Non-usage fees in Fairways Debt are computed by taking into account:
- The difference between the maximum amount and the actual outstanding amount
- The characteristics of the fees, such as frequency and index
Prerequisite
Navigate to the Debt & Derivatives Application
- Log in to your Fairways Debt account.
- Select a customer account.
- Navigate to Applications > Debt & Derivatives.
Navigate to the Fees Tab
- Navigate to Draft.
- Click the relevant transaction to open its profile.
- Navigate to Fees.
Add a Non-Usage Fee
- Click More > Add Non-Usage Fee.
- Complete the form with all relevant details.
Note: Fields marked with an asterisk * are mandatory.
| Field | Description |
|---|---|
| Reference Code | Unique reference of the fee. |
| Currency |
Currency of the fee. Note: The fee currency inherits from the transaction currency. |
| Field | Description |
|---|---|
| Frequency | Frequency of the payments. |
| First Roll Date | Unadjusted date of the first payment. |
| Interest Calculation Adjustment | Adjustment mode for the interest calculation. The nominal start and end dates of the accrual period will be adjusted accordingly before computing the interest amount. |
| Payment Date Adjustment | Adjustment mode for the payment date. |
| Capitalized | Defines whether the amount should be paid at the payment date, or added to the principal (and included in the outstanding balance for the following periods). |
| Field | Description |
|---|---|
| Calculation Mode | Includes or excludes capitalized flows. |
| Field | Description |
|---|---|
| Index | Name of the index used to calculate the rate value. |
| Interest Rate |
Note: This field only displays for fixed indexes. Fixed rate value in percentage. |
| Initial Interest Rate |
Note: This field only displays for custom indexes. Initial rate of the custom index. |
| Spread |
Note: This field only displays for floating indexes. Spread (or margin) value in percentage. |
| Day Count Convention | Used to compute the day fraction of an interest accrual period. |
- Enable Show Details after Validation to automatically open the new fee profile once created.
- Click Apply.
The new non-usage fee displays.