Overlap in Receivable Amount to be Collateralized 

The system performs a series of checks to determine if an overlap exists in assigning amounts to receivables and their portions. The basic set of checks executed to invalidate the assignments that are not permissible in the system are.

 

·        The whole receivable is already assigned – If  you have already assigned a complete receivable to a collateral agreement portion, you cannot assign portions of the receivable to the same collateral agreement portion.

·        First portion is already assigned – You cannot assign the first portion of a receivable to the same collateral agreement portion more than once.

·        Last portion is already assigned – You cannot assign the last portion of a receivable to the same collateral agreement portion more than once.

·        Middle portion is already assigned – You can assign multiple middle portions of a receivable to the same collateral agreement portion more than once.

 

You can assign the receivable portions if the following conditions are validated:

·        First portion

¡        If existing assignment is a middle or last portion and

§         Lower limit of the existing assignment is greater than or equal to the upper limit of the assignment being made.

 

·        Middle portion

¡        If first portion is already assigned and

§         Upper limit of the existing assignment is lower than or equal to lower limit of the assignment being made.

¡        If middle portion is already assigned and

§         Lower limit of the assignment being made is greater than or equal to upper limit of the existing assignment.

OR

§         Upper limit of the assignment being made is less than or equal to lower limit of the existing assignment.

¡        If last portion is already assigned and

§         Lower limit of the existing assignment is greater than or equal to upper limit of the assignment being made.

 

·        Last portion

¡        If middle portion is assigned and

§         Upper limit of the existing assignment is lower than or equal to lower limit of the assignment being made.

¡        If middle portion is assigned and

§         Upper limit of the existing assignment is lower than or equal to lower limit of the assignment being made.