Special Arrangement for
Collateral Agreement 
Definition
Arrangements that can be used by collateral agreements in the following business situations:
● Collateral value of collateral agreements is insufficient.
● Assigned collateral objects are not yet ready for use as collateral.
● Limit scope of internal collateral agreements.
● Allow use of external collateral agreements for enhancing the collateral scope.
The standard system allows special arrangements scenarios only for real estate liens and registered liens.
Use
Collateral Management supports various special arrangement scenarios for real estate liens and registered liens. These scenarios can be classified as standard special arrangements and business transactions.
General Features of Special Arrangements
● Use change request functions to implement special arrangements on collateral agreements. Therefore the special arrangements have independent process steps such as different business activities, release procedures and statuses.
Status of special arrangement:
Normally a special arrangement (in change request mode) can have only two possible system statuses – Created and Active. After the special arrangement has been released and set to system status Active, the details of special arrangements will be copied to the collateral agreement.
Special arrangements can however have different user statuses. You can even define the status transition for the user statuses in the Customizing for business activities for the change request type (representing special arrangement type).
● Do not have own collateral value and therefore cannot be used as independent collateral. Therefore they do not have a direct relationship with the assigned receivables.
The only exception is an encumbrance exemption certificate that must be created as an independent collateral agreement (category: Assignment) and can have charges on collateral objects (such as receivables – of type Declaration of Exemption from Charges).
● Are temporary arrangements and have no importance after the real estate liens using them are set to system status Legally Active or Inactive.
● Can be assigned to more than one collateral agreement. In such scenarios, the special arrangements must be assigned to each of the individual collateral agreements.
● More than one special arrangements can be assigned to one collateral agreement. A new special arrangement is however possible only if an existing special arrangement has been released and copied to the collateral agreement.
Differences between Standard Special Arrangements and Business Transactions
Standard Special Arrangements |
Business Transactions |
Have own data, status and release workflow process. The own data is specific to the business requirements of the various special arrangements scenarios. |
Do not have any special data of their own.
|
Influence the calculation relevant status and also the legal validity of the assigned real estate liens. They are not relevant after the real estate lien assumes either of the system statuses Legally Active or Inactive.
|
Cannot influence calculation status of a real estate lien. They influence scope of a collateral agreement using portion restrictions. They can be used to limit the scope of internal real estate liens and also allow use of external real estate liens. |
Example Scenarios: ● Trust Order (internal and external lien) ● Encumbrance Exemption Declaration ● Pledge of Notice of Ownership Transfer ● Declaration of Property Developer
|
Example Scenarios: ● (Partial) assignment of a real estate lien ● Trust holding for third-party ● Trust holding by third-party ● Get non-recurrent loan undertaking ● Give non-recurrent loan undertaking ● Assignment of restitution claims to different bank ● Assignment of restitution claims from different bank ● Assign discharge claims ● Receive discharge claims For more information on the business transaction scenarios supported in Collateral Management, see
|
For more information, see