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Participant

The Participant Property Class is used to add single or multiple participants into bilateral or club loans. It can be used to configure the loan products by using the Facility and Lending product lines. In a club loan, the bank’s role can be that of an Agent, Agent cum Participant or Participant. Based on the role defined, the user can capture the relevant field details.

Participant details are captured at the Arrangement level. Several options are available to choose the mode of accounting as MEMO or CONTINGENT for the Participation amount. Based on the bank’s role, the accounting entries are generated.

Product Lines

The Participant Property Class is used by the following product lines:

  • Facility
  • Lending

Property Class Type

The Participant Property Class is an optional Property Class associated with the following types:

  • DATED
  • NON TRACKING
  • NON-RESETTING

Property Type

.A Sub-Participant Property Type is available for bilateral loans and is used for securitising a loan.

  • The Sub-Participant Property Type helps to identify the secondary lender in a loan arrangement. Thus the system can differentiate the primary from the secondary lenders in a loan arrangement.
  • The Pool ID can be added during the Share Transfer only when Property Type is set as the Sub-Participant for the participant.

Balance Prefix

The Participant Property Class is not associated with balance prefix and suffix.

The following are the attributes of the Participant Property Class.

Specifies the role of the Temenos Transact owning bank. It can be Agent, Agent Cum Participant or Participant.

Specifies the owning bank commitment share amount. The system populates the details based on the participant’s share. Therefore, net share amount equals the borrower amount.

Specifies the owning bank commitment share in percentage. The system calculates this based on the own bank share amount.

Specifies the Participant ID of each lender to become part of the loan.

Specifies the role of the Temenos Transact owning bank. Allowed values are Agent, Agent Cum Participant and Participant.

Specifies the participant commitment share in the total loan amount. Validation is made to ensure the sum of participant share, including own share, does not exceed the loan commitment (which is TOT<Term Amount>).

Specifies the owning bank’s internal portfolio that is part of the arrangement. The internal portfolios are defined using the LOAN.PORTFOLIO application.

Specifies the particular portfolio’s share in the total amount of the arrangement. The sum of all the portfolios' share amount cannot be greater than the owning bank’s commitment share in the arrangement.

Specifies the portfolio’s commitment share in percentage to the arrangement’s commitment amount. It is a system-calculated field.

Indicates the participant commitment share in percentage on the loan commitment. It is a system-calculated value.

Specifies the currency to match currency-specific beneficiary for participants. This is an optional field.

Specifies the Property Class to match property or Property Class-specific beneficiary for participants. This is an optional field.

Specifies the property to match property-specific beneficiary for participants. This is an optional field

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 the participant share upon borrower repayment.

Denotes the payment order product that should be used by the agent to settle the participant’s share when a repayment is made by the borrower.

Specifies the property for which skims or margins have to be applied. Only Interest property is allowed. This is an optional field

Specifies the skim or margin operand. The allowed value is Sub.

Specifies the skim margin rate to be applied for the participant share.

Specifies the internal portfolio against which any skims are recognized. Skim is the difference between the interest or the charge amount received from the borrower and the interest or the charge amount paid to the participant by the owning bank.

Specifies the participant accounting style for a club loan or loan participation product. The allowed options are:

  • Memo
  • Contingent

It has to be a fixed value or no-change field, and product switching activity has to make provisions to not change the value when change product is made.

Specifies when the skims have to be blocked in case of All-in-Rate results in a negative rate after deducting the skims. The allowed options are:

  • NO
  • Block Margin
Assume the skim rate is 0.50% and the borrower rate is 0.25% This results in a negative rate of -0.25% applied on the participant share. In this case,
  • If NO is chosen, then rate applied for the participant is zero.
  • If Block Margin is chosen, then rate applied for the participant is borrower rate and the skim is ignored.

Specifies the charge property for which different rate, amount and share percentage are applied while distributing the fee to the participants.

Charge calculation and distribution are based on the definition of Participant Fee share details, thereby ignoring the charge pro-rata (based on the participant commitment share percentage).

Specifies the currency-specific beneficiary account of the agent bank.

Specifies the agent bank’s beneficiary account details for cash outflow. It is currency specific.The account indicated in this field is used to credit the amount in case of disbursements or other fund transfers to the agent bank.

Specifies the Payment Order Product that should be used to transfer the fund from own bank to the agent bank.

Specifies the amount distributed as fee for a participant. The fee share of the participant is a percentage on the participant’s commitment amount.

Specifies the percentage of the fee amount calculated, which is distributed as fee for a participant. The fee share of the participant is a ratio on the fee calculated for the borrower.

Specifies the rate of the participant’s commitment share distributed as fee to the participant. That is, the fee share of the participant is a percentage(rate) on the participant’s commitment amount.

Specifies the list of participants among whom the charge need to be distributed. There can be a single participant too. The bank also acts as a participant. In case, the bank acts only as an agent, the 100% fee can be charged only to the bank.

Periodic Attribute Classes

The Participant 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 Participant Property Class performs the following actions:

Action Description
ALLOCATE Used for Balance Update in Participant.
UPDATE This is initiated manually and allows the user to change any of the Participant attributes.

Accounting Events

The Participant Property does not perform any actions that generate accounting events.

Limits Interaction

Actions associated with the Participant Property Class do not have an impact on the Limits.

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Published on :
Tuesday, May 28, 2024 5:23:36 PM IST