available collateral value as prior charge (FS-CMS) (SAP Library

available collateral value as prior charge (FS-CMS)

The value of a collateral agreement to be used in the calculation, if the collateral agreement is to be considered as a prior charge.

Equation:

Available collateral value = Nominal value of the collateral agreement + possible additional charge - possible deductions.

Example

Capitalized land charge interest.

A reduction to the current loan proceeds (drawdown) of collateralized receivables in case of external collateral agreements, is a possible deduction.