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ELCM Validation for the Amount Maintained For Respective Tenor is Not Happening (Doc ID 2813597.1)

Last updated on OCTOBER 11, 2021

Applies to:

Oracle FLEXCUBE Enterprise Limits and Collateral Management - Version 14.4.0.0.0 and later
Information in this document applies to any platform.

Symptoms

On : 14.4.0.0.0 version, Implementation Support

ACTUAL BEHAVIOR
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Following issues observed in Tenor Validations in ELCM for OBCL Contract Rollover.

1. Before Loan Maturity, when a contract in OBCL is rolled over manually by giving special amount less than the actual amt financed & new maturity date greater than the max tenor defined at facility level, there is no tenor validation happening in ELCM.

2. When a contract in OBCL is manually rolled over after maturity & new maturity date is given such that it is more than 30 days tenor(last Maturity Date minus new Maturity Date) and when special amount is given more than Tenor limit amount defined for both 30 days and 60 days tenor then system is always validating the amount defined for 30 days tenor.


EXPECTED BEHAVIOR
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1. Before Loan Maturity, when a contract in OBCL is rolled over manually by giving special amount less than the actual amt financed & new maturity date greater than the max tenor defined at facility level, system should throw a proper error/override messaying indicating that the Tenor Specified is Greater than the Facility Tenor.

2. When a contract in OBCL is manually rolled over after maturity & new maturity date is given such that it is more than 30 days tenor(last Maturity Date minus new Maturity Date) and when special amount is given more than Tenor limit amount defined for both 30 days and 60 days tenor then system should validate against 60 days.

STEPS
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With Facility limit:1000000, Tenor rest for 30, 60 and 90 days as 300000, 500000, 700000.
250000 utilized on 30 days tenor. So 50000 is left from 30 days tenor.

Issue 1:
1. Create a Loan with Value date as 18 Mar 21 & Maturity date is 16 Apr 21, Special amount is 100000 & disburse for 400000; Branch date is 16 Apr 21, so Tenor of this loan is 29 days.
2. Save & Authorize, now total tenor utilization for 30 days is 650000 which is exceeding the tenor limit by 350000.
3. Create a manual rollover on 16 Apr 21 where the new maturity date would be 16 Apr 22.
4. Save the rollover.
5. No error is shown even though loan tenor is greater than the maximum tenor of Facility.

Issue 2:
1. Do a manual Rollover of a OL contract such that the new maturity date is more than the 30 days tenor.
2. Enter the special amount that more than Tenor limit amt of 30 days as well as 60 days tenor.
3. Save the Rollover.
4. System is not validating the amount against 60 days even though new loan tenor is > 30 days

BUSINESS IMPACT
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The issue has the following business impact:
Due to this issue, users cannot have proper validations of tenor happening between facility and loan contract

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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