Collateral and guarantees

remoteEaze supports two distinct forms of loan security:

a Guarantee records a Customer's promise to cover an amount, optionally backed by a Group member's guaranteeable contribution balance;
Collateral connects an Authorized collateral asset and valuation to the facility that will support the booked loan.

The Loan Product and workflow determine whether either form is required.

Access required

Guarantees are maintained with the corresponding Create, Update, or Delete Loan Guarantee permission. You also need access to the Loan Application and the selected Customer or active Group member.

Operating the Manage Collateral workspace requires an accepted current-stage assignment, an Authorized application, and a current stage that exposes Allocate Collateral. Facility setup requires Update Loan Application and both Create Facility and Update Facility. Creating or changing the other supporting records uses the applicable Collateral Pledge and Collateral Allocation permissions.

A pledge authorizer does not need to own the Loan Application stage merely to make the independent pledge maker-checker decision. Read Collateral Pledge plus the applicable Approve Collateral Pledge L1, L2, or L3 permission makes the existing pledge available from the workspace. The permission for the current approval level also governs Reject and Deny at that stage.

Collateral Pledges are maker-checker records. The authority needed after submission depends on their configured L1/L2/L3 approval requirements. Collateral Allocations are applied immediately and do not have a separate record-authorization lifecycle.

Record guarantees before submission

Open Loans → Loan Applications, select a Captured or Rejected application, then find Guarantees on Overview. Guarantees cannot be changed after the parent Loan Application becomes Authorized.

Select Add Guarantee.
Choose Customer for a direct Customer guarantee, or Group Member for a contribution-backed guarantee on a Group loan.
Select the guarantor. A Group-member guarantor must be an active member of the borrowing Group.
For a Group-member guarantee, select an eligible Contribution Bucket in the application currency and the specific Group Contribution Account whose funds will be pledged.
Enter the Guaranteed Amount and, where applicable, Guaranteed Percent.
Add any supporting notes and select Add Guarantee.

The remaining amount cannot exceed the guaranteed amount. A contribution bucket must belong to the selected member and a Contribution Type configured to affect guaranteeable balance.

The system owns the guarantee's Remaining, Invoked, and Status values. An active Group-member guarantee immediately reserves its guaranteed amount from the bucket's guaranteeable balance and places the same amount on hold against the selected Account. A hold does not post a GL transaction and does not change the Account's cleared balance. It reduces the Account's available balance. Increasing, reducing, cancelling, or deleting the guarantee adjusts both reservations. Cancelling or deleting it releases the unused hold.

Guarantees inherit the Loan Application's maker-checker status. Submitting, approving, rejecting, or denying the application moves its Guarantees through the same record-status path. When a workflow booking stage requires Reserve Guarantees, at least one active, Authorized Guarantee with a remaining amount greater than zero must exist before booking.

Invoke a contribution-backed guarantee

Invoking a guarantee is a financial servicing action, not a maker-checker decision on the guarantee record. Open the booked Loan Contract and select Security. An Invoke action appears for an Authorized, active or partially invoked contribution-backed guarantee when the contract is Active, Matured, or Defaulted and you have Update Loan Contract.

Select Invoke on the guarantee.
Enter an amount no greater than the smaller of its Remaining and Held amounts.
Select the Posting Date and, for an immediate posting, the Value Date.
Review the pledged Account and add an optional narrative.
Select Invoke Guarantee.

For the current working day, remoteEaze creates an Authorized system transaction and queues it immediately. A future Posting Date creates a Forward-Dated Transaction. When it posts, the pledged contribution Account is debited and the loan Account is credited using the Loan Product's repayment Transaction Code. This reduces the loan obligation.

The Account's cleared balance decreases on invocation. Its available balance does not decrease again because the funds were already excluded when the hold was created. In contribution balances, the same amount moves from Guarantee held to Invoked. A partial invocation leaves the unused amount held; a full invocation marks the guarantee Invoked. When normal servicing closes the loan, any unused guarantee hold is released automatically.

Direct Customer guarantees without a contribution bucket and pledged Account remain documentary guarantees. They cannot be settled through this invocation action.

Prepare collateral in the workflow

When the current stage exposes the action, open Actions → Manage Collateral. This workspace prepares a system-managed facility for the application without creating a separate manual facility task.

Set up the facility

Select an Authorized Facility Class that is eligible for the Loan Product's customer-facing Product.
Review the Facility Amount. It uses the approved amount, or the requested amount before terms have been approved.
Enter a Facility Description and Facility Expiry Date.
Select Save Facility Setup.

remoteEaze creates or updates an internal, Authorized facility belonging to the borrowing Customer, or borrowing Group for a Group loan. Its approved and advised limits cannot be lower than the application amount. Booking later finalizes the same facility rather than creating a second one.

Create and submit a pledge

Under Pledges, select Create Pledge.

Select an Authorized Collateral Asset.
Confirm the application-managed Facility.
Enter the charge, title, or registration reference where applicable.
Set the pledge status and effective or release dates.
Add notes that explain the legal or operational context.
Select Save as Draft or Save & Submit.

The pledge and its allocations are tied to the application facility; Loan Contract linkage is added after booking. A submitted pledge must complete its maker-checker path and become Authorized before it can be allocated.

To authorize a submitted pledge, open it from the Pledges list and use its maker-checker panel. The available Approve, Reject, or Deny action depends on the user's Collateral Pledge permission, authorization level, separation from the maker, and the pledge's current record status.

Allocate the collateral value

After the pledge is Authorized, select Create Allocation.

Select the active Authorized Collateral Pledge.
Select an Authorized Valuation, or leave it empty to use the latest Authorized valuation available for the pledged asset.
Select the Value Basis: market, forced-sale, mortgage, lowest available, or policy lendable value.
Enter the applicable Haircut Percent or Maximum LTV Percent.
Review or enter the Lendable Value, Allocated Amount, and Coverage Percent, as permitted by the value inputs.
Select Save.

The valuation must belong to the pledged asset. remoteEaze calculates the effective lendable and allocated values from the selected basis and risk adjustments and prevents an allocation from exceeding the supported value.

When the booking stage requires Allocate Collateral, the facility must already exist and have active allocated collateral greater than zero. If the Loan Product has Minimum Collateral Coverage configured, the total active allocation must also meet that percentage of the approved loan amount. A blank threshold retains the positive-allocation rule.

Continue with Authorize and book a loan.