RE: Loan FpML WG Meeting: 8 December 2009, 1000-1100EST (London Time: 3-4pm)

Minutes & Update

All changes reviewed and agreed. See attached schemas for further updates.

Additional design changes:

- Rate set notice (Drawdown Notice), the drawdown payment structure has been made optional. This will allow the rate set notice to be used on a stand-alone basis (e.g. multiple re-pricings on a related to a rollover).

- Cash flow notice

o Business events section introduced. Expanded with a business event type – do we agree this would be useful…? Combination of business event id and message id assures that we are referring to the correct version of the underlying message/event.

o Cash flow payments section introduced. Multiple cash flow sections allow for multi-direction payments to occur. Is this necessary…?

- PIK documentation to be provided by Ann Taylor

- Discussion about whether we should have a more explicit relationship between old and new loan contract during a rollover. We currently do not. Agreed that maybe we should have this discussion with the business group but for now we are keeping the design as is (decoupled loan contracts during rollover).

With respect to release timings, the FpML organization is currently working on 4.7 and 5.0 in parallel. As a result of the amount of changes we have made during the last design iteration (some of which are backwardly incompatible), it seems prudent for us to release in the 5.x series. 5.0 is currently at the 4^th working draft stage (as of mid-December) and may move to Last Call Working Draft by mid-Jan.

The Loan Working Group decided that we will review where we are by mid-Jan, if we are not ready then there will be NO LOAN schema included in 5.0. It is important for us to ensure that the code released in the 5.x series is properly tested and reviewed and will not require further incompatible updates/changes as we progress through the 5.x versions.

For 5.0, we will be looking at a Q1 recommendation and 5.1 will be a Q2 recommendation.

Regards,

Bhavik Katira

CEO

TenDelta™

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From: loanwg@xxxxxxxx [mailto:loanwg@xxxxxxxx] On Behalf Of Bhavik Katira
Sent: Tuesday, December 08, 2009 12:06 AM
To: loanwg@xxxxxxxx
Subject: Loan FpML WG Meeting: 8 December 2009, 1000-1100EST (London Time: 3-4pm)

Dial-in Details

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Participant Code: 28413758

New schema attached.

Agenda

1. AmountAdjustment introduced.

a. Used in the currentContracts section of the Rollover Notice.

b. Used in the Commitment Adjustment Notice.

c. Used in L/C Balance Change Notice. Removed Prior Amount to be consistent with other notices.

2. Created a new MarginRateChangeTypeEnum. Introduced into the MarginRateChange Notice to define whether the margin rate change is associated with the Cash or PIK margin.

3. Rate Set Notice with respect to Rollovers. If we make the drawdownPayment section optional then it only leaves the actual event types as a required field on the entire notice. Discuss design options…

4. Combination messages in a single structure. It is essential that any combinational messages are designed for the purposes of when the resulting message is a valid business scenario rather than for ‘volume’ reasons – discuss. E.g. If there are 10 interest payments then what is the value associated with combining the messages in a single ‘structure’ (if the header is not too ‘heavy’)…?

5. Cash flow message types. Initial design idea presented containing a standalone message which contains references to other business events. Let’s discuss this potential design.

a. Should we capture the individual business event amounts, together with the overall ‘net’ payment amount…?

b. Should there be multiple payments in multiple directions…? Party A pays X to Party B and Party B pays Y amount to Party A.

c. Should there be other parties involved in the payment/cash flow itself…?

We also need to discuss the next steps with respect to release timings. The FpML group is working towards 4.7 and simultaneously a 5.0 release. We are at a stage where we have made many changes to many notices (some of which are backwardly incompatible). It seems this would be a good point for us to move across to a 5.x release.