11.12 Value Dated Changes
Value Dated Changes are changes to a contract that come into effect on a specific date called the Value Date. Additional disbursements (increase in the principal), a change of interest, commission or fee rate, collection of additional fees, and so on, are examples of the valuedated changes that can be made to a contract.
Such changes indicated for a loan (through the Value Dated Changes Screen), falling due today (that is, the Value Date is today’s date), are executed by the Automatic Contract Update function during beginning of day. All the necessary accounting entries are passed and advices specified for the event are generated.
If the Value Dated change is in the rate or amount of any accruable component, the accruals are done for the loan with the old rate or amount as of the previous day (yesterday). If the Maturity Date of a loan has been changed so that the contract matures today, the loan is liquidated provided all the prerequisites for such liquidation are met.