4.2 Legal Block

Legal Block is a portion of a customer’s account balance that they wish to reserve for a specific purpose.

Legal Block can be placed on accounts based on either customer instructions or bank orders.

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

For example, if your account balance is 1000 currency units and the legal block defined is 500 currency units, you can only withdraw 500 units. An override is required if the customer wants to withdraw more than that amount.

When a customer account is debited and the transaction amount exceeds the account's available balance, the system will request 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.