can remove finances from the pool through Securitization Pool Deletion screen Click on the Pool Deletion button to remove the finances from the pool Securitization Pool Deletion Formula Name Rule Condition Condition Id Search Remove from Pool Remove All from Pool Search Result Account s 10107 Account Branch Code Product Code Amount Currency n m Securitization Pool Account s 10710 Account Branch Code Product Code Amount Currency me ORACLE You need to capture the following details here Formula Name Select the formula for searching the finance contracts from the option list provided Condition Id Select the condition ID for searching the finance contracts from the option list provided Rule Condition Specify the rule condition The system allows you to select the rule and condition for searching identifying the finance contracts for excluding from the securitization pool To remove the selected finance accounts from the pool click on Remove from Pool button To exclude all the finance accounts from the securitization pool click Remove all From Pool button To include the removed finance account into the pool click on A
21. pool When a bank or financial institution is in need of additional capital to finance a new facility to raise the fund instead of selling the assets the financial institution decides to sell the portion of the finance to a Trustee named as Special Purpose Vehicle SPV and collect the fund up front and remove the finance asset from the balance sheet of the institution SPV holds the asset as collateral in balance sheet and issues bonds to the investors It uses the proceeds from those bond sales to pay the originator for the assets The detailed securitization process with typical components has explained with typical components in the diagram below Step 1 Borrower obtains Finance from the financial institution bank with the help of Mortgage Broker After the loan issued the borrower and ender will not have much interaction with Mortgage Broker 1 Financial Institution Lender Step 2 Lender Financial institution sells the IE Finance assets to Issuer SPV and provide the Servicer service between the Borrower and Issuer SPV Step 3 The Issuer SPV sells the securities 3 as a bonds to the Investor m gt p Underwriter assists the sale Rating agency rates the securities Credit enhancement agencies provides the Credit enhancement on securities Step 4 Servicer will collect the monthly v t men payments from borrowers and remits to SP V Pri amors Mami The roles and res
22. the Pool Addition button to add new finances to the pool ORACLE Securitization Pool Addition Formula Name Condition Id Search Result Account s 1010 Account Branch Code n m Rule Condition Add To Pool Add All To Pool Product Code Amount Currency Securitization Pool Account s 100 Account Branch Code n Product Code Amount Currency Count Remove from Pool Remove All from Pool You need to capture the following details here Formula Name Select the formula for searching the finance contracts from the option list provided Condition Id Select the condition ID for searching the finance contracts from the option list provided Rule Condition Specify the rule condition Click on Search button to search for additional non securitized finance contracts The rule condition would include the standard set of CL attributes The system displays the finance accounts which are matching with contract currency we ORACLE After searching the details click on Add to Pool button to include the selected finance account for grouping to create the securitization pool If you want to include all the finance accounts to create the securitization pool you need to click on Add All to Pool button To remove the selected finance accounts from the pool click on Remove from Pool button To exclude all the finance accounts from the securitization pool click
23. the Buy Sell Rate is used Liquidation You can specify the liquidation details here Liquidation Mode Indicate the mode of liquidation The options available are e Auto e Manual Tenor You can set the tenor details here Minimum Tenor Specify the minimum tenor of a product The tenor of the finance account that involves the product should be greater than or equal to the Minimum tenor that you specify Maximum Tenor Specify the maximum tenor for a product The tenor of the finance accounts that involve the product should be less than or equal to the Maximum tenor that you specify Default The default tenor is the tenor that is associated with a finance 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 finance account during finance processing However the new tenor should be within the minimum and maximum tenors maintained for the product Unit Select the tenor details for a product from the drop down list The options available are e Days e Months e Year 4 8 ORACLE Others You can set the buy back of pool details here Buyback of Pool Allowed Check this option to allow the bank to buy back the sold accounts Periodic Charges You can specify the periodic charges here Frequency Select the frequency of the periodic charges to be applied from the drop down list The o
24. the product code for which the report is generated Product category This is the product category for which the report is generated Customer ID This is the customer ID for which the report is generated Finance amount This is the finance amount for which the report is generated Currency This is the currency for which the finance amount is disbursed Lcy amount This is the local currency for which the finance amount is disbursed Value date This is the value date of the finance for which the report is generated Maturity date This is the maturity date of the finance for which the report is generated 7 1 9 Viewing Summary of Payments Disbursemenr of lalamic assets under securitization for the Specific Fund You can manually generate a report that displays payments disbursement details for all underlying Islamic assets which are funded by the specified Islamic fund in the Summary of payments disbursement of Islamic assets under securitization for the specific fund screen You can invoke this report screen by typing IZRPMTFD in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Summary of payments disbursement of Islamic assets under securitization for the specific Fund Branch Code Fund ID From Date To Date Report Format Report Output Mode Payment Disbursement Printer At Printer You can specify the
25. the report is generated Event code This is the event code for which the report is generated Component name This is the component name for which the report is generated Due date This is the due date for which the report is generated Amount due This is the amount due for which the report is generated Payment received This is the payment received for which the report is generated Payment currency This is the payment currency for which the report is generated Payment date This is the payment date for which the report is generated 7 1 4 Viewing Summary of Over Due Payment Received by SPV You can manually generate a report that displays the summary of payments which are not received for the underlying Cl Accounts for the securitization contract SPV for the specified period in the Summary of overdue payments screen You can invoke this report screen by typing IZRODYPT in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Summary of overdue payment Branch Code Securitization ref No From Date To Date ReportFormat PDF Printer At Client v Report Output Print v Printer You can specify the following preferences for the report 7 6 ORACLE Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Securitization ref no You can generate a r
26. the value date of the finance for which the report is generated MATURITY DATE This is the maturity date of the finance for which the report is generated 7 14 ORACLE 8 Annexure 8 1 Accounting entries for Securitization of Islamic Assets This section contains details of the suggested accounting entries that can be set up for the Securitization of Islamic assets module of Oracle FLEXCUBE The details of the suggested accounting entries are given event wise 8 2 Events The following is an exhaustive list of events that can take place during the lifecycle of a Securitization of Islamic assets In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below Event Code Event Description BOOK Booking Of Islamic Securitization Contract INIT Contract Initiation SAMD Sale of additional finances accounts to SPV BAMD Buyback of finance accounts from SPV AMND Amendment of Securitization Contract LIQD Manual Liquidation event to liquidate the charges payments from to SPV CLOS Auto Closure of Securitization Contract MAMD Update the Pool Maturity Date with the latest date of all underlying finances REVP Reversal of Payment LAMD Amendment of Finance Contract LDBR Disbursement of Finance Contract LPMT Payment of Finance Contract PRCH Collecting Service Charges from SPV on scheduled date based on the pre
27. under Islamic Securitization Pool IZRPOHIS Summary of Islamic Securitization Pool History Details IZRSPVPY Summary of Payment Received 9 1 ORACLE ORACLE Islamic Securitization of Loans May 2012 Version 12 0 Oracle Corporation World Headquarters 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 2012 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 o
28. you can capture the following details Branch Specify the branch code Product Code Select the appropriate product code for which securitization contract is booked Product Description Specify the product description for the selected product Contract Reference The system generates a unique number as contract reference number to identify the contract User Reference Number The system generates a unique user reference number to identify the contract Operation Code Select the appropriate operation that you can perform from the drop down list The options available are id ORACLE 5 2 1 e Sale e Buyback e Amend e Recourse The system defaults Sale as the default operation code Specifying Main Details Here you need to capture the main details of the contract Contract Details You can maintain the following contract details Book Date The system displays the current system date as the Book Date for specified Islamic securitization contract Value Date The system displays the current system date as the Value Date for specified Islamic securitization contract Maturity Date Specify the maturity date or max maturity date of the underling finance contract Contract Amount Specify the sale buyback amount of the pool Currency Specify the currency of the transaction Securitization Mode Select the securitization mode from the following option e Batch e Online Note the followi
29. 2 Authorizing Securitization Contract Details You can authorize contracts in the Securitization Authorize Contract screen You can invoke this screen by typing SZDTRAUT in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Securitization Authorize Contract Contract Details Event Code Contract Reference Event Date Maker Rekey Fields Value Date Currency Maturity Date Contract Amount a Generate Message Customer Contract Overrides 10710 Confirmed Override Remarks Authorized By Authorized Date Authorize You need to specify the following details here Contract Reference Specify the contract number which you are authorizing Maker Specify the maker Event Code The system displays a code for this authorizing event Event Date The system displays the current system date Rekey Fields ae ORACLE Rekey the following details for authorizing a contract Currency Specify the currency as part of the re key requirements for authorizing a contract Contract Amount Specify the amount as part of the re key requirements for authorizing a contract Customer Specify the customer as part of the re key requirements for authorizing a contract Value Date Specify the value date as part of the re key requirements for authorizing a contract Maturity Date Specify the maturity date as part of the re key requirements for authorizing a contra
30. 7 ORACLE 7 1 5 Viewing Summary of Disbursement Details for the Islamic Securitization Contract You can manually generate a report that displays the future disbursement for the underlying Cl Accounts for the securitization contract SPV for the specified period in the Summary of disbursement details for the Islamic securitization contract screen You can invoke this report screen by typing IZRDSBDT in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Summary of disbursement details for the Islamic securitization contract Branch Code Securitization ref No From Date To Date Report Format PDF v Printer At Client Report Output Print w Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Securitization ref no You can generate a report based on the securitization reference number Select a reference number from the option list provided From date Enter the From Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here 7 8 ORACLE Body of the Report
31. ACLE Operation This is the operation Buy back amendment sale for which the report is generated 7 1 8 Viewing Summary of Islamic assets under securitization for the specific fund You can manually generate a report that displays the underlying Islamic assets which are funded by the specified Islamic fund in the Summary of Islamic Assets under securitization for the specific fund screen You can invoke this report screen by typing IZRSECFD in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Summary of Islamic assets under securitization for the specific Fund Branch Code Fund ID ReportFormat PDF Printer At Client Report Output Print v Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Fund Id Specify the fund id The adjoining option list displays all the fund ids maintained in the system You can choose the appropriate one Body of the Report Branch code This is the branch code for which the report is generated Securitization ref This is the securitization reference number for which the report is number generated Asset ref no This is the asset reference number for which the report is generated 7 12 ORACLE Product code This is
32. Account Number _AC Multiple Underlying USERREF Finance s User _ Reference LOAMT Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Currency _LSTATUS Multiple Underlying _ Finance s Account Status _LDATE_ Multiple Underlying Finance s Date MDATE Multiple Underlying Finance s Maturity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying _ Finance s Borrower Name _LBID_ Multiple Underlying Finance s Borrower ID Securitizatio IZ BAMD IZ BAMD A Single Securitization n Contract ADV DV FMT _IZBRANC Branch Date Buyback HDATE_ Amendment Advice _BRANCH Single Securitization NAME Branch Name _IZSPV Single SPV Customer NAME Name _IZSPV Single SPV Address ADDR 8 22 Message Message Message Tag Name Tag Type Tag Type Format Description LN1 Line 1 _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE Single IZ User F Reference Number SVDATE Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date _SMDATE Single IZ Contract 2 Maturity Date _SPVID_ Single Special Purpose Vehicles ID _SPVNAM Single SPV Name E_ _ Single Securitized Pool MT Amount _SPOOLC Single Securitized Pool CY Currency _LNFLAG_ Single Finance Exists Flag _LNACCN Mult
33. E PROFIT BR AC DR PLAC RIA SALE PROFIT BR AC CR SPV SETTLE ACC PRCH LIQD DR 8 12 ORACLE 8 7 Formula Elements The elements mentioned in the table below are available for constructing the formula Pre Defined Elements Description Type PRODUCT CODE Product Code VARCHAR2 BRANCH CODE Branch Code VARCHAR2 COLLATERAL AMOUNT Collateral Amount NUMBER LOAN STATUS Finance Status VARCHAR2 PRINCIPAL OUTSTAND Outstanding Principal NUMBER AMOUNT DISBURSED Disbursed Amount NUMBER AMOUNT NOT DISBURSED Undisbursed NUMBER Principal future scheduled disbursement amount TENOR OUTSTAND Outstanding Tenor NUMBER PROFIT RATE Rate of Profit NUMBER PROFIT TYPE Type of Profit Floating NUMBER Fixed PRINCIPAL PAYMENT FREQ Principal Payment NUMBER frequency PROFIT PAYMENT FREQ Profit Payment NUMBER frequency CUSTOMER TYPE Customer Type NUMBER CUSTOMER CITY Customer city location NUMBER COLLATERAL TYPE Collateralized Non NUMBER collateralized CREDIT SCORE Credit Rating NUMBER PAYMENT OUTSTAND Payment outstanding NUMBER FINANCE CURRENCY Currency of Finance NUMBER CUSTOMER CATEGORY Customer Category NUMBER PROD CATEGORY Product category VARCHAR2 8 13 ORACLE Pre Defined Elements Description Type PROFIT_RATE Profit rate NUMBER FUND_ID Fund ID VARCHAR2 ACC_STATUS Account Status VARCHAR2 RP_STATUS Relationship Pricing VARCHAR2 S
34. E_PROFIT Applicable if the profit loss accrual is not set as required For new Contract Profit of the Securitization Sale contract For amendment AMND SAMD BAMD contracts Increased in Profit of the amendment contract SALE_PROFIT_AC Applicable if the profit loss accrual is set as required For new Contract Profit of the Securitization Sale contract For amendment AMND SAMD BAMD contracts Increased in Profit of the amendment contract SALE_LOSS Applicable if the profit loss accrual is not set as required For new Contract Loss of the Securitization Sale contract For amendment AMND SAMD BAMD contracts Increased in Loss of the amendment contract 8 3 ORACLE Amount Tag Description SALE_LOSS_AC Applicable if the profit loss accrual is set as required For new Contract Loss of the Securitization Sale contract For amendment AMND SAMD BAMD contracts Increased in Loss of the amendment contract PLAC_PROFT Consolidated profit accrual for the securitization contract PLAC_LOSS Consolidated loss accrual for the securitization contract 8 4 Computin Islamic Securitization Pool Value NPV Oracle FLEXCUBE allows you to calculate NPV based on the type of Islamic product category The various products and their formula is given in the table below S No Product Category Securitization Pool value computation logic 1 Musharakah Outsta
35. GL directly e Ifthe securitization product is set to realize the profit loss over a pre defined period then the system computes a schedule for the profit loss and posts the accounting entries accordingly during the EOD cycle e You need to maintain the Profit Loss as a separate slab for each amendment on sale contract and should not merge it with previously calculated profit loss e The system computes separate accrual schedule for profit and loss for that particular amendment based on the schedule defined during the amendment e During EOD the system computes the consolidated profit loss Netting is done on that due date and posts the accounting entries to Banks Income Expense GL e The system generates the Amendment Advice Message Impact on Islamic Assets During the amendment the system triggers the change status event from SECR status to NORM for the removed contract from pool and passes the below accounting entries e transfers the removed finance contracts outstanding balance from SPV_SETTL_BRIDGE GL to bank s ASSET GL LOAN_ACCOUNT e It changes the removed finance contracts GL for the profit penal profit from BRIDGE INCOME GL to Bank s INCOME GL e Accrual is similar like SALE event The table below describes the accounting entries for Status change SECR or Status which are supporting continue accrual to NORM Simple Finance Principal Component Amortized Finance Amortized Rule 78 Outstandin
36. Islamic Securitization Oracle FLEXCUBE Universal Banking Release 12 0 May 2012 Oracle Part Number E51527 01 ORACLE FINANCIAL SERVICES 0 ORACLE Islamic Securitization Table of Contents 1 ABOUT THIS MANUAL ju iii BAA Aaaa 1 1 1 1 INTRODUCTION ER 1 1 L2 AUDIENCE M E a 1 1 1 3 ABBREVIATIONS KA aa 1 1 ORGANIZATION M 1 2 15 RELATED DOCUMENTS tto AAA KAA REIR ai 1 2 TG GLOSSARY OF ICONS 1 2 2 SECURITIZATION ISLAMIC ASSETS AN 2 1 2 1 INTRODUCTION wai ii cssquacd vevsteds cuavscee aa 2 1 3 MAINTENANCES ou ecsscssssecssssccnssssscscsnessssnssscsnesesesssnsssssnssscsncssossssssssssensssssncesesssssossssssesssssossosssssoses 3 1 3 1 INTRODUCTION NA 3 1 3 2 MAINTAINING RULE FORMULA DETAILS 3 1 321 Viewing Securitization Formula Maintenance Summary Details esent 3 3 4 DEFINING ATTRIBUTES FOR ISLAMIC SECURITIZATION PRODUCTS s s ssssesesoeseseesesesose 4 1 4 1 INTRODUCTION 4 1 42 MAINTAINING SECURITIZATION 4 1 4 2 1 Mapping Accounting Role to GL Customer Account eese eene tentent 4 2 4 2 2 Maintaining Events Details ccccccccesssesesceensecesseeestececeesncecssceeeaeecaeeeeacecaceeeateceaeeseneece
37. Payment Outstanding Currency of Finance Customer Category Product Category Account Status Relationship Pricing Status Module Code ORACLE 3 2 1 While creating the securitization pool the system computes the values for the elements dynamically and executes the expression You should use the Rule Name and Condition Name in securitization pool addition deletion screen to execute the specific condition The system allows you to modify the formula This modification will not have any impact on the already selected finance accounts in the securitization pool based on the modified formula Viewing Securitization Formula Maintenance Summary Details You can view the summary details of the Securitization Formula Maintenance in Securitization Formula Maintenance Summary screen You can invoke this screen by typing IZSFRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Summary Authorization Status v Record Status v Formula Name FE Description a Wmi Advanced Search Records 15 v 1 1 Authorization Status Record Status Formula Name Description Module Code In this screen you can query based on any combination of the following fields e Authorization Status e Formula Name e Record Status e Description After specifyi
38. R Amount tag returns value only when Islamic Asset standing balance has Debit balance Otherwise it will return 0 5 1 1 7 Liquidation of Payments As per the Securitization contract if any periodic charges are configured system liquidates the same either automatically or manually based on the configuration It generates the Debit Advice messages for the liquidation 5 1 1 8 Reversal of Payment The system reverses the payments received from SPV reversed 5 1 1 9 Closure of Contract After maturity of all underlying finance contracts system closes the securitization contract during the EOD cycle The system generates the Contract Closure Advice Message to SPV to indicate the closure of securitization contract If any of the underlying finance contract s maturity has been changed and if the maturity date is beyond the maturity date of securitization contract system will update the maturity date of securitization contract during the EOD cycle and generates the advice message 5 1 1 10 Accrual of Profit Loss and Periodic Service Charge If the securitization contract is configured to realize the Profit Loss over a period during EOD cycle system will trigger the PLAC event based on the frequency set in securitization contract and accrue the Profit and Loss accordingly And during EOD cycle based on the frequency set in securitization contract for service charges system triggers PRCH event and passes the accounting en
39. Reversal of Payments charge components Role Amount Tag Debit Credit SPV_SETTLE_ACC PRCH_LIQD Dr PRCH_INC PRCH_LIQD Cr LIQD It is an event for Manual Liquidation to liquidate the charges payments from to SPV The table below describes the accounting entries for collecting periodic service charges from SPV on due date Manual payment Role Amount Tag Debit Credit SPV_SETTLE_ACC PRCH_LIQD Dr PRCH_INC PRCH_LIQD Cr PRCH The system triggers this event during EOD for collecting the service charges from SPV on scheduled date based on the pre defined schedule The table below describes the accounting entries for collecting periodic service charges from SPV on due date Role Amount Tag Debit Credit SPV_SETTLE_ACC PRCH_CHG Dr PRCH_INC PRCH_CHG Cr 8 10 ORACLE LPMT The system triggers this event during EOD if any payment has been triggered in underlying finance contract principal profit compensation and overdue components The system posts consolidated accounting entries posted to SPV accordingly for credit payment and debit payments The table below describes the accounting entries for posting the consolidated payments to from SPV on value date Role Amount Tag Debit Credit SPV_SETTLE_ACC LOAN_PMNT_DR DR SPV SETTL BRIDGE C LOAN PMNT DR CR R SPV SETTL BRIDGE D LOAN PMNT CR DR R SPV SETTLE ACC LOAN PMNT CR
40. Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ USERRE Single IZ User F Reference Number _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date _SMDATE Single IZ Contract m Maturity Date _SPVID_ Single Special Purpose Vehicles ID _SPVNAM Single SPV Name E 8 20 ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description _SPOOLA Single Securitized Pool MT Amount _SPOOLC Single Securitized Pool CY Currency _LNFLAG_ Single Finance Exists Flag _LNACCN Multiple Underlying UM Finance s Account Number _LNACUS Multiple Underlying ERREF Finance s User Reference _LNAMT__ Multiple Underlying Finance s Amount _LNCCY_ Multiple Underlying Finance s Finance Currency _LNSTATU Multiple Underlying 5_ Finance s Account Status _LNDATE_ Multiple Underlying Finance s Date LNMDAT Multiple Underlying E Finance s Maturity Date _LNTENO Multiple Underlying R_ Finance s Tenor _LNBNAM Multiple Underlying _ Finance s Borrower Name _LNBID_ Multiple Underlying Finance s Borrower ID _SECLNFL Single Finance Exists AG_ Flag 8 21 ORACLE ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description _ACCNUM Multiple Underlying _ Finance s
41. Y Currency _SALEAM Single Securitized Pool T Sale Amount _SALECC Single Securitized Pool Y Sale Currency SALE DA Single Securitized Pool TE Sale Date _SECLNEFL Single Finance Exists AG_ Flag _ACCNUM Multiple Underlying Finance s Account Number _AC Multiple Underlying USERREF Finance s User Reference LOAMT Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Currency _LSTATUS Multiple Underlying yA Finance s Account Status _LDATE_ Multiple Underlying Finance s Date ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description _MDATE__ Multiple Underlying Finance s Maturity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying _ Finance s Borrower Name _LBID_ Multiple Underlying Finance s Borrower ID Securitizatio IZ AMND IZ AMND A Single Securitization n Contract ADV DV FMT _IZBRANC Branch Date Amendment HDATE Advice BRANCH Single Securitization NAME Branch Name _IZSPV Single SPV Customer NAME Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ USERRE Single IZ User F Reference Number _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date
42. _LBNAME Multiple Underlying _ Finance s Borrower Name _LBID_ Multiple Underlying Finance s Borrower ID Securitizatio IZ IZ MAMD A Single Securitization n Contract _ADV DV_FMT _IZBRANC Branch Date Maturity HDATE_ Date Amendment _BRANCH Single Securitization Advice NAME _ Branch Name _IZSPV Single SPV Customer NAME Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE Single IZ User F_ Reference Number 8 25 Message Message Message Tag Name Tag Type Tag Type Format Description _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date _SMDATE Single IZ Contract _ Maturity Date _SPVID_ Single Special Purpose Vehicles ID _SPVNAM Single SPV Name E SPOOLA Single Securitized Pool MT Amount SPOOLC Single Securitized Pool CY Currency _SECLNFL Single Finance Exists AG_ Flag _ACCNUM Multiple Underlying _ Finance s Account Number _AC Multiple Underlying USERREF Finance s User _ Reference _LOAMT_ Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Currency _LSTATUS Multiple Underlying _ Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s
43. aeeeeneeceaeessnes 4 3 4 2 3 Maintaining Branch and Currency Restriction eese eee nennen nenne 4 4 4 2 4 Maintaining Customer Restriction eese eene eene rennen eene nenne nennen trennen 4 6 4 2 5 ULP RM sess 4 7 4 2 6 Specifying Charge Details dett tet rd de riri eere a 4 11 4 2 7 Capturing MIS DHA US uio ee E Eee aside EE E certe ERR 4 12 4 2 8 Specifying User Defined Fields esee 4 12 4 2 9 Accounting Roles and Amount Tags for Securitization eee ese eese ene 4 13 5 ISLAMIC SECURITIZATION CONTRACT eeeeee ee eee eene se enses tasto senses tosta sosta sens tn sens enses suse ta suae 5 1 5 1 INTRODUCTION exo tete Mete tuis 5 1 5 1 1 Securitization Contract Life Cycle en ettet e REN VEU sette EU ERE ee Ee NER NER cn 5 1 5 2 MAINTAINING CONTRACT DETAILS erento kiana miaka akikaa aenea Poesie ete erae Run 5 9 3 24 Specifying Main Details ersinnen aeie i R a EREE EK 5 10 3 2 2 Specifying Advice Detail AA tnesvoasoadetionder says 5 12 5 2 3 Specifying Service Charge Details eese 5 14 5 2 4 Specifying ProfiNLoss Accrual 5 mmi maimam mmama 5 15 IZI Viewing Securitization Pool Details eese eese amini eene nennen trennen trennen 5 18 5 2 6 Adding or De
44. and loss schedule Amount Specify the amount of the profit and loss schedule Currency Specify the currency of the profit and loss schedule ORACLE Type Specify the type profit and loss schedule LCY Amount Specify the LCY amount of the profit and loss schedule Accrued Amount Specify the accrued amount profit and loss schedule The system computes the Profit Loss accrual schedule during authorization of the contract 5 2 5 Viewing Securitization Pool Details Oracle FLEXCUBE provides a facility to view all the underlying finances which have been included as part of the securitization pool Click on the Pool Details button to view the list of finances bundled in securitization pool Securitization Pool Securitization Pool Details 10110 Account Branch Code Product Code Amount Currency A Here you can view the following details e Account e Branch Code e Product Code e Product Type e Amount e Currency ane ORACLE e Start Date e Maturity Date e Value Date e Customer ID e Customer Name e Formula e Condition e Rule Expression 5 2 6 Adding or Deleting Finances from the Pool Oracle FLEXCUBE provides a rule based mechanism to add additional finance accounts and remove previously bundled finances from the Pool 5 2 6 1 Adding Finances to the Pool You can add new finances to the previously configured pool through Securitization Pool Addition screen Click on
45. anual This manual is designed to help you to quickly get familiar with the Islamic Securitization of Loans module of Oracle FLEXCUBE It provides an overview of the module and guides you through the various steps involved in Islamic securitization of loans 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 Managers Generation of reports 1 3 Abbreviations The following are the abbreviations used in this user manual Abbreviation Description IZ Islamic Securitization SPV Special Purpose Vehicle VAMI Value dated Amendments EOD End of Day cycle SECR Securitization INC Income ORACLE Abbreviation Description PIA Paid in Advance RIA Received in Advance 1 4 Organization This manual is organized into the following chapters Chapter 1 About this Manual gives information on the intended audience It also lists the various chapters covered in this U
46. arly Day Specify the day on which the accrual provisioning has to be done Rekey Requirements If you wish to ensure re keying of values in certain fields of the contract during contract authorization you can indicate it here You can also select the fields for which you wish re keying to be done Specify the following details Rekey Required Indicate whether to avail the re key facility or not during contact authorization for contracts created using this product The options available are e Yes e No 4 10 ORACLE Amount Check this box to re key the amount during contract authorization Currency Check this box to re key the currency during contract authorization Value Date Check this box to re key the start date during contract authorization Maturity Date Check this box to re key the end date during contract authorization 4 2 6 Specifying Charge Details Click on Charges button to specify the charge details Charge Details Product Code Component Details Component Description Charge Type Third Party Type Event Details Event For Association Description Event For Liquidation Description Rule Details Settlement Currency Rule Description Other Details 12015 Net Consideration Advice Charge Allow Rule Amendment Amend After Association Allow Amount Amendment Accrual Required Product Description Debit Credit Stop Association Propagation Required Default
47. atch Securitization process is initiated as part of intra day batch IZDSECR The system securitizes the underlying Islamic assets which are marked with Marked for Securitization status Post securitization process the system will update the internal status of the securitization contract as Securitized The below table lists the possible status Securitization mode Internal Status Post securitization status Online NA Securitized Batch Mode Marked for securitization Securitized If any one of the Islamic Asset s status change event fails then the system stops the securitization process and raises appropriate error message Skipping events is not enabled Once Islamic Asset is marked for Mark for Securitization as part of the securitization pool the system will not allow any operations to be performed on the underlying asset till the IZ contract s securitization process is complete The system supports securitization of Cl contracts ot ORACLE 6 3 EOD Batch The below table provides details about the batches run and stage when they are run for Islamic securitization SI No EOD Stage Sub Stage Module Batch 1 Post EOTI Stage 1 IZDSECR 2 Stage 2 CIDBATCH 3 Stage 3 IZEOD 4 Post BOD Stage 1 CIDBATCH 5 Stage 2 IZEOD 6 2 ORACLE 7 1 7 Reports Introduction You may want to retrieve information on any of the several o
48. ccounts screen You can invoke this report screen by typing IZRCLHIS in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button 7 10 ORACLE Summary of Islamic securitization history details for the Accounts Branch Code LBL_PM_ACCOUNT_NO From Date To Date ReportFormat PDF Printer At Client Report Output Print v Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Securitization ref no You can generate a report based on the securitization reference number Select a reference number from the option list provided From date Enter the From Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here Body of the Report Branch code This is the branch code for which the report is generated Account number This is the account number for which the report is generated Securitization ref This is the securitization reference number for which the report is number generated Securitization date This is the securitization date for which the report is generated 7 14 OR
49. ct Generate Message Check this box to generate the messages Contract Overrides Here the system displays the following override details of the contract for all operations e Confirmed e Override Remarks e Authorized By e Authorized Date e Status e Remarks 5 2 13 Amendment of Securitization Contracts Oracle FLEXCUBE supports amendment of securitization contracts after authorization including or excluding of finance contracts to from the securitization pool SPV Special Purpose Vehicle may approach the financial institution to buy addition finances drop bad dept finances from the securitization pool contract as per the sale agreement This may lead to addition removal of finance contract in the securitization pool The system also facilitates replacement of one or more financial accounts which are not securitized with another fianancial accounts which are part of the securitized contracts ids ORACLE You can amend a securitization contract in the securitization contract screen itself During the amendment system allows you to update the sale amount and pool contracts alone During amendment the system triggers the AMND BAMD SAMD event based on the amendment type selected The system allows you to capture the following type of amendments when you press the Unlock button and trigger the events as per the below table SL Amendment Option Event triggering No 1 Amendment type is SALE addition of new S
50. curitization The following are the Accounting Roles and Amount Tags for Securitization Accounting Role Description SPV SETTL ACC Accounting role for SPV settlement account All credit debit transaction for SPV is handled through the specified settlement account SPV SETTL BRIDGE CR Bank GL account for SPV Credit Settlement bridge SPV SETTL BRIDGE DR Bank GL account for SPV Debit Settlement bridge Note the following A finance account can be part of only one securitization pool Post securitization Profit penal profit accrual continues Post securitization the system does not allow readjustment backdated amendments for finances participating in the securitization pool It is handled operationally The system does not transfer schedule payments paid in advance and realized before securitization to SPV during securitization Post sale of securitization the system disables amendments to securitizations Also combining changes into a single amendment is not enabled Post securitization the system triggers Islamic events and posts the accounting entries according to the product configurations 4 13 ORACLE If the status of Islamic asset is Marked for securitization then the system restricts performing account specific operations like amendment disbursement or payments on the same day until the securitization process is completed as part of intra day batch and also raises the following e
51. dd to Pool button To include all the removed finance account into the pool click on Add All to Pool button If any of the underlying finance account has been closed or pre closed the system does not remove those finance accounts from the pool It will remain in the pool for future reference 5 2 6 3 Replacement of Finances in the Pool Recourse of Financial Accounts You can replace one or more financial accounts which are not securitized with another finance accounts which are part of the securitized contract in the Securitization recourse Swapping of accounts screen To invoke this screen click on Recourse button Je ORACLE Securitization Recourse Swapping of accounts Formula Formula Condition Id Condition Id Rule Expression Rule Expression Search Add To Pool Add All To Pool Remove All from Pool Search Result Account s Search Result Account s 10710 bl 1010 li Account Account Branch Prod Account Account Branch o n n Count Count Securitization Pool Account s Securitization Pool Account s 1010 ii 14 100 Account Branch Account Branch 0 Le n La gt Add To Pool Remove All from Pool Add All To Pool In this screen you can identify the finance accounts from the non securitized finances to add newly into the securitization pool for swapping the finance accounts Also you can identify finance accounts which are part of the securitization pool and remov
52. defined schedule PLAC Realizing Profit Loss on the scheduled date RECR Replacement of finance transaction is securitized 8 1 ORACLE 8 3 Amount Tag The table below describes the Amount tags in securitization contract which supports accounting entries Amount Tag Description LOAN OUTSTANDING For a New Contract Sum of Simple and amortized finances Outstanding Principal Profit Accrued till sale date Compensation accrued till sale date Overdue components Sum of Discounted type Finances Outstanding Principal RIA Balance For amendments SAMD Addition of new finances to Pool Sum of newly added Finances Simple and amortized finances Outstanding Principal Profit Accrued till sale date Compensation accrued till sale date Overdue components Sum of Discounted type Finances Outstanding Principal RIA Balance For amendments BAMD removal of finance accounts from Pool Sum of excluded finance Simple and amortized finances 8 2 ORACLE Amount Tag Description Outstanding Principal Profit Accrued till sale date Compensation accrued till sale date Overdue components Sum of Discounted type Finances Outstanding Principal RIA Balance SALE_AMT For new Contract Sale Amount of the Securitization contract For amendment contracts Increased decreased in Sale Amount of the Securitization contract SAL
53. e contract which is used for the service charge payment It will be always the contract currency Contract Reference Specify the securitization contract reference number to which the payment is made Value Date Specify the value date of the payment The system defaults it to application date However you can amend it Total Amount The system calculates and displays the total payment amount which is the sum of the individual component amount paid during the payment Customer Specify the associated SPV customer name ESN Specify the Event Sequence Number ESN for the payment Limit Date Specify the limit date for the payment You can do a prepayment through selecting future dated schedule Click Populate Due button the system lists the payment overdue dues till the specified limit due date in the Liquidation details sie ORACLE 6 1 6 2 6 Online Batch Process Introduction Oracle FLEXCUBE supports Online and Batch processes based on the options selected for Securitization Mode at Contract Input level The following options are available e Online If selected the system will invoke the securitization process at the time of authorization of securitization contract e Batch If selected the system will save the securitization contract without initiating the securitization process and will change the internal status of the contract as Marked for Securitization Processing Intra day B
54. e from the securitization pool 5 2 7 Viewing Contract Charge Details You can view the charges for the securitization contract through Charge Details screen To invoke this screen click on Charges button ae ORACLE Charge Details Contract Reference Charge Association 14 4 1010 o Creation ESN Component Description Consider as Discour Charge Application 14 4 108i gt oO Creation ESN Component Tag Currency Tag Amount Charge Currency Charge Amount lt Charge Liquidation 14 4 1070 Dl ESN Component Charge Currency Charge Amount Liquidated v 0 you can view the applicable charges for the securitization contract ORACLE 5 2 8 Viewing Contract Event Details You can view the contract event details for the securitization contract through Events screen To invoke this screen click on Events button Reference Number Events 1010 Event Number Event Date Event Code Description Authorization Status Accounting Entries Here you can view the triggered events corresponding accounting entries and the advice message generated for the securitization contract maintained at the product level 5 2 9 Viewing Securitization Contact History You can view the securitization contact history details through Securitization History Details screen To invoke this screen click on Events History button m ORACLE Securiti
55. e system defaults the GL configured in this screen in the Islamic Securitization Contract Online screen Click on Accounting Roles button to capture the details to map the accounting role to a GL or a customer account 4 2 ORACLE Accounting Roles Product Code Product Description Class Details Default From Class Class Code Class Description 101 gt X Accounting Role Role Description Account Head GL Description For further information on this screen refer chapter the Product Definition under Modularity User Manual 4 2 2 Maintaining Events Details You are allowed to define or specify the pre defined events in securitization product based on the nature of securitization You should click on the Events button to capture the details of the event In the Events screen you can attach the applicable events to the product 4 3 ORACLE Events Product Code Product Description Class Details Default Frorn Class Class Code Class Description Event Details 1017 Event Code Description Accounting Entries For further information on Events Accounting Entries and Advices refer Product Definition User Manual under Modularity User Manual 4 2 3 Maintaining Branch and Currency Restriction Click Branch amp Currency button and invoke the Branch Currency Restriction screen In this screen you have the option of allowing all the
56. elow describes the generation time and supported tag of the advices and its corresponding event Advice Name Event Generation Time Supported tags Securitization Book Advice BOOK Authorize IZ ADV FMT Securitization Init Advice INIT Authorize IZ ADV FMT Securitization contract AMND Authorize IZ AMD ADV Amendment Advice Sale Advice SAMD Authorize IZ AMD ADV Buyback Advice BAMD Authorize IZ AMD ADV Payment Advice LIQD Authorize IZ PMNT ADV Closure Advice Manual CLOS BOD IZ CLSR ADV closure Consolidated Finance LAMD EOD IZ LAMD ADV Amendment statement Consolidated Finance LDBR EOD IZ LDSB ADV Disbursement Request Consolidated Finance Pre LPMT EOD 12 PPAY ADV payments received 12 PMNT ADV 8 38 ORACLE 9 1 9 Screen Glossary 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 IZDFRMNT Islamic Securitization Formula Maintenance IZDPRMNT Islamic Securitization Product Maintenance IZDTRONL Islamic Securitization Contract Input Detailed IZRDSBDT Summary of disbursement details for the Islamic securitization contract IZRODYPT Summary of overdue payments IZRPLACR Summary of profit and loss accrual details for the Islamic securitization contract IZRPOACC Summary of Cl accounts
57. eport based on the securitization reference number Select a reference number from the option list provided From date Enter the From Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here Body of the Report Branch code This is the branch code for which the report is generated Securitization ref This is the securitization reference number for which the report is number generated Account number This is the account number for which the report is generated Product code This is the product code for which the report is generated Product category This is the product category for which the report is generated Customer ID This is the customer ID for which the report is generated Event code This is the event code for which the report is generated Component name This is the component name for which the report is generated Due date This is the due date for which the report is generated Amount due This is the amount due for which the report is generated Payment received This is the payment received for which the report is generated Payment currency This is the payment currency for which the report is generated Payment date This is the payment date for which the report is generated 7
58. f such revision or changes All company and product names are trademarks of the respective companies with which they are associated
59. following details Advice Details Advice Name The system defaults the list of advice reference number which has been generated during the various events of the contract Party Type The system defaults the part type Party ID The system defaults the party ID Party Name The system defaults the party name Medium The system defaults the advice message available medium Priority The system defaults the priority of the advice The system displays the latest 25 advices which are generated for the specified contract as ORACLE 5 2 3 Specifying Service Charge Details Click on the Service Charge tab to define the service charge details Contract Details New Enter Query Branch Contract Reference Product Code n User Reference ii Product Description Operation Code Sale Main advices ProfitiLoss Accrual Service Charge Schedule 4 40710 gt Start Date End Date Frequency Currency z Details 1010 Start Date Due Date Amount Due Amount Settled Currency LCY Amount Pool Details Pool Addition Pool Deletion Recourse Event History Fields Maker Date Time Status Authorization Status Checker Date Time Here you need to capture the following details Service Charge Schedule Start Date Specify the start date of the service charge schedule End Date Specify the end date of the service charge schedule
60. following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided 7 13 ORACLE Fund Id Specify the fund id The adjoining option list displays all the fund ids maintained in the system You can choose the appropriate one From date Enter the From Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here Body of the Report BRANCH CODE This is the branch code for which the report is generated SECURIZATION REF NUMBER This is the securitization reference number for which the report is generated ASSET REF NO This is the asset reference number for which the report is generated PRODUCT CODE This is the product code for which the report is generated PRODUCT CATEGORY This is the product category for which the report is generated COMPONENT This is the component for which the report is generated CUSTOMER ID This is the customer ID for which the report is generated AMOUNT This is the amount for which the report is generated CURRENCY This is the currency for which the finance amount is disbursed LCY AMOUNT This is the local currency for which the finance amount is disbursed VALUE DATE This is
61. g Principal is transferred from SPV_SETTL_BRIDGE GL to FINANCE ACCOUNT Profit Penal Profit Components Accrued profit till the sale date is transferred to SPV account or Bridge GL account GL for profit penal profit is changed to Bank INCOME GL dis ORACLE Discounted Finance True Principal Component Discounted Finance Outstanding Principal is transferred from SPV_SETTL_BRIDGE GL to FINANCE ACCOUNT Profit Penal Profit Components Profit amount is calculated till the maturity date and it is posted to MAIN_INTARIA GL account and start accrue the profit and post the profit to Bank s Income GL 5 1 1 5 Amendment for Changing the Contract Details Amendment without Modifying the Securitization Pool The system triggers the AMND event and updates the modified contract details And it generates the Amendment Advice Message System supports the following amendments e Pool Amount e Accrual dates e Service charge e Service charge dates 5 1 1 6 Recourse of Finance Accounts During the course of the securitization contract SPV can replace the existing finance contracts in Securitization Contract with new finance accounts which are not part of securitization You can amend the contract through the Securitization Contract Online screen with the recourse option The below formula explains the calculation related to recourse operation Profit or Loss of contract SALE AMOUNT
62. gle Finance Exists Flag _LNACCN UM_ Multiple Underlying Finance s Account Number _LNACUS ERREF_ Multiple Underlying Finance s User Reference _LNAMT_ Multiple Underlying Finance s Amount _LNCCY_ Multiple Underlying Finance s Finance Currency _LNSTATU S Multiple Underlying Finance s Account Status _LNDATE_ Multiple Underlying Finance s Date _LNMDAT E Multiple Underlying Finance s Maturity Date _LNTENO R Multiple Underlying Finance s Tenor _LNBNAM E Multiple Underlying Finance s Borrower Name _LNBID_ Multiple Underlying Finance s Borrower ID _SECLNFL Single Finance Exists 8 30 ORACLE ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description AG_ Flag _ACCNUM Multiple Underlying _ Finance s Account Number _AC Multiple Underlying USERREF Finance s User _ Reference _LOAMT_ Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Currency _LSTATUS Multiple Underlying E Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s Maturity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying Finance s Borrower Name _LBID_ Multiple Underlying Finance s Borrower ID Consolida
63. he system performs a force accrual till sale date and post the same to Income GL e Post securitization the system continues the accrual of finance account The table below describes the accounting entries for Status change NORM or Status which are supporting continue accrual to SECR Simple Finance Amortized Principal Component Finance Amortized Rule 78 Outstanding Principal is moved to SPV_SETTL_BRIDGE GL Profit Penal Profit Components Accrued profit till the sale date will be transfer to bank s Income GL GL for profit penal profit will be changed to Bridge GL ve ORACLE Discounted Finance True Principal Component Discounted Finance Outstanding Principal is transferred to SPV_SETTL_BRIDGE GL Profit Penal Profit Components A sum equivalent of accrued profit till the sale date is transferred from MAIN INTRIA to bank s Income GL The balance profit amount in the MAIN INTRIA is transferred to Bridge GL account SPV Account 5 1 1 3 Amendment for Addition of Finance Accounts SAMD Addition of New Finance Account to Securitization Pool During the course of SPV contract SPV can increase the participating Islamic assets in Securitization contract e You can amend the contract through Securitization Contract Online screen The system provides you an option to add new finance contracts to the existing Pool e You compute the Profit Loss for the t
64. hedules 10M gt Version Reminder Frequency Start Date End Date Li lt Total Amount Details O Version Number Start Date Due Date Currency LCY Amount Accrue EA Pool Details Pool Addition Pool Deletion Recourse Charges Event History Fields Maker Date Time Status Authorization Status Checker Date Time Here you need to capture the following details Profit and Loss Schedule Version Specify the version of the profit and loss schedule Event Specify the event to be linked to the schedule Frequency Specify the frequency of the profit and loss schedule Start Date Specify the start date of the profit and loss schedule 5 16 ORACLE End Date Specify the end date of the profit and loss schedule Type Specify the type of the profit and loss schedule Total Amount Specify the total amount of the profit and loss schedule Unit Amount Specify the unit amount of the profit and loss schedule Currency Specify the currency of the profit and loss schedule Total LCY Amount Specify the total LCY amount of the profit and loss schedule Unit LCY Amount Specify the unit LCY amount of the profit and loss schedule Details Version Number Specify the version of the profit and loss schedule Start Date Specify the start date of the profit and loss schedule Due Date Specify the due date of the profit
65. iple Underlying UM Finance s Account Number _LNACUS Multiple Underlying ERREF Finance s User Reference 8 23 ORACLE Message Message Type Message Format Tag Name Tag Type Tag Description _LNAMT_ Multiple Underlying Finance s Amount _LNCCY_ Multiple Underlying Finance s Finance Currency _LNSTATU S Multiple Underlying Finance s Account Status _LNDATE_ Multiple Underlying Finance s Date _LNMDAT E Multiple Underlying Finance s Maturity Date _LNTENO R Multiple Underlying Finance s Tenor _LNBNAM E Multiple Underlying Finance s Borrower Name _LNBID_ Multiple Underlying Finance s Borrower ID _SECLNFL AG_ Single Finance Exists Flag _ACCNUM Multiple Underlying Finance s Account Number _AC USERREF Multiple Underlying Finance s User Reference _LOAMT_ Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Currency 8 24 ORACLE ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description _LSTATUS Multiple Underlying _ Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s Maturity Date _LTENOR_ Multiple Underlying Finance s Tenor
66. le Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Currency _LSTATUS Multiple Underlying yA Finance s Account Status _LDATE_ Multiple Underlying Finance s Date 8 15 ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description _MDATE__ Multiple Underlying Finance s Maturity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying _ Finance s Borrower Name _LBID_ Multiple Underlying Finance s Borrower ID Securitizatio IZ_INIT_A IZ_INIT_AD Single Securitization n Contract DV V_FMT _IZBRANC Branch Date Init Advice HDATE _BRANCH Single Securitization NAME Branch Name _IZSPV Single SPV Customer NAME Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ USERRE Single IZ User F Reference Number _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date 8 16 ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description _SMDATE Single IZ Contract _ Maturity Date _SPVID_ Single Special Purpose Vehicles ID _SPVNAM Single SPV Name E SPOOLA Single Securitized Pool MT Amount SPOOLC Single Securitized Pool C
67. leting Finances from the Pool eren enne 5 19 5 2 7 Viewing Contract Charge Details Aa 5 23 5 2 8 Viewing Contract Event Details eese enne entente trennen entren nene enne ens 5 25 5 2 9 Viewing Securitization Contact History eese eee enne trennen rennen 5 25 2 240 Viewing Fields Details iiie etes tke reb ino eene E tee Reeve eu ei cu 5 27 D211 Viewing MIS Details eie pito re ret enn Freie ree Pe be 5 28 5 2 12 Authorizing Securitization Contract Details eese eere enne 5 29 5 2 13 Amendment of Securitization Contracts eese eee eene nennen eene eene nennen 5 30 5 2 14 Handling On line Payment for Service Charges eese eene 5 31 6 ONLINE BATCH PROCESS eese esee eese tosta sone sesso stesso sete sone 6 1 6 1 INTRODUCTION Debe 6 1 1 1 ORACLE 6 2 PROCESSING INTRA DAY BATCH cccccccccccccccececececececececesecececesecscecececesececesssesscecesacaceceuseeseuacssssessuseseeeseaeaes 6 1 6 3 BOD BATCH AE 6 2 Ta REPORTS AAA 7 1 7 1 INTROD CGCTION eet iere tee el o aite eie aede ite et DI eye bd iios 7 1 7 1 1 Viewing Summary of Securitization Pool esee ene 7 1 7 1 2 Viewing Summary of Islamic Securitization Pool History esee 7 2 7 1 3 Viewing Summary of Payment Received by ene eene 7
68. n list provided 7 1 ORACLE Securitization ref No You can generate a report based on the securitization reference number Select a reference number from the option list provided Contents of the Report The following information is provided in the report Body of the Report Branch code This is the branch code for which the report is generated Securitization ref number This is the securitization reference number for which the report is generated Account number desc order This is the account number in descending order for which the report is generated Product code This is the product code for which the report is generated Product category This is the product category for which the report is generated Customer ID This is the customer ID for which the report is generated Finance amount This is the finance amount for which the report is generated Currency This is the currency for which the finance amount is disbursed Lcy amount This is the local currency amount for which the finance amount is disbursed Value date This is the value date of the finance for which the report is generated Maturity date This is the maturity date of the finance for which the report is generated 7 1 2 Viewing Summary of Islamic Securitization Pool History You can manually generate a report that displays securitization contract history details for the specified inte
69. nding Principal Overdue Principal Overdue Profits Mudarabah Outstanding Principal Overdue Principal Overdue expected Profits excess profit and customer incentive will not be consider Murabahah Outstanding Principal Overdue Principal Overdue Profits Istisna Outstanding Principal Overdue Principal Overdue Profits ljarah Operational Outstanding Principal Overdue Principal Overdue Profits Residue Value For calculating the overdue profit it is required to consider the payment method pay in advance pay in by arrears Profit accrued till sale date will also be included 8 5 Accounting Roles The table below describes the accounting roles in Securitization contract 8 4 ORACLE Accounting Role Description SPV_SETTL_BRIDGE Accounting role head for the Bridge GL SPV_SETTLE_ACC Accounting role head for the SPV Settlement Account PLAC_INC Bank real income GL for realizing the income arising out the Securitization contract PLAC_EXP Bank real expense GL for realizing the loss arising out the Securitization contract PLAC PIA Bank GL to realize the loss from securitization contract periodically PLAC_RIA Bank GL to realize the profit from securitization contract periodically SPV_SETTL_BRIDGE_CR Bank GL account for SPV Credit Settlement bridge SPV_SETTL_BRIDGE_DR Bank GL account for SPV Debit Settlement bridge 8 6
70. ne the Securitization product in the Preference section Preferences Preferences Product Code Rate Type STANDARD Description Liquidation Liquidation Mode Auto Minimum Tenor Middle Rate Manual Buy Sell Rate Default Maximum Tenor Others Unit Periodic Charges Buyback of Pool Allowed Frequency Hali Year Start Reference Month Ja Day Charge Amount ProfitiLoss Accrual Frequency Start Reference Accrual Required Month Januar Day Rekey Requirements Rekey Required ooo d Yes No Amount Currency Value Date Maturity Date Currency Here you need to capture the following details Preferences You can set the preference details here Product Code The system defaults the product code Description The system defaults the product description Rate You can set the rate details here Rate Type 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 finances created under the product ORACLE 4 7 Rate Indicate the exchange rate applicable for the product you are maintaining The available options are e Mid Rate e Buy Sell Rate By default
71. ng ORACLE e Incase you select online securitization the system invokes the securitization process status change from the current status to SECR at the time of authorization of securitization contract e Incase you select batch securitization the system saves the securitization contract without initiating the securitization process The system will also change the internal status of the contract as Marked for Securitization Securitization Status Select securitization status from the adjoining drop down list Pool Details Pool Amount Specify the pool amount of the underlying finance contracts which are under the process of Sale or Buyback Pool Currency Specify the currency of the pool Recourse Details You can maintain the following recourse details here Outstanding Credit The system displays the sum of NPV value of loan accounts which are newly included for sale Outstanding Debit The system displays the sum of NPV value of loan assets which are removed from the pool as part of recourse operation Payment To Select net payment direction you need for the recourse operation from the adjoining drop down list This list displays the following values e Bank SPV will pay the contract amount to the Bank as part of the recourse operation e SPV Bank will pay the contract amount to SPV as part of the recourse operation SPV Details Customer Identification Specify the customer ID of the SVP
72. ng Finance s Date _MDATE_ Multiple Underlying Finance s Maturity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying Finance s Borrower Name _LBID_ Multiple Underlying Finance s Borrower ID Securitizatio IZ PMNT 14 PMNT Single Securitization n contract _ADV DV_FMT _IZBRANC Branch Date Payment HDATE_ Advice _BRANCH Single Securitization NAME Branch Name 8 36 ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description _IZSPV Single SPV Customer NAME Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE Single IZ User F_ Reference Number _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date _SMDATE Single IZ Contract _ Maturity Date _SPVID_ Single Special Purpose Vehicle ID _SPVNAM Single SPV Name E PMNTFL Single Payment Exists AG Flag _ Single Securitization Payment Amount _PAYCCY Single Securitization Contract Payment Currency 8 37 ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description _PAYDAT Single Securitization E Contract Payment Date The table b
73. ng the parameters for the query click Search button The system displays all the records matching the parameters specified 3 3 ORACLE 4 Defining Attributes for Islamic Securitization Products 4 1 Introduction In this chapter we shall discuss the attributes for a Securitization Product 4 2 Maintaining Securitization Products You can maintain the securitization product details in the Islamic Securitization Product Maintenance screen You can invoke this screen by typing IZDPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securitization Product Maintenance Product Code Product Description Product Type Slogan Product Group Start Date End Date Remarks Maker Date Time Checker Date Time Record Status Authorization Status Here you can capture the following details Product Code Specify the product code of the product Product Description Specify a short description about the product 4 1 ORACLE 4 2 1 Product Type Specify the type of the product Slogan Specify the slogan of the product Product Group Specify the product group Start Date Specify the product available start date End Date Specify the product available end date Remarks Specify short note about the product Mapping Accounting Role to a GL Customer Account You are allowed to map Accounting Role to a GL or a customer account Th
74. nt Number _AC Multiple Underlying USERREF Finance s User _ Reference _LOAMT_ Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Currency _LSTATUS Multiple Underlying _ Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s 8 28 ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description Maturity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying _ Finance s Borrower Name _LBID_ Multiple Underlying Finance s Borrower ID Consolidate IZ LAMD IZ LAMD A Single Securitization d Finance ADV DV FMT _IZBRANC Branch Date Account HDATE Amendment Advice BRANCH Single Securitization NAME Branch Name _IZSPV Single SPV Customer NAME Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ USERRE Single IZ User F Reference Number _SPVID_ Single Special Purpose Vehicles ID _SPVNAM Single SPV Name E _SREFNO Single IZ Contract Reference 8 29 ORACLE Message Message Type Message Format Tag Name Tag Type Tag Description Number _DATE_ Single Underlying Finance s Amendment Date _LNFLAG_ Sin
75. ou can specify the following preferences for the report 7 9 ORACLE Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Securitization ref no You can generate a report based on the securitization reference number Select a reference number from the option list provided From date Enter the From Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here Body of the Report Branch code This is the branch code for which the report is generated Securitization ref This is the securitization reference number for which the report is number generated Accrual date This is the accrual date for which the report is generated Operation This is the operation Buy back amendment sale for which the report is generated Accrual amount This is the accrual amount for which the report is generated Accrual currency This is the accrual currency for which the report is generated 7 1 7 Viewing Summary of Securitization History details You can manually generate a report that displays the summary Securitization history details for the specific Cl account for a specified period in the Summary of Islamic Securitization History Details for Cl A
76. perations that were performed during the day in your bank You can generate this information in the form of reports in Oracle FLEXCUBE For every module you can generate reports which give you data about the various events in the life of a specific contract or across contracts at a specific point in time You can have analysis reports daily reports exception reports reports on events that ought to have taken place on the contract but have not due to various reasons history reports and so on A set of report formats is pre defined for every module However for securitization module special reports can be generated and is explained in the sections below Viewing Summary of Securitization Pool You can manually generate a report that displays the list of participating Cl accounts for the selected securitization contract securitization pool in the Summary of Cl accounts under Islamic Securitization Pool screen You can invoke this report screen by typing IZRPOACC in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Summary of CI accounts under Islamic securitization pool Branch Code Securitization ref No Report Format PDF v Printer At Client Report Output Print v Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the optio
77. ponsibilities of various components involved in the securitization structure are explained below e Borrower An Individual or organization which obtains finance from financial institution bank and pays the monthly payments e Islamic asset Broker Acts as a facilitator between a borrower and the lender The Islamic asset broker receives fee income upon the finance s closing e ORACLE e Issuer A bankruptcy remote Special Purpose Entity SPE formed to facilitate a securitization and to issue securities to investors e Lender An entity that underwrites and funds finances that are eventually sold to the SPE for inclusion in the securitization Lenders are compensated by cash for the purchase of the finance and by fees In some cases the lender might contract with Islamic asset brokers Lenders can be banks or non banks e Servicer The entity responsible for collecting finance payments from borrowers and for remitting these payments to the issuer for distribution to the investors The servicer is typically compensated with fees based on the volume of finances serviced The servicer is generally obligated to maximize the payments from the borrowers to the issuer and is responsible for handling delinquent finances and foreclosures e Trustee A third party appointed to represent the investors profits in a securitization The trustee ensures that the securitization operates as set forth in the securitization documents which may incl
78. ptions available are e Monthly e Quarterly e Half yearly e Yearly Start Reference Select the periodic charge starting day from the drop down list The options available are e Value Date e Calander Date Month Select the starting month of the periodic service charge It is applicable only when start reference is calendar date Day Specify the starting day from which charges should be levied It is applicable only when start reference as calendar date Charge Amount Specify the amount to be charged for the service during the period Currency Specify the service charge currency 4 9 ORACLE Profit Loss Accrual You can set the accrual details here Here Accrual Required Check this box to indicate that the component has to be accrued and provisioning is applicable Frequency If you have opted for accrual and provisioning for the components you have to specify the frequency for the same The frequency can be one of the following e Daily e Monthly e Quarterly e Half yearly e Yearly Start Reference Select the starting date for the Profit Loss accrual If it is Value Date system will take the value date as starting date and compute the schedule Incase if the starting date is Calendar Date system will compute the start date based on Month and Date specified Month Specify the month in which the first accrual has to begin if you set the accrual provisioning frequency as quarterly half yearly or ye
79. r of the Application Toolbar and clicking the adjoining arrow button 7 4 ORACLE Summary of payment received Branch Code Securitization ref No From Date To Date ReportFormat PDF Printer At Client Report Output Print v Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Securitization ref no You can generate a report based on the securitization reference number Select a reference number from the option list provided From date Enter the From Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here Body of the Report Branch code This is the branch code for which the report is generated Securitization ref This is the securitization reference number for which the report is number generated Account number This is the account number for which the report is generated Product code This is the product code for which the report is generated 7 5 ORACLE Product category This is the product category for which the report is generated Customer ID This is the customer ID for which
80. ransaction based on the outstanding principal profit payment as mentioned below Profit or Loss of contract INCREASE IN SALE sum of newly added Islamic assets Simple and Amortized type Islamic assets outstanding Principal Profit Accrued till sale date Penalty accrued till sale date Overdue components Sum of newly added Islamic assets Discounted type Islamic assets outstanding Principal RIA Balance e If you set the securitization product to realize the profit loss immediately then the system posts the calculated profit loss directly to the bank s Income Expense GL i ORACLE e If you set the securitization product to realize the profit loss over a pre defined period system computes a schedule for the profit loss and posts the accounting entries accordingly during the EOD cycle e You need to maintain the Profit Loss as a separate slab for each amendment on sale contract and should not merge it with previously calculated profit loss e The system computes separate accrual schedule for profit and loss for that particular amendment based on the schedule defined during the amendment e During EOD the system computes the consolidated profit loss Netting is done on that due date and posts the accounting entries to Banks Income Expense GL e system generates the Amendment Advice Message Impact on Islamic assets During the amendment new finance contracts are included in securitization
81. rror message Islamic asset is under batch securitization ORACLE 4 14 5 Islamic Securitization Contract 5 1 Introduction 5 1 1 5 1 1 1 Securitization Contract is a final entity to represent the securitization deal Each securitization contract is associated with pool of finance contracts securitization Pool and a SPV It allows both Selling Buyback of previously sold pool Securitization Contract Life Cycle The Securitization Contract Life Cycle consists of the following stages they are 1 Contract Booking 2 Contract Initiation Securitization Finance Sale 3 Amendment for addition of finance accounts 4 Amendment for removal of finance accounts 5 Amendment for change the contract details 6 Amendment for exchange of loan account Recourse of loan accounts 7 Liquidation of Payments 8 Reversal of Payment 9 Closure of Contract 10 Accrual of Profit Loss and Periodic Service Charge Contract Booking You can book a new contract based on the Pool information and SPV details Accordingly the system generates the Securitization BOOK Advice messages 5 1 1 2 Contract Initiation Securitization Finance Sale Sale is a process of legally transferring the ownership of the finance asset from the bank to SPV as per the agreement The system carries the following tasks 1 The system initiates the booked securitization contract on the value date of the contract 2 It computes the Profit Loss for the tran
82. rvals history of accounts which are involved in the sale buyback or amendment details for the securitization contract in the Summary of Islamic Securitization Pool History Details screen 7 2 ORACLE You can invoke this report screen by typing IZRPOHIS the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Summary of Islamic securitization pool history details Branch Code Securitization ref No From Date To Date ReportFormat PDF Printer At Client Report Output Print Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Securitization ref no You can generate a report based on the securitization reference number Select a reference number from the option list provided From date Enter the From Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here Body of the Report Branch code This is the branch code for which the report is generated Securitization ref number This is the securitization reference number for which the report is generated
83. s from NORM status which are supporting continue accrual to SECR for all underlying and passes the below accounting entries gt It transfers all underlying Finance contracts outstanding balance from the bank s ASSET GL LOAN_ACCOUNT to SPV_SETTL_BRIDGE GL gt system changes the Accrual GL for the profit and penal profit to BRIDGE GL gt For all newly added Finance Accruals it calculates till sale date and posts to Income GL In case of underlying finance contracts where accrual frequency is not daily then the system performs a force accrual till sale date and post the same to Income GL e For removal of Finance Accounts the system triggers the CI status change event and changes the status from SECR status to NORM and passes the below accounting entries gt It transfers the removed finance contracts outstanding balance from SPV_SETTL_BRIDGE GL to bank s ASSET GL LOAN ACCOUNT gt It changes the removed finance contracts GL for the profit penal profit from BRIDGE INCOME GL to Bank s INCOME GL gt Accrual is similar like BAMD event e Post securitization the system continues the accrual of finance account The table below provides details about amount tags maintained for recourse of loan accounts ad ORACLE Amount Tag Description LOAN_OUTSTANDING_CR Amount tag returns value only when Islamic Asset standing balance has Credit balance Otherwise it will return 0 LOAN_OUTSTANDING_D
84. saction based on the outstanding principal profit payment as mentioned below Profit or Loss of contract e ORACLE SALE_AMOUNT Sum of Simple and Amortized type Islamic assets Outstanding Principal Profit Accrued till sale date Compensation accrued till sale date overdue components Sum of Discounted type Finances Outstanding Principal RIA Balance 3 If securitization product is set to realize the profit loss immediately then the system posts the calculated profit loss directly to the bank s INCOME EXPENSE GL directly 4 If the securitization product is set to realize the profit loss over a pre defined period then the system computes the profit loss schedule internally and posts the entries accordingly during the EOD cycle 5 The system generates the Sale Advice Message Impact on Islamic Assets e The system triggers the Cl status change event and changes the status from NORM Status which are supporting continue accrual to SECR for all underlying contract and pass the below accounting entries gt It transfers all underlying finance contracts outstanding balance from the bank s ASSET GL LOAN_ACCOUNT to SPV_SETTL_BRIDGE GL gt system changes the Accrual GL for the profit and penal profit to BRIDGE GL gt For all underlying finances Accruals it calculates till sale date and posts to Income GL In case of underlying finance contracts where accrual frequency is not daily then t
85. ser Manual Chapter 2 Securitization of Islamic Assets An Overview offers a snapshot of the features of the entire module Chapter 3 Maintenances details the procedure to set up static information related to the module Chapter 4 Defining Attributes for Islamic Securitization Products explains at length how to capture the details of the Securitization of Islamic Assets product in Oracle FLEXCUBE Chapter 5 Islamic Securitization Contract describes the Islamic Securitization Contract Life Cycle and processing of Islamic Securitization of Loans Chapter 6 Online Batch Process provides batch details related Islamic Securitization module Chapter 7 Heports describes various reports generated for Islamic Securitization module Chapter 8 Annexure contains a list of suggested events accounting entries amount tags and advices that can be set up for the IZ module 1 5 Related Documents e Procedures e Settlements e User Defined Fields e MIS 1 6 Glossary of Icons This User Manual may refer to all or some of the following icons IA ORACLE Delete row Option List is ORACLE 2 1 2 Securitization of Islamic Assets An Overview Introduction Securitization is the process of transformation of non tradable assets into tradable securities It is a structured finance process that distributes risk by aggregating debt instruments in a pool and issues new securities backed by the
86. suer the lender no longer has the power to restructure the finance or make other accommodations for its borrower That becomes the responsibility of a servicer who collects the Islamic asset payments distributes them to the issuer for payment to investors and if the borrower cannot pay action is taken to recover cash for the investors The servicer can only do what the securitization documents allow it to do These contracts may constrain the servicer s flexibility to restructure the finances Example A Financial institution has processed 10 Islamic assets under the total worth of 5 000 000 USD each finance for 500 000USD The Maximum Tenor for the finance is 20 Years and aggregated Monthly Installment for the Islamic assets is 50 000USD In order to overcome the financial crisis the financial institution decided to sell the Islamic assets and raise capital It sold the finance assets to an SPV for 7 000 000 USD and got the profit of 2 000 000 USD is ORACLE Once the contract has been signed after the legal verification the financial institution becomes the service provider for borrowers and SPV It transfers the monthly payments profit charges Fees Prepayment penalty charges directly to SPV as per the agreement ORACLE 3 Maintenances 3 1 Introduction Before you begin using the Securitization of Islamic Assets module you need to capture Formula Definition which is used to filter or identify the finance contracts that
87. tatus 8 8 Advice Messages The table below describes the advice messages for the securitization product ORACLE Message Message Message Tag Name Tag Type Tag Type Format Description Securitizatio IZ BOOK IZ BOOK A IZBRANCH Single Securitization n Contract ADV DV FMT DATE Branch Date Book Advice _BRANCH Single Securitization NAME Branch Name _IZSPV Single SPV Customer NAME Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE Single IZ User F Reference Number _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date 8 14 Message Message Message Tag Name Tag Type Tag Type Format Description _SMDATE Single IZ Contract _ Maturity Date _SPVID_ Single Special Purpose Vehicles ID _SPVNAM Single SPV Name E SPOOLA Single Securitized Pool MT Amount SPOOLC Single Securitized Pool CY Currency _SALEAM Single Securitized Pool T Sale Amount _SALECC Single Securitized Pool Y Sale Currency SALE DA Single Securitized Pool TE Sale Date _SECLNEFL Single Finance Exists AG_ Flag _ACCNUM Multiple Underlying Finance s Account Number _AC Multiple Underlying USERREF Finance s User Reference LOAMT Multip
88. te IZ LDSB IZ LDSB A Single Securitization d Finance _ADV DV_FMT _IZBRANC Branch Date Account HDATE Disburseme nt Advice _BRANCH Single Securitization NAME Branch Name _IZSPV Single SPV Customer NAME Name 8 31 Message Message Message Tag Name Tag Type Tag Type Format Description _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ USERRE Single IZ User F Reference Number _SPVID_ Single Special Purpose Vehicles ID _SPVNAM Single SPV Name E _SREFNO Single IZ Contract Reference Number _DATE_ Single Underlying Finance s Disbursement Date _LNFLAG_ Single Finance Exists Flag _LNACCN Multiple Underlying UM Finance s Account Number _LNACUS Multiple Underlying ERREF Finance s User Reference _LNAMT__ Multiple Underlying Finance s Amount 8 32 ORACLE Message Message Type Message Format Tag Name Tag Type Tag Description _LNCCY_ Multiple Underlying Finance s Finance Currency _LNSTATU S Multiple Underlying Finance s Account Status _LNDATE_ Multiple Underlying Finance s Date _LNMDAT E Multiple Underlying Finance s Maturity Date _LNTENO R Multiple Underlying Finance s Tenor
89. tries Note the following e During EOD cycle system updates the maturity date of the securitization contract if the maturity date of any one of the underlying finance contract s maturity date has exceeded the maturity date of securitization contract e There would be no effect on the Profit Loss accrual date even if the Maturity Date value is increased VS ORACLE 5 2 Maintaining Contract Details You can capture details of the securitization contract details in the Islamic Securitization Contract Input Detailed screen To invoke this screen type IZDTRONL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Contract Details New 3 Enter Query Branch Contract Reference Product Code BH User Reference i Sale Product Description Operation Code Sale Wain Advices Service Charge ProfitLoss Accrual Contract Details Pool Details Profit Loss Accrual Book Date Pool Currency Accrual Required Value Date Pool Amount Accrual Start Date Maturity Date ET Accrual End Date Currency Recourse Details SPV Details Contract Amount Outstanding Credit Customer Id Outstanding Debit Customer Name PaymentTo Bani Securitization Mode Online Batch Securitization Status Pool Details Pool Addition Pool Deletion Settlement Event History Fields MIS Maker Date Time Status Authorization Status Checker Date Time Here
90. ude determinations about the servicer s compliance with established servicing criteria e Securitization Documents The documents create the securitization and specify how it operates One of the securitization documents is the Pooling and Servicing Agreement PSA which is a contract that defines how finances are combined in a securitization the administration and servicing of the finances representations and warranties and permissible loss mitigation strategies that the servicer can perform in event of finance default e Underwriter Administers the issuance of the securities to investors e Credit Enhancement Provider Securitization transactions may include credit enhancement designed to decrease the credit risk of the structure provided by an independent third party in the form of letters of credit or guarantees Not all securitizations are identical For example the lender and the servicer are sometimes the same entity or in other arrangements brokers may not play a role Securitization takes the role of the lender and breaks it into separate components Unlike the more traditional relationship between a borrower and a lender securitization involves the sale of the finance by the lender to a new owner the issuer who then sells securities to investors The investors are buying bonds that entitle them to a share of the cash paid by the borrowers on their Islamic assets Once the lender has sold the Islamic asset to the is
91. vent in the securitization contract 5 2 10 Viewing Fields Details You can view the Fields details through Fields screen To invoke this screen click on Fields button fields Fields I4 4 40no gt Field Name x Here you can view the Fields details for the securitization contract maintained at the product level T ORACLE 5 2 11 Viewing MIS Details You can view the MIS details through MIS screen To invoke this screen click on MIS button Contract Reference MIS Group Link To Group Input Link To Group Related Reference Related Account Rate Code Related Account Related Reference Spread MIS Head Rate At Rate Type v Interest Method Cost Code 1 Pool Code z Refinance Rate Cost Code 2 Contract Level Pool Code Cost Code 3 Cost Code 4 Cost Code 5 Transaction MIS Composite MIS Fund MIS MIS Group MIS Group Fund MIS 1 Transaction MIS 1 Composite MIS 1 Fund MIS 2 Transaction MIS 2 Composite MIS 2 Fund MIS 3 Transaction MIS 3 Composite MIS 3 Fund MIS 4 Transaction MIS 4 Composite MIS 4 Fund MIS 5 Transaction MIS 5 Composite MIS 5 Fund MIS 6 Transaction MIS 6 Composite MIS 6 Fund MIS 7 Transaction MIS 7 Composite MIS 7 Fund MIS 8 Transaction MIS 8 Composite MIS 8 Fund MIS 9 Transaction MIS 9 Composite MIS 9 Fund MIS 10 Transaction MIS 10 Composite MIS 10 Here you can view the MIS details for the securitization contract maintained at the product level od ORACLE 5 2 1
92. ystem will trigger the SAMD event finance accounts to Pool while saving the contract 2 Amendment type is BUYBACK removal of System will trigger the BAMD event finance accounts from Pool while saving the contract 3 Amendment type is Contract System will trigger the AMND event Modification other than Pool modification while saving the contract 4 Amendment type is RECOURSE Replacement System will trigger the RECR event of finances in the Pool while saving the contract The system enables the subsystem Pool addition and Pool deletion based on the amendment type 5 2 14 Handling On line Payment for Service Charges Oracle FLEXCUBE provides a facility to handle payment of service charges from SPV Special Purpose Vehicle through Securitization On line Payment Detailed screen You can invoke this screen by typing SZDPYMNT in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Payment Details New 4 Enter Query Contract Currency Customer Contract Reference ESN Value Date Populate Due Total Amount Limit Date Liquidation Details 100 Component Currency Due Date Amount Due Amount Paid Maker Date Time Status Authorization Status Checker Date Time sal ORACLE Here you need to capture the following details Contract Currency The system defaults the currency of th
93. zation History Details Contract Reference Securitization Event History 10710 Event Code Value Date Pool Amount Pool Currency Contract Amount Contract D La Pool Details Here the system displays the events triggered effective date execution date of the Event Pool Amount Contract Amount and Profit Loss of the transaction Oracle FLEXCUBE provides an option to view the underlying finance contracts when sale amendment and buyback transactions are processed for the amendment event system displays the newly added removed finance accounts from the pool The table below details the list of fields which are supported in the event history screen Securitization Event History Event Value Date Pool Pool Contract Contract Profit Loss Profit Loss Amount Currency Amount Currency Accrued Accrued INIT 5 5 2009 120000 USD 115000 USD 5000 0 0 0 SALE 5 5 2009 120000 USD 115000 USD 5000 0 2500 0 AMND 8 3 2009 123000 USD 121000 USD 2000 0 800 0 AMND 9 12 2009 110000 USD 112000 USD 2000 200 You need to select the event checkbox and press the Pool Details button to view participating finance accounts ae ORACLE Securitization Pool Securitization Pool Details I4 4 10115 gt M Account Product Code Currency Start Date Value Da n Here the system displays the participating finance accounts for selected e

Securitization of Islamic Assets User Manual

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