13. Maintaining Collateral Details

This chapter contains the following sections:

13.1 Maintaining Collateral Details

You can maintain codes in the ‘Collateral Maintenance’ screen for collaterals used by the bank while providing credit limit facility to the customer.

You can invoke the ‘Collateral Maintenance’ screen by typing ‘LBDOLMNT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

 

You can capture the following in this screen:

Collateral Code

Specify a unique code to identify the collateral.

Collateral Description

Enter the collateral description.

Collateral Type

Select the collateral type. You can have the following options:

13.2 Maintaining Collateral Entity Details

You can maintain the collateral entity details in the ‘Collateral Entity Maintenance’ screen.

You can invoke the ‘Collateral Entity Maintenance’ screen by typing ‘LBDOLENT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.You can capture the following details:

Entity Code

Specify the entity code.

Entity Description

Enter the description for the collateral entity.

Entity Type

Select the entity type. You can have the following options:

13.3 Maintaining Tranche Collateral Details

You can maintain and amend the tranche collateral details in the ‘Tranche Collateral Input’ screen. You can invoke the ‘Tranche Collateral Input’ screen by typing ‘LBDCOLAT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

 

You can also book the tranche details for the collaterals by clicking the ‘Collateral’ tab in the ‘LB Tranche Contract Online’ screen.

Note

You can book the tranche details in the ‘LS Tranche Contract Online’ screen, whereas the sub sequent amendments can be done only in this screen. No event is registered in the tranche for the subsequent amendments to Tranche Collateral.

You need to specify the following details:

Contract Ref No

Specify the contract reference number. The adjoining option list displays the contract reference numbers maintained in the system. You can choose the appropriate one.

Effective Date

Specify the date on when the tranche collateral details are to be effective.

Product Code

The system displays the product code based on the contract reference number selected.

Customer

The system displays the customer code and name based on the contract reference number selected.

Facility Name

The system displays the facility name based on the contract reference number selected.

User Ref No

The system displays the user reference number based on the contract reference number selected.

Tranche CCY

The system displays the tranche currency based on the contract reference number selected.

Collateral Code

Specify the collateral code which is to be associated with Tranche. The adjoining option displays the collateral codes maintained in the system. You can choose the appropriate one.

Gross Avl Amount

Enter the full gross tranche amount of the collateral code. The gross available amount will be taken in Tranche currency.

Ineligible Amount

Specify the ineligible amount of the collateral code. The ineligible amount is taken in Tranche currency.

% of Inventory

Specify the inventory of the collateral code in percentage.

Net Available Amount

The system displays the net available amount for a collateral code by taking sum of available balance of all the collaterals linked to the tranche for the latest effective date.

Net Available Amount for a collateral code is computed by the system based on the following formula:

Note

 

13.4 Viewing Tranche Collateral Details

You can view the tranche collateral details in the ‘Tranche Collateral Input Summary’ screen. You can invoke the ‘Tranche Collateral Input Summary’ screen by typing ‘LBSCOLAT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

 

13.5 Maintaining Tranche Collateral Account Details

You can maintain the tranche account details for collateral in the ‘Tranche Collateral Account Maintenance’ screen.

You can invoke the ‘Collateral Account’ screen by typing ‘LBDCOLAC’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

 

You can also book the tranche account details for the collaterals by clicking the ‘Collateral Account’ in the ‘LB Tranche Contract Online’ screen.

Note

You can book the tranche details in the ‘LS Tranche Contract Online’ screen, whereas the sub sequent amendments can be done only in this screen.

You need to specify the following details:

Tranche Ref No

Specify the tranche reference number. The adjoining option list displays the contract reference numbers maintained in the system. You can choose the appropriate one.

Effective Date

Specify the date on when the tranche collateral account details are to be effective.

Note

Once you specify the date, the opening and available balances are displayed as of the latest effective date for the Collateral Code and Collateral Account combination.

Product Code

The system displays the product code.

Customer

The system displays the customer code and name.

Facility Name

The system displays the facility name.

User Ref No

The system displays the user reference number.

Event Seq. No

The system displays the event sequence number.

Tranche CCY

The system displays the tranche currency based on the reference number selected.

Collateral Code

Specify the collateral code which is to be associated with tranche. The adjoining option displays the collateral codes maintained in the system. You can choose the appropriate one.

Collateral Account

Specify the collateral account fro which the tranche collateral is to be booked.

Investment Type

Specify the investment type for the collateral account. You can modify this during the life of the tranche.

Balance Display deadline

Specify the balance display deadline. You can modify this during the life of the tranche.

Opening Balance

Specify the opening balance for the collateral account.

Available Balance

Specify the available balance for the collateral account.

Pending Transfers

Specify the pending transfer amount for the collateral account.

Difference

The system displays the difference amount for a collateral account by taking sum of available balance of all the collaterals linked to the tranche for the latest effective date.

Difference amount for a collateral account is computed by the system based on the following formula:

On saving the account details, an override message is displayed which requires dual authorization. An e-mail is sent to the participants of the tranche whenever the override message is displayed. The message is as follows:

If the opening balance or difference amount is negative, the following message is displayed:

Account is in Overdraft

If the opening balance or difference amount is positive, the following message is displayed:

Verify if Investment is required

13.6 Viewing Tranche Collateral Account Details

You can view the tranche collateral account details in the ‘Tranche Collateral Account Summary’ screen.

13.7 Maintaining Tranche Collateral Entity Details

You can maintain the tranche collateral entity details in the ‘Collateral Entity Input’ screen. You can invoke the ‘Collateral Entity Input’ screen by typing ‘LBDCOLET’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

You can also book the Tranche account details for the collaterals by clicking the ‘Collateral Entity’ in the ‘LB Tranche Contract Online’ screen.

Note

You can book the tranche account details in the ‘LS Tranche Contract Online’ screen, whereas the sub sequent amendments can be done only in this screen.

You need to specify the following details:

Contract Ref No

Specify the contract reference number. The adjoining option list displays the contract reference numbers maintained in the system. You can choose the appropriate one.

Effective Date

Specify the date on when the tranche collateral account details are to be effective.

Product Code

The system displays the product code.

Customer

The system displays the customer code and name.

Facility Name

The system displays the facility name.

User Ref No

The system displays the user reference number.

Tranche CCY

The system displays the tranche currency based on the reference number selected.

Collateral Code

Specify the collateral code which is to be associated with tranche. The adjoining option displays the collateral codes maintained in the system. You can choose the appropriate one.

Entity Code

Specify the entity code which is to be associated with tranche. The entity code is displayed based on the collateral code selected.

Collateral Gross

Specify the collateral gross amount. The amount entered is in Tranche currency.

Collateral Ineligibles

Specify the collateral ineligible amount. The amount entered is in Tranche currency.

Collateral Available

Specify the collateral available amount. The amount entered is in Tranche currency.

Collateral Net Available

Specify the collateral net available amount. The amount entered is in Tranche currency.

Optional Total

Specify the optional total amount. The amount entered is in Tranche currency.

13.8 Viewing Tranche Collateral Entity Details

You can view the tranche collateral entity details in the ‘Tranche Collateral Entity Summary’ screen.

13.9 Maintaining Collateral Percentage Details

You can maintain the collateral percentage details for the participants in the ‘Collateral Monitoring Details’ screen.

You can invoke the ‘Collateral Participant’ screen by typing ‘LBDCOLPT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

 

You can also maintain the collateral percentage details for the participants by clicking the ‘Coll Part’ button in the ‘LB Tranche Contract Online’ screen.

Note

You can maintain the collateral percentage details in the ‘LS Tranche Contract Online’ screen, whereas the sub sequent amendments can be done only in this screen.

Specify the following details:

Contract Detail

The system displays the following details:

Collateral Detail

Specify the following details:

Contract Ref No

Specify the contract reference number. The adjoining option list displays all valid contract reference numbers that are maintained in the system. You can select the appropriate one.

Participant

Specify the participant code for which the collateral percentage is being maintained. The adjoining option list displays all valid participant codes that are maintained in the system. You can select the appropriate one.

Participant Name

The system displays the name of participant based on the participant code selected.

Collateral %

Specify the collateral percentage of the participant.

Collateral Amount

The system calculates and displays the collateral amount based on the following formula:

Collateral Amount = Collateral % * Tranche Un-utilized amount * Participant Share

Note

 

13.10 Viewing Collateral Participants Details

You can view the collateral contract details at the tranche level in the ‘Participant Collateral Summary’ screen. The following details are displayed in this screen:

13.11 Capturing Collateral Override Details

You can capture the collateral amounts for over-ride details at the tranche level in the ‘Collateral Override’ screen.

You can invoke the ‘Collateral Override’ screen by typing ‘LBDOLOVD’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

 

In this screen, enter contract reference number or the tranche reference number for the collateral or tranche that you wish to view and click ‘Refresh’.

The system will display the following details based on your query:

If you want to modify the override collateral closing balance, you can do so by selecting the Override option for the required record. Subsequently you can unlock the record and modify the override collateral closing balance. If you change the override collateral closing balance, it should be authorized.