3.4 Initiation - Collateral

This topci provides systematic instructions about the Initiatin - Collateral data segment in Appetite Management Initiation stage.

You can add collateral details of the customer prospect in this data segment, if the details are publicly available.

Figure 3-15 Appetite Initiation - Collateral

Add action for Collateral details
  1. To add collateral details, click the add icon.
    The Basic Details screen displays.
    For more information onfields, refer to the field description table below.

    Table 3-15 Basic Details

    Field Description
    Collateral ID Specify a unique ID for collateral.
    External Referenec ID Specify external reference ID.
    Collateral Type Select the collateral type from the drop-down list. The available options are:
    • Account Contracts
    • Crop
    • Commercial Paper
    • Perishable
    • Commodity
    • PDC
    • Bill of Exchange
    • Promissory Note
    • Machine
    • Deposits
    • Bond
    • Stock
    • Fund
    • Vehicle
    • Guarantee
    • Property
    • Aircraft
    • Insurance
    • Precious Metal
    • Ship
    • Account Receivables
    • Cash Collaterals
    • Inventory
    Collateral Currency Click the search icon and select the currency for collateral value.
    Collateral Value Specify the Collateral Value.
    Held Collateral Value Specify the Held Collateral Value.
    Collateral End Date Click the calendar icon and select the Collateral Start Date and Collateral End Date. Collateral will be effective only during the mentioned period.
    Collateral Expiry Date Click the calendar icon and select the Collateral Expiry Date. This is the actual expiry date of the collateral. For example, if the collateral type is selected as Bill of Exchange, collateral expiry date is the expiry date mentioned in the Bill of Exchange
    Charge Type Select the Charge Type based on selected Collateral Type. The options available are Hypothecation, Pledge, and Lien.
    Collateral Status Select the Collateral Status from the drop down list
    LGD Type Select the LGD Type (Loss Given Default Type) from the drop down list. The bank will take action on loss given default based on the option selected in this field.
    Collateral Classification Select the Collateral Classification from the drop down list. The options available are:
    • Secured
    • Unsecured
    • Liquid
    Seniority of Chrage Select the bank’s Seniority of Charge on the collateral. The options available are:
    • First
    • Second
    • Third
    LTV% Specify the collateral’s loan to value percentage in LTV % field.
    Document Status Select the Document Status from the drop down list. The options available are:
    • Submitted
    • Not Submitted
    • Partially Submitted
    Collateral Status Select the Collateral Status from the drop down list.
    Tangible Enable the Tangible flag, if the collateral is tangible.
    Collateral Description Specify a brief description about the collateral in Collateral Description field.
    Remarks Capture Remarks about the collateral.
  2. Click Next.

    The Collateral Details page appears.

  3. In Collateral details page, you can capture detailed information about the selected collateral.
  4. Click Add icon.
    The Configuration screen displays.

    Note:

    The above screen varies based on the selected collateral type. For example, if ‘Deposit’ is selected as the Collateral Type in Basic Details page, deposit related fields appear.

    For more information on fields, refer to the field description table below.

    Table 3-16 Ship Details

    Field Description
    Ship Name Specify the name of ship in Ship Name.
    Type Select the Ship Type. The options available are: General Cargo Vessels, Container Ships, Dry Bulk Carriers, Multi Purpose Vessels, Reefer Ships, Ferries, Freight, Ro-Pax, Pure Car Carriers, Combined Carriers, Ocean Liners, Cruise Ships, Fishing Vessel, High Speed Craft, Tankers, Passenger, and Roll On Ro
    Condition Select the Condition of ship from the drop down list.
    Location Click the search icon in Invoice Currency field and select the currency in which the ship is purchased.
    Inovice Currency Specify the amount for which the ship is purchased in the Invoice Value field.
    Registration Number Specify the registration number.
    Invoice Value Specify the amount for which the ship is purchased in the Invoice Value field.
    Amount in Collateral Currency Specify the amount in collateral currency.
    Number of Decks Specify the Number of Decks available in the ship
    Manufactured Date Click the calendar icon and select the Ship Manufactured Date
    Manufacturer Name . Specify the ship Manufacturer Name.
    License Name Specify the License Number of the ship.
    License Details Type a brief information about the license in License Details field.
    Description Type a brief description about the ship in Description field.

    Table 3-17 Ship Dimenions

    Field Description
    Dimension Unit Select the unit for ship dimension from Dimension Unit drop down list. The options available are:
    • Feet
    • Meters
    Length Specify the Length of ship in selected unit.
    Beam Specify the Beam (width) of ship in selected unit.
    Height Specify the Height of ship in selected unit.
    Displacement Unit Select the unit for ship weight from Displacement Unit drop down list. The options available are:
    • Tons
    • Metric Tons
    Displacement Specify the Displacement of ship in selected unit.

    Table 3-18 Ship Tonnage

    Field Description
    Size Select the Size of the Ship.
    Deadweight Tonnage Specify the Deadweight Tonnage.
    Gross Registered Tonnage Specify the Gross Registered Tonnage.
    Net Registered Tonnage Specify the Net Registered Tonnage.

    Table 3-19 External Pricing Details

    Field Description
    Security Code Specify the Security Code of ship.
    Security Description Type brief description about the ship security in Security Description field
    Price Code Specify the Price Code of ship.
    Unit Value Specify the Unit Value of ship and No of Units.
    Current Value The Current Value gets calculated based on the provided unit value and the number of units.
  5. Click Next.
    The Collateral Insurance page appears.

Collateral Insurance

In this page, you can capture insurance details of the collateral.

Figure 3-16 Collateral Insurance

Add, Edit and Delete actions for Collateral Insurance

  1. To add insurance details, click +Add.
    The Collateral Details window is displayed.

    Figure 3-17 Collateral Details

    Collateral details such as Insurance Basic Details and Insurance Premium Details

Insurance Basic Details

  1. Specify the insurance following details in respective fields
    • Policy Number
    • Policy Name
    • Insurance Provider
    • Insurance Name

    For information on fields in the Collateral Details screen, refer the below tables.

    Table 3-20 Collateral Details - Insurance Basic Details

    Fields Description
    Insurance Type Select the Insurance Type from the drop down list. The options available are: Asset Insurance, Life Insurance, Corporate Insurance, and Borrower Insurance.
    Policy Status Select the Policy Status from the drop down list. The options available are: Inforced, Lapsed, and Paidup.
    Insurance Currency Click the search icon in the Insurance Currency field and select the currency in which insurance amount is paid.
    Insurance Amount Specify the Insurance Amount in selected insurance currency
    Start Date and End Date Click the calendar icon and select the insurance Start Date and End Date.
    Grace Days Specify the Grace Days for making insurance premium payment.
    Notice Days Specify the Notice Days for insurance premium payment.
    Policy Assigned To Bank Specify if the policy is assigned to your bank by selecting required option from the Policy Assigned To Bank drop down list.

    Insurance Premium Details

    Table 3-21 Insurance Premium Details

    Fields/ Icons Description
    Premium Currency Click the search icon in the Premium Currency field and select the currency in which insurance premium is paid.
    Premium Amount Specify the Premium Amount in selected premium currency.
    Premium Frequency Select the Premium Frequency from the drop down list.
    Premium End Date Click the calendar icon and select the Premium End Date.
    Remarks Type Remarks about the insurance, if any.
  2. Click Add. The insurance details are added and displayed as shown below:

    Figure 3-18 Collateral Insurance

    Add, Edit and Delete options for Collateral Insurance

    For information on fields in the Collateral Insurance screen, refer the below tables.

    Table 3-22 Collateral Insurance

    Fields/ Icons Description
    Edit To modify the insurance details, select the record and click Edit.
    View To view the added insurance details, select the record and click View.
    Delete To delete the insurance details, select the record and click Delete.
  3. Click Next.
    The Field Investigation page is displayed.

Field Investigation

You can add field investigation details of the collateral, if field investigation is done for the collateral.

Figure 3-19 Field Investigation

Add, Edit and Delete Options for Field Investigation

  1. Click the Add icon.
    The Collateral Details window is displayed.

    Figure 3-20 Collateral Details

    Collateral Details such as Field Investigation Agency and Field Investigation Date

    For information on fields in the Collateral Details screen, refer the below tables.

    Table 3-23 Collateral Details

    Fields/ Icons Description
    Field Investigation Agency Select the Field Investigation Agency from the drop down list.
    Field Investigation Date Click the calendar icon and select the Field Investigation Date.
    Field Investigation Outcome and Field Investigation Remarks Specify the Field Investigation Outcome and Field Investigation Remarks.
    Add Click Add. The field investigation details are added displayed in the Field Investigation page.
    Edit To modify the field investigation details, select the record and click Edit.
    View To view the added field investigation details, select the record and click View.
    Delete To delete the field investigation details, select the record and click Delete.
  2. Click Next.
    The External Check page is displayed.

External Check

If the collateral is valuated by any external agency, you can add those details in the external check page.

Figure 3-21 Collateral - External Check

Add, Edit and Delete Actions for External Check

  1. Click the Add icon.
    The Collateral Details window is displayed.

    Figure 3-22 Collateral Details

    Collateral Details such as Agency and External Check Date

    For information on fields in the Collateral Details screen, refer the below table.

    Table 3-24 Collateral Details

    Fields/ Icons Description
    Agency Select the Agency by which the external validation is done.
    External Check Date Click the calendar icon and select the External Check Date.
    External Check Outcome Specify the External Check Outcome and Remarks.
    Add Click Add. The external check details are added and displayed in the External Check page.
    Edit To modify the external check details, select the record and click Edit.
    View To view the added external check details, select the record and click View.
    Delete To delete the external check details, select the record and click Delete.
    Next Click Next.
    The Valuation page is displayed.

Valuation

If the value of collateral is evaluated by any agency, you can add those details in the Valuation page.

Figure 3-23 Collateral - Valuation

Add, Edit and View Options for Valuation

  1. Click the Add icon.
    The Valuation - Collateral Details window is displayed.

    Figure 3-24 Valuation - Collateral Details

    Collateral Details such as Agency and Valuation Date

    For information on fields in the Valuation - Collateral Details screen, refer the below table.

    Table 3-25 Valuation - Collateral Details

    Fields Description
    Agency Select the Agency which valuated the collateral.
    Valuation Date and Valuation Expiry Date. Click the calendar icon and select the Valuation Date and Valuation Expiry Date.
    Valuation Currency Click the search icon in the Valuation Currency field and select the currency in which collateral is valuated.
    Valuation Amount Specify the Valuation Amount in selected valuation currency.
    Valuer Remarks Type Valuer Remarks.
    Add Click Add. The collateral valuation details are added and displayed in the Valuation page.
    Edit To modify the valuation details, select the record and click Edit.
    View To view the added valuation details, select the record and click View.
    Delete To delete the valuation details, select the record and click Delete.
    Next Click Next.
    The Legal Opinion page is displayed.

Legal Opinion

If the collateral is evaluated by any legal firm, you can capture those evaluation details in the Legal Opinion page.

  1. Click the Add icon in the Legal Opinion page.
    The Collateral Details window is displayed.

    Figure 3-25 Legal Opinion - Collateral Details

    Collateral details such as Agency and Legal Firm Opinion

    For information on fields in the Legal Opinion - Collateral Details screen, refer the below table.

    Table 3-26 Legal Opinion - Collateral Details

    Fields Description
    Agency Select the Agency which legally evaluated the collateral.
    External Opinion Date Click the calendar icon and select the External Opinion Date.
    Legal Firm Opinion and Final Recommendation. Specify the Legal Firm Opinion and Final Recommendation.
    Add Click Add. Legal opinion is added and displayed in the Legal Opinion page.
    Edit To modify the legal opinion, select the desired record and click Edit.
    View To view the legal opinion, select the desired record and click View.
    Delete To delete the legal opinion, select the desired record and click Delete.
    Next Click Next.
    The Risk Evaluation page is displayed.

Risk Evaluation

In case you find risk in the collateral, you can add risk information in the Risk Evaluation page.

Figure 3-26 Risk Evaluation

Edit, View and Delete Options for Risk Evaluation

  1. Click the Add icon.
    The Risk Evaluation - Collateral Details window is displayed.

    Figure 3-27 Risk Evaluation - Collateral Details

    Collateral Details such as Risk type and Severity

    For information on fields in the Risk Evaluation - Collateral Details screen, refer the below table.

    Table 3-27 Risk Evaluation - Collateral Details

    Fields Description
    Risk Type Select the Risk Type from the drop down list. The options available are: Currency Risk, Natural Hazardous Risk, Liquidity Risk, Operational Risk, Geo Political Risk, and Issue Credit Risk.
    Severity Specify the Severity of risk such as Low, Medium, and High.
    Comments Type detailed information about the risk in Comments and Approver Comments fields.
    Add Click Add. Risk information is added and displayed in the Risk Evaluation page.
    View To view the risk information, select the desired record and click View.
    Delete To delete the risk information, select the desired record and click Delete.
    Next Click Next.
    The Collateral Summary page is displayed

    Collateral Summary

    The collateral summary provides an overview of collateral based on the information added in previous pages.

    Figure 3-28 Collateral Summary

    Collateral Summary details such as Ownership and Covenants

    For information on fields in the Collateral Summary screen, refer the below table.

    Table 3-28 Collateral Summary

    Fields Description
    Submit View the Collateral Summary and click Submit. Collateral record is added and displayed in the Collateral Details page.
    View, Edit or Delete To View, Edit or Delete the collateral details, click the down arrow in the corresponding record and select the required option.
  2. Click Next in the Collateral Details page.
    The Comments page is displayed.Comments

    In this page, you can capture comments for the added collaterals, if any.

    Figure 3-29 Collateral - commments

    Overall Comments for Collateral

    For information on fields in the Collateral - commments screen, refer the below table.

    Table 3-29 Collateral - commments

    Fields Description
    Comments Type comments in the Comments box.
    Post Click Post. Comments are posted below the Comments box.
    Save & Close Click Save & Close. The collateral records are listed in Collaterals data segment.
    View, Edit To View, Edit or Delete the collateral details, click the down arrow in the corresponding record and select the required option.