Hi there,

I am new in loans domain and appreciate your efforts of coming up with standards

I looked at "Rollover Notice" and it has this last section as maturing loan contracts and new loan contracts. Does maturing-contract-IDs expire with it's contract maturity? Or are the IDs reused in new-loan-contract?

If not reused: Is this the case even when borrower does no repayment/draw-down and changes only the interest-rate, maturity-date of an existing maturing contract?

Please clarify,
Thanks,
Tanya

Hi Tanya,

The current recommendation is that the new loan contracts would have new ID's. Even though there may not be any cash flows associated with the rollover, the terms of the loan contract will be different, as you pointed out, and should therefore ideally be identified with different unique ids.

The consensus is that this would provide a very clear representation of the 'current' loan contracts to the collection of lenders and avoid any misrepresentation.

The schema does not preclude anyone from using the same ID's (in the scenario you describe) but this 'uniqueness' would have to be something we include in the associated business validation rules.

Another outstanding point we have is to consider what happens during a margin re-pricing (should loan contracts be re-published? - at the moment we do not).

Hope this helps,

Bhavik Katira
TenDelta