💵 Transaction Related
Closing
A Closing refers to a specific type of high-value transaction where multiple participants coordinate to finalize the receipt and disbursement of funds on a predetermined date. Closings are typically used in complex financial agreements, such as bond proceeds, project funding, or multi-party financial settlements.
Multi-Participant Coordination – Closings involve various roles, including Coordinators, Participants (Senders, Clearers, Recipients), and Viewers.
Defined Closing Date – Funds are securely exchanged at a set time, ensuring all required actions are completed before the final disbursement.
Compliance & Security – Secure access controls, participant verification, and transaction tracking help maintain compliance with financial regulations.
Visibility & Audit Trails – Every action in a closing is logged, providing a full audit trail for compliance and reporting.
Closing Memo
A Closing Memo is a formal transaction summary document that outlines the key details, approvals, and final terms of a Secure Closing in Basefund. It serves as an official record of the transaction, ensuring all parties involved have a clear understanding of the closing details.
Comprehensive Transaction Summary – Includes essential details such as participants, transaction structure, disbursement instructions, and any compliance notes.
Final Approval Record – Documents approvals and confirmations from key stakeholders to authorize the secure disbursement of funds.
Audit & Compliance Support – Provides a formal paper trail for regulatory and internal record-keeping.
Participant Distribution – The Closing Memo can be shared with Coordinators, Participants, and other authorized stakeholders for reference and final confirmation.
Disbursement of Funds
A Disbursement of Funds is the final step in a financial transaction where received funds are distributed to the appropriate recipients based on predefined agreements or instructions.
Execution of Payouts – Funds are securely transferred from the holding account to beneficiaries or other designated recipients.
Compliance & Approval-Based – Disbursements follow structured workflows, requiring verification and approvals before execution.
Audit Trail & Reporting – Every disbursement is logged, providing visibility into fund movements and ensuring compliance with financial regulations.
OBI Line
The OBI (Originator to Beneficiary Information) Line is a field in a financial transaction that allows the sender to include additional instructions, references, or descriptions for the beneficiary of the funds.
Transaction Context – Provides details about the payment's purpose, ensuring clarity for the recipient.
Customizable Information – Can include invoice numbers, contract references, or any other relevant instructions.
Bank & Compliance Use – Helps financial institutions process and categorize transactions accurately.
Audit & Reconciliation – Serves as an additional layer of information for tracking and verifying payments.
Paying Agent
A Paying Agent is a financial entity or individual responsible for receiving funds from issuers and distributing them to bondholders or other designated recipients in a financial transaction. Paying Agents play a key role in Secure Closings and transactions disbursements by ensuring payments are processed accurately and securely.
Intermediary for Fund Transfers – Acts as the bridge between the entity providing funds and the final recipients.
Compliance & Security – Ensures payments meet all legal, regulatory, and contractual obligations.
Verification & Processing – Confirms fund availability, processes disbursements, and maintains transaction records.
Common in Bond Transactions – Frequently used in municipal finance, corporate bonds, and structured settlements.
Receipt of Funds
A Receipt of Funds refers to the successful confirmation that funds have been transferred into a designated account as part of a transaction. It verifies that the sender’s payment has been received and acknowledged by the receiving party.
Verification of Incoming Payments – Confirms that funds have been successfully received and cleared by the recipient’s financial institution.
Transaction Status Update – Marks the transition from pending to confirmed in the transaction process.
Audit Trail & Record Keeping – Serves as a financial record, ensuring compliance and reconciliation of funds.
Reference Line
The Reference Line is a transaction identifier used to provide a unique reference number or description for tracking, reconciliation, and reporting purposes.
Unique Identifier – Helps distinguish individual transactions for easy lookup and verification.
Accounting & Compliance Tool – Ensures financial records align with internal bookkeeping and regulatory requirements.
Supports Audit Trails – Provides a clear link between payment instructions and their execution.
Cross-Platform Utility – Can be used internally within Basefund and externally in financial reporting or banking systems.
Transaction
A Transaction represents a financial event where funds are securely sent, received, or managed between one or more parties. Transactions are the core financial actions executed within the platform, designed to provide security, transparency, and control over financial movements.
Secure & Verified – Every transaction ensures that participants are verified, and funds are handled securely to prevent fraud.
Structured Workflows – Transactions follow predefined workflows, ensuring compliance and traceability.
Participant Management – Users can invite, verify, and track Senders, Clearers, and Recipients to maintain strict control over who is involved.
Types of Transactions – Basefund supports multiple transaction types to accommodate different financial needs:
Secure Closings – High-value, multi-party transactions with a defined closing date.
Ongoing Transactions – Recurring payments within designated accounts.
One-Time Transactions – Single-use payments with secure recipient verification.
Transfers – Internal or external fund movements with full validation.
🙋🏼♂️ User Types and Permissions
Coordinator
A Coordinator is a user who has editing and management privileges over a secure closing transaction but does not necessarily own it. They play a crucial role in facilitating and managing the transaction on behalf of other participants.
Creation & Management – Coordinators can create transactions on behalf of a beneficiary and manage transaction details.
Editing Permissions – Coordinators have full editing rights over the transaction, allowing them to update transaction details, add/remove participants, and manage workflows.
Access Management –
Coordinators can grant View-Only access to other users.
Coordinators can add other Coordinators, giving them the same editing privileges.
Coordinators cannot assign or remove an Owner—only the Owner can transfer ownership.
Participant Oversight – Coordinators oversee the transaction process and ensure that all Senders, Clearers, and Recipients are correctly assigned and engaged in the transaction.
Tenant-Level Sharing – Coordinators can share a closing with their tenant (organization), but by default this only grants view-only access to tenant members.
No Ownership Control – While Coordinators can manage transactions, ownership remains with the original Owner, unless explicitly transferred.
Owner
An Owner is the user who initially creates a secure transaction. The Owner has the highest level of control over the closing and can perform the following actions:
Full Access & Control – The Owner can edit the transaction and manage access permissions.
Delegation of Ownership – The Owner can transfer ownership to another user, but only one Owner can exist at a time.
Coordinator Management – The Owner can designate Coordinators, who have editing privileges for the transaction.
Viewer Management – The Owner can grant view-only access to other users but cannot delegate Coordinator privileges unless they first assign someone as a Coordinator.
Participant
A Participant is a user who is actively involved in a secure transaction and has a role that grants them certain permissions beyond just viewing.
Types of Participants – A participant can be one or more of the following:
Sender – Initiates or transfers funds within a transaction.
Clearer – Confirms, processes, or verifies a transaction.
Recipient – Receives funds or assets from the transaction.
Coordinator - Sets up the transaction and can be any of the above participant types.
Access to the Transaction – Participants can view and interact with a transaction, but their permissions depend on their role within the transaction.
Access Management – Participants can grant view-only access to internal or external users but cannot invite additional participants.
Tenant
A Tenant represents an organization or business entity rather than an individual user. It serves as the foundational unit that determines access, visibility, and structure within the platform.
Business-Level Structuring – Instead of being tied to individual users, permissions and views are dictated by the tenant type, ensuring consistency across users within an organization.
Independent from Users – Users can be associated with one or multiple tenants while maintaining independent roles and permissions.
Secure Transactions & Access Management – Transactions can be shared at the tenant level, meaning all users in a tenant can have view-only access to a transaction, but ownership and editing rights remain user-specific.
Registration & Management – New tenants require whitelisting before registration.
Viewer
A Viewer is a user who has been granted read-only access to a secure transaction but cannot edit or manage it in any way.
View-Only Access – Can see transaction details but cannot modify any part of the transaction.
Invitation-Based Role – A Viewer must be granted access by an Owner, Coordinator, or Participant to see a transaction.
No Permission Management – Viewers cannot invite additional users or expand access beyond what was granted to them.
Tenant-Level Visibility – If a transaction is shared with a tenant, all users within that tenant will be Viewers by default, with no editing rights.
Security Restrictions – To prevent uncontrolled access expansion, Viewers do not have access to the permissions page.