How to set-up Guaranties using the MD.DEAL application

Global parameters

MD.PARAMETER contains all the types of guarantees issued and received (asset / Liability), with their corresponding product category codes. It works with ranges of categories, and borders can’t be modified once authorized.

1. Example of setting:

MD.PARAMETER
 COMPANY........... CH-001-0001         Dummy Company
 ------------------------------------------------------------------------------
   1. 1 CONTRACT.TYPE.. CA
   2. 1. 1 GB DESCRIPT. Contingent Assets
   3. 1 START.CATEGORY. 28-000              *** MISC DEALS - ASSETS START
   4. 1 END.CATEGORY... 28-499              *** MISC DEALS - ASSETS END
   5. 1. 1 DEAL.SUB.TYP BBOND
   6. 1. 1 SUB.CAT.STRT 28-010              BID BONDS GUARANTEES - GIVEN
   7. 1. 1 SUB.CAT.END. 28-010              BID BONDS GUARANTEES - GIVEN
   5. 1. 2 DEAL.SUB.TYP CCARD
   6. 1. 2 SUB.CAT.STRT 28-011              GUAR ISSUED CREDIT CARD
   7. 1. 2 SUB.CAT.END. 28-011              GUAR ISSUED CREDIT CARD
   5. 1. 3 DEAL.SUB.TYP PBOND
   6. 1. 3 SUB.CAT.STRT 28-020              PERFORMANCE BONDS GUARANTEES GIVEN
   7. 1. 3 SUB.CAT.END. 28-020              PERFORMANCE BONDS GUARANTEES GIVEN
   5. 1. 4 DEAL.SUB.TYP RENT
   6. 1. 4 SUB.CAT.STRT 28-021              GUAR. ISSUED RENTAL
   7. 1. 4 SUB.CAT.END. 28-021              GUAR. ISSUED RENTAL
   5. 1. 5 DEAL.SUB.TYP CUST
   6. 1. 5 SUB.CAT.STRT 28-030              CUSTOMS & EXCISE GUARANTEES GIVEN
   7. 1. 5 SUB.CAT.END. 28-030              CUSTOMS & EXCISE GUARANTEES GIVEN
   5. 1. 6 DEAL.SUB.TYP BANKS
   6. 1. 6 SUB.CAT.STRT 28-031              GUAR. ISSUED BANKS
   7. 1. 6 SUB.CAT.END. 28-031              GUAR. ISSUED BANKS
   5. 1. 7 DEAL.SUB.TYP CORP
   6. 1. 7 SUB.CAT.STRT 28-040              CORPORATE GUARANTEES GIVEN
   7. 1. 7 SUB.CAT.END. 28-040              CORPORATE GUARANTEES GIVEN
   5. 1. 8 DEAL.SUB.TYP PMCOV
   6. 1. 8 SUB.CAT.STRT 28-041              GUAR. ISSUED PAYMENT COVER
   7. 1. 8 SUB.CAT.END. 28-041              GUAR. ISSUED PAYMENT COVER
   5. 1. 9 DEAL.SUB.TYP TFINC
   6. 1. 9 SUB.CAT.STRT 28-110              TRADE FINANCE CONTINGENT GUARANTEE
   7. 1. 9 SUB.CAT.END. 28-110              TRADE FINANCE CONTINGENT GUARANTEE
   5. 1.10 DEAL.SUB.TYP TFINA
   6. 1.10 SUB.CAT.STRT 28-130              TRADE FINANCE ACTUAL GUARANTEE
   7. 1.10 SUB.CAT.END. 28-130              TRADE FINANCE ACTUAL GUARANTEE
   5. 1.11 DEAL.SUB.TYP INTL
   6. 1.11 SUB.CAT.STRT 28-150              INTL CUSTOMS CLEARING HOUSE GUAR TF
   7. 1.11 SUB.CAT.END. 28-150              INTL CUSTOMS CLEARING HOUSE GUAR TF
   5. 1.12 DEAL.SUB.TYP LCGEN
   6. 1.12 SUB.CAT.STRT 28-300              LETTERS OF CREDIT - GENIE
   7. 1.12 SUB.CAT.END. 28-300              LETTERS OF CREDIT - GENIE
   5. 1.13 DEAL.SUB.TYP OTHER
   6. 1.13 SUB.CAT.STRT 28-350              OTHER MISCELLANEOUS DEALS
   7. 1.13 SUB.CAT.END. 28-350              OTHER MISCELLANEOUS DEALS
   1. 2 CONTRACT.TYPE.. CL
   2. 2. 1 GB DESCRIPT. Contingent Liabilities
   3. 2 START.CATEGORY. 28-500              *** MISC DEALS - LIABS START
   4. 2 END.CATEGORY... 28-699              *** MISC DEALS - LIABS END
   5. 2. 1 DEAL.SUB.TYP GTREC
   6. 2. 1 SUB.CAT.STRT 28-510              GUARANTEES RECEIVED
   7. 2. 1 SUB.CAT.END. 28-510              GUARANTEES RECEIVED
   5. 2. 2 DEAL.SUB.TYP ITBNK
   6. 2. 2 SUB.CAT.STRT 28-520              INTERBANK GUARANTEES RECEIVED
   7. 2. 2 SUB.CAT.END. 28-520              INTERBANK GUARANTEES RECEIVED
   5. 2. 3 DEAL.SUB.TYP ACRED
   6. 2. 3 SUB.CAT.STRT 28-530              ACCEPTANCE CREDITS
   7. 2. 3 SUB.CAT.END. 28-530              ACCEPTANCE CREDITS
   5. 2. 4 DEAL.SUB.TYP ACTF
   6. 2. 4 SUB.CAT.STRT 28-540              ACCEPTANCE CREDITS TRADE FINANCE
   7. 2. 4 SUB.CAT.END. 28-540              ACCEPTANCE CREDITS TRADE FINANCE
   5. 2. 5 DEAL.SUB.TYP LCA
   6. 2. 5 SUB.CAT.STRT 28-550              LETTER OF CREDIT ACCEPTANCES
   7. 2. 5 SUB.CAT.END. 28-550              LETTER OF CREDIT ACCEPTANCES
   1. 3 CONTRACT.TYPE.. MA
   2. 3. 1 GB DESCRIPT. MEMO ASSETS
   3. 3 START.CATEGORY. 28-700              *** MISC DEALS - MEMO ASSETS START
   4. 3 END.CATEGORY... 28-799              *** MISC DEALS - MEMO ASSETS END
   5. 3. 1 DEAL.SUB.TYP MA1
   6. 3. 1 SUB.CAT.STRT 28-700              *** MISC DEALS - MEMO ASSETS START
   7. 3. 1 SUB.CAT.END. 28-799              *** MISC DEALS - MEMO ASSETS END
   1. 4 CONTRACT.TYPE.. ML
   2. 4. 1 GB DESCRIPT. MEMO LIABILITIES
   3. 4 START.CATEGORY. 28-800              *** MISC DEALS - MEMO LIABS START
   4. 4 END.CATEGORY... 28-899              *** MISC DEALS - MEMO LIABS END
   5. 4. 1 DEAL.SUB.TYP PGREC
   6. 4. 1 SUB.CAT.STRT 28-810              PAYMENT GUAR. RECEIVED MEMO
   7. 4. 1 SUB.CAT.END. 28-810              PAYMENT GUAR. RECEIVED MEMO
   5. 4. 2 DEAL.SUB.TYP ML
   6. 4. 2 SUB.CAT.STRT 28-810              PAYMENT GUAR. RECEIVED MEMO
   7. 4. 2 SUB.CAT.END. 28-899              *** MISC DEALS - MEMO LIABS END
   8 CONT.LIMIT.LINK... MANDATORY

Limits

Sample of LIMITS structure:

Limit Reference – Default List

    Id    Description                         Fx/Tb Red    Lim%
 ------------------------------------------------------------------------------
 1   2400 Guarantee Issued                          N           
 2   2410 Guarantee Issued Banks                    N        100
 3   2420 Guarantee Issued Rental                   N        100
 4   2430 Guarantee Issued Credit Card              N        100
 5   2440 Guarantee Issued Payment Cover            N        100
 6   2450 Guarantee Issued Others                   N        100
 7   2480 Guarantee Received Interbank              N        100

LIMIT.REFERENCE... 2400
 ------------------------------------------------------------------------------
   1. 1 GB DESCRIPTION. Guarantee Issued
   2. 1 GB SHORT.NAME.. Guar. Issued
   3 FX.OR.TIME.BAND... 
   4 REDUCING.LIMIT.... N
   5. 1 GET.SUB.ALLOC.. 
   6. 1 REFERENCE.CHILD 2410                Guarantee Issued Banks
   6. 2 REFERENCE.CHILD 2420                Guarantee Issued Rental
   6. 3 REFERENCE.CHILD 2430                Guarantee Issued Credit Card
   6. 4 REFERENCE.CHILD 2440                Guarantee Issued Payment Cover
   6. 5 REFERENCE.CHILD 2450                Guarantee Issued Others
   6. 6 REFERENCE.CHILD 2480                Guarantee Received Interbank

Table LIMIT.PARAMETER (record SYSTEM) :

  13.14 APPLICATION.... MD.DEAL             CONTINGENT ASSET AND LIABILITIES
  14.14. 1 PRODUCT.NO.. 2410                Guarantee Issued Banks
  15.14. 1 DECIS.FIELD. CATEGORY
  16.14. 1 DECISION.... EQ
  17.14. 1 DECISION.FR. 28031
  13.15 APPLICATION.... MD.DEAL             CONTINGENT ASSET AND LIABILITIES
  14.15. 1 PRODUCT.NO.. 2420                Guarantee Issued Rental
  15.15. 1 DECIS.FIELD. CATEGORY
  16.15. 1 DECISION.... EQ
  17.15. 1 DECISION.FR. 28021
  13.16 APPLICATION.... MD.DEAL             CONTINGENT ASSET AND LIABILITIES
  14.16. 1 PRODUCT.NO.. 2430                Guarantee Issued Credit Card
  15.16. 1 DECIS.FIELD. CATEGORY
  16.16. 1 DECISION.... EQ
  17.16. 1 DECISION.FR. 28011
  13.17 APPLICATION.... MD.DEAL             CONTINGENT ASSET AND LIABILITIES
  14.17. 1 PRODUCT.NO.. 2440                Guarantee Issued Payment Cover
  15.17. 1 DECIS.FIELD. CATEGORY
  16.17. 1 DECISION.... EQ
  17.17. 1 DECISION.FR. 28041
  13.18 APPLICATION.... MD.DEAL             CONTINGENT ASSET AND LIABILITIES
  14.18. 1 PRODUCT.NO.. 2480                Guarantee Received Interbank
  15.18. 1 DECIS.FIELD. CATEGORY
  16.18. 1 DECISION.... EQ
  17.18. 1 DECISION.FR. 28520
  13.19 APPLICATION.... MD.DEAL             CONTINGENT ASSET AND LIABILITIES
  14.19. 1 PRODUCT.NO.. 2450                Guarantee Issued Others