2.2.9 Collateral Links Details

This topic describes about the procedure to link collateral to facility.

During facility creation or amendment, you can also link the collaterals that are not part of collateral pool, such as external collaterals or shared collaterals, to the facility through collateral direct linkage feature.

Collaterals that are indirectly linked to the facility through collateral pool linkage cannot be directly linked to the facility. That is, collaterals that are part of collateral pool in association with a particular facility cannot be directly linked to the same facility.

The maximum number of collaterals that can be directly linked to the facility can be controlled by specifying a value (limit) to the FACILITY_COLLATERAL_LIMIT parameter GETB_PARAM.

Note:

• Same collateral can be linked to different facilities
• Collaterals can be linked only to the active facility
• Collateral belonging to a particular liability in different branch can be linked to the facility belonging to the same liability in different branch
• For backdated facility, the start date of collaterals to be linked must be same as or prior to the facility start date (back value date)

1. On Facilities Maintenance screen, click the Collateral Links tab.
   The Collateral Links Details screen is displayed.

   Figure 2-14 Collateral Links Details

   
   

   
   Description of "Figure 2-14 Collateral Links Details"

   
   

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

   Table 2-33 Collateral Links Details - Field Description

   Field	Description
   Collateral Code	Click the icon and select the collateral code for linking with the facility.
   Collateral Description	Displays the description based on the collateral code selected.
   Type	Displays the type based on the collateral code selected.
   Branch Code	Displays the branch based on the collateral code is linked.
   Source Code	Displays the code of the source system where the collateral is maintained in the external system.
   Collateral Currency	Displays the currency based on the collateral code selected.
   Collateral Value	Displays the total value of the collateral code.
   Limit Contribution	The system calculates the Limit Contribution by reducing collateral value to the extend of haircut percentage.
   Available Amount	Displays the available amount of the collateral linked.
   Amount Basis	Select the amount basis for linking the collateral. The option available are: Percentage Amount If Percentage is selected, then the system allows you to enter the percentage only and not the Linked Amount. The Linked Amount is appropriately calculated by the system and it is not editable. The value of the percentage must be from range 0 to 100. If Amount is selected, then the system allows you to enter the amount only and not percentage. When amount is entered, the system appropriately calculates the percentage. Ensure to maintain amount in positive. User can modify the linkage at facility level from percentage to amount and vice-versa. The system ensures that total value of collateral linked to one or multiple facilities is not more than limit contribution.
   Linked Percentage	Specify the percentage of limit contribution to be linked with the facility, if Amount Basis is selected as Percentage.
   Linked Amount	Specify the collateral amount out of available amount to be linked with the facility, if Amount Basis is selected as Amount. If the Amount Basis is selected as Percentage, the Linked Amount will get changed whenever the collateral revaluation happens as a part of batch process.
   Facility Currency	Specify the currency for the facility.
   Linked Amount Facility Currency	The collateral linked amount is converted to facility currency and displayed.
   Order Number	Specify the order for collateral utilization. This is optional. If multiple collaterals are linked to the facility, the utilization will happen in the mentioned order.

   Note:

   Delinking of collateral is allowed only if the collateral amount is already not utilized/blocked. However, if the utilization / block is only to the extend of few linked collaterals, you can delink a particular collateral after changing the order of utilization of the collateral which you want to delink to the least order.

   Note:

   • For a DP backed facility, linked collaterals value will continue to get updated in the facility main screen as Collateral Amount, but this will not impact the effective line amount since the effective line amount basis will always be Min (Limit Amount, DP Amount).
   • Collaterals of all types (including Inventory and Account Receivables) can be linked to a DP backed facility.
   • For more information on drawing power, refer Drawing Power Based Facility.
2. Click Save to navigate to the Facilities Maintenance screen.