Non-Collateral Right 

A non-collateral right refers to external rights of third parties that cannot be used as collateral rights to collateralize receivables (loans). The non collateral rights need to be considered as prior charges of other (own or external) rights.

 

Use

You can create non – collateral rights for real estate liens that have external charges maintained on them. These rights will be considered as a prior charge; The calculations component deducts the value of the prior charges from the assessment value of the collateral agreement.

 

You can create collateral agreement types to support the business requirements for non collateral rights such as:

 

●     heritable building rights,

●     right of abode

●     GBC lien

●     retention of title

●     lessor’s lien

●     usufruct

●     accessories liability

 

A non collateral right has a structure similar to that of any other collateral agreement. The additional Specific tab page for a non collateral right allows you to maintain details such as frequency of payment of interest, increase in interest, and most importantly, if a waiver from the owner is available for the non-collateral right.

If the waiver is available, then the value of the non collateral right is included in the land charge.