Share Transfer
Club loans facilitate the transfer of shares between the participants. Share transfer can be done for existing or new participants, and it can be done in two ways, that is, the participant is allowed to transfer the shares to other participants with or without the knowledge of the borrower and other participants.
1. The transfer can be done with the conscience of the borrower and other participants. Then, the new lender joins as an assignee to the loan.
2. The transfer can also be done without the conscience of the borrower and the other participants. In this situation, the new lender acts as the sub-participant.
Product Lines
The Share Transfer Property Class is used by the following product lines:
- Facility
- Lending
Property Class Type
The Share Transfer Property Class is an optional Property Class associated with the following types:
- DATED
- TRANSACTION
Property Type
There are no property types associated with the Share Transfer Property Class.
Balance Prefix
The Share Transfer Property Class is not associated with any balance prefix and suffix.
Attributes
The following section describes the related attributes.
Transfer Type
Specifies the type of transfer which the owning bank is carrying out. This field is mandatory when the bank has internal portfolios as a part of the facility and optional for arrangements without internal portfolios.
It can be of three types,
- Adjustments – The share transfer is between two external participants, that is, adjusting the participants' books.
- External Transfer – The share transfer is between the owning bank or one of its portfolios and an external bank.
- Internal Transfer – The share transfer is between two internal portfolios.
Amount
Specifies the Share Transfer amount.
Benef Po Product
Specifies the payment order product through which payments should be made to the participant’s bank. This is a mandatory field.
Beneficiary Ccy
Specifies the currency to match currency-specific beneficiary for participants. This is mandatory for the new buyer and optional for existing buy Participant.
Beneficiary Id
Specifies the participant beneficiary account details for cash outflow (specific to CCY/Property/Property Class or a combination). The account indicated in the beneficiary is used to credit participant share upon borrower repayment.
Buy Back
Specifies whether the club loan is converted to a bilateral loan. It can be either Yes or NULL.
Buy Participant
Specifies the participant ID who intends to buy the seller share.
Property
Specifies the property to match property-specific beneficiary account for the participants.
Property Class
Specifies the Property Class to match Property Class-specific beneficiary account for the participants.
Sell Participant
Specifies the participant ID who intends to sell the share.It must be a valid participant of drawing.
Skim Oper
Specifies the skim or margin operand to be used.
Skim Property
Specifies the property for which the skim or margins are to be applied. Only interest property is allowed.
Skim Rate
Indicates the skim margin rate that needs to be applied for participant share.
Periodic Attribute Classes
The Share Transfer Property Class is not associated with any periodic attribute class.
Actions
Individual AA.PROPERTY.CLASS.ACTION records control which Product Line it is associated with. The Share Transfer Property Class performs the following action:
| Action | Description |
|---|---|
| CAPTURE | Used during data capture from legacy application to Share Transfer. |
Accounting Events
The Share Transfer Property does not perform any actions that generate accounting events.
Limits Interaction
Actions associated with the Share Transfer Property Class do not have an impact on the Limits.
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