2.2.2 Legal Block

Legal Block is that part of the balance in a customer’s account, which you wish to reserve for a specific purpose.

Legal Block can be specified for an account either on the directions of the customer or at the behest of the bank.

When a legal block is set for an account, the balance available for withdrawal is the current balance of the account minus the blocked amount. On expiry of the period for which the legal block is defined the system automatically updates the legal block Cheque in the ‘Customer Accounts’ table. Legal blocks are maintained in the ‘Legal Block Maintenance’ table.

For Example, if the balance in an account is 1000 currency units and the legal block defined is 500 currency units, the actual funds available for withdrawal is only 500 units. An override will be required if the customer withdraws a higher amount.

When a debit to a customer account is made, where the transaction amount exceeds the available balance in the account, the system asks for an ‘override’.

This topic contains the following subtopics:

• Create Legal Block
  This topic describes the systematic instructions to create legal blocks.
• Amend Legal Block
  This topic describes the systematic instructions to amend legal blocks.
• Close Legal Block
  This topic describes the systematic instructions to close legal blocks.