1. Letter of Credit User Guide
  2. Credit Limit Tracking for LC
  3. Introduction
  4. Indicate Credit Line under which the Liability Amount must be Tracked

11.1.4 Indicate Credit Line under which the Liability Amount must be Tracked

You have to specify the credit line of the party against which the LC liability amount has to be tracked. If more than one credit line has been defined for the party, only those credit lines whose restrictions are in line with that of the LC will be displayed. The restrictions could be one of the following:
  • Tenor
  • Product
  • Branch
  • Currency

In addition, the expiry date of the line should be before the Issue Date of the LC.

Note:

When you enter an LC for a customer, and choose a line, the cash collateral percentage defined for the customer and line will default. If you have not defined the cash collateral percentage for a customer and a line, the cash collateral percent defined for the product will default to the LC Contract. You can change this default value to suit the LC you are processing.

Parent topic: Introduction