This topic describes about the detailed information about the liability maintenance.

Single Liability Linked To Multiple Customers

Here multiple customers are linked to same the Liability Code and all restrictions/facilities maintained at liability level are shared to all the customers.

Figure 2-53 Single Liability Linked To Multiple Customers

Single Liability Linked To Only One Customer

In this scenario, liability has only one linked customer. Facilities created for this liability can be utilized by contracts of the only customer linked to this liability.

Figure 2-54 Single Liability Linked To Only One Customer

Single customer linked to multiple liabilities

Here Single customer linked to multiple liabilities all restrictions/facilities maintained at liabilities are applicable to that customer alone.

Figure 2-55 Single customer linked to multiple liabilities

1. On Home screen, select Limits and Collaterals. Under Limits and Collaterals, select Limits.
2. Under Limits, select Maintenances. Under Maintenances, select Liability. Under Liability, select Liability Maintenance.
   The Liability Maintenance screen displays.

   Figure 2-56 Liability Maintenance

   
   

   
   Description of "Figure 2-56 Liability Maintenance"

   
   
3. On Liability Maintenance screen, specify the fields.
   For more information on fields, refer to the field description table.

   Table 2-47 Liability Maintenance - Field Description

   Field	Description
   Liability Code	Specify the liability code. Liability code is assigned to borrowing entity which can be a single entity or a group entity having multiple customers associated.
   Liability Name	Specify the liability name for the borrowing entity.
   Liability Branch	Click the icon and select the branch in which liability is associated.
   Main Liability Code	Click the icon and select the required main liability from the list of liability code maintained in the system. This is optional Note: Child liability and parent liability (main liability) can be in different branches. During Utilization and block transactions, the utilization and block amounts are tracked for both the specified Liability and the linked parent Liability. After the child liability creation, you can change or delink the selected main liability through the Main Liability Change screen , if required. If the main liability is not selected during child liability creation, you can link the main liability at any time through the Main Liability Change screen . Note: The child liability's overall limit amount should not exceed the parent liability's overall limit amount.
   Main Liability Name	This field is automatically populated based on the selected from Main Liability Code.
   Liability Currency	Click the icon and select the currency with which the liability limit is signified. Note: User can modify the liability currency after authorization if: There are no lines, collaterals or collateral pools linked to the liability. The liability is not utilized. The liability is not the parent liability for another child liability.
   Liability Category	Click the icon and select the liability category from the list of categories available Category Maintenance screen.
   Liability Status	Click the icon and select the status of liability. (For example, NORM for normal, BLOCKED,and so on). Liability status will be updated as Active on creation and can be subsequently modified as per requirement.
   Review Date	Specify the date on which bank would want to review the limit for the liability. The limit check continues irrespective of the date maintained here. The revision date must be greater than the start date and can also be left blank.
   User Reference	Provision to capture comments/reference details about the liability.
   Overall Limit	Liability/borrowing entity based on appraisal. If a main liability is attached during creation, sub liability limit cannot exceed main liability limit. Limit amount of line linked to a liability cannot be more than liability level limit amount. Only the parent facilities will be considered while validating against the overall limit. Note: The system validates the overall limit amount with the internal lending limit equivalent amount. If the overall limit amount is greater than the Internal Lending Limit Equivalent Amount, then the system displays an override message as Overall limit amount $1 of the customer liability exceeds the maintained Internal Lending Limit Equivalent Amount $2. Internal lending amount is arrived at considering internal lending percentage applied on amount derived considering central bank lending percentage on bank capital.
   Counterparty Appetite	Specify the total project limit which can be sanctioned to the customer. Note: It is not a mandatory field. Counter party appetite is user enterable. If entered, cannot be less than the overall limit .If not entered it is derived from the overall limit. If entered more than overall limit, then it is not derived from the overall limit.
   Headroom Limit	The system displays the headroom available to the borrowing entity. The headroom limit is updated based on the limit amount of facilities created under the liability. Headroom limit will be updated as counterparty appetite at the time of liability creation. Headroom limit is shown as ZERO if it is negative. However internally it will be tracked and suitably updated if any linked facility is closed. Note: Facilities created under a child liability will update only the headroom limit of child liability. Update on the headroom limit of child liability will not affect the headroom limit of the parent liability. Sub-lines will not update the headroom limit.
   Utilization Amount	This field displays the utilized amount for the liability ID at any point in time. This is a derived field and not editable.
   Block Amount	This field displays the blocked amount for the liability at any point in time. This is a derived field and not editable.
   Tanked Utilization	Utilization transactions received post initiation of EOD are tanked and the same are updated against tanked utilization field. After BOD process, this utilization amount is updated for the liability which is linked to the transaction as per the contract and the amount is cleared from the Tanked Utilization field.
   Liability Clean Risk Limit	This limit is captured in the Customer Maintenance screen (STDCIF). This field is populated only when the liability is created using Auto liability Creation option in Customer Maintenance screen. Note: This field is only display field and no other validations as such are supported.
   Secondary Clean Risk Limit	This limit is captured in the Customer Maintenance screen (STDCIF). This field is populated only when the liability is created using Auto liability Creation option in Customer Maintenance screen. This field is only display field and no other validations as such are supported.
   Secondary Pre-Settlement Risk Limit	This limit is captured in the Customer Maintenance screen (STDCIF). This field is populated only when the liability is created using Auto liability Creation option in Customer Maintenance screen. This field is only display field and no other validations as such are supported.
   Available Amount	This amount is derived considering utilized and blocked amounts at liability level out of limit amount.
   External Credit Rating	The primary credit rating maintained in the credit rating sub-screen is displayed. Note: These details are maintained only for information and have no processing impact.
   Internal Credit Rating	The internal credit rating maintained in the credit rating sub-screen is displayed.
   External Credit Score	The primary credit score maintained in the credit score data segment is displayed. Note: These details are maintained only for information and have no processing impact.
   Internal Credit Score	The internal credit score maintained in the credit score data segment is displayed.
   Unadvised	Switch to for this feature to be enabled. Switch to for this feature to be disabled. For any transaction involving an unadvised liability, you are notified. When a facility is created for an unadvised liability, an information message is displayed.
   Netting Required	Switch to for the netting amount to be defined. Switch to for not defining the netting amount. Facility level netting can be enabled if liability level netting is enabled. User can have the Facility to display the Netting Amount in the Netting Contribution screen. For more details on this feature, refer the Including Netting Amount in Facility's Netting Contribution topic.

4. Click Save to save the record.

• Credit Score
  This topic provides systematic instructions about credit score.
• Credit Rating
  This topic describes about the procedure to specify credit rating for a liability.
• Linked Customers
  The topic describes about the detailed information on the linked customer.
• Fields
  This topic describes the systematic instructions to configure and maintain the additional fields screens.
• View Liability
  This topic describes the systematic instructions to view liability.