Loan Borrower Commitment

Definition

Loan Borrower Commitment. The commitment of a given borrower to be a borrower and to repay this loan.

Issues and Challenges

This is in the sense of a commitment as defined in a Contract. The Loan Contract between Lender and Borrower(s) would define these commitments. Includes commitments to pay principal, commitment to pay interest, and other covenants or conditions agreed upon. There is also a status of a commitment prior to the loan, in relation to the credit facility. This is not the same as what is modeled here, where I now have it as a parent of the legal commitments made by the borrower when they sign the loan. On the above, see also "Loan Precedent Conditions" which covers the conditions to be met before the loan may be initiated (approved). PoC Review comment: Not needed in data model. Renamed from "Loan Borrower Association" in logical model. PoC Review comments on original term (renamed and re-interpreted since): This should just be Loan borrower, i.e. it defines which borrower is associated with each loan. It represents the commitment of this borrower to be a borrower and to repay this loan. IBM Notes: Unique identifier per borrower (not showing the real name) - to enable borrowers with multiple loans in the pool to be identified (e.g. further advances / second liens are shown as separate entries). Should not change over the life of the transaction By storing this identifier in the loan Borrower commitment a separate value is available for each loan borrower Modeling Note: The original PoC SDM term described above fulfilled the dual role of being an intermediate table between borrower and loan, and have the name and meaning of "Commitment". The Semantic Model defines commitments already (e.g. for transaction models), and so we have chosen to model the commitments of the borrower in terms of their relationship to the contract and terms for interest and principal, which would need to be modeled anyway. The PoC notes above are of little relevance to the semantics of this term.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.