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Hi Bhavik,
Unfortunately, I have a conflict today and will not be able
to attend the discussion. However, I would like to update you on the
current status of my analysis regarding providing contract information on a
rollover.
1) MISYS functionality currently only
allows rollovers to existing contracts if the new contract is a BASE loan.
There is discussion at this time to open that up for all contract types. I
am still obtaining information from MISYS on this. Whether or not CS would
use that functionality is a pending business conversation.
2) Regardless of allowing rollovers to
the same contract id, when there is more than one contract involved, the
breakdown of how the payment or increase associates to each rollover contract is
not stored. MISYS has indicated that this could be derived. This is
pending discussion and agreement. Derivations are not done by our
development teams but may be approved for use if supplied within the Loan IQ
functionality.
3) Regarding your agenda
items:
1) ok with CS
2) ok with CS
3) pending business discussion
4) pending business discussion
5) pending business discussion
6) ok with CS
7) agreed by CS
8) this is how CS processes post cash
release
9) ok with CS
10) see above, CS cannot provide contract details when
there is a payment or increase at this time
11) ok with CS
12) If there were a contract specfic drawdown on a
rollover, we would want to send the rateset/drawdown
notice
Please let me know if you would like to discuss
further. Thanks, Ann
Ann Taylor
ü Please consider the environment before printing this email. From: loanwg@xxxxxxxx [mailto:loanwg@xxxxxxxx] On Behalf Of Bhavik Katira Sent: Monday, November 09, 2009 11:23 AM To: loanwg@xxxxxxxx Subject: Minutes - Loan FpML WG Meeting: 3 November 2009 Next Working Group Meeting:
17th November 2009: 1000-1100 EST (3-4pm
GMT) Agenda, schema etc will be sent
prior to the meeting. Minutes from 3rd
November 2009 1.
Comm. Adjustment:
Update the scheme for Increase/Decrease to an enumeration. 2.
Comm. Adjustment:
The amount field should be an absolute figure (the enumeration defines the
direction). 3.
Business question:
What happens in the case that a commitment adjustment is refused…? Does this
affect the structure of the notification we have created…? 4.
Business question:
Should we capture a flag to denote whether a commitment adjustment is mandatory
from the borrower’s perspective…? 5.
Business question:
Should we capture a ‘schedule date’ (in the case where the adjustment is
pre-defined)…? 6.
General design: All
‘flags’ should be named consistently (we decided to maintain a –flag
suffix). 7.
General design:
Modification flag should not be required in the Facility Notice
section. 8.
General design:
There was a discussion around corrections. The working group agreed that there
is effectively a window within which modifications to existing business events
can take place. But, if the event has been processed and there has been cash
movement then a correcting event may need to take place. In this latter case,
the eventId may need to be different. To be discussed further… (current
structure should still be able to handle this scenario). 9.
General design: Move
the effective date into the Facility Notice section (the wg agrees that all
facility business events should have an associated effective
date). 10.
Rollover: Some
providers/agents may not be able to provide full details of specific loan which
have been repaid during a rollover. WG members have stated that they may only be
able to provide facility repayment details in cases. The current loans in this
scenario would be a set of new loan contracts. Unfortunately, this would mean
making the loanContractRepayment (within the Repayment structure) optional.
This, in turn, brings up the question as to what kind of validation there will
be around the provision of loanContractRepayment details… This needs to be
discussed further. 11.
Rollover: Conversion
flag should be captured at a higher level within the rollover message
structure. 12.
New Request: Rate
Set Notices. In a rollover situation where we have multiple existing loan
contracts transforming to a new set of loan contracts, each of the contracts may
require a rate set notice to be created. At the moment the rate set notice is
not part of the rollover message. Is the expectation that the sender would need
to generate separate rate set notices for each loan contract ‘rolling over’ or
should we incorporate this workflow within the rollover structure
itself…? Regards, Bhavik
Katira CEO TenDelta™ Fresh
insight. Pure logic. +1.917.582.4574 new york +44.(0).7780.808732 london TenDelta™
provides business process consulting, technology design & education
services; specializing in the Syndicated Loan Market. Entrusted with engineering
innovative & logical solutions; we endeavor to deliver timely, robust,
cutting-edge solutions. Copyright ©2008-2009. TenDelta™ LLC (US),
TenDelta™ Limited (UK). All Rights Reserved. From: loanwg@xxxxxxxx
[mailto:loanwg@xxxxxxxx] On Behalf Of Bhavik Katira Additional Item to add to the
list below 12. New Request: Rate Set
Notices. In a rollover situation where we have multiple existing loan contracts
transforming to a new set of loan contracts, each of the contracts may require a
rate set notice to be created. At the moment the rate set notice is not part of
the rollover message. Is the expectation that the sender would need to generate
separate rate set notices for each loan contract ‘rolling over’ or should we
incorporate this workflow within the rollover structure
itself…? Regards, Bhavik
Katira CEO TenDelta™ Fresh
insight. Pure logic. +1.917.582.4574 new york +44.(0).7780.808732 london TenDelta™
provides business process consulting, technology design & education
services; specializing in the Syndicated Loan Market. Entrusted with engineering
innovative & logical solutions; we endeavor to deliver timely, robust,
cutting-edge solutions. Copyright ©2008-2009. TenDelta™ LLC (US),
TenDelta™ Limited (UK). All Rights Reserved. From: loanwg@xxxxxxxx
[mailto:loanwg@xxxxxxxx] On Behalf Of Bhavik Katira Dial-in
Details US: + 1 (888) 481 -
3032 Intl: + 1 (617) 801-
9600 UK: 0800
904-7961 Participant Code:
28413758 Please refer to the attached
schema design. Items to
discuss: 1.
Design Proposal:
Introduction of a Commitment Adjustment Structure. a.
Review
structure b.
What business
scenarios should it be used…? Is it simply when there is a commitment change
where no cash flow occurs…? c.
Agree that it should
be used whether there is a decrease or an increase. d.
Change can be
positive or negative…? Or should we have a flag followed by an absolute
amount…? 2.
Design Proposal:
Should we introduce an ‘Effective Date’ in the facility notice
section…? 3.
Design Proposal:
Rollover changes a.
Added
‘effectiveDate’. b.
Renamed ‘Maturing-‘
to ‘Prior-‘ and ‘New-‘ to ‘Current-‘. c.
Introduced the
‘currentLoanContract’ structure d.
CurrentLoanContract
contains a optional choice which contains either a DrawdownPayment,
loanContractIncrease or conversionFlag. 4.
Design Proposal: L/C
Termination should contain the change amount rather than the prior amount. More
generically, should we be capturing change amounts in all notices, rather than
prior amounts…? (It was mentioned in the last call that prior amounts are
notoriously difficult to extract in many cases). 5.
Design Proposal:
Interest payment adjustment added to InterestPayment structure. Should we
capture this extra field to take into account an adjustment from a previous
period…? The other option is to capture this in the new Cash Flow section and
make it generic to all business events. 6.
Design Proposal:
Updated the LenderLoanContractPeriod in the InterestAccrualSchedule to
InterestLoanContractPeriod. This is to account for the fact that the interest
accrual may not be based on the actual lender position. It may be based on a
portion of the lender position. E.g. A repayment occurs mid-accrual period and
the interest relating to the repayment amount is paid. When the interest payment
is communicated, the underlying InterestLoanContractPeriod, not the full lenders
loan contract position. a.
Are we interest in
knowing whether the InterestLoanContractPeriod is actually the lender’s
position…? b.
Should we represent
both InterestLoanContractPeriod and
LenderLoanContractPeriod…? 7.
Confirm:
Modification Flag in Facility Notice. There is no way to tell multiple instances
of a modification… is this an issue…? 8.
Confirm: L/C
contains amount and participation amount. 9.
Confirm: Choice
containing full deal structure in the Facility Notice. 10.
Confirm: Contacts
structure. 11.
New Request: In the
following scenarios should we expect to send multiple messages out or come up
with a combination message type: a.
Repayment with
Interest b.
Repayment and New
Loan c.
Multiple On-Going
Fees, Interest Payments, Rate Fixes, Margin Changes etc… Regards, Bhavik
Katira CEO TenDelta™ Fresh
insight. Pure logic. +1.917.582.4574 new york +44.(0).7780.808732 london TenDelta™
provides business process consulting, technology design & education
services; specializing in the Syndicated Loan Market. Entrusted with engineering
innovative & logical solutions; we endeavor to deliver timely, robust,
cutting-edge solutions. Copyright ©2008-2009. TenDelta™ LLC (US),
TenDelta™ Limited (UK). All Rights Reserved. From: loanwg@xxxxxxxx
[mailto:loanwg@xxxxxxxx] On Behalf Of Bhavik Katira All, Unfortunately I have a clash
with this call for tomorrow and will be travelling. In the last few weeks we have
had feedback from working group members regarding: -
Increased
flexibility with the Rollover Notice structure – especially with respect to
increases & repayments. -
Suggested updates to
the Business Validations from the business working group. -
Suggested updates to
the L/C structure. -
Suggested updates to
the Interest Payment structure to cater for the case where we have a partial
interest payments, mid-period. -
The introduction of
Contact information. -
Simplification of
new vs modified messages using a flag to denote the
difference. -
The introduction of
a simple Commitment Adjustment structure. The feedback has been great and
we are expecting more, based on our last FpML call. A new copy of the schema will be
available as soon as the latest changes are in. We are waiting for some feedback
on a few design points – we expect it to be completed at some point this
week. Please keep sending in your
comments as they relate to applying the standards to real-life
messages. Regards, Bhavik
Katira CEO TenDelta™ Fresh
insight. Pure logic. +1.917.582.4574 new york +44.(0).7780.808732 london TenDelta™
provides business process consulting, technology design & education
services; specializing in the Syndicated Loan Market. Entrusted with engineering
innovative & logical solutions; we endeavor to deliver timely, robust,
cutting-edge solutions. Copyright ©2008-2009. TenDelta™ LLC (US),
TenDelta™ Limited (UK). All Rights Reserved. No virus
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