Collateral Management

Overview

Collateral management in timveroOS provides comprehensive functionality for defining, tracking, and monitoring secured assets throughout the loan lifecycle. This page explains the Admin Panel's role in working with collateral - primarily selecting from SDK-defined collateral types and associating them with products.

Important: Collateral types, their attributes, validation rules, and business logic are all configured at the SDK level by your development team. The Admin Panel allows you to:

• Select which collateral types are required for specific products/additives

• Create document templates for collateral-related documents

• Configure collateral requirements within additives

Business Context

timveroOS offers a complete solution for collateral management, allowing financial institutions to:

• Add collateral requirements to products and additives (select from SDK-defined types)

• Configure documentation templates for collateral

• Ensure regulatory compliance through SDK-configured rules

Asset Configuration

Asset Types (SDK-Defined)

Assets (collateral types) are fully configured in the SDK by your development team. The Admin Panel displays the collateral types that have been implemented, but cannot create or modify collateral type definitions.

What SDK Configures:

• Collateral type definitions (Vehicle, Real Estate, Equipment, etc.)

• Custom fields and attributes for each type

• Validation rules and business logic

• Workflows and state transitions

• Document requirements per collateral type

What Admin Panel Does:

• Select which SDK-defined collateral types are required for products/additives

• View available collateral types in dropdowns

• Create document templates for collateral-related documents

Available Asset Categories

Common collateral types that can be implemented in SDK include:

• Real Estate: Residential, commercial, land

• Vehicles: Automobiles, commercial vehicles, motorcycles

• Financial Assets: Deposits, securities, receivables

• Equipment: Industrial equipment, machinery

• Inventory: Stock, raw materials

• Invoices/Receivables: For factoring or ABL

Note: There are no "standard" collateral types out-of-box. All collateral types are custom implementations based on your business requirements. Contact your development team to implement specific collateral types.

Technical Implementation (SDK Level)

Collateral types are implemented in SDK similarly to Participants:

• Extend base entity classes with appropriate annotations

• Implement required interfaces for document support

• Define custom fields for asset-specific data

• Create form classes for data entry validation

• Configure state machines and workflows

Note: All asset/collateral customization requires SDK development. The Admin Panel cannot create or modify collateral type definitions.

Collateral Requirements

Product-Level Configuration (Admin Panel)

In the Admin Panel, you can configure collateral requirements at the additive level:

Navigation: Settings → Credit Products → [Select Product] → Additives → [Select Additive]

What You Can Configure:

• Collateral Type: Select from SDK-defined collateral types (dropdown)

• Required/Optional: Whether collateral is mandatory for this additive

What SDK Defines:

• The list of available collateral types in the dropdown

• Coverage ratios and LTV requirements (if applicable)

• Valuation rules and methods

• Collateral-specific workflows

Dynamic Requirements (SDK-Configured)

The system supports conditional collateral requirements based on:

• Borrower credit profile

• Loan amount thresholds

• Product risk characteristics

• Regulatory requirements

Note: Dynamic requirement rules are configured in SDK. The Admin Panel displays the results of these rules but cannot modify the logic.

Collateral Provider Role

Understanding Collateral Provider

The Collateral Provider is a participant role (like Borrower or Guarantor) that represents the entity providing collateral for a loan. This is configured at the SDK level.

Key Points:

• Collateral Provider is a separate participant type, distinct from Borrower

• A Borrower CAN also be a Collateral Provider (same person, two roles)

• Third parties can be Collateral Providers without being Borrowers

• The role determines who owns/provides the collateral asset

Role Configuration (SDK Level)

The Collateral Provider role is defined in SDK:

• Role definition and attributes

• Relationship to collateral assets

• Required documentation for providers

• Workflow steps involving the provider

Integration with Additives

Additive Configuration (Admin Panel)

When configuring additives in Admin Panel, you can set collateral requirements:

What You Configure:

• Collateral Type: Select from dropdown of SDK-defined types

• Required/Optional: Whether this additive requires collateral

What SDK Defines:

• Coverage Ratios: Minimum LTV or coverage requirements

• Valuation Rules: How assets are valued

• Acceptable asset attributes: Age limits, condition requirements, etc.

Conditional Offers

The system handles scenarios where:

• Borrowers qualify for products but lack required collateral

• Offers are generated but remain unselectable until collateral is added

• Dynamic recalculation occurs when collateral is provided

• Multiple collateral options are available

Valuation Management (SDK-Configured)

Valuation methods and monitoring are configured at the SDK level.

Valuation Methods

How collateral values are determined (configured in SDK):

• Manual appraisal entry

• Automated valuation integration (external services)

• Reference value tables

• Depreciation schedules

Value Monitoring

Monitoring parameters (configured in SDK):

• Revaluation frequency

• Value change thresholds

• Alert triggers

• Update business flows

Admin Panel Role: View valuation data, work within configured monitoring workflows. Cannot configure valuation methods or monitoring rules.

Documentation Requirements

Collateral Documents

Standard documentation includes:

• Ownership documents (titles, deeds)

• Valuation reports (appraisals)

• Insurance policies

• Lien searches

• Registration documents

Automated Generation

The system can automatically generate:

• Security agreements

• UCC filings

• Collateral receipts

• Release documents

Configuration Process

Understanding the Setup Flow

Collateral configuration involves both SDK development and Admin Panel setup:

Step 1: SDK Development (Development Team)

1. Define Asset Types

   • Create collateral entity classes

   • Set attribute requirements

   • Establish validation rules

   • Configure state machines

   • Implement workflows

2. Configure Collateral Provider Role

   • Define participant type

   • Set up relationships to assets

   • Create documentation requirements

3. Establish Documentation

   • Define document types for collateral

   • Configure required vs optional documents

   • Set up document workflows

   • See SDK Guide: Document Management

Step 2: Admin Panel Configuration (Admin Users)

1. Link Collateral to Products

   • Navigate to Settings → Credit Products → [Product] → Additives

   • Select collateral type from dropdown (SDK-defined options)

   • Set Required/Optional

2. Create Document Templates (if applicable)

   • Create templates for collateral-related documents

   • Templates use SDK-defined document types

3. Configure Workflows (if enabled)

   • Add collateral evaluation steps (using SDK-defined actions)

   • Set up verification processes

   • Note: Workflow actions available depend on SDK implementation

Testing and Validation

• Test collateral workflows with sample applications

• Verify calculation accuracy

• Validate document generation

• Confirm system integrations

Best Practices

Configuration Guidelines

• Start with common collateral types

• Use clear naming conventions

• Document business rules

• Test edge cases thoroughly

Risk Management

• Set appropriate coverage ratios

• Monitor concentration levels

• Track insurance compliance

• Maintain valuation accuracy

Integration Points

System Components

Collateral management integrates with:

• Product Configuration: Requirements and terms

• Workflow Engine: Decision logic and routing

• Document Management: Automated documentation

• Pricing Engine: Risk-based pricing adjustments

• Reporting System: Portfolio analytics

External Systems

• Valuation services integration

• Insurance verification systems

• Government registries

• Title/lien services

Summary: Admin Panel vs SDK Responsibilities

Capability	Admin Panel	SDK
Define collateral types	✗	✓
Select collateral type for additive	✓	-
Configure collateral attributes/fields	✗	✓
Set required/optional for additive	✓	-
Define coverage ratios/LTV rules	✗	✓
Configure valuation methods	✗	✓
View collateral on applications	✓	-
Create document templates	✓	-
Define document types	✗	✓
Configure Collateral Provider role	✗	✓
Work within collateral workflows	✓	-
Define collateral workflow logic	✗	✓

Related Operations

Once configured, see how collateral is used in operations:

• Collateral (OPS - Origination) - Working with collateral during application processing

Next Steps

With collateral management configured, proceed to:

• Workflow Fundamentals - Build automated processes

• Covenants Setup - Set up compliance monitoring

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For additional collateral management support, consult your implementation team or system documentation.