11.1.1 Specify whether Limit Tracking is Required
Every credit-seeking customer of your bank is assigned a credit limit under a Credit Line.
Check against the credit limit tracking option, to indicate that the LC liability amount should be tracked against the credit limit assigned to the customer. Leave it unchecked to indicate you do not wish to track the LC liability amount against the credit limit assigned to any of the parties involved in the LC.
You would have already captured the details about the different parties involved in the LC. For each party type (APP, ABK, ISB, etc.), you would have specified the details of the party.
While specifying credit limit tracking details, you have to just indicate the party type against whom you want to track the credit limit. The party details are picked up by default.
When you specify a party type against whose credit limits you wish to track the LC amount the CIF ID assigned to
the party is automatically picked up and displayed.
Note:
The system prompts override messages:- If the LC expiry date is later than any linked collateral’s expiry date.
- If the LC expiry date extended as part of amendment is later than any limit line’s expiry date.
Parent topic: Introduction