2.1.2.6 Pool Linkage Details

This topic provides systematic instructions about to link collateral pool to facility.

In addition to limit amount signified at the facility level, banks also consider allowing utilization against the collateral pools which are linked to facility. When a collateral pool is linked to facility with effective line amount basis as limit amount + collateral contribution, effective line amount derived is considered and utilization is allowed on the facility till effective line amount.

OBELCM allows linkage of a single pool to the facility. For backdated facility, the start date of collaterals linked to the pool must be same as or prior to the facility start date (back value date).

  1. Click Next in previous data segment to proceed with the next data segment, after successfully capturing the data.
    The Pool Links screen is displayed.

    Figure 2-21 Pool Links Details


    Description of Figure 2-21 follows
    Description of "Figure 2-21 Pool Links Details"

    For more information on fields, refer to the field description table.

    Table 2-26 Pool Links Details - Field Description

    Fields Description
    Pool Code Click the Search icon and select the pool code from the list. The list displays all the pool codes associated for that liability ID.
    Pool Description Displays the description based on the selected pool code.
    Action Displays the action based on the pool link selected.

    Note:

    • For a DP backed facility, linked collateral pool value will continue to get updated in the facility main screen as Pool Amount, but this will not impact the effective line amount since the effective line amount basis will always be Min (Limit Amount, DP Amount).
  2. Click Addicon, the Pool Links screen displays.

    Figure 2-22 Pool Links


    Description of Figure 2-22 follows
    Description of "Figure 2-22 Pool Links"

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

    Table 2-27 Pool Links

    Field Description
    Pool Code Click the Search icon and select the pool code from the list. The list displays all the pool codes associated for that liability ID.
    Pool Description Displays the description based on the selected pool code.
    Pool Currency Displays the currency based on the selected pool code.
    Pool Amount Displays the amount based on the selected pool code.
    Amount Basis Select the amount basis for linking the pool from the drop-down list. The option available are:
    • Percentage
    • Amount

    If Percentage is selected, then system allows you to enter the percentage only and not the Linked Amount. The Linked Amount is appropriately calculated by the system and it is not editable. The value of the percentage must be from range 0 to 100.

    If Amount is selected, then the system allows you to enter the amount only and not percentage. When amount is entered, the system appropriately calculates the percentage. Ensure to maintain amount in positive.

    User can modify the linkage at facility level from percentage to amount and vice-versa.

    The system ensures that total of pool value linked to one or multiple facilities is not more than the collateral pool value.
    Linked Percentage and Linked Amount In Pool Currency

    Incase Collateral Pool Value is increased in the Collateral Pool Maintenance screen,then the Linked Amount is modified only if the Amount Basis is Percentage.

    If the Amount Basis is Amount, then the Linked Amount is retained as is. However based on the changed Collateral Pool Value,the Pool Percentage isre-calculated considering the retained amount.

    Incase the Collateral Pool Value is decreased, modified amount of collateral pool is validated with all the Linked Amount in various facilities (either percentage or amount) and if the total amount linked is less than modified amount then modification of collateral pool value is to be allowed. Wherever Percentageamount is the basisis considered for linking collateral pool value to facility, if the Collateral Pool Value decreased amount is less than the total Linked Amount in various facilities, then an appropriate error message appears.

    When the value available balance of collateral pool becomes negative on account of linked collaterals revaluation, revaluation process skips such pools and logs exception in OBELCM_PP_TM_CL_POOL_EXCEPTION table.
    Facility Branch Click the Search icon and select the branch code from the adjoining list.
    Facility Currency Facility currency is defaulted based on the facility to which pool is being linked.
    Linked Amount in Facility Currency Specify the facility amount. If the pool currency is different from facility currency, facility amount in facility currency is calculated and displayed. Same will be updated against pool amount field in facility details.
    Percentage of Contract The system displays the percentage of contract.
  3. Click Save and click Next to navigate to the next data segment, after successfully capturing the data.

Parent topic: Facilities Maintenance