Business condition

Pool agreement features

Collateral agreements

·        Pool agreements can include collateral agreements of different categories and types.

In the scenario for guarantees, the pool agreements can be created using different receivable types.

·        Collateral agreements can be assigned in whole or in part to the pool agreement.

·        The individual collateral agreements must be created with the complete data and subsequently be assigned to the pool agreement.

·        The pool agreement must have a specific currency that can be the same as or different from the currencies of the collateral agreements of the pool banks.

Business partners

Business partners can be assigned to pool agreements in the following partner functions:

·        Pool leader

Only one business partner must be assigned in the partner function Pool leader to manage the administration of the pool agreement.

·        Pool bank (collateral taker)

All participating business partners in pool agreements must be assigned in the partner function Pool banks.

·        Collateral giver

The business partners assigned in the partner function Collateral giver in the individual collateral agreements must be assigned in the same partner function to the pool agreements.

·        Borrower

The business partners assigned to the individual collateral agreements in the partner function Borrower must be assigned in the same partner function to the pool agreements.

·        Other partner functions

Any other partner functions such as Notary that may be required for the business of the pool agreements.

Costs

To maintain the cost details, you can define the appropriate cost types in the Implementation Guide (IMG) Customizing for collateral agreements by choosing Collateral Management Collatateral Agreements ® Collateral Agreement Attributes ® Define Cost Types. You can enter the appropriate costs agains the relevant cost types.

Distribution of collateral value to the pool banks

The hierarchy in which the receivables of a pool bank can be collateralized by the pool agreement must be specified. The system considers the ranking of the pool banks in the distribution of collateral value to the pool banks.

You can specify the ranking for pool banks on the tab page Portions or Collateral terms.

If the collateral value must be distributed to the poolbanks, you must create portions for each poolbank and specify the ranking for the portion. The allocated collateral value for a poolbank will subsequently be distributed distributed to its receivables.

If the collateral value must be distributed directly to the receivables of the collateral pool agreement, you must define the priority of the receivables on the tab Collateral terms.

When maintaining relationships, you must define the ranking of the individual collateral agreements assigned to the pool agreement and not the ranking of the pool banks..

Mode of liquidation

·        A pool agreement can be liquidated through a mutual understanding between the pool banks or through a simple majority. The pool banks must be assigned a rank based on the receivables assigned to them. The system uses this rank to determine the order in which the liquidation amount (assessment value of the pool agreement) must be distributed to the pool banks.

·        You must specify the mode of liquidation on the tab page Specific. You must define liquidation types in the IMG by choosing Collateral Management Collatateral Agreements ® Collateral Agreement Attributes ® Define Liquidation Modes

Validity and termination

A pool agreement can have a defined validity period. During this period, the pool banks serve a termination notice to terminate their association. All the pool banks can take a collective decision on terminating the pool agreement.

You can enter termination details for the pool agreement and also for the individual agreements in the pool. The extension of the validity can be mutually agreed upon by the pool banks. In the event of termination, a pool bank can choose to transfer its collaterals and receivables to another pool bank in the pool agreement.

You can enter the termination details for the pool banks (business partners) on the tab page Business partners / Documents.

Collateral scope

A pool agreement can assume either a wide, narror or a combined (wide and narrow) declaration of purpose. The declaration of purpose of the pool agreement is valid for all the assigned receivables.