Collateral Right
Value 
Use
The collateral right value is the maximum value that is possible for a collateral agreement. The system uses the collateral right value as an internal calculation parameter to logically restrict the collateral value to either the assessment value or to the value of the receivables assigned to the collateral agreement.
The system also determines the loan-to-value ratios for collateral agreements based on the collateral right value.
Activities
...
The system calculates the collateral right value according to the maximum risk and the current risk of the receivables using one of the following equations:
Condition |
Collateral right value is equal to: |
Any collateral agreement (except guarantee) |
Minimum of (assessment value) And (sum of the receivables assigned to the collateral agreement |
Fixed liability guarantee |
Minimum of (sum of the receivables assigned to the guarantee * guarantee rate) AND (maximum amount fixed in the guarantee) |
Default liability guarantee (indemnity bond) |
Minimum of (sum of the receivables assigned to the guarantee * guarantee rate) And (maximum amount fixed in the guarantee) AND (possible default * default rate) Where Possible default = (sum of the receivables assigned to the guarantee) – (sum of the collateral right of all other collateral agreements assigned to the receivables) |
Collateral pool agreement |
Minimum [(sum of the receivables of all the pool banks) And (assessment value of the pool agreement)]
The amount allocated to the receivables by other collateral agreements must be excluded when calculating the sum of receivables. |
