2.1.2.9 Limit Mandate

This topic provides systematic instructions about the procedure to maintain mandate information for the facility.

As part of business requirement, banks can stipulate specified types of collateral to be available in the name of liability while allowing utilization on the facility.

  1. Click Next in previous data segment to proceed with the next data segment, after successfully capturing the data.
    The Limit Mandate screen is displayed. For more information on fields, refer to the field description table.

    Table 2-32 Limit Mandate - Field Description

    Fields Description
    Collateral Type Click Search icon, to select the collateral type.

    User can signify mandate settings for different collateral types at the facility level.

    Utilization Mandate Percentage

    Specify the minimum percentage of the specific collateral type selected. to be collected while processing the utilization transaction against the line code specified. The system verifies whether the mandate percentage of the line utilization amount is greater than the collateral limit contribution. If the mandate percentage is higher, the system displays an override message. You may choose to continue or cancel the maintenance.

    At the time of utilization of the facility with mandate settings, system validates and checks whether signified percentage of utilization amount is available as collateral for the configured type under the liability and displays appropriate message
  2. Click Save and click Next to navigate to the next data segment, after successfully capturing the data.