The topic describes about the detailed information on the liability merger process.

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

   Figure 2-70 Liability Merger Process

   
   

   
   Description of "Figure 2-70 Liability Merger Process"

   
   

   For more information, refer to the field description table below.

   Table 2-55 Liability Merger Process

   Field	Description
   Branch Code	Click Search icon and select the branch code To select liability merger maintenance records.
   From Liability Code	Click Search icon and select the From Liability Code mentioned in the Liability Merger record, using the adjoining option list.
   To Liability Code	Click Search icon and select the To Liability Code mentioned in the Liability Merger record, using the adjoining option list.
   Effective Date	Selecting effective date to filter liability merger maintenance records
   Status	Select one of below options from the dropdown based on which to filter liability merger maintenance records Unprocessed Processed Error Common Core Error

4. The unprocessed Liability Merger records having the effective date as current business date can be selected and the merger of maintained liabilities can be initiated for these records by clicking on the Process option.
5. Post successful liability merger process, from liability is closed, limit amount is zeroised and transactions like utilization and block are zeroised as these are moved to TO liability
6. Upon clicking on the View option against each merger record, user can view the merger record updated with the following entity and transaction merger logs.
   The following are entity and transaction merger logs which are also available as part of View Liability Merger record.

   • • Customer Link Merger Log
     • Collateral Merger Log
     • Netting Merger Log
     • Collateral Pool Merger Log
     • Facility Merger Log
     • Facility Transfer Merger Log
     • EarMarking Merger Log
     • Utilization Merger Log
     • Block Merger Log

   Figure 2-71 Liability Merger Maintenance

   
   

   
   Description of "Figure 2-71 Liability Merger Maintenance"

   
   

   User can verify entity/transaction details are updated successfully as the status will be updated as Processed in the respective log.

   Note:

   Merger between Liabilities that form part of a hierarchy is not allowed.

7. Post liability merger process, linked customer details in the TO LIABILITY will be updated with appropriate details of customer moving FROM LIABILITY including default linkage
   Following examples enumerate before and after merger process

   Table 2-56 Merging Liabilities - Field Update

   Scenario	Description
   Scenario 1	Before Liability merge
   	From Liability	Customer	Default	To Liability	Customer	Default
   	Liab A	Cust A	Yes	Liab B	Cust B	Yes
   	After Liability merge
   				Liab B	Cust B	Yes
   					Cust A	Yes
   Scenario 2	Before Liability merge
   	From Liability	Customer	Default	To Liability	Customer	Default
   	Liab A	Cust A	Yes	Liab B	Cust B	Yes
   		Cust B	No
   	After Liability merge
   				Liab B	Cust B	Yes
   					Cust A	Yes
   Scenario 3	Before Liability merge
   	From Liability	Customer	Default	To Liability	Customer	Default
   	Liab A	Cust A	Yes	Liab C	Cust C	Yes
   		Cust B	No		Cust D	No
   	After Liability merge
   				Liab C	Cust C	Yes
   					Cust D	No
   					Cust A	Yes
   					Cust B	No
   Scenario 4	Before Liability merge
   	From Liability	Customer	Default	To Liability	Customer	Default
   	Liab A	Cust A	Yes	Liab C	Cust C	Yes
   		Cust B	Yes		Cust D	Yes
   	After Liability merge
   				Liab C	Cust C	Yes
   					Cust D	Yes
   					Cust A	Yes
   					Cust B	Yes
   Scenario 5	Before Liability merge
   	From Liability	Customer	Default	To Liability	Customer	Default
   	Liab A	Cust A	Yes	Liab B	Cust B	No
   		Cust B	Yes
   	After Liability merge
   				Liab B	Cust B	Yes
   					Cust A	Yes