When the grantor pays back the claim to the Syndication Party, once the recourse party (the liability party of the primary contract) has paid the grantor. Here, the settlement process is dependent on the 'No Repayment Flag'.
If the 'No Repayment Flag' is set, then no settlement is created; just the status is set to ‘Booked Out Claim’.
If the 'No Repayment Flag' is “not” set, then settlement is created along with the status being updated to ‘Booked Out Claim’. Now the funds are reversed from the syndication account and is visible in the Settlement panel.
|Possible Syndication Status||Comments|
|Booked Out Claim||Once the user enters the Details Panel, this status is defaulted in the dropdown list.|
When the grantor pays back the claim to the Syndication Party, the amount is then reversed, and the syndication status is updated. The main panels used here are the Liabilities, Pay Back Claim and Settlement panel.
Once the claim amount is being paid back, the status is updated to ‘Booked Out Claim’.
Here, any Syndication Liability entry with status 'Booked In Claim' may be selected by the user. The status is updated to ‘Booked Out Claim’ and the 'Booking Amount' will be defaulted with the amount of the claim to make the New Syndication amount of the child 0.00. The sum of all Syndication Liability entries set to 'Booked Out Claim' will be handled in the settlement.
The status of the parent Syndication Liability entry will be defaulted to 'Booked In Unfunded' provided there are no other claims pending and the old/new Syndication Amount of the parent is greater than 0,00. If the amount of the parent equals 0,00 the status will be defaulted to 'Booked Out unfunded'. As long as claims are pending for the parent liability the status of the parent has to remain as '(Partial) Claims(s) Present'.
The Claim amount is reduced from the child and the sum of all syndication deals is updated accordingly.
'No Repayment Flag' and Settlement Panel:
If the 'No Repayment Flag' is “not” set, the amount is paid back to the Syndication Party. The amount is debited to the bank’s account and credited to the Syndication Party’s account.
If the 'No Repayment Flag' is set, no settlement processing happens for the booking amount.
To pay back the claim to the Syndication Party, SDTSET transaction is used.
Select it from the menu item[Other Products -> Syndication -> Other Deal Transactions -> Pay Back Claim].
When you have made your changes, click on the ( ) Save function to save all the the data entered in the transaction to the database.