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BT 142897

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The system now processes corporate actions in entities using this new functionality when the entity basis and corporate action settings match.

Understand the Income/Prepayment Fee Treatment

The income/prepayment fee treatment enables Eagle's insurance clients to apply an accounting treatment in Eagle Accounting that supports NAIC accounting requirements relating to prepayment penalties, acceleration fees, and make-whole call provision fees on bonds. Insurance clients can elect this treatment at the accounting basis level and have Eagle Accounting apply the income/prepayment fee treatment to call and/or principal repayment corporate actions during corporate action processing. 

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Eagle Insurance clients can identify this setting for each accounting basis where they want to apply this methodology by setting the Income/Prepayment Fee Treatment field. This field is available in the Corporate Action Fields section of the Create/Edit Entity panel, the Create Master Fund panel, the Add a Basis to a Portfolio panel, and the Edit Master Fund/Sector panel. A description follows. 


Option

Tag

Description

Income/Prepayment Fee Treatment16739

Identifies the types of corporate actions for the entity's selected accounting basis that use the income/prepayment fee treatment. The income/prepayment fee treatment supports NAIC accounting requirements relating to prepayment penalties, acceleration fees, and make-whole call provision fees on bonds. For use with Eagle's insurance accounting solution. The system uses this setting in conjunction with the Income/Prepayment Fee Treatment field set at the corporate action transaction level. Options include:

  • All. The system can apply the NAIC income/prepayment fee treatment to calls and principal repayments. 
  • Calls Only. The system can apply the NAIC income/prepayment fee treatment only to calls. 
  • Principal Repayments Only. The system can apply the NAIC income/prepayment fee treatment only to principal prepayments. 
  • None. Also applied to null values for this field. The system cannot apply the NAIC income/prepayment fee treatment to corporate actions.

NOTE:  When you enable use of the income/prepayment fee treatment for specific types of corporate actions at the entity/basis level, be aware that the system does not consider the basis level Redemption Gain/Loss Indicator setting for transactions that use the income/prepayment fee treatment. If you set the Redemption Gain/Loss Indicator field to Amortization, the system treats those transactions as if you set the Redemption Gain/Loss Indicator field to Gain/Loss.


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Highlight

Make Whole Callable is not in IV Long Term Debt panel. Bug to add it. 

PRIVATE PLACEMENT: how to identify? Use existing Restricted Flag (tag 1139) set to Private Placement? 



You can identify securities securities securities with a make whole call provision or with private placements using the following options. 

Option

Tag

Description

Make-Whole Callable10346

Indicates whether the security can have make-whole call provision fees. 


?????? THere are no Yes or No options to select. How do you enter a value?

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