REIN: Reinstatement of an LC / Guarantee

14.2.4 REIN: Reinstatement of an LC / Guarantee

Table 14-31 Accounting Entries

Role	Amount Tag	Dr/Cr
LC_OCU	LIAB_REIN_AMT	Dr
LC_OCU_OFFSET	LIAB_REIN_AMT	Cr
LC_OCU	ADV_LIAB_REIN_AMT	Dr
LC_OCU_OFFSET	ADV_LIAB_REIN_AMT	Cr
LC_CNF	CNF_ LIAB_REIN_AMT	Dr
LC_CNF_OFF	CNF_ LIAB_REIN_AMT	Cr

The accounting entries for reinstatement for Revolving LC (in case of reinstatement of more than the confirmed amount) are as follows:

Table 14-32 Accounting Entries

Account role code	Amount Tag	Dr/Cr
LC_OCU (Outstanding Credit Unutilized)	UCNF_LIAB_REIN_AMT	Dr
LC_OCU_OFFSET (Unutilized Credit Offset)	UCNF_LIAB_REIN_AMT	Cr
LC_CNF (Confirmation of LC)	CNF_LIAB_REIN_AMT	Dr
LC_CNF_OFF (Confirmation of LC Offset)	CNF_LIAB_REIN_AMT	Cr
Account role code	Amount tag	Dr/Cr
LC_OCU (Outstanding Credit Unutilized)	UCNF_LIAB_REIN_AMT	Cr

The amount of the Confirmed Portion will be reinstated first. In this case, the entire confirmed amount is reinstated Accounting entries for increase in the confirmation as part of amendment are as follows:

Table 14-33 Accounting Entries

Account role code	Amount Tag	Dr/Cr
LC_OCU_OFFSET (Unutilized Credit Offset)	CNF_LIAB_INCR_AMT	Dr
LC_OCU (Outstanding Credit Unutilized)	CNF_LIAB_INCR_AMT	Cr
LC_CNF (Confirmation of LC)	CNF_LIAB_INCR_AMT	Dr
LC_CNF_OFF (Confirmation of LC Offset)	CNF_LIAB_INCR_AMT	Cr

Accounting entries for decrease in the confirmation as part of amendment are as follows:

Table 14-34 Accounting Entries

Account role code	Amount Tag	Dr/Cr
LC_CNF_OFF (Confirmation of LC Offset)	CNF_LIAB_DECR_AMT	Dr
LC_CNF (Confirmation of LC Offset)	CNF_LIAB_DECR_AMT	Cr
LC_OCU (Outstanding Credit Unutilized)	CNF_LIAB_DECR_AMT	Dr
LC_OCU_OFF (Outstanding Credit Unutilized Offset)	CNF_LIAB_DECR_AMT	Cr

If the amendment is done for change of confirmation amount, if any charges associated with this event with Basis Amount as Confirmation amount will be collected along with other charges associated with this event.

Parent topic: Event-wise Accounting Entries