Syndicate Agreement

Before entering into a syndicate arrangement, the parties, that is the lenders and the borrower, agree to a contract which designates the structure, rules, and time period of the syndicated loan; this contract forms the underwriting agreement and is similar to a subscription agreement.

The syndicate agreement may be provided in different forms and could contain numerous provisions depending upon the circumstances. However, they typically involve enormous amounts of money and a credit relationship between multiple parties. Subsequently, it is necessary to take utmost precaution by carefully wording the agreement.

Text for Syndication Agreements can be created and stored in the database. The text of the Syndication Agreements can be selected based on the 'Text Module Type' field.

Within the 'Text Module Type' it can be decided if the 'Object Type' will be created and defaulted for a 'Party', a 'Country' or the 'Group' of a Party. The values have to be chosen in the respective fields. 

Syndication agreements can be distinguished by language, agreement type (e.g. master participation agreement, forfeiting agreement, etc.). It can be stored as a default, country, group or a party-specific texts.
Specific fields and panels have been defined for each type of text under syndication.
For an object type, default text values such as 'Offer', 'Amendment request', 'Funding request' and 'Demand for payment' can be defined under the same template.
These texts are then used under various transactions of the syndication business module.
Based on the selected transaction and template, the text is properly filled to the respective fields in the Syndication module.

Fields have to be entered in the text (Syndication agreement) together with their technical paths and in curly brackets so that the application can recognize that the field in curly brackets is to be replaced by content captured in the transaction. For instance, to insert the Syndication Deal reference number, the field has to be entered as {SDDGRP\REC\OWNREF}.

Select it from the menu item[Static Data -> Correspondence -> Advanced Text].

When you have made your changes, click on the ( )  Save function to save all the the data entered in the transaction to the database.

(Users can directly start this transaction DBIATX by clicking the  (Launch transaction ) available in the Panel headline without having to select the relevant menu) 

• to create a new advanced texts such as syndication agreements.
• to modify or customize a advanced texts.
• to delete a advanced texts.