4.1.2 Detailed Flow
Existing functionality:
- Currently system supports Applicant as Counter party of Guarantee and SBLC.
- Party type will be defaulted as APP on Product default.
System enhanced with below changes:
- System defaults Applicant as counter party of Guarantee. Counter party can be modified as Accountee or Applicant Bank.
- When Accountee or Applicant Bank is counter party:
- Settlement account of Accountee or APB should be considered for Charge, Commission, Tax and Collateral
- Limits of Accountee or APB should be considered on Default Limits with Limit Tracking Required checked
- Debit advices should be generated accordingly
- Below advises should be sent to Accountee or Applicant Bank
- Cash Collateral advice ( LC_CASH_COL_ADV )
- GUA_ACK_ADVICE
- GUA_RELEASE_ADV
- GUA_CLAIM_ADV
- Trade Envelope Message should not be generated to Applicant Bank.
- No impact on other advices
- When Accountee is counter party :
- Customer Reference Number should be mandatory when TRADE_ENVELOPE
message is configured and Accountee is a Counter Party
- MT798 Guarantee Issuance notification messages
(GUAR_ISSUE_NOTIF_INDEX)
- TAG 21A Customer Reference Number to be populated with Customer Reference Number of Accountee
- Trade Envelope Message should be generated to Accountee if
Accountee is a Corporate Customer
Guarantee MT798 - B2C Guarantee issuance MT760/762 Guarantee amendment MT767/764/739/787/766/769 Guarantee claim MT765/779 Guarantee claim amendment MT765/777
- MT798 Guarantee Issuance notification messages
(GUAR_ISSUE_NOTIF_INDEX)
- Customer Reference Number should be mandatory when TRADE_ENVELOPE
message is configured and Accountee is a Counter Party
- Similar to applicant, below validations are introduced when APB/ACC is counter
party.
- Restrict amendment of counter party during Guarantee amendment (LCDGUAMD)
- Customer reference to be provided for counter party.
- Restrict amendment of party description for APB or ACC during Guarantee & SBLC issuance
- During Split Settlement of Charges and Commission:
- Currently system considers APP/BEN to process Charges or Commission during Guarantee and SBLC issuance or Guarantee Amendment
- System enhanced to consider counter party of the contract namely ACC/BEN or APB/BEN as applicable
- During Split Settlement of Collateral:
- Currently system validates Split settlement account should be Counter party account.
- The same will be applicable when counter party is Accountee or Applicant Bank