8.2.2 Specifying the Rollover Mechanism
You can indicate whether rolling over a loan contract using the product must create a new
version of the original contract, a spawn contract, or a linked contract.
- Select New Version if a new version of the original contract
must be created. During rollover, you can either amend the charges or settlements accounts.
Note:
- Charge amount amendment is supported only for New Version rollover.
- You can amend the charge amount while doing manual and auto rollover. To amend the charge amount, you need to maintain Association Event as RAMD, Application Event as RAMD, and Liquidation Event as ROLL in Charge Class Maintenance screen (LFDCHGCE). To liquidate charge amount as part of auto rollover, you have to do RAMD before maturity date based on number of days maintained at product level.
- You cannot amend charge amount, if you maintain Association Event as BOOK, Application Event as ROLL, and Liquidation Event as ROLL in Charge Class Maintenance screen (LFDCHGCE). The system liquidates the charge amount on rollover whatever the amount is computed based on rule for both auto and manual rollover.
- Select Spawn Contract if a child contract must be created on rollover.
- Select Linked Contract if a contract needs to be created
manually. This contract needs to be booked before the maturity date of the parent
rollover contract. The linked contract is taken as a new contract with
Rollover-reference-no field of the deal populated with the reference number of the
parent contract.The BOOK event fires a NEW event RAMD for the parent contract. No
further modifications allowed after RAMD.
Note:
RFR (Risk Free Rate) is supported for New Version Rollover, Spawn Normal Rollover, and Spawn Split Rollover.
Parent topic: Features of the Product Roll-over Details Screen