Example: Paying Off a Loan
There are two participant loan accounts in a master contract, MC #1:
LO #1 with a committed limit of EUR 130,000
LO #2 with a committed limit of EUR 70,000
Both loans are fully disbursed and no repayment has been made yet on either loan.
Customizing
The master contract is based on a product in which the Facilities feature is active and which is customized as follows:
Facility Control
Attributes |
Value |
Credit Clearing Mode |
1 — Debit Balance The utilization balance of a master contract is the sum of all negative balances of the participants in this master contract. Positive balances are not taken into account. |
Clearing Mode for Currency Translation |
1 — Clearing After Currency Translation |
Utilization Calculation
The Master Contract
The nominal utilization is to be checked against the global external limit. The effective utilization is to be checked against the global internal limit.
Participant Current Accounts
The utilization calculation base External Limit is relevant for nominal utilization. The utilization calculation base relevant for effective utilization is Account Balance.
Participant Loan Accounts
The utilization calculation base relevant for nominal utilization is Nominal Capital. The utilization calculation base for effective utilization is Effective Capital plus Prenotes.
Master Contract and Account Processing
MC #1has a committed limit of EUR 200,000 and a tolerated overdraft limit of EUR 10,000.
A partial payoff of EUR 18,000 is made by the client on LO #1. This following updates occur:
The nominal utilization of MC #1 is now EUR 182,000 (EUR 200,000 — EUR 18,000).
The open nominal utilization of MC #1 is now EUR 28,000 (EUR 10,000 + EUR 18,000).
The effective utilization of MC #1 is now EUR 182,000 (EUR 200,000 — EUR 18,000).
Calculation of the Nominal Utilization:
Participants |
Global Internal Limit |
Nominally Utilized Amount |
Non-Utilized Amount |
MC #1 |
210,000 |
–182,000 |
28,000 |
LO #1 |
–112,000 |
||
LO #2 |
–70,000 |
Calculation of the Effective Utilization:
Participants |
Global External Limit |
Effectively Utilized Amount |
Non-Utilized Amount |
MC #1 |
200,000 |
–182,000 |
18,000 |
LO #1 |
–112,000 |
||
LO #2 |
–70,000 |