Holiday Treatment

6.1.2 Holiday Treatment

This topic describes about the holiday treatment with reference to collateral revaluation.

The Next Revaluation Date for Collateral's are determined based on their respective frequencies. IF such next revaluation date falls on a holiday then such next revaluation is computed based on the configurations provided in the Collateral Module. The same is explained below with the help of illustrations.

Global Parameter Set-up:

The user can configure the Holiday Treatment parameter in the Global Parameter Set-up (maintained at database level) under the field “Holiday Treatment”. The following options are available:
1. Next Working Date – 1
2. System Date

The user can choose “Next Working Date-1” to indicate that all the Collateral's with the Revaluation Date falling on a holiday gets processed on previous working day.

The user can choose “System Date” to indicate that only Collateral's with a Revaluation Date falling on a holiday gets processed on next working day

The execution happens based on the above parameters when the Ignore Holiday field is marked as Yes in the Holiday Processing Panels of Collateral's.

Illustration:

Today’s Date : April 10, 202x

Next Working date after April 10, 202x :- April 12, 202x

(Assume April 11, 202x, is a public holiday)

The System has the following Collateral's with their respective Next Revaluation Dates:

Table 6-7 Illustration

Collateral ID	Next Revaluation Date
C001	April 10, 202x
C002	April 11, 202x
C003	April 12, 202x

Holiday Treatment configuration = Next Working Date – 1

Next Working Date : April 12, 202x

Next Working Date -1 : April 11, 202x (which is a holiday)

AllCollateral's with Revaluation Date prior to or same as April 11, 202x are considered for Revaluation on April 10, 202x

Collateral's considered for Revaluations on April 10, 202x are.

Table 6-8 Illustration

Collateral ID	Revaluation Date
C001	April 10, 202x
C002	April 11, 202x

Holiday Treatment configuration = System Date

System Date : April 10, 202x

Next Working Date -1 : April 11, 202x

All collaterals with revaluation date same as or after April 11, 202x are considered for revaluation on April 12, 202x

Collateral's considered for Revaluations are:

Table 6-9 Illustration

Collateral ID	Revaluation Date
C001	April 11, 202x
C003	April 12, 202x

Summary Table:

Table 6-10 Summary Table

Holiday Treatment	Rule	Collateral Considered
Next working Date -1	System Date	C001, C002
System Date	System Date	C001, C002. C003

The illustration shows how changing the parameter affects which Collateral's are included in the revaluation process based on the selected holiday handling method in the Global parameter set up.

Holiday Treatment Parameter Set-up at Collateral level

If the “Ignore Holiday” field is marked as “No” in the Holiday Processing Panels of Collateral's, then the following additional fields will be enabled for setting up Holiday parameters. The following fields will be enabled:

Table 6-11 Field and Description

Field Name	Field Description
Move Across Month	By default, it will be No. This field will indicate, if the holiday falls on the last working day of the month, whether the next revaluation date should move across months or not.
Cascade Schedule	If Cascade Schedule is selected as “Yes”, system will calculate the next revaluation date based on the new revaluation date. If the Option selected is no, then the next revaluation date will be computed based on the Original expected revaluation date.
Holiday Check	This field specifies whether which holidays to be considered ie. (a) Currency (b) Local or (c ) both.
Schedule Movement	This field specifies whether the next revaluation date or schedule to be move forward or back-ward in case if the next revaluation date falls on a holiday.

Illustration: Assumption : The set-up is as follows:

Scenario 1

Table 6-12 Field Name

Field Name	Parameter Value
Ignore Holiday	No
Move Across Month	No
Cascade Schedule	No
Schedule Movement	Move Backward

Based on the above configuration, the “Expected Next Revaluation Date will be recomputed in the Original Revaluation date falls on a holiday.

Table 6-13 Scenario 1

Current Business Date	Frequency	Next Revaluation Date Falling on a Holiday	Expected Next Revaluation Date	Remarks, if any
10th July, 202x	Monthly	Yes - 10th August, 202x	9th August, 202x	-
1st August, 202x	Monthly	Yes - 1st September, 202x	2nd September, 202x	Even though the 1st September falls on holiday and Schedule Movement is marked as “Move Backward” but since “Move Across month is marked as “No”, the next revaluation/ compliance date will be 2nd September, 202x in this scenario

Scenario 2

Table 6-14 Field Name and Parameter Value

Field Name	Parameter Value
Ignore Holiday	No
Move Across Month	No
Cascade Schedule	No
Schedule Movement	Move Forward

Based on the above configuration, the “Expected Next Revaluation Date will be recomputed in the Original Revaluation date falls on a holiday.

Table 6-15 Scenario 2

Current Business Date	Frequency	Next Revaluation Date Falling on a Holiday	Expected Next Revaluation Date	Remarks, if any
31st July, 202x	Monthly	Yes - 31st August, 202x	30th August, 202x	Even though 31st August 202x falls on holiday and Schedule Movement is marked as “Move Forward” but since “Move Across month is marked as “No”, the next revaluation/ compliance date will be 30th August, 202x in this scenario
25th August, 202x	Monthly	Yes - 25th September, 202x	26th September, 202x	-

Scenario - 3

Table 6-16 Field Name and Parameter Value

Field Name	Parameter Value
Ignore Holiday	No
Move Across Month	Yes
Cascade Schedule	No
Schedule Movement	Move Forward

Based on the above configuration, the “Expected Next Revaluation Date will be recomputed in the Original Revaluation date falls on a holiday.

Table 6-17 Scenario 3

Current Business Date	Frequency	Next Revaluation Date Falling on a Holiday	Expected Next Revaluation Date	Remarks, if any
31st July, 202x	Monthly	Yes - 31st August, 202x	1st September, 202x	Since “Schedule Movement” is marked as “Move Forward” and “Move Across month is also marked as “Yes”, the next revaluation/ compliance date will be 1st September, 202x (ie. Moving across month)
25th August, 202x	Monthly	Yes - 25th September, 202x	26th August, 202x	-

Scenario - 4

Table 6-18 Field Name and Parameter Value

Field Name	Parameter Value
Ignore Holiday	No
Move Across Month	Yes
Cascade Schedule	No
Schedule Movement	Move Forward

Based on the above configuration, the “Expected Next Revaluation Date will be recomputed if the Original Revaluation date falls on a holiday.

Table 6-19 Scenario 3

Current Business Date	Frequency	Next Revaluation Date Falling on a Holiday	Expected Next Revaluation Date	Remarks, if any
10th July, 202x1st August, 202x	Monthly	Yes - 10th August, 202x	9th August, 202x	Since “Schedule Movement” is marked as “Move Backward, the next revaluation/ compliance date will be 1st September, 202x (ie. Moving across month)
1st August, 202x	Monthly	Yes - 1st September, 202x	31st August, 202x	Since the “Schedule Movement” is marked as “Move Backward and “Move Across Month is marked as “Yes”, the the next revaluation/ compliance date will be 31st August, 202x (I.e. Moving across month)

Scenario - 5

Table 6-20 Field Name and Parameter Value

Field Name	Parameter Value
Ignore Holiday	No
Move Across Month	Yes
Cascade Schedule	No
Schedule Movement	Move Forward

Based on the above configuration, the “Expected Next Revaluation Date will be recomputed if the Original Revaluation date falls on a holiday.

Table 6-21 Scenario 5

Current Business Date	Frequency	Next Revaluation Date Falling on a Holiday	Expected Next Revaluation Date	Remarks, if any
16th July, 202x	Weekly	Yes - 23nd July st , 202x	22nd July, 202x	Since the “Cascade Schedule” is marked as “Yes”, the next revaluation date will be computed as “29th July, 202x” I.e. from the 22nd July, 202x and not from 23rd July, 202x.
16th July, 202x	Monthly	Yes - 16th August, 202x.	15th August, 202x	Since the “Cascade Schedule” is marked as “Yes” the next revaluation date will be computed as “15th September, 202x” I.e. from 15th August, 202x and not from 16th August, 202x.

Scenario - 6

Table 6-22 Field Name and Parameter Value

Field Name	Parameter Value
Ignore Holiday	No
Move Across Month	No
Cascade Schedule	Yes
Schedule Movement	Move Forward

Based on the above configuration, the “Expected Next Revaluation Date will be recomputed if the Original Revaluation date falls on a holiday.

Table 6-23 Scenario 5

Current Business Date	Frequency	Next Revaluation Date Falling on a Holiday	Expected Next Revaluation Date	Remarks, if any
16th July, 202x	Weekly	Yes - 23nd July , 202x	24th July, 202x	Since the “Cascade Schedule” is marked as “Yes”, the next revaluation date will be computed as “31st July, 202x” I.e. from the 24th July, 202x and not from 23rd July, 202x.
16th July, 202x	Monthly	Yes - 16th August, 202x.	17th August, 202x	Since the “Cascade Schedule” is marked as “Yes” the next revaluation date will be computed as “17th September, 202x” I.e. from 17th August, 202x and not from 16th August, 202x.

Parent topic: Revaluation