Multi-level Commitment Processing
Major Multi-level Commitment Processing really puts the system in a league of its own. Major commitments are a pledge or promise of funding. The actual funding is represented by loans tied to the major commitment. There is typically a one-to-one correspondence between the number of draws and the number of loans tied to the commitment. In this scenario, each draw may have its own pricing options, due dates, and repayment terms. However, if the lender prefers, multi-drawn notes can be used under the major commitment. Any combination of single-draw or multi-draw loans can be accommodated.
A facility can be established using major commitment and related commitments within the same borrower or multiple borrowing entities. Related Commitments are used to track lending commitments to a holding company that are used by multiple organizations within the holding company. This is described below.
The number of Relationship Levels within a facility is unlimited.
The facility/commitment amounts, in-use amounts, and unused amounts, as well as fee structures, if applicable, are tracked within each commitment. Full transaction history for all monetary and non-monetary transactions is available.
Within the commercial system, major commitments include the following functionality:
- Revolving or non-revolving attributes
- Related Commitment/Parent-Sub functionality
- Multiple Billing Options
- Availability Tracking
- Commitment Amount, In-use amount, and unused amount reporting to General Ledger
- Automatic, user-defined availability reduction over a predetermined time period during of the life of the facility
- Automatic Over-line Billing option
Collateral may be tracked at the major commitment level, as well as at the borrower level and/or the loan level.
Major Commitments may be sold to investors through the comprehensive investor processing capabilities.
Robust reporting exists in both the online and offline areas of the system. This includes an online Customer Relationship Tree that, through one-click navigation, clearly displays a snapshot of all commitments and loans within a facility.