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Collateral

Overview

Use the Collateral feature to enter collateral transactions, and to track collateral exposure for customers and issuer banks. When you enter a collateral transaction you can select the currency that you are using to record the transactions amounts. You can enter collateral transactions for the default categories and types provided with eCredit, and for any additional categories and types that your business administrator defines.

When you add collateral transactions, eCredit tracks the total effective collateral for the customer. You can view the total effective collateral using different currencies, units, and conversion dates.

Note: You can use the Business Hierarchy feature to view the consolidated collateral transactions for a business hierarchy, or for a subset of the hierarchy that you select.

For letter of credit collateral transactions, eCredit tracks the balance exposure available for the issuing bank. The balance exposure is calculated by subtracting the total effective exposure the bank holds for all your customers, from the maximum exposure your business administrator has entered for the bank.

When you add a collateral transaction secured by a letter of credit, you can enter issuing, advising, and confirmation banks for the letter of credit. You select from the banks that your business administrator has entered for your installation.

For corporate guarantee collateral transactions, you can select existing customers to automatically populate the guarantor information fields for the transaction. If the guarantor information is not already stored in eCredit, you can add the information directly. The information you add is stored in eCredit as a guarantor record. Optionally, you can specify that the guarantor information is also added as a customer record.

Using the Collateral feature, you can:

Add a collateral transaction for a collateral transaction category and type
Changing collateral transaction information
View collateral transaction amounts in different currencies
Delete collateral transaction records

The following are the collateral categories and types provided with eCredit. If your business administrator defines additional categories and types, these are also available when you add collateral transactions.

Collateral Category	Collateral Type
Corporate Guarantee	Inter-corporate guarantee
	Third-party guarantee
Cash and Marketable Securities	Cash Reserves
	Securities
Other	Accounts Receivable
	Inventory
	Letter of Indemnity
Letter of Credit	Standard L/C
	Documentary L/C
	Standby L/C