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Securitization of Islamic Assets User Manual

1. Role Amount Tag Debit Credit SPV_SETTLE_ACC LOAN_PMNT_DR DR SPV_SETTL_BRIDGE_CR LOAN_PMNT_DR CR SPV_SETTL_BRIDGE_DR LOAN_PMNT_CR DR SPV_SETTLE_ACC LOAN_PMNT_CR CR PLAC The system triggers the event during EOD for realizing the Profit Loss on the scheduled date The table below describes the accounting entries for realize the profit loss in real GL from the receivables Role Amount Tag Debit Credit PLAC_RIA PLAC_PROFT Dr PLAC_INC PLAC_PROFT Cr PLAC_PIA PLAC_LOSS Dr PLAC_EXP PLAC_LOSS Cr Note _RIA Received in advance _PIA Paid in Advance RECR The system supports this event in securitizing product and is triggered whenever the replacement of finance transaction is securitized The system compute the profit loss for the securitization contract amendment and pass the accounting entries accordingly Role Amount Tag Debit Credit s9 ORACLE SPV_SETTLE_ACC LOAN_OUTSTANDING_CR DR SPV_SETTL_BRIDGE_C LOAN_OUTSTANDING_CR CR R SPV_SETTL_BRIDGE_D LOAN_OUTSTANDING_DR DR R SPV_SETTLE_ACC LOAN_OUTSTANDING_DR CR PLAC_EXP SALE_LOSS DR SPV_SETTLE_ACC SALE_LOSS CR PLAC_PIA SALE_LOSS_AC DR SPV_SETTLE_ACC SALE_LOSS_AC CR PLAC_EXP SALE_LOSS_BR DR SPV_SETTL_BRIDGE_C SALE_LOSS_BR CR R PLAC_PIA SALE_LOSS_BR_AC DR SPV_SETTL_BRIDGE_C SALE_LOSS_BR_AC CR R SPV_SETTLE_ACC S
2. Role Amount Tag Debit Credit Remarks SPV_SETTLE_AC LOAN_OUTSTANDING DR C SPV_SETTL_BRID LOAN_OUTSTANDING CR GE_CR SPV_SETTLE_AC SALE_PROFIT DR For immediate reali C zation PLAC_INC SALE_PROFIT CR SPV_SETTLE_AC SALE_PROFIT_AC DR For periodic realiza C tion PLAC_RIA SALE_PROFIT_AC CR PLAC_EXP SALE _ LOSS DR For immediate reali zation SPV_SETTL_BRID SALE_LOSS CR GE_CR PLAC_PIA SALE_LOSS_AC DR For periodic realiza tion SPV_SETTL_BRID SALE_LOSS_ AC CR GE_CR SPV_SETTLE_AC PRCH_CHG DR C CHG_INC PRCH_CHG CR SECR_CONTINGE LOAN OUTSTANDING DR For tracking the NT_ASSET book balance in off balance sheet SECR_CONTINGE LOAN OUTSTANDING CR NT_POOL BAMD It is an event for Buyback of finance accounts from SPV removal of finance accounts from securitization pool During this event the system computes the total profit loss of the transaction Depending on the type of profit loss accrual mode set for product contract the system will either post the entries to contingent GL for periodic accrual of Profit Loss to Balance sheet or post it directly to the income expense GL The system triggers the Cl status change activity from SECR to NORM ee ORACLE The table below describes the accounting entries for Charge components during Buyback Role Amount Tag Debit Credit SPV_SETTLE_ACC CHARGES Dr CHG_INC CHARGES Cr The table below describes the accoun
3. Message Message Tag Message Type Format Tag Name Tag Type Description _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s Matu rity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME_ Multiple Underlying S Finance s Bor rower Name _LBID_ Multiple Underlying Finance s Bor rower ID Consoli IZ LDSB IZ_LDSB_A Single Securitization dated _ADV DV_FMT _IZBRANC Branch Date Finance HDATE __ Account Disburse _BRANCH Single Securitization ment Advice NAME _ Branch Name _IZSPV Single SPV Customer NAME _ Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE Single IZ User Refer F ence Number _SPVID_ Single Special Pur pose Vehicles ID _SPVNAM Single SPV Name E_ _SREFNO Single IZ Contract Ref erence Number 8 28 ORACLE Message Message Type Message Format Tag Name Tag Type Tag Description _DATE_ Single Underlying Finance s Dis bursement Date _LNFLAG_ Single Finance Exists Flag _LNACCN UM_ Multiple Underlying Finance s Account Num ber _LNACUS ERREF_ Multiple Underlying Finance s User Reference _LNAMT_ Multiple Underlying Finance s Amount _LNCCY_ Multiple Underlying Finance s Finance Cur rency
4. Start Date Due Date Amount Due Amount Settled Currency LCY Amount Pool Details PoolAddition PoolDeletion Recourse Charges Settlement Events EventHistory Fields MIS Maker Date Time Status Authorization Status Checker Date Time Here you need to capture the following details Service Charge Schedule Start Date Specify the start date of the service charge schedule End Date Specify the end date of the service charge schedule Frequency Frequency of the charge schedule is defaulted based on the values maintained at product level Amount Specify the amount of the service charge Currency Currency of the service charge is defaulted based on the values maintained at product level Details Start Date Specify the start date of the service charge Due Date Specify the due date of the service charge 5 12 ORACLE 5 3 4 Amount Due Specify the amount due of the service charge Amount Settled Specify the amount settled of the service charge Currency Specify the currency of the service charge LCY Amount Specify the LCY amount of the service charge Note The system computes the service charge schedule during authorization of the contract Specifying Profit Loss Accrual Details You can define the profit loss realization period for transactions such as Sale Sale Amendments Buyback and Recourse Based on the schedule definition syste
5. _LNSTATU S Multiple Underlying Finance s Account Status _LNDATE_ Multiple Underlying Finance s Date _LNMDAT E Multiple Underlying Finance s Matu rity Date _LNTENO R Multiple Underlying Finance s Tenor _LNBNAM E Multiple Underlying Finance s Bor rower Name _LNBID_ Multiple Underlying Finance s Bor rower ID _SECLNFL AG_ Single Finance Exists Flag _ACCNUM Multiple Underlying Finance s Account Num ber 8 29 ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description _AC Multiple Underlying USERREF Finance s User _ Reference _LOAMT_ Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Cur rency _LSTATUS Multiple Underlying _ Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s Matu rity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying E Finance s Bor rower Name _LBID_ Multiple Underlying Finance s Bor rower ID Consoli IZ_PPAY IZ_PPAY_A Single Securitization dated _ADV DV_FMT _IZBRANC Branch Date Finance HDATE __ Account pre pay _BRANCH Single Securitization ment Advice NAME __ Branch Name _IZSPV Single SPV Customer NAME _ Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Sin
6. Branch amp Currency button and invoke the Branch Currency Restriction screen In this screen you have the option of allowing all the branches of your bank to use the product or restricting its use to only some branches ta ORACLE By default when a new product is created no branches will be disallowed Branch Currency Restriction Product Code Product Description Class Code Default From Class Class Description Branch Restrictions Disallowed Currency Restrictions Allowed Disallowed Allowed Branch Currency 101 gt 4 z 1 Of 1 Branch Code Branch Name oa Currency Code m Currency Name For further information on this screen refer chapter the Product Definition under Modularity User Manual 44 ORACLE 4 2 4 Maintaining Customer Restriction Click Customer button to invoke the Customer Restrictions screen In this screen you can specify the categories of customers or the customers themselves with whom you can enter into securitization involving the product Customer Restrictions Product Code Product Description Class Details Default From Class Class Code Class Description Branch restriction Categories List Disallowed Allowed Customers 1 OF 1 Description E Customer Id Customer Name Restric o Disall For further information on this screen refer chapter the Product Definition under Modularity User Manual
7. Oracle FLEXCUBE allows you to capture rule condition which is used to identify the finance contracts to form the securitization pool You can maintain the formula details in the Islamic Securitization Formula Maintenance screen You can invoke this screen by typing SZDFRMNT in the field at the top right corner of the Application toolbar and clicking on the adjoining arrow button Formula Maintenance E New amp Enter Query Formula Name Description Rule Expression 1 Of 1 Condition Id Description Condition Rule Condition Maker Date Time Checker Date Time Mod No Record Status Authorization Status Here you can capture the following details Formula Name Specify the formula name Description Specify the description for the formula Condition ID Specify the condition ID Description Specify the description for the condition Rule Condition Specify the rule condition 3 1 ORACLE The system provides the following pre defined elements to form the rule expression e Outstanding Principal e Disbursed Amount e Un Disbursed Principal future scheduled disbursement amount e Finance Type Discounted True Discounted Amortized Amortized 78 e Outstanding Tenor e Rate of Profit e Type of Profit Floating Fixed e Payment Frequency e Customer Type e Customer City Location e Collateralized Non collateralized e Collateral Amount e Credit Rating
8. This is the securitization reference number for which the report is generated Event Code This is the event code for which the report is generated Operation This is the operation Buy back amendment sale for which the report is generated Asset Ref No This is the asset reference number for which the report is gener ated Product Code This is the product code for which the report is generated Product Cate This is the product category for which the report is generated gory Customer ID This is the customer ID for which the report is generated Finance Amount This is the finance amount for which the report is generated Currency This is the currency for which the finance amount is disbursed Value Date This is the value date of the finance for which the report is gener ated Maturity Date This is the maturity date of the finance for which the report is gener ated Fund ID This is the fund id of the finance for which the report is generated Viewing Summary of Payment Received by SPV You can manually generate a report that displays the summary of payment received details participating Cl Accounts for the securitization contract SPV for the specified period in the Summary of Payment Received screen You can invoke this report screen by typing as ORACLE IZRSPVPY in the field at the top right corner of the Application Toolbar and
9. Special Purpose Vehicle through Securitization On line Payment Detailed screen You can invoke this screen by typing SZDPYMNT in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Payment Details E New E3 Enter Query Contract Currency Customer Contract Reference ESN Value Date Total Amount Limit Date Liquidation Details 10f1 m Component Currency Due Date Amount Due Amount Paid Events Settlement Maker Date Time Status Authorization Status Checker Date Time Here you need to capture the following details Contract Currency The system defaults the currency of the contract which is used for the service charge payment It will be always the contract currency Contract Reference Specify the securitization contract reference number to which the payment is made Value Date Specify the value date of the payment The system defaults it to application date However you can amend it Total Amount The system calculates and displays the total payment amount which is the sum of the individual component amount paid during the payment Customer Specify the associated SPV customer name ESN Specify the Event Sequence Number ESN for the payment Limit Date Specify the limit date for the payment You can do a prepayment through selecting future dated schedule Click Populate Due button the system lists the payment overd
10. _SPOOLA Single Securitized Pool MT_ Amount _SPOOLC Single Securitized Pool CY_ Currency _SALEAM Single Securitized Pool T_ Sale Amount _SALECC Single Securitized Pool Y_ Sale Currency _SALE_DA Single Securitized Pool TE_ Sale Date _SECLNEFL Single Finance Exists AG_ Flag eats ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description _ACCNUM Multiple Underlying Finance s Account Num ber _AC Multiple Underlying USERREF Finance s User _ Reference _LOAMT_ Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Cur rency _LSTATUS Multiple Underlying a Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s Matu rity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying Finance s Bor rower Name _LBID_ Multiple Underlying Finance s Bor rower ID Securitiza IZ AMND IZ_AMND_A Single Securitization tion Con _ADV DV_FMT _IZBRANC Branch Date tract HDATE __ Amend ment Advice _BRANCH Single Securitization NAME _ Branch Name _IZSPV Single SPV Customer NAME _ Name _IZSPV Single SPV Address ADDR Line 1 LN1_ 8 15 ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description _IZSPV Single
11. 4 2 5 Maintaining Preferences You need to maintain the common attributes which are used to define the Securitization product in the Preference section Preferences Preferences Description Product Code Liquidation Rate Type STANDARD Liquidation Mode Auto Minimum Tenor Middle Rate Manual Default Buy Sell Rate Maximum Tenor Unit Others C Buyback of Pool Allowed Periodic Charges ProfitiLoss Accrual Rekey Requirements Frequency HalfYearly C Accrual Required Rekey Required Yes Start Reference Value Date Frequency Half Yearly No Month January Start Reference Value Date E C Amount Day Month Januay C Currency Charge Amount Day i Value Date Currency C Maturity Date Here you need to capture the following details a ORACLE Preferences You can set the preference details here Product Code The system defaults the product code Description The system defaults the product description Rate You can set the rate details here Rate Type Select the code that should be used for the product from the option list provided The Rate and Rate Type are used in combination to determine the actual rate applicable for currency conversion The default value for Rate Code is STANDARD This means that if you choose Mid Rate the mid rate maintained for the STANDARD code is used for the finances created under the product Rate Indicate the exchange rate applicable for
12. Multiple Underlying Finance s Bor rower ID _SECLNFL AG_ Single Finance Exists Flag _ACCNUM Multiple Underlying Finance s Account Num ber LAC USERREF Multiple Underlying Finance s User Reference _LOAMT_ Multiple Underlying Finance s Amount JLGGY Multiple Underlying Finance s Finance Cur rency _LSTATUS Multiple Underlying Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s Matu rity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying Finance s Bor rower Name _LBID_ Multiple Underlying Finance s Bor rower ID ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description Securitiza IZ_BAMD IZ_BAMD_A Single Securitization tion Con _ADV DV_FMT _IZBRANC Branch Date tract HDATE _ Buyback Amend _BRANCH Single Securitization ment Advice NAME _ Branch Name _IZSPV Single SPV Customer NAME _ Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE Single IZ User Refer F_ ence Number _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book
13. RIA Balance e f securitization product is set to realize the profit loss immediately then the system posts the calculated profit loss directly to the bank s Income Expense GL directly e If the securitization product is set to realize the profit loss over a pre defined period then the system computes a schedule for the profit loss and posts the accounting entries accordingly during the EOD cycle e You need to maintain the Profit Loss as a separate slab for each amendment on sale contract and should not merge it with previously calculated profit loss e The system computes separate accrual schedule for profit and loss for that particular amendment based on the schedule defined during the amendment e During EOD the system computes the consolidated profit loss Netting is done on that due date and posts the accounting entries to Banks Income Expense GL e The system generates the Amendment Advice Message Impact on Islamic Assets During the amendment the system triggers the change status event from SECR status to NORM for the removed contract from pool and passes the below accounting entries elt transfers the removed finance contracts outstanding balance from SPV_SETTL_BRIDGE GL to bank s ASSET GL LOAN_ACCOUNT e It changes the removed finance contracts GL for the profit penal profit from BRIDGE INCOME GL to Bank s INCOME GL e Accrual is similar like SALE event The table below describes the accounting en
14. SPV_SETTLE_ACC LOAN_OUTSTANDIN Dr G SPV_SETTL_BRIDGE_CR LOAN_OUTSTANDIN CR G SPV_SETTLE_ACC SALE_PROFIT DR For immediate realization PLAC_INC SALE_PROFIT CR SPV_SETTLE_ACC SALE_PROFIT_AC DR For periodic real ization PLAC_RIA SALE_PROFIT_AC CR PLAC_EXP SALE_LOSS DR For immediate realization SPV_SETTL_BRIDGE_CR SALE_LOSS CR PLAC_PIA SALE_LOSS_AC DR For periodic real ization SPV_SETTL_BRIDGE_CR SALE_LOSS_AC CR SECR_CONTINGENT_ASS LOAN OUTSTANDIN DR For tracking the ET G book balance in off balance SECR_CONTINGENT_POO LOAN _OUTSTANDIN CR sheet L G SAMD It is an event for sale of additional finances accounts to SPV Addition of finance accounts to securitization pool During this event the system computes the total profit loss of the transaction Depending on the type of profit loss accrual mode set for product contract the system will either post the entries to RIA PIA GL for periodic accrual of Profit Loss to balance sheet or post it directly to the income expense GL The system triggers the CL status change event and changes the status from NORM to SECR ORACLE The table below descries the accounting entries for Charges incurred during amendment Role Amount Tag Debit Credit SPV_SETTLE_ACC CHARGES Dr CHARGE CHARGES Cr COMPONENT_INC The table below describes the accounting entries for Securitization Pool Amendment
15. To invoke this screen click on MIS button Contract Reference Input Link To Group Related Reference Related Account Rate At Rate Type X Pool Code Contract Level Transaction MIS MIS Group MIS Group Related Account Related Reference MIS Head Interest Method Refinance Rate i Pool Code Composite MIS MIS Group Fund MIS Link To Group Rate Code Spread Cost Code 1 Cost Code 2 Cost Code 3 Cost Code 4 Cost Code 5 MIS Group Here you can view the MIS details for the securitization contract maintained at the product level 5 23 ORACLE 5 3 13 Authorizing Securitization Contract Details You can authorize contracts in the Securitization Authorize Contract screen You can invoke this screen by typing SZDTRAUT in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button ge Securitization Authorize Contract E New amp Enter Query Contract Details Event Code Contract Reference Event Date Maker Rekey Fields Value Date Currency Maturity Date Contract Amount Generate Message Customer Contract Overrides 1 Of 1 Confirmed Override Remarks Authorized By Authorized Date You need to specify the following details here Contract Reference Specify the contract number which you are authorizing Maker Specify the maker Event Code The system displays a code for
16. _LCCY_ Multiple Underlying Finance s Finance Cur rency _LSTATUS Multiple Underlying Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s Matu rity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying Finance s Bor rower Name _LBID_ Multiple Underlying Finance s Bor rower ID Securitiza IZ MAM IZ_MAMD _ Single Securitization tion Con D_ADV ADV_FMT _IZBRANC Branch Date tract HDATE __ Maturity Date _BRANCH Single Securitization Amend NAME_ Branch Name ment Advice _IZSPV Single SPV Customer NAME _ Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE Single IZ User Refer F_ ence Number 8 22 ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date _SMDATE Single IZ Contract _ Maturity Date _SPVID_ Single Special Pur pose Vehicles ID _SPVNAM Single SPV Name E_ _SPOOLA Single Securitized Pool MT_ Amount _SPOOLC Single Securitized Pool CY_ Currency _SECLNEFL Single Finance Exists AG_ Flag _ACCNUM Multiple Underlying _ Finance s Account Num ber _AC Multiple Underlyi
17. Details Product Code Component Details Component Description Charge Type v Third Party Type C Net Consideration Advice Charge Event Details Event For Association Description Event For Liquidation Description Rule Details Settlement Currency Rule Description Other Details Allow Rule Amendment Amend After Association Accrual Required User Manual 4 2 7 Capturing MIS Details Default Waiver Capitalize E Collect LC Advising Charges in Bills Amend After Application Consider as Discount bf z You can retrieve MIS related information for a product by linking it to a Warehouse Code Linking a product to a warehouse code ensures that all contracts processed under the product are automatically tracked under the specified Warehouse Code 4 9 ORACLE Click MIS button to define the MIS details for the product you are creating MIS Details Product Code MIS Group Pool Code Default From MIS Groun MIS Classes Cost Code 10f1 MIS Class MIS Code For further information on this screen refer chapter the Product Definition under Modularity User Manual 4 2 8 Specifying User Defined Fields You need to click on Fields button to link the user defined fields to the product that you are defining Product User Defined Fields Product Code Product Description Fields 4 Of 1 50 E Field Number Field Name Al For further information
18. GL to realize the profit from securitization contract periodically SPV_SETTL_BRIDGE_ CR Bank GL account for SPV Credit Settlement bridge SPV_SETTL_BRIDGE_ DR Bank GL account for SPV Debit Settlement bridge 8 6 Event wise Accounting Entries In this section we will discuss the suggested events and advices that should be generated for that particular event in the life cycle of Securitization of Islamic assets INIT The system executes the INIT event when a contract is initiated on value date If the value date is application date then system triggers the BOOK and INIT event while booking the contract During this event system computes the total profit loss of the transaction Depending on the type of profit loss accrual mode set for product contract the system either 54 ORACLE posts the entries to RIA PIA GL for periodic accrual of Profit Loss to Balance sheet or posts it directly to the income expense GL The system generates the configured advices and sends as part of the INIT authorized Note The system triggers the Cl status change event and changes the status from NORM to SECR It does not allow backdated future dated contract booking of securitization The table below describes the accounting entries for Processing Fee Components and Sale Activities Debit Role Amount Tag Credit Remarks SPV_SETTLE_ACC CHARGES Dr CHG_INC CHARGES Cr
19. Product Code Amount Here you can view the following details Account Branch Code Product Code Product Type Amount Currency Start Date Maturity Date Value Date Customer ID Customer Name Formula Condition Rule Expression 5 15 ORACLE 5 3 6 5 3 7 Adding or Deleting Finances from the Pool Oracle FLEXCUBE provides a rule based mechanism to add additional finance accounts and remove previously bundled finances from the Pool Adding Finances to the Pool You can add new finances to the previously configured pool through Securitization Pool Addition screen Click on the Pool Addition button to add new finances to the pool Securitization Pool Addition Formula Name Rule Condition Condition Id Add Ta Poal Adad All Ta Paal Search Result Account s 1 Of 1 Account Branch Code Product Code Currency Securitization Pool Account s 101 Account Branch Code Product Code Currency Count Ramave from Paal Rarnave All frarn Panl You need to capture the following details here Formula Name Select the formula for searching the finance contracts from the option list provided Condition Id Select the condition ID for searching the finance contracts from the option list provided Rule Condition Specify the rule condition Click on Search button to search for additional non securitized
20. SPV Customer NAME _ Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE Single IZ User Refer F_ ence Number Balt ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date _SMDATE Single IZ Contract _ Maturity Date _SPVID_ Single Special Pur pose Vehicles ID _SPVNAM Single SPV Name E_ _SPOOLA Single Securitized Pool MT_ Amount _SPOOLC Single Securitized Pool CY_ Currency _LNFLAG _ Single Finance Exists Flag _LNACCN Multiple Underlying UM __ Finance s Account Num ber _LNACUS Multiple Underlying ERREF _ Finance s User Reference _LNAMT_ Multiple Underlying Finance s Amount _LNCCY_ Multiple Underlying Finance s Finance Cur rency _LNSTATU Multiple Underlying S_ Finance s Account Status _LNDATE_ Multiple Underlying Finance s Date _LNMDAT Multiple Underlying E Finance s Matu rity Date _LNTENO Multiple Underlying R_ Finance s Tenor 8 18 ORACLE Message Message Type Message Format Tag Name Tag Type Tag Description _LNBNAM E Multiple Underlying Finance s Bor rower Name _LNBID_
21. Sale Product Description Operation Code Sale Breas Service Charge ProfitLoss Accrual Advice Details 1 Of 1 Advice Name Party Type Party Id Party Name Medium Priority Pool Details Pool Addition PoolDeletion Recourse Charges Settlement Events EventHistory Fields MIS Maker Date Time Status Authorization Status Checker Date Time Here you can view the following details Advice Details Advice Name The system defaults the list of advice reference number which has been generated during the various events of the contract Party Type The system defaults the part type Party ID The system defaults the party ID Party Name The system defaults the party name Medium The system defaults the advice message available medium Priority The system defaults the priority of the advice Note The system displays the latest 25 advices which are generated for the specified contract ot ORACLE 5 3 3 Specifying Service Charge Details Click on the Service Charge tab to define the service charge details Contract Details E New amp Enter Query Branch Contract Reference User Reference Product Code ti Product Description Operation Code Sale eene Profit Loss Accrual Service Charge Schedule 10f1 Start Date End Date Frequency Currency Details 10f1
22. Securitization ref No From Date To Date Report Format Report Output PDF Printer At Client Print Printer is ORACLE You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Securitization ref no You can generate a report based on the securitization reference number Select a reference number from the option list provided From date Enter the From Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Branch Code Branch Name Indicates Current Branch code and Branch Name User ID Indicates the Identification of the User Module Indicates the Module of the Report Report Run Date Indicates Current Branch Date Report Run Time Indicates Current Branch Time tes ORACLE Body of the Report Field Name Field Description Branch Code This is the branch code for which the report is generated Securitization ref This is the securitization reference number for which the report is gener No ated Asset Re
23. Specify the type of the profit and loss schedule Total Amount Specify the total amount of the profit and loss schedule Unit Amount Specify the unit amount of the profit and loss schedule Currency Specify the currency of the profit and loss schedule Total LCY Amount Specify the total LCY amount of the profit and loss schedule Unit LCY Amount Specify the unit LCY amount of the profit and loss schedule Details Version Number Specify the version of the profit and loss schedule Start Date Specify the start date of the profit and loss schedule Due Date Specify the due date of the profit and loss schedule Amount Specify the amount of the profit and loss schedule Currency Specify the currency of the profit and loss schedule Type Specify the type profit and loss schedule LCY Amount Specify the LCY amount of the profit and loss schedule oe ORACLE 5 3 5 Accrued Amount Specify the accrued amount profit and loss schedule Note The system computes the Profit Loss accrual schedule during authorization of the con tract Viewing Securitization Pool Details Oracle FLEXCUBE provides a facility to view all the underlying finances which have been included as part of the securitization pool Click on the Pool Details button to view the list of finances bundled in securitization pool Securitization Pool Securitization Pool Details 1 Of 1 Account Branch Code
24. You can manually generate a report that displays the list of participating Cl accounts for the selected securitization contract securitization pool in the Summary of Cl accounts under Islamic Securitization Pool screen You can invoke this report screen by typing IZRPOACC in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Summary of CI accounts under Islamic securitization pool Branch Code Securitization ref No Report Format PDF Printer At Client Report Output Print v Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Securitization ref No You can generate a report based on the securitization reference number Select a reference number from the option list provided Contents of the Report The following information is provided in the report tad ORACLE 7 3 Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Branch Code Branch Name Indicates Current Branch code and Branch Name User ID Indicates the Identification of the User Module Indicates the Module of the Report Report Run Date Indicates Current Branch Date Report Run Time Indicates Current Branch Time Body
25. button The system displays all the records matching the parameters specified oe ORACLE 4 Defining Attributes for Islamic Securitization Prod ucts 4 1 Introduction In this chapter we shall discuss the attributes for a Securitization Product 4 2 Maintaining Securitization Products You can maintain the securitization product details in the Islamic Securitization Product Maintenance screen You can invoke this screen by typing IZDPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Securitization Product Maintenance E New E3 Enter Query Product Code Product Description Product Type Slogan Product Group Start Date End Date Remarks Accounting Roles Events Branch amp Currency Customer Preferences Charges MIS Fields ELCs Date Time Checker Date Time Mod No Record Status Authorization Status Here you can capture the following details Product Code Specify the product code of the product Product Description Specify a short description about the product Product Type Specify the type of the product Slogan Specify the slogan of the product Product Group Specify the product group g ORACLE Start Date Specify the product available start date End Date Specify the product available end date Remarks Specify short note about the product 4 2 1 Mapping Accounting Role to a GL C
26. e Payment Outstanding e Currency of Finance e Customer Category e Product Category e Account Status e Relationship Pricing Status e Module Code While creating the securitization pool the system computes the values for the elements dynamically and executes the expression You should use the Rule Name and Condition Name in securitization pool addition deletion screen to execute the specific condition Note The system allows you to modify the formula This modification will not have any impact on the already selected finance accounts in the securitization pool based on the modified formula 3 2 1 Viewing Securitization Formula Maintenance Summary Details You can view the summary details of the Securitization Formula Maintenance in Securitization Formula Maintenance Summary screen a2 ORACLE You can invoke this screen by typing IZSFRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button LBL_FRM_SUMMARY S4 Advanced Search 9 Reset Authorization Status Record Status Formula Name z Description a Records per page 45 v Authorization Status Record Status Formula Name Description In this screen you can query based on any combination of the following fields e Authorization Status e Formula Name e Record Status e Description After specifying the parameters for the query click Search
27. e Servicer The entity responsible for collecting finance payments from borrowers and for remitting these payments to the issuer for distribution to the investors The servicer is a ORACLE typically compensated with fees based on the volume of finances serviced The servicer is generally obligated to maximize the payments from the borrowers to the issuer and is responsible for handling delinquent finances and foreclosures e Trustee A third party appointed to represent the investors profits in a securitization The trustee ensures that the securitization operates as set forth in the securitization documents which may include determinations about the servicer s compliance with established servicing criteria e Securitization Documents The documents create the securitization and specify how it operates One of the securitization documents is the Pooling and Servicing Agreement PSA which is a contract that defines how finances are combined in a securitization the administration and servicing of the finances representations and warranties and permissible loss mitigation strategies that the servicer can perform in event of finance default e Underwriter Administers the issuance of the securities to investors e Credit Enhancement Provider Securitization transactions may include credit enhancement designed to decrease the credit risk of the structure provided by an independent third party in the form of letters of credit or guar
28. of the Report Field Name Field Description Branch Code This is the branch code for which the report is generated Securitization Ref No This is the securitization reference number for which the report is generated Asset Ref No Desc order This is the assest reference number in descending order for which the report is generated Product Code This is the product code for which the report is generated Product Category This is the product category for which the report is generated Customer ID This is the customer ID for which the report is generated Finance Amount This is the finance amount for which the report is generated Currency This is the currency for which the finance amount is disbursed Value date This is the value date of the finance for which the report is gen erated Maturity date This is the maturity date of the finance for which the report is generated Viewing Summary of Islamic Securitization Pool His tory You can manually generate a report that displays securitization contract history details for the specified intervals history of accounts which are involved in the sale buyback or amendment details for the securitization contract in the Summary of Islamic Securitization Pool History Details screen tee ORACLE You can invoke this report screen by typing IZRPOHIS in the field at the top right corner of the Appl
29. s User Reference _LOAMT_ Multiple Underlying Finance s Amount JLGGY Multiple Underlying Finance s Finance Cur rency _LSTATUS Multiple Underlying Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s Matu rity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying Finance s Bor rower Name _LBID_ Multiple Underlying Finance s Bor rower ID Securitiza tion con tract Payment Advice IZ_PMNT _ADV IZ_PMNT_A DV_FMT _IZBRANC HDATE_ Single Securitization Branch Date 8 32 ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description _BRANCH Single Securitization NAME_ Branch Name _IZSPV Single SPV Customer NAME _ Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE_ Single IZ User Refer F_ ence Number _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date _SMDATE Single IZ Contract _ Maturity Date _SPVID_ Single Special Pur pose Vehicle ID _SPVNAM Single SPV Name E_ _PMNTFL Single Payment Exists AG_ Flag _PAYAMT_ Single Sec
30. the product you are maintaining The available options are e Mid Rate e Buy Sell Rate By default the Buy Sell Rate is used Liquidation You can specify the liquidation details here Liquidation Mode Indicate the mode of liquidation The options available are e Auto e Manual Tenor You can set the tenor details here Minimum Tenor Specify the minimum tenor of a product The tenor of the finance account that involves the product should be greater than or equal to the Minimum tenor that you specify Maximum Tenor Specify the maximum tenor for a product The tenor of the finance accounts that involve the product should be less than or equal to the Maximum tenor that you specify Default The default tenor is the tenor that is associated with a finance account involving this product The value captured here should be greater than the minimum tenor and less than the maximum tenor You can change the default tenor applied on a finance account during ee ORACLE finance processing However the new tenor should be within the minimum and maximum tenors maintained for the product Unit Select the tenor details for a product from the drop down list The options available are e Days e Months e Year Others You can set the buy back of pool details here Buyback of Pool Allowed Check this option to allow the bank to buy back the sold accounts Periodic Charges You can specify the periodic charges here
31. ACC PLAC _PIA SALE_LOSS_ AC DR For periodic realization SPV_SETTLE_ SALE_LOSS_AC CR ACC REVP It is an event for Reversal of Payment The table below describes the accounting entries for Reversal of Payments charge components Role Amount Tag Debit Credit SPV_SETTLE_ACC PRCH_LIQD Dr PRCH_INC PRCH_LIQD Cr LIQD It is an event for Manual Liquidation to liquidate the charges payments from to SPV The table below describes the accounting entries for collecting periodic service charges from SPV on due date Manual payment Role Amount Tag Debit Credit SPV_SETTLE_ACC PRCH_LIQD Dr PRCH_INC PRCH_LIQD Cr PRCH The system triggers this event during EOD for collecting the service charges from SPV on scheduled date based on the pre defined schedule The table below describes the accounting entries for collecting periodic service charges from SPV on due date Role Amount Tag Debit Credit ORACLE SPV_SETTLE_ACC PRCH_CHG Dr PRCH_INC PRCH_CHG Cr LPMT The system triggers this event during EOD if any payment has been triggered in underlying finance contract principal profit compensation and overdue components The system posts consolidated accounting entries posted to SPV accordingly for credit payment and debit payments The table below describes the accounting entries for posting the consolidated payments to from SPV on value date
32. ALE_PROFIT DR PLAC_INC SALE_PROFIT CR SPV_SETTLE_ACC SALE_PROFIT_AC DR PLAC_RIA SALE_PROFIT_AC CR SPV_SETTL_BRIDGE_D SALE_PROFIT_BR DR R PLAC_INC SALE_PROFIT_BR CR SPV_SETTL_BRIDGE_D SALE_PROFIT_BR_AC DR R PLAC_RIA SALE_PROFIT_BR_AC CR SPV_SETTLE_ACC PRCH_LIQD DR 8 7 Formula Elements The elements mentioned in the table below are available for constructing the formula Pre Defined Elements Description Type PRODUCT_CODE Product Code VARCHAR2 BRANCH_CODE Branch Code VARCHAR2 COLLATERAL_AMOUNT Collateral Amount NUMBER el ORACLE LOAN_STATUS Finance Status VARCHAR2 PRINCIPAL_OUTSTAND Outstanding Principal NUMBER AMOUNT_DISBURSED Disbursed Amount NUMBER AMOUNT_NOT_DISBURSED_ Undisbursed Princi NUMBER pal future scheduled dis bursement amount TENOR_OUTSTAND Outstanding Tenor NUMBER PROFIT_RATE Rate of Profit NUMBER PROFIT_TYPE Type of Profit Floating NUMBER Fixed PRINCIPAL_PAYMENT_FREQ Principal Payment fre NUMBER quency PROFIT_PAYMENT_FREQ Profit Payment fre NUMBER quency CUSTOMER_TYPE Customer Type NUMBER CUSTOMER_CITY Customer city location NUMBER COLLATERAL_TYPE Collateralized Non col NUMBER lateralized CREDIT_SCORE Credit Rating NUMBER PAYMENT_OUTSTAND Payment outstanding NUMBER FINANCE_CURRENCY Currency of Finance NUMBER CUSTOMER_CATEGORY Customer Category NUMBER PROD_CATEGORY Product category V
33. ARCHAR2 PROFIT_RATE Profit rate NUMBER FUND_ID Fund ID VARCHAR2 ACC_STATUS Account Status VARCHAR2 RP_STATUS Relationship Pricing Sta VARCHAR2 tus ORACLE 8 8 Advice Messages The table below describes the advice messages for the securitization product Message Message Tag Message Type Format Tag Name Tag Type Description Securitiza IZ BOOK IZ_BOOK_A IZBRANC Single Securitization tion Con _ADV DV_FMT HDATE _ Branch Date tract Book Advice _BRANCH Single Securitization NAME_ Branch Name _IZSPV Single SPV Customer NAME _ Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE_ Single IZ User Refer F_ ence Number _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date _SMDATE_ Single IZ Contract Maturity Date _SPVID_ Single Special Pur pose Vehicles ID _SPVNAM Single SPV Name E_ _SPOOLA Single Securitized Pool MT_ Amount _SPOOLC Single Securitized Pool CY_ Currency _SALEAM Single Securitized Pool T_ Sale Amount Bale ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description _SALECC Single Securitized Pool Y_ Sale Currency _SALE_DA Sin
34. Date _SMDATE_ Single IZ Contract _ Maturity Date _SPVID_ Single Special Pur pose Vehicles ID _SPVNAM Single SPV Name E_ _SPOOLA Single Securitized Pool MT_ Amount _SPOOLC Single Securitized Pool CY_ Currency _LNFLAG_ Single Finance Exists Flag ORACLE Message Message Type Message Format Tag Name Tag Type Tag Description _LNACCN UM_ Multiple Underlying Finance s Account Num ber _LNACUS ERREF_ Multiple Underlying Finance s User Reference _LNAMT_ Multiple Underlying Finance s Amount _LNCCY_ Multiple Underlying Finance s Finance Cur rency _LNSTATU S Multiple Underlying Finance s Account Status _LNDATE_ Multiple Underlying Finance s Date _LNMDAT E Multiple Underlying Finance s Matu rity Date _LNTENO R Multiple Underlying Finance s Tenor _LNBNAM E Multiple Underlying Finance s Bor rower Name _LNBID_ Multiple Underlying Finance s Bor rower ID _SECLNFL AG_ Single Finance Exists Flag _ACCNUM Multiple Underlying Finance s Account Num ber _AC USERREF Multiple Underlying Finance s User Reference _LOAMT_ Multiple Underlying Finance s Amount 8 21 ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description
35. For all underlying finances Accruals it calculates till sale date and posts to Income GL In case of underlying finance contracts where accrual frequency is not daily then the system performs a force accrual till sale date and post the same to Income GL e Post securitization the system continues the accrual of finance account The table below describes the accounting entries for Status change NORM or Status which are supporting continue accrual to SECR Simple Finance Amortized Finance Amortized Rule 78 Principal Component Outstanding Principal is moved to SPV_SETTL_BRIDGE GL Profit Penal Profit Components Accrued profit till the sale date will be transfer to bank s Income GL GL for profit penal profit will be changed to Bridge GL Discounted Finance True Dis counted Finance Principal Component Outstanding Principal is transferred to SPV_SETTL_BRIDGE GL Profit Penal Profit Components A sum equivalent of accrued profit till the sale date is trans ferred from MAIN_INTRIA to bank s Income GL The balance profit amount in the MAIN_INTRIA is trans ferred to Bridge GL account SPV Account Amendment for Addition of Finance Accounts SAMD Addition of New Finance Account to Securitization Pool During the course of SPV contract SPV can increase the participating Islamic assets in Securitization contract e You can amend the contract through Sec
36. Frequency Select the frequency of the periodic charges to be applied from the drop down list The options available are e Monthly e Quarterly e Half yearly e Yearly Start Reference Select the periodic charge starting day from the drop down list The options available are e Value Date e Calander Date Month Select the starting month of the periodic service charge Note It is applicable only when start reference is calendar date Day Specify the starting day from which charges should be levied Note It is applicable only when start reference as calendar date Charge Amount Specify the amount to be charged for the service during the period Currency Specify the service charge currency ai ORACLE Profit Loss Accrual You can set the accrual details here Here Accrual Required Check this box to indicate that the component has to be accrued and provisioning is applicable Frequency If you have opted for accrual and provisioning for the components you have to specify the frequency for the same The frequency can be one of the following e Daily e Monthly e Quarterly e Half yearly e Yearly Start Reference Select the starting date for the Profit Loss accrual If itis Value Date system will take the value date as starting date and compute the schedule Incase if the starting date is Calendar Date system will compute the start date based on Month and Date specified Month Sp
37. ORACLE Islamic Securitization User Guide Oracle FLEXCUBE Universal Banking Release 12 0 3 0 0 Part No E53393 01 April 2014 Islamic Securitization User Guide April 2014 Oracle Financial Services Software Limited Oracle Park Off Western Express Highway Goregaon East Mumbai Maharashtra 400 063 India Worldwide Inquiries Phone 91 22 6718 3000 Fax 91 22 6718 3001 www oracle com financialservices Copyright 2007 2014 Oracle and or its affiliates All rights reserved Oracle and Java are registered trademarks of Oracle and or its affiliates Other names may be trademarks of their respective owners U S GOVERNMENT END USERS Oracle programs including any operating system integrated software any programs installed on the hardware and or documentation delivered to U S Government end users are commercial computer software pursuant to the applicable Federal Acquisition Regulation and agency specific supplemental regulations As such use duplication disclosure modification and adaptation of the programs including any operating system integrated software any programs installed on the hardware and or documentation shall be subject to license terms and license restrictions applicable to the programs No other rights are granted to the U S Government This software or hardware is developed for general use in a variety of information management applications It is not developed or intended for use in any inhe
38. SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE Single IZ User Refer F_ ence Number _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date _SMDATE_ Single IZ Contract 7 Maturity Date _SPVID_ Single Special Pur pose Vehicles ID _SPVNAM Single SPV Name E_ _SPOOLA Single Securitized Pool MT_ Amount _SPOOLC Single Securitized Pool CY_ Currency _SECLNEFL Single Finance Exists AG _ Flag _ACCNUM Multiple Underlying 7 Finance s Account Num ber _AC Multiple Underlying USERREF Finance s User _ Reference _LOAMT_ Multiple Underlying Finance s Amount ee ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description _LCCY_ Multiple Underlying Finance s Finance Cur rency _LSTATUS Multiple Underlying Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s Matu rity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying Finance s Bor rower Name _LBID_ Multiple Underlying Finance s Bor rower ID Securitiza IZ SAMD IZ_SAMD_A Single Securitization tion Con _ADV DV_FMT _IZBRANC Branch Date tract Sale HDATE _ Amend ment Advice _BRANCH Single Securitization NAME_ Branch Name _IZSPV Single
39. Securitization as part of the securitization pool the system will not allow any operations to be performed on the underlying asset till the IZ contract s securitization process is complete Note The system supports securitization of Cl contracts EOD Batch The below table provides details about the batches run and stage when they are run for Islamic securitization SI No EOD Stage Sub Stage is Batchiopiet orm 1 Post EOTI Stage 1 IZDSECR oal ORACLE Stage CIDBATCH Stage IZEOD Post BOD Stage CIDBATCH Stage IZEODBottom of Form 6 2 ORACLE 7 1 7 2 7 Reports Introduction You may want to retrieve information on any of the several operations that were performed during the day in your bank You can generate this information in the form of reports in Oracle FLEXCUBE For every module you can generate reports which give you data about the various events in the life of a specific contract or across contracts at a specific point in time You can have analysis reports daily reports exception reports reports on events that ought to have taken place on the contract but have not due to various reasons history reports and so on A set of report formats is pre defined for every module However for securitization module special reports can be generated and is explained in the sections below Viewing Summary of Securitization Pool
40. ancial accounts which are not securitized with another fianancial accounts which are part of the securitized contracts You can amend a securitization contract in the securitization contract screen itself During the amendment system allows you to update the sale amount and pool contracts alone During amendment the system triggers the AMND BAMD SAMD event based on the amendment type selected The system allows you to capture the following type of amendments when you press the Unlock button and trigger the events as per the below table SL No Amendment Option Event triggering 1 Amendment type is SALE addition of new System will trigger the SAMD finance accounts to Pool event while saving the contract 2 Amendment type is BUYBACK removal of System will trigger the BAMD finance accounts from Pool event while saving the contract 3 Amendment type is AMND Contract Modi System will trigger the AMND fication other than Pool modification event while saving the contract 4 Amendment type is RECOURSE Replace System will trigger the RECR ment of finances in the Pool event while saving the contract Note The system enables the subsystem Pool addition and Pool deletion based on the amend ment type maa ORACLE 5 3 15 Handling On line Payment for Service Charges Oracle FLEXCUBE provides a facility to handle payment of service charges from SPV
41. antees Note Not all securitizations are identical For example the lender and the servicer are some times the same entity or in other arrangements brokers may not play a role Securitization takes the role of the lender and breaks it into separate components Unlike the more traditional relationship between a borrower and a lender securitization involves the sale of the finance by the lender to a new owner the issuer who then sells securities to investors The investors are buying bonds that entitle them to a share of the cash paid by the borrowers on their Islamic assets Once the lender has sold the Islamic asset to the issuer the lender no longer has the power to restructure the finance or make other accommodations for its borrower That becomes the responsibility of a servicer who collects the Islamic asset payments distributes them to the issuer for payment to investors and if the borrower cannot pay action is taken to recover cash for the investors The servicer can only do what the securitization documents allow it to do These contracts may constrain the servicer s flexibility to restructure the finances ae ORACLE 3 1 3 2 Introduction 3 Maintenances Before you begin using the Securitization of Islamic Assets module you need to capture Formula Definition which is used to filter or identify the finance contracts that forms part of the securitization pool Maintaining Rule Formula Details
42. at PDF Printer At Client Report Output Print Printer iz ORACLE You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Securitization ref no You can generate a report based on the securitization reference number Select a reference number from the option list provided From date Enter the From Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Branch Code Branch Name Indicates Current Branch code and Branch Name User ID Indicates the Identification of the User Module Indicates the Module of the Report Report Run Date Indicates Current Branch Date Report Run Time Indicates Current Branch Time ra ORACLE 7 7 Body of the Report Field Name Field Description Branch Code This is the branch code for which the report is generated Securitization Ref No This is the securitization reference number for which the report is gener ated Asset Ref No This is the asset ref number for which th
43. cates the Module of the Report Report Run Date Indicates Current Branch Date Report Run Time Indicates Current Branch Time t 17 ORACLE Body of the Report Field Name Field Description Branch code This is the branch code for which the report is generated Securitization ref num This is the securitization reference number for which the report is gen ber erated Asset ref no This is the asset reference number for which the report is generated Securitization Date Indicates the securitization date Operation Indicates the Operation From Status Indicates the from status To Status Indicates the to status 7 12 Viewing Summary of Payments Disbursement of Is lamic Assets under Securitization for the dpecific Fund You can invoke this report screen by typing IZRPMTFD in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Summary of payments disbursement of Islamic assets under securitization for the specific Fund Branch Code Mode Payment Fund ID Disbursement From Date To Date Report Format PDF Printer At Client Report Output Print Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Fund ID Specify the fund id from the adjoining option list From Date S
44. clicking the adjoining arrow button LBL_PAYMNT_RECIEVED Branch Code Securitization ref No From Date To Date Report Format Report Output Printer At Client Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Securitization ref no You can generate a report based on the securitization reference number Select a reference number from the option list provided From date Enter the From Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Branch Code Branch Name User ID Indicates Current Branch code and Branch Name Indicates the Identification of the User Module Indicates the Module of the Report Report Run Date Report Run Time Indicates Current Branch Date Indicates Current Branch Time a ORACLE 7 5 Body of the Report Field Name Field Description Branch Code This is the branch code for which the report is generated Securitization ref No This i
45. come Expense GL e The system generates the Amendment Advice Message Impact on Islamic assets During the amendment new finance contracts are included in securitization Pool the system triggers the change status event for the newly added finance contract changes the status from NORM Status which are supporting continue accrual status to SECR and passes the below accounting entries e The system transfers the new finance contracts outstanding balance from the bank s ASSET GL LOAN_ACCOUNT to SPV_SETTL_BRIDGE GL e It changes the new finance account s GL for the profit penal profit from the bank s Income GL to the Bridge Income GL e Accrual is similar like SALE event Amendment for Removal of Finance Accounts BAMD Removal of Fi nance Account from Securitization Pool During the course of the SPV contract SPV can reduce the participating finance contracts in Securitization Contract e You can amend the contract through the Islamic Securitization Contract Online screen e The system computes the Profit Loss for the transaction based on the outstanding principal profit payment as mentioned below Profit or Loss of contract ORACLE SALE_AMOUNT sum of excluded loan Simple and Amortized type Loans Outstanding Principal Interest Accrued till sale date Penalty accrued till sale date Overdue components Sum of excluded loan Discounted type Loans Outstanding Principal
46. dment disbursement or pay ments on the same day until the securitization process is completed as part of intra day batch and also raises the error message as Islamic asset is under batch se curitization aM ORACLE 5 1 5 2 5 2 1 5 2 2 5 Islamic Securitization Contract Introduction Securitization Contract is a final entity to represent the securitization deal Each securitization contract is associated with pool of finance contracts securitization Pool and a SPV It allows both Selling Buyback of previously sold pool Securitization Contract Life Cycle The Securitization Contract Life Cycle consists of the following stages they are Contract Booking Contract Initiation Securitization Finance Sale Amendment for addition of finance accounts Amendment for removal of finance accounts Amendment for change the contract details Amendment for exchange of loan account Recourse of loan accounts Liquidation of Payments Reversal of Payment Closure of Contract 2 GB OWN OO F ODN gt 0 Accrual of Profit Loss and Periodic Service Charge Contract Booking You can book a new contract based on the Pool information and SPV details Accordingly the system generates the Securitization BOOK Advice messages Contract Initiation Securitization Finance Sale Sale is a process of legally transferring the ownership of the finance asset from the bank to SPV as per the agreement The system carr
47. e Format Tag Name Tag Type Description _SPOOLC Single Securitized Pool CY_ Currency _SALEAM Single Securitized Pool TL Sale Amount _SALECC Single Securitized Pool Y Sale Currency _SALE_DA Single Securitized Pool TE_ Sale Date _SECLNEFL Single Finance Exists AG _ Flag _ACCNUM Multiple Underlying Finance s Account Num ber _AC Multiple Underlying USERREF Finance s User _ Reference _LOAMT_ Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Cur rency _LSTATUS Multiple Underlying _ Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s Matu rity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME_ Multiple Underlying _ Finance s Bor rower Name _LBID_ Multiple Underlying Finance s Bor rower ID 8 25 ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description Consoli IZ LAMD IZ LAMD_A Single Securitization dated _ADV DV_FMT _IZBRANC Branch Date Finance HDATE_ Account Amend _BRANCH Single Securitization ment Advice NAME_ Branch Name _IZSPV Single SPV Customer NAME _ Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE Single IZ User Refer F_ enc
48. e Number _SPVID_ Single Special Pur pose Vehicles ID _SPVNAM Single SPV Name E_ _SREFNO Single IZ Contract Ref erence Number _DATE_ Single Underlying Finance s Amendment Date _LNFLAG _ Single Finance Exists Flag _LNACCN Multiple Underlying UM __ Finance s Account Num ber _LNACUS Multiple Underlying ERREF _ Finance s User Reference 8 26 ORACLE Message Message Type Message Format Tag Name Tag Type Tag Description _LNAMT_ Multiple Underlying Finance s Amount _LNCCY_ Multiple Underlying Finance s Finance Cur rency _LNSTATU S Multiple Underlying Finance s Account Status _LNDATE_ Multiple Underlying Finance s Date _LNMDAT E Multiple Underlying Finance s Matu rity Date _LNTENO R Multiple Underlying Finance s Tenor _LNBNAM E Multiple Underlying Finance s Bor rower Name _LNBID_ Multiple Underlying Finance s Bor rower ID _SECLNFL AG_ Single Finance Exists Flag _ACCNUM Multiple Underlying Finance s Account Num ber _AC USERREF Multiple Underlying Finance s User Reference _LOAMT_ Multiple Underlying Finance s Amount _LCOCY_ Multiple Underlying Finance s Finance Cur rency _LSTATUS Multiple Underlying Finance s Account Status 8 27 ORACLE
49. e cece cee ennne eset eenteeeeeeeaaeeeeeeenaeeeeeneaae 4 3 4 2 3 Maintaining Branch and Currency Restriction 0 0 cccccceeeeeeeeeetnteeeeetenee 4 3 4 2 4 Maintaining Customer ReStriCtiON 00 cccccccecettteeeeeetntneeeeeetntteeeetetneeeeetees 4 5 4 2 5 Maintaining Preferent Ses iepenen ni A ESA E EES 4 5 4 2 6 Specifying Charge Details ssseeeesrennerrnnereeerrenrerrnnnnerrrrnnrrnnnnneeerrrenrrannne 4 9 4 2 7 Capturing MIS Details cccccccccecceeceetnnee cece eennieee eee tneeeeeeenaeeeeeetnaaeeeenenas 4 9 4 2 8 Specifying User Defined Fields wii cccccecct tee ee tnnneeeeeetnnteeeeeetnaeeeeeneae 4 10 4 2 9 Accounting Roles and Amount Tags for Securitization cceeeeeeees 4 11 5 Islamic Securitization Contract 0 0 0 cece ee eeeeeeeeeeeeeeeeeeeeseeneeeeeeeees 5 1 Ollie ANTOG 2 55 cet sags ee nth tel ie patents ethane ofa atest eas 5 1 5 2 Securitization Contract Life Cycle cceeceeceeceeeceeeeeeeeeeeeeeeseneeeeeeeseeaeeeeeeeeaaeees 5 1 S21 Contract BOOKING 331i vecaiigticsheh anaes aid gle atta 5 1 9 2 2 Contract Initiation Securitization Finance Sale wo cccccceeeeeeeeeneeeeeeteee 5 1 5 2 3 Amendment for Addition of Finance Accounts SAMD Addition of New Finance Account to Securitization Pool 5 2 5 2 4 Amendment for Removal of Finance Accounts BAMD Removal of Finance Ac count from Securitization Pool 5 3 5 2 5 Amendment for Changing the Contract Details Amendment without Modifying t
50. e report is generated Product Code This is the code of the product for which the report is generated Product Category This is the category of the product for which the report is generated Customer ID This is the customer Identification number Finance Amount Currency Indicates the finance amount This is the currency of the account Value Date Indicates the value date Maturity Date Indicates the maturity date ral ORACLE 8 Annexure Accounting entries for Securitization of Islamic As sets This section contains details of the suggested accounting entries that can be set up for the Securitization of Islamic assets module of Oracle FLEXCUBE The details of the suggested accounting entries are given event wise Events The following is an exhaustive list of events that can take place during the lifecycle of a Securitization of Islamic assets In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below Event Code Event Description BOOK Booking Of Islamic Securitization Contract INIT Contract Initiation SAMD Sale of additional finances accounts to SPV BAMD Buyback of finance accounts from SPV AMND Amendment of Securitization Contract LIQD Manual Liquidation event to liquidate the charges payments from to SPV CLOS Auto Closure of Securitization Contract MAMD Update
51. e report is generated Product code This is the product code for which the report is generated Product category This is the product category for which the report is generated Customer ID This is the customer ID for which the report is generated Component Name This is the component name for which the report is generated Due Date This is the due date for which the report is generated Amount This is the amount for which the report is generated Currency This is the currency for which the report is generated Viewing Summary of Profit and Loss Accrual Details for the Islamic Securitization Contract You can manually generate a report that displays the summary of profit loss accrual details for the securitization contract in the Summary of profit and loss accrual details for the Islamic securitization contract screen You can invoke this report screen by typing IZRPLACR in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button LBL_PROFIT_LOSS Branch Code Securitization ref No From Date To Date Report Format Report Output Printer At Client Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided a ORACLE 7 8 Securitization ref no You can generate a report based on
52. e securitization contract ka ORACLE 5 3 9 Viewing Contract Event Details You can view the contract event details for the securitization contract through Events screen To invoke this screen click on Events button E New Enter Query Reference Number Event Number Event Code Description Event Date Authorization Status LBL_MAKER2 Authorized v Accounting Entries Messages Here you can view the triggered events corresponding accounting entries and the advice message generated for the securitization contract maintained at the product level 5 3 10 Viewing Securitization Contact History You can view the securitization contact history details through Securitization History Details screen To invoke this screen click on Events History button Securitization History Details Contract Reference Securitization Event History 1 Of 1 Event Code Value Date Pool Amount Pool Currency Contract Amount Contract C Pool Details Here the system displays the events triggered effective date execution date of the Event Pool Amount Contract Amount and Profit Loss of the transaction sal ORACLE Oracle FLEXCUBE provides an option to view the underlying finance contracts when sale amendment and buyback transactions are processed for the amendment event system displays the newly added removed finance acc
53. ecify the month in which the first accrual has to begin if you set the accrual provisioning frequency as quarterly half yearly or yearly Day Specify the day on which the accrual provisioning has to be done Rekey Requirements If you wish to ensure re keying of values in certain fields of the contract during contract authorization you can indicate it here You can also select the fields for which you wish re keying to be done Specify the following details Rekey Required Indicate whether to avail the re key facility or not during contact authorization for contracts created using this product The options available are e Yes e No Amount Check this box to re key the amount during contract authorization Currency Check this box to re key the currency during contract authorization Value Date Check this box to re key the start date during contract authorization Maturity Date Check this box to re key the end date during contract authorization ii ORACLE For further information on this screen refer chapter the Product Definition under Modularity Allow Amount Amendment Product Description C Stop Association Propagation Required Default From Class DebitiCredit Add Subtract SWIFT Qualifier Event For Application Description Basis Amount Tag Description Discount Basis 4 2 6 Specifying Charge Details Click on Charges button to specify the charge details Charge
54. eeeeeneeee 5 21 5 3 11 Viewing Fields Details eree e a A E E 5 23 5 3 12 Viewing MIS Dotalls neesii airar a a i a laiia 5 23 5 3 13 Authorizing Securitization Contract Details 0 ccccccesteeeeeeenteeeeeeeeaes 5 24 5 3 14 Amendment of Securitization Contracts sseeeesseeeieeneeeernnreeerrrnneeenene 5 25 5 3 15 Handling On line Payment for Service CharQes ccccccccceeieeeeeeee 5 26 Online Batch Process sssssssssssssssnnunnnnnnnnnnnnnnnnnnnnnnnnnnnunnnnnnnnnnnnnnnnnnnn nnna 6 1 6 1 MTOI sees ar a O ae E ROA A AAAA a S 6 1 6 2 Processing Intra day Batch 0 cccceeceeeeeeeeeeeeeeeeeeeeeeeeeseeeeeeeeeeeeeeeeeeteeeaeeeeeeseaeees 6 1 6 9 EOD Bat hi ciena a ee eaters ao e a abe 6 1 R p rtsS ase ee e a ee ea ae eee ee eae eae 7 1 GM OEO 5325 04 ida Faicens teaties oe fade bee hia lan ede ENEA E E 7 1 7 2 Viewing Summary of Securitization POool sssseeeesseeeeeesseeerrsstirrrsseetrnsssrrnnrssrerenne 7 1 7 3 Viewing Summary of Islamic Securitization Pool History s 7 2 7 4 Viewing Summary of Payment Received by SPV ssssssessssssesrrrssserrrrssrrrrrrssreerns 7 4 7 5 Viewing Summary of Over Due Payment Received by SPV eessen 7 6 7 6 Viewing Summary of Disbursement Details for the Islamic Securitization Contract 7 8 7 7 Viewing Summary of Profit and Loss Accrual Details for the Islamic Securitization Contract 7 8 Viewing Summary of Islamic Securitization History details for the Islamic Finances 7 11 7 9 Viewi
55. equency set in securitization contract and accrue the Profit and Loss accordingly And during EOD cycle based on the frequency set in securitization contract for service charges system triggers PRCH event and passes the accounting entries Note During EOD cycle system updates the maturity date of the securitization contract if the maturity date of any one of the underlying finance contract s maturity date has exceeded the maturity date of securitization contract There would be no effect on the Profit Loss accrual date even if the Maturity Date value is increased 4 ORACLE 5 3 Maintaining Contract Details You can capture details of the securitization contract details in the Islamic Securitization Contract Input Detailed screen To invoke this screen type IZDTRONL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Contract Details E New amp Enter Query Branch Contract Reference Ld Of b Product Code User Reference ji X Product Description Operation Code KE WET Advices Service Charge Profit Loss Accrual Contract Details Pool Details Profit Loss Accrual Book Date Pool Currency T Accrual Required Value Date Pool Amount Accrual Start Date Maturity Date Accrual End Date Cans SPV Details Contract Amount Fund Details Securitization Mode Online Customer Id Fund id Batch Custom
56. er ID Indicates the Identification of the User Module Indicates the Module of the Report Report Run Date Indicates Current Branch Date Report Run Time Indicates Current Branch Time ite ORACLE Body of the Report Field Name Field Description Branch code This is the branch code for which the report is generated Asset Ref No This is the asset reference number Securitization Ref This is the securitization reference number for which the report is gener No ated Securitization date This is the securitization date for which the report is generated Operation This is the operation Buy back amendment sale for which the report is generated From Status This is the previous status of the account To Status This is the new status of the account Viewing Summary of Islamic assets under securitiza tion for the specific fund You can manually generate a report that displays the underlying Islamic assets which are funded by the specified Islamic fund in the Summary of Islamic Assets under securitization for the specific fund screen You can invoke this report screen by typing IZRSECFD in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button LBL_IZ_SEC_FUND_ID_SUM Branch Code Fund ID ReportFormat PDF Printer At Client Report Output Print Printer You can specify the following preferences for the report Branc
57. er Name ane i lt S Description Securitization Status Recourse Details Outstanding Credit Outstanding Debit ade PaymentTo Bank Pool Details PoolAddition PoolDeletion Recourse Charges Settlement Events EventHistory Fields MIS Maker Date Time Status Authorization Status Checker Date Time Here you can capture the following details Branch Specify the branch code Product Code Select the appropriate product code for which securitization contract is booked Product Description Specify the product description for the selected product Contract Reference The system generates a unique number as contract reference number to identify the contract User Reference Number The system generates a unique user reference number to identify the contract Operation Code Select the appropriate operation that you can perform from the drop down list The options available are e Sale e Buyback e Amend e Recourse Note The system defaults Sale as the default operation code ORACLE 5 3 1 Specifying Main Details Here you need to capture the main details of the contract Contract Details You can maintain the following contract details Book Date The system displays the current system date as the Book Date for specified Islamic securitization contract Value Date The system displays the current system date as the Value Date for specified Islamic secur
58. ete row a Option List ha ORACLE ORACLE 2 1 2 Securitization of Islamic Assets An Overview Introduction Securitization is the process of transformation of non tradable assets into tradable securities It is a structured finance process that distributes risk by aggregating debt instruments in a pool and issues new securities backed by the pool When a bank or financial institution is in need of additional capital to finance a new facility to raise the fund instead of selling the assets the financial institution decides to sell the portion of the finance to a Trustee named as Special Purpose Vehicle SPV and collect the fund up front and remove the finance asset from the balance sheet of the institution SPV holds the asset as collateral in balance sheet and issues bonds to the investors It uses the proceeds from those bond sales to pay the originator for the assets The detailed securitization process with typical components has explained with typical components in the diagram below _ Morigage Broker ow Step 1 Borrower obtains Finance from the financial institution bank with the help of A Morigage Broker After the loan issued the borrower and lender will not have much interaction with Morigage Broker Loan FProcoods 1 Financial Institution Lender Loan Step 2 Lender Financial institution sells the Finance assets to Issuer SPV and provide the service b
59. etween the Borrower and Issuer Borrower 2 Servicer Moth Paymanta A SPV Step 3 The Issuer SPV sells the securities a Fy A Trustee as a bonds to the Investor i g E Underwriter assists the sale amp a gt piam an PEN as Underwritter aling agency rates the securities lesuer SPV _ wie Credit ancement agencies provides the rene iste i e Ratling Agency Credit enhancement on securities a ae Step 4 Servicer will collect the monthly 9 e dit enhancement payments from borrowers and remits to SPV S Provider a al le S a The roles and responsibilities of various components involved in the securitization structure are explained below e Borrower An Individual or organization which obtains finance from financial institution bank and pays the monthly payments e Islamic asset Broker Acts as a facilitator between a borrower and the lender The Islamic asset broker receives fee income upon the finance s closing e Issuer A bankruptcy remote Special Purpose Entity SPE formed to facilitate a securitization and to issue securities to investors e Lender An entity that underwrites and funds finances that are eventually sold to the SPE for inclusion in the securitization Lenders are compensated by cash for the purchase of the finance and by fees In some cases the lender might contract with Islamic asset brokers Lenders can be banks or non banks
60. f No This is the account number for which the report is generated Product Code This is the product code for which the report is generated Product Category This is the product category for which the report is generated Customer ID This is the customer ID for which the report is generated Event Code This is the event code for which the report is generated Component Name This is the component name for which the report is generated Due Date This is the due date for which the report is generated Amount Due This is the amount due for which the report is generated Payment Received This is the payment received for which the report is generated Payment Currency This is the payment currency for which the report is generated Payment Date This is the payment date for which the report is generated 7 6 Viewing Summary of Disbursement Details for the lIs lamic Securitization Contract You can manually generate a report that displays the future disbursement for the underlying Cl Accounts for the securitization contract SPV for the specified period in the Summary of disbursement details for the Islamic securitization contract screen You can invoke this report screen by typing IZRDSBDT in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button LBL_SEC_DSBR Branch Code Securitization ref No From Date To Date ReportForm
61. finance contracts The rule condition would include the standard set of CL attributes The system displays the finance accounts which are matching with contract currency oe ORACLE After searching the details click on Add to Pool button to include the selected finance account for grouping to create the securitization pool If you want to include all the finance accounts to create the securitization pool you need to click on Add All to Pool button To remove the selected finance accounts from the pool click on Remove from Pool button To exclude all the finance accounts from the securitization pool click on Remove all From Pool button Note The system allows only finances for which Continue accrual flag is set to Y for the current status to participate in the Securitization pool 5 3 7 1 Removal of Finances from Pool You can remove finances from the pool through Securitization Pool Deletion screen Click on the Pool Deletion button to remove the finances from the pool Securitization Pool Deletion Formula Name Rule Condition Condition Id Remove from Pool Rernave All fram Poal Search Result Account s 1 Of 1 Account Branch Code Product Code Currency Securitization Pool Account s 1 Of 1 Account Branch Code Product Code Currency You need to capture the following detai
62. gle SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ 8 30 ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE Single IZ User Refer F_ ence Number _SPVID_ Single Special Pur pose Vehicles ID _SPVNAM Single SPV Name E_ _SREFNO Single IZ Contract Ref _ erence Number _DATE_ Single Underlying Finance s Pre Payment Date _LNFLAG _ Single Finance Exists Flag _LNACCN Multiple Underlying UM __ Finance s Account Num ber _LNACUS Multiple Underlying ERREF _ Finance s User Reference _LNAMT_ Multiple Underlying Finance s Amount _LNCCY_ Multiple Underlying Finance s Finance Cur rency _LNSTATU Multiple Underlying S_ Finance s Account Status _LNDATE_ Multiple Underlying Finance s Date _LNMDAT Multiple Underlying E_ Finance s Matu rity Date _LNTENO Multiple Underlying R_ Finance s Tenor 8 31 ORACLE Message Message Type Message Format Tag Name Tag Type Tag Description _LNBNAM E Multiple Underlying Finance s Bor rower Name _LNBID_ Multiple Underlying Finance s Bor rower ID _SECLNFL AG_ Single Finance Exists Flag _ACCNUM Multiple Underlying Finance s Account Num ber LAC USERREF Multiple Underlying Finance
63. gle Securitized Pool TE_ Sale Date _SECLNFL Single Finance Exists AG_ Flag _ACCNUM Multiple Underlying _ Finance s Account Num ber _AC Multiple Underlying USERREF Finance s User Reference _LOAMT_ Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Cur rency _LSTATUS Multiple Underlying E Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s Matu rity Date _LTENOR_ Multiple Underlying Finance s Tenor _LBNAME Multiple Underlying E Finance s Bor rower Name _LBID_ Multiple Underlying Finance s Bor rower ID Securitiza IZ_ INIT IZ_INIT_AD Single Securitization tion Con ADV V_FMT _IZBRANC Branch Date tract Init HDATE __ Advice _BRANCH Single Securitization NAME _ Branch Name 8 13 ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description _IZSPV Single SPV Customer NAME_ Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE_ Single IZ User Refer F_ ence Number _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date _SMDATE Single IZ Contract Maturity Date _SPVID_ Single Special Pur pose Vehicles ID _SPVNAM Single SPV Name E_
64. h Code You can generate a report based on the branch code Select a branch code from the option list provided Fund Id Specify the fund id The adjoining option list displays all the fund ids maintained in the system You can choose the appropriate one cs ORACLE Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Branch Code Branch Name Indicates Current Branch code and Branch Name User ID Indicates the Identification of the User Module Indicates the Module of the Report Report Run Date Indicates Current Branch Date Report Run Time Indicates Current Branch Time Body of the Report Field Name Field Description Branch code This is the branch code for which the report is generated Securitization ref number This is the securitization reference number for which the report is generated Asset ref no This is the asset reference number for which the report is generated Product code This is the product code for which the report is generated Product category This is the product category for which the report is gener ated Customer ID This is the customer ID for which the report is generated Finance amount This is the finance amount for which the report is generated Currency This is the currency for which the fi
65. he Securitization Pool 5 5 5 3 5 2 6 Recourse of Finance ACCOUNS cccccecccceceeeeeeeeeeetnneeeeeesnneeeeeetnaeeeenena 5 5 9 2 7 Liquidation Of Paymo mnla eisen rriiarissrinias ideni iiit asan eai iga iaie EEEk AaS ena iA 5 7 5 28 Reversal of Payment sesssrreijasreinii eiiie i en a N AR R AEE a 5 7 9 2 9 Closure of Contracts e E AAT A A eda O 5 7 5 2 10 Accrual of Profit Loss and Periodic Service Charge ssccccccssseeeeeeee 5 7 Maintaining Contract Details 0 cece eee ian eeaeee EEE ERa AEEA RE EAR 5 8 5 3 1 Specifying Main Detalls esirin neni maiii i aa aaa ia ai 5 9 7 10 9 3 2 Specifying Advice Details ssirsresv iieii iraina ea iiai a 5 11 5 3 3 Specifying Service Charge Details s esnsseneeerrresrnrrrnrrerrrrnnnrrennnreerrnnene 5 12 5 3 4 Specifying Profit Loss Accrual Details 00 cccccccccsceeeeeeeetenteeeeeetnnteeeetetaae 5 13 5 3 5 Viewing Securitization Pool Details cccccceceeetetieeeeeetnnneeeeettnaeeeeentaae 5 15 5 3 6 Adding or Deleting Finances from the Pool ccccccccecetteetteeeeetenneeeeeeeee 5 16 53 7 Adding Finances to the POOlasidisseeii isinisisi iinde iis diarida i eriad iia 5 16 5 3 8 Viewing Contract Charge Details cccccccccseeeeeeeneteeeeeetnneeeeeeetnaeeeeeneaae 5 20 5 3 9 Viewing Contract Event Details 0 cccccceccteteeeeceeeneeeeeee tennessee tiaeeeeeetaa 5 21 5 3 10 Viewing Securitization Contact HiStOsy c cccccsetteeeeteenteeeetett
66. he recourse operation from the adjoining drop down list This list displays the following values e Bank SPV will pay the contract amount to the Bank as part of the recourse operation e SPV Bank will pay the contract amount to SPV as part of the recourse operation SPV Details Customer Identification Specify the customer ID of the SVP Customer Name Specify the name of the SPV customer Profit Loss Accrual Accrual Required Check this box to indicate whether accrual required or not Accrual Start Date The system displays the current date as the accrual start date for the contract Accrual End Date Specify the end date of the accrual Based on the accrual end date the system populates the schedule to accrue the profit and loss during the EOD cycle Fund Details You can maintain the following fund details here Fund ID Specify a valid fund ID you need to maintain for the specified contract The adjoining option list displays a all valid fund IDs maintained for Islamic securitization You can select the appropriate one Description The system displays the description maintained for the specified Fund ID oe ORACLE 5 3 2 Specifying Advice Details Click on the Advice tab to get a list of the latest 25 contract advices generated Contract Details New amp Enter Query Branch Contract Reference 4 Of bl User Reference Product Code B i
67. hich the finance amount is dis bursed VALUE DATE This is the value date of the finance for which the report is generated MATURITY DATE This is the maturity date of the finance for which the report is generated Viewing Summary of Islamic Securitization History Details for the Cl Finances You can invoke this report screen by typing IZRCLHIS in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Summary of Islamic securitization history details for the CI Accounts Branch Code Account Number From Date To Date Report Format Report Output Printer At Client Printer You can specify the following preferences for the report ORACLE Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Account Number Specify the account number from the adjoining option list From Date Specify a valid date from when you wish to generate the report from the adjoining calendar To Date Specify a valid date till when you wish to generate the report from the adjoining calendar Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Branch Code Branch Name Indicates Current Branch code and Branch Name User ID Indicates the Identification of the User Module Indi
68. i ee SZDTRAUT o ceeceescesseesseeeeee 5 24 1 ORACLE
69. ication Toolbar and clicking the adjoining arrow button Summary of Islamic securitization pool history details Branch Code Securitization ref No From Date To Date Report Format Printer At Client v Report Output Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Securitization ref no You can generate a report based on the securitization reference number Select a reference number from the option list provided From date Enter the From Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Branch Code Branch Name Indicates Current Branch code and Branch Name User ID Indicates the Identification of the User Module Indicates the Module of the Report Report Run Date Indicates Current Branch Date Report Run Time Indicates Current Branch Time i ORACLE 7 4 Body of the Report Field Name Field Description Branch Code This is the branch code for which the report is generated Securitization ref No
70. ies the following tasks 1 The system initiates the booked securitization contract on the value date of the contract 2 It computes the Profit Loss for the transaction based on the outstanding principal profit payment as mentioned below Profit or Loss of contract SALE_AMOUNT Sum of Simple and Amortized type Islamic assets Outstanding Principal Profit Accrued till sale date Compensation accrued till sale date overdue components Sum of Discounted type Finances a ORACLE 5 2 3 Outstanding Principal RIA Balance 3 If securitization product is set to realize the profit loss immediately then the system posts the calculated profit loss directly to the bank s INCOME EXPENSE GL directly If the securitization product is set to realize the profit loss over a pre defined period then the system computes the profit loss schedule internally and posts the entries accordingly during the EOD cycle 5 The system generates the Sale Advice Message Impact on Islamic Assets e The system triggers the Cl status change event and changes the status from NORM Status which are supporting continue accrual to SECR for all underlying contract and pass the below accounting entries It transfers all underlying finance contracts outstanding balance from the bank s ASSET GL LOAN_ACCOUNT to SPV_SETTL_BRIDGE GL The system changes the Accrual GL for the profit and penal profit to BRIDGE GL
71. itization contract Maturity Date Specify the maturity date or max maturity date of the underling finance contract Contract Amount Specify the sale buyback amount of the pool Currency Specify the currency of the transaction Securitization Mode Select the securitization mode from the following option e Batch e Online Note Incase you select online securitization the system invokes the securitization process status change from the current status to SECR at the time of authorization of securitization contract Incase you select batch securitization the system saves the securitization contract without initiating the securitization process The system will also change the internal status of the contract as Marked for Securitization Securitization Status Select securitization status from the adjoining drop down list Pool Details Pool Amount Specify the pool amount of the underlying finance contracts which are under the process of Sale or Buyback Pool Currency Specify the currency of the pool Recourse Details You can maintain the following recourse details here a ORACLE Outstanding Credit The system displays the sum of NPV value of loan accounts which are newly included for sale Outstanding Debit The system displays the sum of NPV value of loan assets which are removed from the pool as part of recourse operation Payment To Select net payment direction you need for t
72. ls here Formula Name Select the formula for searching the finance contracts from the option list provided Condition Id Select the condition ID for searching the finance contracts from the option list provided ab ORACLE Rule Condition Specify the rule condition The system allows you to select the rule and condition for searching identifying the finance contracts for excluding from the securitization pool To remove the selected finance accounts from the pool click on Remove from Pool button To exclude all the finance accounts from the securitization pool click Remove all From Pool button To include the removed finance account into the pool click on Add to Pool button To include all the removed finance account into the pool click on Add All to Pool button Note If any of the underlying finance account has been closed or pre closed the system does not remove those finance accounts from the pool It will remain in the pool for future refer ence ote ORACLE 5 3 7 2 Replacement of Finances in the Pool Recourse of Financial Accounts You can replace one or more financial accounts which are not securitized with another finance accounts which are part of the securitized contract in the Securitization recourse Swapping of accounts screen To invoke this screen click on Recourse button Securitization Recourse Swapping of accounts Formula Condition Id Rule Expre
73. m computes the detailed schedules for profit loss realization The system triggers the Profit Loss accrual event during the EOD cycle and passes the accounting entries accordingly Click on the Profit Loss Accrual tab to capture the schedule details for the Profit loss realization Contract Details New amp Enter Query Branch Contract Reference 7 of E Product Code B User Reference ji Product Description Operation Code Sale Main Advices Service Charge Profit Lo ProfitiLoss Schedules 10f1 Version Event Frequency Start Date End Date Type Total Amount Unit Ai m r Details 10f1 Version Number Start Date Due Date Amount Currency Type LCY Amount Accrued lt m r Pool Details Pool Addition Pool Deletion Recourse Charges Settlement Events EventHistory Fields MIS Maker Date Time Status Authorization Status Checker Date Time Here you need to capture the following details oe ORACLE Profit and Loss Schedule Version Specify the version of the profit and loss schedule Event Specify the event to be linked to the schedule Frequency Specify the frequency of the profit and loss schedule Start Date Specify the start date of the profit and loss schedule End Date Specify the end date of the profit and loss schedule Type
74. nance amount is dis bursed Lcy amount This is the local currency for which the finance amount is dis bursed Value date This is the value date of the finance for which the report is generated Maturity date This is the maturity date of the finance for which the report is generated 7 10 Viewing Summary of Payments Disbursement of Is lamic assets under securitization for the Specific Fund You can manually generate a report that displays payments disbursement details for all underlying Islamic assets which are funded by the specified Islamic fund in the Summary of payments disbursement of Islamic assets under securitization for the specific fund screen ee ORACLE You can invoke this report screen by typing IZRPMTFD in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Summary of payments disbursement of Islamic assets under securitization for the specific Fund Branch Code Mode Payment Fund ID Disbursement From Date To Date Report Format v Printer At Client Report Output v Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Fund Id Specify the fund id The adjoining option list displays all the fund ids maintained in the system You can choose the appropriate one From date Enter the F
75. nd its affiliates will not be responsible for any loss costs or damages incurred due to your access to or use of third party content products or services Contents FARM gl 01 aro Mane es SSS 8 on E 1 1 We UMTMOMUCHON pp tecie Le bvsceet hecbivsee a a a dete 1 1 V2 Auden E oana r a A E O e cae whee TAA 1 1 1 3 Documentation Accessibility sseaeessneeeeeesniaessnnsesnrneesiinnansnnndadaenanndatninaneetannnnana 1 1 TA ADDPeVIAtIONS oasa aR TAART ta AAEE Ae a te anata ees 1 1 ko Agam ON a E T E AST 1 2 16 Related Document nenen eren ae E a Gite eae Nal ee 1 2 TE Glossary OCOS cr r a A E EA ER gated AAEE 1 2 2 Securitization of Islamic Assets An Overview cccccceeeeeeeeeeeeeeeees 2 1 2A Mrodution Anae a E A A a r 2 1 3 Maint n NeeS acne oo oie cecd as Sassen chen aeaaea aa fiene iai eae iaieiiea Eaa 3 1 aT MOUST O N aaea aE a E EAR EEA E EA I 3 1 3 2 Maintaining Rule Formula Details 0 0 eccceeeeeeeneeeeeeeeeeeeeeseeeeeeeeeseenaaeeeeeeeaaeees 3 1 3 2 1 Viewing Securitization Formula Maintenance Summary Details 3 2 4 Defining Attributes for Islamic Securitization Products 00 4 1 AA TOCCO es i A AT T 4 1 4 2 Maintaining Securitization Products ssseeseeeseeseeeseeeerrestrrressttrrsssrtrrnsstenrssrrennne 4 1 4 2 1 Mapping Accounting Role to a GL Customer Account 1 ccccceeieeeeetee 4 2 4 2 2 Maintaining Events Details 00 ccccccc
76. nents Sum of Discounted type Finances Outstanding Principal RIA Balance iia ORACLE SALE_AMT For new Contract Sale Amount of the Securitization contract For amendment contracts Increased decreased in Sale Amount of the Securitization contract SALE_PROFIT Applicable if the profit loss accrual is not set as required For new Contract Profit of the Securitization Sale contract For amendment AMND SAMD BAMD contracts Increased in Profit of the amendment contract SALE_PROFIT_AC Applicable if the profit loss accrual is set as required For new Contract Profit of the Securitization Sale contract For amendment AMND SAMD BAMD contracts Increased in Profit of the amendment contract SALE_LOSS Applicable if the profit loss accrual is not set as required For new Contract Loss of the Securitization Sale contract For amendment AMND SAMD BAMD contracts Increased in Loss of the amendment contract SALE_LOSS_AC Applicable if the profit loss accrual is set as required For new Contract Loss of the Securitization Sale contract For amendment AMND SAMD BAMD contracts Increased in Loss of the amendment contract PLAC_PROFT Consolidated profit accrual for the securitization contract PLAC_LOSS Consolidated loss accrual for the securitization contract Computing Islamic Securitization Pool Value NPV Oracle FLEXCUBE allows you to calculate NPV based on the t
77. ng USERREF Finance s User Reference _LOAMT_ Multiple Underlying Finance s Amount _LCCY_ Multiple Underlying Finance s Finance Cur rency _LSTATUS Multiple Underlying a Finance s Account Status _LDATE_ Multiple Underlying Finance s Date _MDATE_ Multiple Underlying Finance s Matu rity Date _LTENOR_ Multiple Underlying Finance s Tenor 8 23 ORACLE Message Message Tag Message Type Format Tag Name Tag Type Description _LBNAME Multiple Underlying Finance s Bor rower Name _LBID_ Multiple Underlying Finance s Bor rower ID Securitiza IZ CLSR IZ_CLSR_A Single Securitization tion Clo _ADV DV_FMT _IZBRANC Branch Date sure Advice HDATE __ _BRANCH Single Securitization NAME _ Branch Name _IZSPV Single SPV Customer NAME _ Name _IZSPV Single SPV Address ADDR Line 1 LN1_ _IZSPV Single SPV Address ADDR Line 2 LN2_ _IZSPV Single SPV Address ADDR Line 3 LN3_ _IZSPV Single SPV Address ADDR Line 4 LN4_ _USERRE Single IZ User Refer F_ ence Number _SVDATE_ Single IZ Contract Value Date _SBDATE_ Single IZ Contract Book Date _SMDATE Single IZ Contract Maturity Date _SPVID_ Single Special Pur pose Vehicles ID _SPVNAM Single SPV Name E_ _SPOOLA Single Securitized Pool MT_ Amount SA ORACLE Message Message Tag Message Typ
78. ng Summary of Islamic assets under securitization for the specific fund 7 13 7 10 Viewing Summary of Payments Disbursement of Islamic assets under securitization for the Specific Fund sioner aa el Ai ea ee ve eee 7 14 7 11 Viewing Summary of Islamic Securitization History Details for the Cl Finances 7 16 7 12 Viewing Summary of Payments Disbursement of Islamic Assets under Securitization for the CPSC FUNG EE speek A iateetenk hie T E rec lel aaa ihe sie E E atecetahsditatetal 7 18 7 13 Viewing Summary of Islamic Assets under Securitization for the Specific Fund 7 20 Bs PATIO KS acon E A A T cn cece eect reetes 8 1 8 1 Accounting entries for Securitization of Islamic Assets ccececeeeeeeeeeeeeeeeeneeees 8 1 BZ EVOMIS er T ne eais tote adeva sie decdae tua eaastaed detest taeda 8 1 3 3 SAMOUNE Tage canned auiaianicced aah avenue tani eine 8 2 8 4 Computing Islamic Securitization Pool Value NPV eceeeeeeeeeeteeeeeeeettteeeeeees 8 3 8 5 Accounting Roles osien eaei ee vene a E vnneduceees A EAA EE SEE 8 4 8 6 Event wise Accounting Entries ssseeeeeeeseerereseerrrsssttrrrsstttrrststttnnsstttnressttnrnnsttenn 8 4 8 7 Formula Element sicsrnerransti iriiri eiii EAA eae R AERE 8 10 88 Advice MESSAGES eiir EEE e AEE EEA E AA EEES E EAE 8 12 9 Function ID Glossary eiac decease ee lee eae 9 1 1 1 1 2 1 3 1 4 Introduction 1 Preface This manual is designed to help you to quickly ge
79. ng chapters About this Manual gives information on the intended audience It also lists Chapter 1 l ene the various chapters covered in this User Manual Securitization of Islamic Assets An Overview offers a snapshot of the Chapter 2 features of the entire module Maintenances details the procedure to set up static information related to Chapter 3 the module Defining Attributes for Islamic Securitization Products explains at length Chapter 4 how to capture the details of the Securitization of Islamic Assets product in Oracle FLEXCUBE Chapter 5 Islamic Securitization Contract describes the Islamic Securitization Con p tract Life Cycle and processing of Islamic Securitization of Loans Online Batch Process provides batch details related Islamic Securitization Chapter 6 module Chapter 7 Reports describes various reports generated for Islamic Securitization module Chapter 8 Annexure contains a list of suggested events accounting entries amount p tags and advices that can be set up for the IZ module Function ID Glossary has alphabetical listing of Function Screen ID s used Chapter 9 i ois in the module with page references for quick navigation Related Documents e Procedures e Settlements e User Defined Fields e MS Glossary of Icons This User Manual may refer to all or some of the following icons Icons Function J Exit Add row Del
80. on accounts 4 The system generates the Recourse Advice Message Impact on Cl contracts e For all newly added Finance Accounts the system triggers the Cl status change event and changes the status from NORM status which are supporting continue accrual to SECR for all underlying and passes the below accounting entries It transfers all underlying Finance contracts outstanding balance from the bank s ASSET GL LOAN_ACCOUNT to SPV_SETTL_BRIDGE GL The system changes the Accrual GL for the profit and penal profit to BRIDGE GL Forall newly added Finance Accruals it calculates till sale date and posts to Income GL In case of underlying finance contracts where accrual frequency is not daily then the system performs a force accrual till sale date and post the same to Income GL e For removal of Finance Accounts the system triggers the Cl status change event and changes the status from SECR status to NORM and passes the below accounting entries It transfers the removed finance contracts outstanding balance from SPV_SETTL_BRIDGE GL to bank s ASSET GL LOAN_ACCOUNT It changes the removed finance contracts GL for the profit penal profit from BRIDGE INCOME GL to Bank s INCOME GL Accrual is similar like BAMD event e Post securitization the system continues the accrual of finance account The table below provides details about amount tags maintained for recourse of loan accounts Am
81. on this screen refer chapter the Product Definition under Modularity User Manual 10 ORACLE 4 2 9 Accounting Roles and Amount Tags for Securitization The following are the Accounting Roles and Amount Tags for Securitization Accounting Role Description SPV_SETTL_ACC Accounting role for SPV settlement account All credit debit transaction for SPV is handled through the specified settlement account SPV_SETTL_BRIDGE_C Bank GL account for SPV Credit Settlement bridge R SPV_SETTL_BRIDGE_D Bank GL account for SPV Debit Settlement bridge R Note A finance account can be part of only one securitization pool Post securitization Profit penal profit accrual continues Post securitization the system does not allow readjustment backdated amendments for finances participating in the securitization pool It is handled operationally The system does not transfer schedule payments paid in advance and realized before securitization to SPV during securitization Post sale of securitization the system disables amendments to securitizations Also combining changes into a single amendment is not enabled Post securitization the system triggers Islamic events and posts the accounting entries according to the product configurations Ifthe status of Islamic asset is Marked for securitization then the system restricts performing account specific operations like amen
82. ount Tag Description LOAN_OUTSTANDING_C R Amount tag returns value only when Islamic Asset standing bal ance has Credit balance Otherwise it will return 0 LOAN_OUTSTANDING_D R Amount tag returns value only when Islamic Asset standing bal ance has Debit balance Otherwise it will return 0 oe ORACLE 5 2 7 5 2 8 5 2 9 5 2 10 Liquidation of Payments As per the Securitization contract if any periodic charges are configured system liquidates the same either automatically or manually based on the configuration It generates the Debit Advice messages for the liquidation Reversal of Payment The system reverses the payments received from SPV reversed Closure of Contract After maturity of all underlying finance contracts system closes the securitization contract during the EOD cycle The system generates the Contract Closure Advice Message to SPV to indicate the closure of securitization contract If any of the underlying finance contract s maturity has been changed and if the maturity date is beyond the maturity date of securitization contract system will update the maturity date of securitization contract during the EOD cycle and generates the advice message Accrual of Profit Loss and Periodic Service Charge If the securitization contract is configured to realize the Profit Loss over a period during EOD cycle system will trigger the PLAC event based on the fr
83. ounts from the pool The table below details the list of fields which are supported in the event history screen Securitization Event History 2 oO gt gt zi 2 8 Eji 3 3 E g en la 3 E p o z3 loa 2 L G s Els 5 6 lS 5 8 8 JF 8 8 B W gt a lt ja O O lt O O A a ac oo lt INIT 5 5 2009 12000 USD 11500 USD 500 0 0 0 0 0 0 SAL 5 5 2009 12000 USD 11500 USD 500 0 2500 0 E 0 0 0 AMN 8 3 2009 12300 USD 12100 USD 200 O 800 0 D 0 0 0 AMN 9 12 11000 USD 11200 USD 200 200 D 2009 0 0 0 You need to select the event checkbox and press the Pool Details button to view participating finance accounts Securitization Pool Securitization Pool Details 1 Of 1 Account Product Code Amount Currency Start Date Value Date Here the system displays the participating finance accounts for selected event in the securitization contract ae ORACLE 5 3 11 Viewing Fields Details You can view the Fields details through Fields screen To invoke this screen click on Fields button Fields Field Name Value Description Value Description Here you can view the Fields details for the securitization contract maintained at the product level 5 3 12 Viewing MIS Details You can view the MIS details through MIS screen
84. pecify a valid date from when you wish to generate the report from the adjoining calendar ite ORACLE To Date Specify a valid date till when you wish to generate the report from the adjoining calendar Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Branch Code Branch Name Indicates Current Branch code and Branch Name User ID Indicates the Identification of the User Module Indicates the Module of the Report Report Run Date Indicates Current Branch Date Report Run Time Indicates Current Branch Time ic ORACLE 7 13 Body of the Report Field Name Field Description Branch code This is the branch code for which the report is generated Securitization ref num ber This is the securitization reference number for which the report is gen erated Asset ref no This is the asset reference number for which the report is generated Product Code This is the code of the product for which the report is generated Product Category This is the category of the product for which the report is generated Component Name This is the name of the component for which the report is generated Customer ID This is the customer Identification number Amount Indicates the amount Currency This is the currency of the account Value Date Indicates the value date Maturi
85. rently dangerous applications including applications that may create a risk of personal injury If you use this software or hardware in dangerous applications then you shall be responsible to take all appropriate failsafe backup redundancy and other measures to ensure its safe use Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of this software or hardware in dangerous applications This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws Except as expressly permitted in your license agreement or allowed by law you may not use copy reproduce translate broadcast modify license transmit distribute exhibit perform publish or display any part in any form or by any means Reverse engineering disassembly or decompilation of this software unless required by law for interoperability is prohibited The information contained herein is subject to change without notice and is not warranted to be error free If you find any errors please report them to us in writing This software or hardware and documentation may provide access to or information on content products and services from third parties Oracle Corporation and its affiliates are not responsible for and expressly disclaim all warranties of any kind with respect to third party content products and services Oracle Corporation a
86. rom Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Branch Code Branch Name Indicates Current Branch code and Branch Name User ID Indicates the Identification of the User Module Indicates the Module of the Report Report Run Date Indicates Current Branch Date Report Run Time Indicates Current Branch Time tats ORACLE Body of the Report Field Name Field Description BRANCH CODE This is the branch code for which the report is generated SECURIZATION REF NO This is the securitization reference number for which the report is generated ASSET REF NO This is the asset reference number for which the report is generated PRODUCT CODE This is the product code for which the report is generated PRODUCT CATEGORY This is the product category for which the report is gener ated COMPONENT NAME This is the component for which the report is generated CUSTOMER ID This is the customer ID for which the report is generated AMOUNT This is the amount for which the report is generated CURRENCY This is the currency for w
87. s the securitization reference number for which the report is gener ated Asset Ref No This is the asset reference number for which the report is generated Product Code This is the product code for which the report is generated Product Category This is the product category for which the report is generated Customer ID This is the customer ID for which the report is generated Event Code This is the event code for which the report is generated Component Name This is the component name for which the report is generated Due Date This is the due date for which the report is generated Amount Due This is the amount due for which the report is generated Payment Received This is the payment received for which the report is generated Payment Currency This is the payment currency for which the report is generated Payment Date This is the payment date for which the report is generated Viewing Summary of Over Due Payment Received by SPV You can manually generate a report that displays the summary of payments which are not received for the underlying Cl Accounts for the securitization contract SPV for the specified period in the Summary of overdue payments screen You can invoke this report screen by typing IZRODYPT in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button LBL_OVRDUE_PYMNT Branch Code
88. ssion Add Ta Poal Adad All Ta Poal Search Result Account s 1 Of 1 Account Account Branch i Count Securitization Pool Account s 1 Of 1 Account Ramave iram Poal Ramava All fram Poal Formula Condition Id Rule Expression Ramave iram Poal Ramava All fram Poal Search Result Account s 1 Of 1 Account Account Branch lt ata Count Securitization Pool Account s 1 Of 1 Account Add Ta Poal Add All Ta Poal In this screen you can identify the finance accounts from the non securitized finances to add newly into the securitization pool for swapping the finance accounts Also you can identify finance accounts which are part of the securitization pool and remove from the securitization pool ORACLE 5 3 8 Viewing Contract Charge Details You can view the charges for the securitization contract through Charge Details screen To invoke this screen click on Charges button Charge Details Contract Reference Charge Association 1 Of 1 Creation ESN Component Description Consider as Discount Component Tag Currency Tag Amount Charge Currency Charge Amount JF Charge Liquidation 10f1 Event Sequence Number Component Charge Currency Charge Amount Liquidated A T Here you can view the applicable charges for th
89. t familiar with the Islamic Securitization of Loans module of Oracle FLEXCUBE It provides an overview of the module and guides you through the various steps involved in Islamic securitization of loans You can further obtain information about to a particular field by placing the cursor on the relevant field and striking the lt F1 gt key on the keyboard Audience This manual is intended for the following User User Roles Role Function Back office data entry clerk Input functions for contracts Back office managers officers Authorization functions Product Managers Product definition and authorization End of Day operators Processing during End of Day Beginning of Day Financial Controller Product Managers Generation of reports Documentation Accessibility For information about Oracle s commitment to accessibility visit the Oracle Accessibility Program website at http www oracle com pls topic lookup ctx acc amp id docacc Abbreviations The following are the abbreviations used in this user manual Abbreviation Description IZ Islamic Securitization SPV Special Purpose Vehicle VAMI Value dated Amendments EOD End of Day cycle SECR Securitization INC Income PIA Paid in Advance 1 1 ORACLE 1 5 1 6 1 7 RIA Received in Advance Organization This manual is organized into the followi
90. the Pool Maturity Date with the latest date of all underlying finances REVP Reversal of Payment LAMD Amendment of Finance Contract LDBR Disbursement of Finance Contract LPMT Payment of Finance Contract PRCH Collecting Service Charges from SPV on scheduled date based on the pre defined schedule PLAC Realizing Profit Loss on the scheduled date RECR Replacement of finance transaction is securitized S1 ORACLE 8 3 Amount Tag The table below describes the Amount tags in securitization contract which supports accounting entries Amount Tag Description LOAN_OUTSTANDIN G For a New Contract Sum of Simple and amortized finances Outstanding Principal Profit Accrued till sale date Compensation accrued till sale date Overdue components Sum of Discounted type Finances Outstanding Principal RIA Balance For amendments SAMD Addition of new finances to Pool Sum of newly added Finances Simple and amortized finances Outstanding Principal Profit Accrued till sale date Compensation accrued till sale date Overdue components Sum of Discounted type Finances Outstanding Principal RIA Balance For amendments BAMD removal of finance accounts from Pool Sum of excluded finance Simple and amortized finances Outstanding Principal Profit Accrued till sale date Compensation accrued till sale date Overdue compo
91. the securitization reference number Select a reference number from the option list provided From date Enter the From Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Branch Code Branch Name Indicates Current Branch code and Branch Name User ID Indicates the Identification of the User Module Indicates the Module of the Report Report Run Date Indicates Current Branch Date Report Run Time Indicates Current Branch Time Body of the Report Field Name Field Description Branch Code This is the branch code for which the report is generated Securitization Ref This is the securitization reference number for which the report is gener No ated Accrual Date This is the accrual date for which the report is generated Event Code This is the event code for which the report is generated Profit Loss Type This is the profit loss type for which the report is generated Accrual Amount This is the accrual amount for which the report is generated Accrual Currency This is the accrual currency for which the report is generated Viewing S
92. this authorizing event Event Date The system displays the current system date Rekey Fields Rekey the following details for authorizing a contract Currency Specify the currency as part of the re key requirements for authorizing a contract Contract Amount Specify the amount as part of the re key requirements for authorizing a contract Customer Specify the customer as part of the re key requirements for authorizing a contract Value Date Specify the value date as part of the re key requirements for authorizing a contract vas ORACLE 5 3 14 Maturity Date Specify the maturity date as part of the re key requirements for authorizing a contract Generate Message Check this box to generate the messages Contract Overrides Here the system displays the following override details of the contract for all operations e Confirmed e Override Remarks e Authorized By e Authorized Date e Status e Remarks Amendment of Securitization Contracts Oracle FLEXCUBE supports amendment of securitization contracts after authorization including or excluding of finance contracts to from the securitization pool SPV Special Purpose Vehicle may approach the financial institution to buy addition finances drop bad dept finances from the securitization pool contract as per the sale agreement This may lead to addition removal of finance contract in the securitization pool The system also facilitates replacement of one or more fin
93. ting entries for the Buyback Activity Debit Role Amount Tag Credit Remarks SPV_SETTL_BRIDGE_DR LOAN _OUTSTANDING Dr SPV_SETTLE_ACC LOAN _OUTSTANDING Cr SPV_SETTLE_ACC SALE_PROFIT DR PLAC_INC SALE_PROFIT CR For immediate realization SPV_SETTLE_ACC SALE_PROFIT_AC DR PLAC_RIA SALE_PROFIT_AC CR For periodic realization PLAC_EXP SALE_LOSS DR For immediate realization SPV_SETTL_BRIDGE_CR SALE LOSS CR PLAC_PIA SALE_LOSS_ AC DR For periodic realization SPV_SETTL_BRIDGE_CR_ SALE_LOSS AC CR SECR_CONTINGENT_PO LOAN _OUTSTANDING DR For tracking the OL book balance in off balance SECR_CONTINGENT_ASS LOAN OUTSTANDING CR sheet ET AMND It is an event for Amendment of Securitization Contract The system does not allow modifying the Pool details The table below describes the accounting entries for Charges incurred during Amendment Role Amount Tag Debit Credit SPV_SETTLE_ACC CHARGES Dr CHARGE CHARGES Cr COMPONENT_INC a ORACLE The table below describes the accounting entries for Securitization Pool Amendment Role Amount Tag Debit Credit Remarks SPV_SETTLE _ SALE_PROFIT DR For immediate realiza ACC tion PLAC_INC SALE_PROFIT CR SPV_SETTLE_ SALE_PROFIT_AC DR For periodic realization ACC PLAC_RIA SALE_PROFIT_AC CR PLAC_EXP SALE_LOSS DR For immediate realiza tion SPV_SETTLE_ SALE_LOSS CR
94. tries for Status change SECR or Status which are supporting continue accrual to NORM Simple Finance Amor Principal Component taad inanda amor Outstanding Principal is transferred from SPV_SETTL_BRIDGE tized Rule 78 GL to FINANCE ACCOUNT Profit Penal Profit Components Accrued profit till the sale date is transferred to SPV account or Bridge GL account GL for profit penal profit is changed to Bank INCOME GL on ORACLE 5 2 5 5 2 6 Discounted Finance True Principal Component Discounted Finance GL to FINANCE ACCOUNT Profit Penal Profit Components profit to Bank s Income GL Outstanding Principal is transferred from SPV_SETTL_BRIDGE Profit amount is calculated till the maturity date and it is posted to MAIN_INTARIA GL account and start accrue the profit and post the Amendment for Changing the Contract Details Amendment without Modifying the Securitization Pool The system triggers the AMND event and updates the modified contract details And it generates the Amendment Advice Message System supports the following amendments e Pool Amount e Accrual dates e Service charge e Service charge dates Recourse of Finance Accounts During the course of the securitization contract SPV can replace the existing finance contracts in Securitization Contract with new finance accounts which are not part of securitization You can amend the contract thro
95. ty Date Indicates the maturity date Viewing Summary of Islamic Assets under Securitiza tion for the Specific Fund You can invoke this report screen by typing IZRSECFD in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button LBL_IZ_SEC_FUND_ID_SUM Branch Code Fund ID ReportFormat PDF Report Output Print Printer At Client Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided 1 20 ORACLE Fund ID Specify the fund id from the adjoining option list Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Branch Code Branch Name Indicates Current Branch code and Branch Name User ID Indicates the Identification of the User Module Indicates the Module of the Report Report Run Date Indicates Current Branch Date Report Run Time Indicates Current Branch Time Body of the Report Field Name Field Description Branch code This is the branch code for which the report is generated Securitization Ref No This is the securitization reference number for which the report is gener ated Asset Ref No This is the asset reference number for which th
96. ue dues till the specified limit due date in the Liquidation details eae ORACLE 6 1 6 2 6 3 6 Online Batch Process Introduction Oracle FLEXCUBE supports Online and Batch processes based on the options selected for Securitization Mode at Contract Input level The following options are available e Online If selected the system will invoke the securitization process at the time of authorization of securitization contract e Batch If selected the system will save the securitization contract without initiating the securitization process and will change the internal status of the contract as Marked for Securitization Processing Intra day Batch Securitization process is initiated as part of intra day batch IZDSECR The system securitizes the underlying Islamic assets which are marked with Marked for Securitization status Post securitization process the system will update the internal status of the securitization contract as Securitized The below table lists the possible status Securitization mode Internal Status Post securitization status Online NA Securitized Batch Mode Marked for securitization Securitized If any one of the Islamic Asset s status change event fails then the system stops the securitization process and raises appropriate error message Note Skipping events is not enabled Once Islamic Asset is marked for Mark for
97. ugh the Securitization Contract Online screen with the recourse option The below formula explains the calculation related to recourse operation Profit or Loss of contract SALE_AMOUNT Sum of newly added Simple and amortized finances Outstanding Principal Profit Accrued till sale date Compensation accrued till sale date Overdue components Sum of newly added Discounted type finances Outstanding Principal RIA Balance Sum of excluded finance Simple and amortized finances Outstanding Principal Profit Accrued till sale date Compensation accrued till sale date ORACLE Overdue components Sum of Discounted type finances Outstanding Principal RIA Balance Amount tags LOAN_OUTSTANDING_CR and LOAN_OUTSTANDING_DR are available for returning the credit or debit balance of replaced Finance Accounts The amount tags provide the netted value of newly added Finance Accounts and removed Finance accounts 1 If securitization product is set to realize the profit loss immediately then the system posts the calculated profit loss directly to the bank s INCOME EXPENSE GL directly If the securitization product is set to realize the profit loss over a pre defined period then the system computes the profit loss schedule internally and posts the entries accordingly during the EOD cycle 3 Consolidated balance of newly added removed finance accounts will be posted to securitizati
98. ummary of Islamic Securitization History de tails for the Islamic Finances You can manually generate a report that displays the summary Securitization history details for the specific Cl account for a specified period in the Summary of Islamic Securitization History Details for Cl Accounts screen You can invoke this report screen by typing aM ORACLE IZRCLHIS in the field at the top right corner of the Application Toolbar and clicking the adjoining arrow button Summary of Islamic securitization history details for the CI Accounts Branch Code Account Number From Date To Date Report Format PDF Printer At Client Report Output Printer You can specify the following preferences for the report Branch Code You can generate a report based on the branch code Select a branch code from the option list provided Account Number You can generate a report based on the account number From date Enter the From Date The system will generate a report for the securitization pool that have a From Date greater than the date you enter here To date Enter the To Date The system will generate a report for the contracts that have a To Date less than the date you enter here Header The following details are displayed in the header section Field Name Field Description Report Name Indicates Report Name Branch Code Branch Name Indicates Current Branch code and Branch Name Us
99. uritization Contract Pay ment Amount _PAYCCY_ Single Securitization Contract Pay ment Currency _PAYDATE Single Securitization _ Contract Pay ment Date ie ORACLE The table below describes the generation time and supported tag of the advices and its corresponding event Generation Advice Name Event Time Supported tags Securitization Book BOOK Authorize IZ ADV_FMT Advice Securitization Init Advice INIT Authorize IZ ADV_FMT Securitization contract AMND Authorize IZ AMD_ADV Amendment Advice Sale Advice SAMD Authorize IZ AMD_ADV Buyback Advice BAMD Authorize IZ AMD_ADV Payment Advice LIQD Authorize IZ PMNT_ADV Closure Advice Manual CLOS BOD IZ_ CLSR_ADV closure Consolidated Finance LAMD EOD IZ LAMD_ADV Amendment statement Consolidated Finance LDBR EOD IZ LDSB_ADV Disbursement Request Consolidated Finance LPMT EOD IZ_PPAY_ADV Pre payments received IZ_PMNT_ADV S 94 ORACLE 9 Function ID Glossary IZDFRMNT onosaia 3 1 IZRPOACC oossssnnsssssnnssssnnnnnn 7 1 IZDPRMNT ccceeeeee 4 1 IZRPOHIS uu 7 3 IZDTRONL Sossiuhs sates ctonsnadies 5 8 IZRSECED 2 eeseeesteeeeeeees 7 20 IZRCLHIS a siccasscecneccccascncasss 7 16 IZRSPVPY o ssseecssteeeeteeeeeeee 7 5 IZRDSBDT oo secesseessseesseeeeeeees 7 8 s IZRODYPT ooeeecesscessstessseseeees 7 6 IZRPLACR oooi 7 10 SENF RMN oeeipyaei a IZRPMTFD o an 7 18 PEOP TAN aieia
100. uritization Contract Online screen The system provides you an option to add new finance contracts to the existing Pool e You can compute the Profit Loss for the transaction based on the outstanding principal profit payment as mentioned below ve ORACLE 5 2 4 Profit or Loss of contract INCREASE_IN_SALE sum of newly added Islamic assets Simple and Amortized type Islamic assets Outstanding Principal Profit Accrued till sale date Penalty accrued till sale date Overdue components Sum of newly added Islamic assets Discounted type Islamic assets Outstanding Principal RIA Balance e If you set the securitization product to realize the profit loss immediately then the system posts the calculated profit loss directly to the bank s Income Expense GL e Ifyou set the securitization product to realize the profit loss over a pre defined period system computes a schedule for the profit loss and posts the accounting entries accordingly during the EOD cycle e You need to maintain the Profit Loss as a separate slab for each amendment on sale contract and should not merge it with previously calculated profit loss e The system computes separate accrual schedule for profit and loss for that particular amendment based on the schedule defined during the amendment e During EOD the system computes the consolidated profit loss Netting is done on that due date and posts the accounting entries to Banks In
101. ustomer Account You are allowed to map Accounting Role to a GL or a customer account The system defaults the GL configured in this screen in the Islamic Securitization Contract Online screen Click on Accounting Roles button to capture the details to map the accounting role to a GL ora customer account Accounting Roles Product Code Product Description Class Details Default From Class Class Code Class Description Roles 1 Of 1 Accounting Role Role Description Account Head GL Description For further information on this screen refer chapter the Product Definition under Modularity User Manual 2 ORACLE 4 2 2 Maintaining Events Details You are allowed to define or specify the pre defined events in securitization product based on the nature of securitization You should click on the Events button to capture the details of the event In the Events screen you can attach the applicable events to the product Events Product Code Product Description Class Details Default From Class Class Code Class Description Event Details 1 Of 1 Event Code Description m Accounting Entries Advices For further information on Events Accounting Entries and Advices refer Product Definition User Manual under Modularity User Manual 4 2 3 Maintaining Branch and Currency Restriction Click
102. ype of Islamic product category The various products and their formula is given in the table below S No Product Category Securitization Pool value computation logic 1 Musharakah Outstanding Principal Overdue Principal Overdue Profits 2 Mudarabah Outstanding Principal Overdue Principal Overdue expected Profits excess profit and customer incentive will not be consider ae ORACLE 3 Murabahah Outstanding Principal Overdue Principal Overdue Profits 4 Istisna Outstanding Principal Overdue Principal Overdue Profits 5 Ijarah Operational Outstanding Principal Overdue Principal Overdue Profits Residue Value For calculating the overdue profit it is required to con sider the payment method pay in advance pay in by arrears Note Profit accrued till sale date will also be included 8 5 Accounting Roles The table below describes the accounting roles in Securitization contract Accounting Role Description SPV_SETTL_BRIDGE Accounting role head for the Bridge GL SPV_SETTLE_ACC Accounting role head for the SPV Settlement Account PLAC_INC Bank real income GL for realizing the income arising out the Securitization contract PLAC_EXP Bank real expense GL for realizing the loss arising out the Securitization contract PLAC_PIA Bank GL to realize the loss from securitization contract peri odically PLAC_RIA Bank

Securitization of Islamic Assets User Manual

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