2.12.21 Promissory Note

This topic provides the information on Promissory Note.

The system allows to add collaterals of type promissory note in GCDCOLPN screen while creating customer collaterals.

Note:

The user can add any number of promissory notes as collateral. While creating a collateral record, at least one promissory note must be available as child collateral.

If multiple promissory notes are added as collaterals, the value of the collateral is the sum of consideration amount in all the promissory notes.

In case, the promissory note currency is different from the collateral currency, the system converts the consideration amount in promissory note to collateral currency with the configured exchange rate.

Note:

The Collateral Value derived from the linked promissory notes cannot be changed manually.

End date of the collateral is derived based on the farthest limitation expiry date of the linked promissory notes.

Note:

Collateral end date derived from the linked promissory notes can be changed manually, but it cannot be less than the derived date.

1. On the Home screen, specify GCDCOLPN in the text box and click the icon.
   The Promissory Note screen is displayed.

   Figure 2-87 Promissory Note

   
   

   
   Description of "Figure 2-87 Promissory Note"

   
   
2. On Promissory Note screen , click the Promissory Note tab.
   The Promissory Note screen is displayed.

   Figure 2-88 Promissory Note

   
   

   
   Description of "Figure 2-88 Promissory Note"

   
   

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

   Table 2-103 Promissory Note - Field Description

   Field	Description
   Promissory Note Type	Specify the type of the promissory note.
   Reference Number	Specify the reference number of the promissory note.
   Maker	Specify the name of the entity that provides the promissory note.
   Payee	Specify the name of the payee that receives the promissory note.
   Holder	Specify the name of the promissory note holder, if holder is endorsed by the payee.
   Place	Specify the place or address where the promissory note is executed.
   Execution Date	Specify the execution date of the promissory note.
   Limitation period	Specify the validity of the promissory note in months.
   Limitation review date	Specify the review date of the promissory note.
   Limitation expiry date	Specify the expiry date of the promissory note.
   Currency	Click the icon and select the currency of the promissory note.
   Consideration Amount	Specify the full amount mentioned in the promissory note.
   Amount in Collateral Currency	Specify the promissory note consideration amount converted to collateral currency, if the promissory note currency and the collateral currency are different.
   Status	Status of the promissory note from the drop-down list. The options available are: Active: During new collateral creation process of promissory notes, the Status will be selected as ‘Active’ by default. Cancelled: After saving the collateral, the user can manually mark / update the Status as ‘Cancelled’ at any point during the collateral life cycle. Expired: After saving the collateral, the Status can be marked / updated as ‘Expired’ either manually by user or through automatic update based on the date captured as expired at any point during the collateral life cycle. Note: The Collateral value will get reduced based on the individual status update of associated / linked promissory notes. Cancelled to Active / Expired Expired to Active / Cancelled
   Remarks	Specify the additional details of the promissory notes, if any.

3. Click Save to save the record.