ISDA has published 4.10 Recommendation for Loans

Changes compared to FpML 4.9 Recommendation published 2011-02-17:

• NOTE: FpML version 4.10 "for Loans" does not affect any 4.9 product representation, messages or shared components. Firms using earlier 4.x versions do not need to upgrade to 4.10 if they do not plan to use the loans enhancements described below. Firms looking to implement FpML for the first time should instead use the most recent version (e.g., 5.8 as of this writing).
• Loans (Tax Withholding and Letter of Credit Purpose)
  • The FpML Loan Working Group has defined support for tax withholding amounts associated with any notification. Certain tax withholding legislation is being enforced (as of January 2015), requiring agent banks to communicate this information on most notifications to lenders. Agent banks must now specify the amount of tax withholding that is being exercised, for each lender, against any cash-flow producing events occurring against a syndicated loan.
  • In addition, a pre-existing enumeration used to define the purpose of a Letter of Credit was updated. When communicating Letter of Credit information, it is necessary for agent banks to define the purpose for which the borrowing was originated. One of the purposes required by the agent banks, ‘Documentary’, was missing from the LcPurposeEnum enumeration, and has now been added.
  • The group has produced a schema representation aiming to cover the notifications in this business process, examples, and documentation. The FpML Standards Committee invites comments on these proposed materials including schemas (see CashPayable structure), examples (see loan ex-20, ex-21, ex-22), and documentation.