2.11.12 Collateral Perfection

This topic provides more information on collateral perfection details of collateral maintenance.

Banks have a right over the collateral in case of default by the customer so charges are recorded on customer collaterals. These charges need to be registered as part of charge perfection with relevant authorities.

Collateral perfection can be done as part of customer collateral creation and as also part of amendment.

Based on the charge status, data is generated for sending a notice to an external registration authority at the time of charge registration, charge renewal and charge termination.

1. On Collaterals Maintenance screen, click the Collateral Perfection tab.
   The Collateral Perfection screen is displayed.

   Figure 2-35 Collateral Perfection

   
   

   
   Description of "Figure 2-35 Collateral Perfection"

   
   

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

   Table 2-36 Collateral Perfection - Field Description

   Field	Description
   Charge ID	Charge ID is generated by system. This ID is generated only if charge status is Registered and charge perfection details are entered and saved, wherever Charge registration required toggler is enabled.
   Charge Registration Status	Select the registration status from the drop-down list. The charge status is used to track the status of the charge registration process. The available options are: Proposed - The initial charge status Registered - When charge perfection details are entered and saved, charge status gets updated as ‘Registered’ and the data required for sending notice to the charge registration authority is generated. Renewal - Registered charge can be renewed upfront during lead days before charge end date by opting renewal. Charge can be renewed for a further period as per renewal frequency and unit configured. Charge status gets updated as 'Registered' once renewal is complete. Subsequent to renewal, charge renewal notice can be generated with the required data available. Expired - Charge status is updated as ‘Expired’ by the system in case charge is not renewed during lead days period. Once the Charge Registration End Date is crossed, the system updates the status as ‘Expired’ by running the Scheduler ‘ELCMPERFSTAT’. An expired charge can be renewed by entering the registration details. On renewal, the charge status will be updated as ‘Registered’ with a new charge end date. Discharged - When a loan provided for the collateral is repaid in full, charge noted for the collateral can be discharged. Note: Once charge is discharged on a customer collateral, no further updates can be performed on the same. Charge status is updated as Discharged, then the system generates a discharge notice that needs to be sent to the registration authority.
   Charge Registration No	Specify the unique charge registration number.
   Registration Authority	Specify the registration authority with which collateral is perfected.
   Regn. Authority Contact Details	Specify the contact details of registration authority.
   Perfection Date	Specify the date on which bank’s charge has been registered.
   Confirmation Date	Specify the date on which you received confirmation of perfection. That is, confirmation received from the registered authority. This date cannot be prior to perfection date.
   Charge Registration End Date	Once charge perfection details are entered and saved, based on Charge Perfection Date and Charge Renewal Frequency multiplied with Unit, charge registration end date is calculated by the system. For example, if Frequency is selected as Monthly and Unit is selected as 2, then the system updates the charge end date considering perfection date + 2 months.
   Charge Registration Amount	Specify the charge registration amount.
   Mortgagee Name	Specify the name of mortgagee.
   Documents Status	Specify if the perfection documents are received from registration authority.
   Filing Lead Date	Specify the filing lead date.
   Notes	Specify notes, if any.
   Stamping Required	Select this check box if stamping is required with relevant authority.
   Stamping Date	Specify the stamping date.
   Stamping Amount	Specify the stamping amount.
   Reference Number	Specify the reference number for the collateral.
   Charge Holder Name	Click the icon and select the name of Bank holding charge on the collateral.
   Charge Release Date	If the bank released charge on the collateral by executing release deed or release letter, specify the execution date of such document.
   Underlying Document	Click the icon and select the name of documents executed to create charge on the collateral. The options available are: Deed of Hypothecation Mortgage Deed .
   Underlying Document Date	Specify the date of the underlying document.

2. Click Save to save the record.