T24 COLLATERAL

Collateral.Right & Collateral

Objectives

 After completing this learning unit, you will be ale to

 Establish Collateral right and Collateral records for a

 Collateral – internal, external

 Bank’s right over collateral items

 Recording the details of Collateral Item

Slide 2
Collateral Menu

Slide 3
COLLATERAL.CODE, COLLATERAL.TYPE

COLL.CODE COLL.TYPE Description

100 100-149 Bất động sản

150 150-199 Phương tiện vận chuyển

200 200-249 Giấy tờ có giá

250 250-299 Hàng hóa

300 300-349 Máy móc thiết bị

350 350-399 Ngoại tệ, vàng bạc đá quí

400 400-449 Giấy tờ có giá - Cổ phiếu trên sàn

450 450-499 Giấy tờ có giá - Cổ phiếu OTC
900 900-99 TAI SAN KHAC

Slide 4
Establishment of Collateral Records
COLLATERAL.RIGTH
Sequence number is the nth right
Covers outstanding of a customer
ID format is customer
ID sequence number
Links the collateral offered for the
purpose
COLLATERAL
Maybe linked to other application
records in the system
Record details of collateral
ID format is COLLATERAL.RIGHT
ID sequence number
Details like value, review frequency,
etc
Slide 5
COLLATERAL.RIGHT

 Collateral\collateral link
 Definition of collateral items held against a customer’s liabilities
 Defines what the collateral can be used as security for ('linked to').
 Definition of Validity date, Expiry date and Review frequency

Slide 6
COLLATERAL.RIGHT (Cont.)

 ID: <CCCCCCCCCC>.<SS>
 CCCCCCCCCC: Customer no
 SS: Sequence no with two digits
 Collateral code
 Code of the category to which the collateral right belongs.
 Value date
 The date upon which the collateral right becomes effective.
 Expiry date
 The expiry date of the collateral right.
 Review Dt Fqu
 The review date & frequency which is to apply to the collateral right.
 Notes
 Customer
 Item-id to record on customer file.
 For information purposes only. For example, this field may be used to
record a customer, other than that mentioned in the item-id, supplying the
collateral.

Slide 7
COLLATERAL.RIGHT – Allocation details

 Limit company
 The company in which the LIMIT.REFERENCE record exists.
 Limit reference
 limit reference against which the collateral right is valid.
 Limit customer
 Specifies the customer of the contract in the LIMIT.REFERENCE field
 Allocation
 If a percentage value is entered then Collateral can be allocated to a limit at
any level

Slide 8
Workshop - 1

 Create a COLLATERAL.RIGHT for yourself with the collateral code

created by you earlier for paintings

 This is valid for one year from today

 40% value is meant for loans limit of another customer while 60%
value is meant for your loans limit

Slide 9
COLLATERAL

 Collateral\Collateral

Slide 10
COLLATERAL (Cont.)

 ID of collateral
 <CCCCCC.SS>.<NN>
 Collateral type
 Number identifying the type of collateral.
 Collateral code
 Number identifying the code of collateral
 Description
 Description of the collateral
 Company
 The company to which the application main file record
under APPLICATION.ID belongs
 Application ref
 The contract or account id by which the collateral object
is represented.
 Account, fiduciary deposit (order) number, letter of
credit transaction, number (loans &) deposits contract
number, miscellaneous deal number, money market
contract number, securities portfolio number,
 Notes
 Notes of collateral

Slide 11
COLLATERAL (Cont.)

 Status: status of collateral

 01: Normal
 02: Release
 03: Borrowed
 04: Keeping
 05: Future
 Currency
 The currency of the collateral (values).
 Nominal value
 The overall, original or nominal value of the
collateral. This value is for information purposes
only
 Maximum value
 The maximum execution value of the collateral.
 Execution value
 The accepted or execution value of the collateral.

Slide 12
COLLATERAL (Cont.)

 Thrid Party value

 A value which represents a prior or third party right
to the collateral.
 This value is a value attached to the collateral
which is not available under the right itself.
 Gen Ledger Value
 The collateral value for general ledger purposes.
 This value may be used to represent the general
ledger value of the collateral and contingent
entries
 Central Bank Value
 The collateral value for central bank reporting
purposes.

Slide 13
COLLATERAL (Cont.)

 Value date
 The date upon which the values in the preceding fields were established or
accepted.
 Expire date
 The expiry date of the collateral values.
 Review Frequency
 The date and frequency of review of the collateral.

Slide 14
COLLATERAL (Cont.)

 Loan Ratio
 Loan ratio of contract
 Contract sec
 Secured Contracts / Limit reference
 Secured amount
 Secured amount of contract
 Address
 The address of the collateral, if
applicable.
 Province
 The Province of the collateral

Slide 15
Contingent Entries

 The contingent entries will be automatically opened when commit

collateral input screen.

Slide 16
CONTINGENT ENTRIES (Cont.)

 Product category
 28200-28299
 28200: Collateral
 28299: Portfolio Collateral
 Amount
 Amount of contingent entries
 Default from collateral
 Input date
 Represents the actual date the contingent entry was agreed
 Default from collateral
 Start date
 The value date of contingent entry.
 Default from collateral
 Maturity date
 Either the date when the contingent entry is released. Zero if no expriry
 Auto expiry
 YES, the Deal will expire on the date specified in the MATURITY.DATE.
 If set to NO, the STATUS of the Deal will be held as 'CUR' even past the
Maturity Date

Slide 17
Workshop - 4

 Establish a collateral item for yourself based on

COLLATERAL.RIGHT created in Workshop 3

 Give a nominal value of USD 1 Million

 The security is available from today and is valid for 5 years

thereafter. The value is subject to review every year on the
anniversary date

 View Collateral Right details through Enquiry CO.100

Slide 18
Amend Collateral

 Collateral\Maintance
Collateral
 Change any static
information
 If user change Gen Ledger
Value field, contingent entry
screen will show up to
change contingent entry
value
 Which branch open
collateral, then that branch
will allow amending that
collateral

Contingent entries will be

amend when change Gen
Ledger Value

Slide 19
Amend Contingent Entries

 Amount change
 Amount increase/decrease contingent entry

Increase/Decrease contingent
amount will be changed from
collateral amend

Slide 20
Manual Contingent Entry

 Collateral\Contingent entry manual

Input missing Collateral id

Input product category

Amount, input date, start date

will be defaulted from collateral

Input expiry date, if null

input zero for none expiry
date

Amount change will be defaulted

from collateral in case missing
amend collateral

Slide 21
Release collateral

 Collateral\Collateral

Release status is 02

Expiry date is today

Slide 22
Contingent Entry Release

 Release contingent will be automatically opening and commit

Online Maturity is YES

Slide 23
CUSTOMER.COLLATERAL.TYPE

 Customer-specific and product-specific Collateral execution value

can be defined other than the set values in COLLATERAL.TYPE
 Percentage of the nominal value, within a record (ID:
<CUSTOMER ID>-<COLLATERAL.TYPE ID>)
 Field EXECUTION.VALUE should have been mentioned as a % of
NOMINAL.VALUE in the file COLLATERL.TYPE.

Slide 24
ENQUIRIES, REPORTS
AND EOD

Slide 25
Enquiries

 Collateral\Main Collateral Enquiry

 List total limit

Slide 26
Reports

 CO.COVER - Percentage of cover held by

COLLATERAL.RIGHT
 CO.EXPIRED - Items past expiry date.
 CO.EXPIRY - Items approaching expiry dates.
 CO.INVENTORY - Inventory by COLLATERAL.TYPE.
 CO.REALLOC - Adjustments for General Ledger
 CO.REVIEW - Review dates for COLLATERAL items
 CO.RGT.EXPIRED - Expired COLLATERAL.RIGHT
 CO.RIGHT.EXPIRY - COLLATERAL.RIGHT nearing expiry date
 CO.RIGHT.REVIEW - COLLATERAL.RIGHT nearing review date

Slide 27
SUMMARY

 In this learning unit, you learnt Product features of Collateral

module, You fill now be able to:
 Establish Collateral right and Collateral records a customer
 List the standard reports of collateral module

Slide 28
Questions ?

Slide 29
Thank You