1. Operations User Guide (US Regionalization)
  2. Oracle Banking Origination
  3. Global Actions
  4. Condition and Convenants

Condition and Convenants

You capture conditions and convenants details for the loan applications.

In this section you can add, edit and remove the condition and convenant details .
Conditions

The Conditions are stipulations and constraints recorded in a contract to restrict the usage of funds, in order to ensure proper utilization of funds for the specified purposes and to adhere to a stipulated schedule.

To add conditions:

  1. From the More option, click the Conditions & Covenants to add or remove the conditions details.
    The Conditions & Covenants page appears.

    Figure 1-66 Conditions


    Description of Figure 1-66 follows
    Description of "Figure 1-66 Conditions"

  2. Click Add to add new conditions.
    OR

    Click Remove to remove already added conditions.

  3. Enter the relevant details.

    Table 1-34 Conditions – Field Description

    Field Description
    Entity

    Select the entity on which you want to set condition.

    The available options are

    • Party
    • Collateral
    Entity ID Select the entity ID from the list. The options in the list appears based on the entity selected in the Entity field.
    Condition Specify the conditions for the selected entity.
    Type

    Select the type when the conditions must be complied.

    The available options are

    • Pre Disbursement: If you select this option then the selected conditions have to be complied prior with the account opening and loan disbursement.
    • Post Disbursement: If you select this option then the selected conditions occur and are supposed to be complied post loan disbursement. This conditions are manually monitored.
    Status

    Select the status of the condition.

    The available options are

    • Open
    • Complied
  4. Click OK. The conditions are saved.

    Note:

    All the fields appears with the selected options in tabular format. You can edit the details on clicking the added row.

Convenants

Often there are restrictions on borrowers while extending credit facilities. Sometimes, a borrower promises certain future acts to assure the lender that the conduct of business dealings is fair, healthy and in accordance with the best practices. The purpose of covenant is to assist the lender to ensure the health of loan facilities does not deteriorate suddenly or unexpectedly before maturity.

To add convenants:

  1. From the More option, click Conditions & Covenants to add or remove the covenants details.
    The Conditions & Covenants page appears.

    Figure 1-67 Convenant


    Description of Figure 1-67 follows
    Description of "Figure 1-67 Convenant"

  2. Click Add to add new convenants.
    OR

    Click Remove to remove already added convenants.

  3. Enter the relevant details.

    Table 1-35 Application Information – Field Description

    Field Description
    Entity

    Select the entity on which you want to set convenants.

    The available options are

    • Party
    • Collateral
    Entity ID Select the entity ID from the list. The options in the list appears based on the entity selected in the Entity field.
    Convenants Specify the convenants for the selected entity.
    Type

    Select the type when the convenants must be complied.

    The available options are

    • Financial
    • Reporting
    • Undertaking
    Status

    Select the status of the convenants.

    The available options are

    • Open
    • Complied
  4. Click OK. The covenants are saved.

    Note:

    All the fields appears with the selected options in tabular format. You can edit the details on clicking the added row.

Parent topic: Global Actions