1. Bilateral Loans
  2. Disbursing a Loan
  3. Loan Disbursement Details
  4. Identifying an Agency Contract

4.2.20 Identifying an Agency Contract

Oracle Banking Corporate Lending allows Straight Through Processing from LB module to OL module to track bank or any of bank entities (playing the role of a self participant) share in a syndicated loan. For the tranche/drawdown booked for the self participant on the agency side, Oracle Banking Corporate Lending automatically creates the corresponding commitment/loan on the originations side (in the OL module).

The system selectd the Agency Contract box to indicate that the loan is created as a result of STP. However, you can deselect this check box, if required. To do this, you have to first unlock the record. If deselected, the contract becomes a normal loan contract. Further, the system stops tracking the bank details or its entities share in the syndication. If you select this option at the commitment contract level then the system does not allow you to deselect the option at OL contract level. But if you deselect the option at the OL contract level then the system allows you to check this option at the commitment contract level.

Note:

This field is enabled only for products where the agency contract flag is set to NO.
  • You cannot edit this field after first authorization (as part of CAMD, the field cannot be edited).
  • Based on the contract level flag, the system changes the main interest component rate type to Fixed and fixed rate type as Agency.
  • The system does the Interest re-pickup, if the agency contract flag is set back to NO.
  • For agency types of loans, you should handle the changes in the agency rates through the Agency Rate Revision screen. You are not allowed to change Agency rate as part of VAMI. In addition, you are not allowed to maintain the Agency rates for future dates.
  • You can select a Loan contract for Agency Contract Type only if the reporting commitment also is of Agency Contract type.
  • If you modify the following UDF values for the contract wherein Agency Contract box is checked, the system sends an amendment feed to Intellect system provided the box Intellect Feed for UDF Change is selected in the Loan Parameters screen:
    • CUSTOMER RATE
      • DEALER LIBOR RATE
      • LATE TRADE
      • RA COST
    This feed contains the updated UDF values.

    The Base rate and the spread can be in negative. All in rate will become zero if all in rate is negative.

Parent topic: Loan Disbursement Details