3.5.4 Initiate Islamic Letter of Credit - Linkages

This topic provides the systematic instructions to capture the Linkages details in the application.

This tab allows the user to view the default percentage of collateral and the corresponding amount of cash collateral as maintained at back office and can edit the same.

The user has options to attach multiple accounts and indicate the contribution amount or percentage of the total collateral amount. This will be based on the mapped settlement accounts for user. User can add the cash collaterals in transaction currencies only, however customer account can be in any currency. He will get to see the exchange rate in cases where transaction currency and settlement account currency is different. User will be shown the sum of all linkages for easy reference.

1. Specify the Linkages details.

   Figure 3-15 Initiate Islamic Letter of Credit - Linkages tab
   
   Description of the illustration initiate-islamic-letter-credit-linkages.png
   

   Note:

   The fields which are marked as Required are manadatory.

   For more information refer to the field description table below:

   Table 3-14 Initiate Islamic Letter of Credit - Linkages - Field Description

   Field Name	Description
   Cash Collateral Linkages	Specify the Cash Collateral Linkages details based on the following table:
   Currency	Displays the contract currency of cash collateral as maintained at back office
   Description	Displays the description of collateral linkage.
   Percent	Displays the percentage of LC to be used as collateral – as maintained at OBTF.
   Collateral Amount	Displays the amount to be used as Collateral for LC.
   Account Number	Select the account number from the list of accounts that are mapped to the user.
   Contribution Amount for Collateral	Specify the amount to be used from the selected account towards the collateral.
   Contribution Percentage	Displays the percentage of the total collateral to be taken from the selected account.
   Exchange Rate	If the selected account is in another currency from that of contract’s currency the exchange rate between them is to be displayed.
   Contribution amount in Account currency	Displays the amount to be contributed from selected account in the account’s currency.
   Total Collateral Amount	Displays the total collateral amount.
   Select Deposits	Specify the deposit account details based on the following table:
   Account Number	Select the deposit account that has to be mapped to the transaction.
   Amount	Specify the amount that is to be linked for the transaction, and partial linkages to be supported.
   Exchange Rate	If the selected account is in another currency from that of contract’s currency the exchange rate between them is to be displayed.
   Amount in Transactional Currency	Displays the tentative equivalent amount in transactional currency.
   Maturity Date	Displays the maturity date of the deposit.

2. Click the Add Account link to add the new account.
3. From the Account Number list, select the appropriate account that has to be mapped to the transaction.
4. Specify the contribution collateral amount in the Contribution Amount for Collateral field.
5. In the Deposit Linkage section, elect the appropriate deposit account from the Account Number list.
6. Specify the amount to be used in the Amount in Transactional Currency field.
7. Perform any one of the following actions:
   • Click the Add Account link to add multiple cash collateral linkage.
   • Click Delete to delete the cash collateral linkage.
8. Perform any one of the following actions:
   • Click Next to save the entered details and proceed to the next level.

     The Instructions tab appears in the Initiate Islamic Letter of Credit screen.

   • Click Save As Draft, system allows transaction details to be saved as a template or draft. (For more details, refer Save As Template or Save As Draft sections.)
   • Click Cancel to cancel the transaction.

     The Dashboard appears.

   • Click Back to go back to previous screen.