1. Bills and Collections User Guide
  2. Processing Bills
  3. Multi Tenor Bills
  4. Operations on Multi Tenor Bills
  5. Liquidation

4.3.1.3 Liquidation

The system provides an option to maintain liquidation amount for single split or multiple splits.

The system also allows partial liquidation of each split and updates the Liquidation Amount with the total of the amount liquidated to date.

If Liquidate using Collateral checkbox is checked, then the system utilizes the collateral while processing the first liquidation. However; if the collateral amount is more than the first split liquidation amount, then the system adjusts the balance towards subsequent splits.

If Advance by Loan checkbox is checked, then the system liquidates one or more splits and creates a loan to the extent of the liquidated amount.

Partial auto-liquidation of a multi tenor is enabled, that is, liquidation of only a portion of Bill amount that falls due for the day.

Note:

When an operation is changed from acceptance to advance automatically, the system processes the contracts for which the latest maturity date of the splits in a multi tenor contract is less than or equal to the application date.

Parent topic: Operations on Multi Tenor Bills