5.5 External Collateral Maintenance
Integrating External Collaterals with the "Limits System"
The "Limits system" allows you to link collaterals from an "External Collaterals system", enabling you to manage your collateral portfolio more effectively. Here's an overview of how the integration works:
Key Features:
- Collaterals created in the external Collaterals system can be used in the Limits system through "External Collaterals".
- Customer number/ID is mandatory for collaterals from the external Collaterals system.
- Individual record-level details of the collaterals are available only in the external Collaterals system.
- External collaterals can be linked to a pool only by signifying a percentage (default is 100%).
- Collateral Type for external collaterals is always "External".
- Internal collaterals from OBELCM and external collaterals can be linked to the same pool.
To link external collaterals to a pool:
- Create a pool in the 'Pool' screen.
- Select the external collateral(s) you want to link to the pool.
- The details of the source system will be displayed in the 'Pool' screen.
- Select "Percentage" as the Amount basis and allocate 100% to the pool.
- Multiple external collaterals can be linked to the same pool.
To de-link an external collateral from a pool:
- De-link the external collateral from the pool.
- The 'Linked' flag in the External Collateral Maintenance screen will be updated.
- The de-linked collateral can be re-linked to another collateral pool with 100% allocation.
Collateral Revaluation:
When a collateral is revalued/modified in the
"External Collaterals system":
- The modified value will have to be updated in the 'External Collateral' screen manually/through the service.
- The linked amount at the pool level will be updated by the system.
- If the pool is linked to a facility on a percentage basis, the pool value will be revalued and the linked pool amount at the facility level will be recalculated.
To close a collateral in the "External Collaterals
system":
- Remove the collateral from the pool in the Limits system.
- Provide an alternate collateral to the pool(if it is already utilized).
- Closure of an external collateral in the Limits system with the 'Linked' flag updated is not allowed.
- By following these guidelines, you can effectively integrate external collaterals with the Limits system and manage your collateral portfolio more efficiently.