What is backed-up collateral agreement in SAP FS-CMS - Collateral Management System?

SAP Term: backed-up collateral agreement

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: A collateral agreement the value of which is enhanced through the assignment of other collateral agreements.

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• Key Concepts: 
  A backed-up collateral agreement is a type of agreement used in the SAP FS-CMS Collateral Management System. It is a legally binding agreement between two parties that outlines the terms and conditions of a loan or other financial transaction. The agreement is backed up by collateral, which is an asset that can be used to secure the loan or transaction. The collateral can be in the form of cash, securities, or other assets. 
  
  How to use it: 
  In order to use a backed-up collateral agreement in SAP FS-CMS, the two parties must first agree on the terms and conditions of the loan or transaction. Once this is done, the collateral must be identified and agreed upon. The collateral must then be registered in the system and the backed-up collateral agreement must be created. This agreement will outline all of the terms and conditions of the loan or transaction, as well as any additional information that may be required. 
  
  Tips & Tricks: 
  When creating a backed-up collateral agreement in SAP FS-CMS, it is important to ensure that all of the terms and conditions are clearly outlined and agreed upon by both parties. Additionally, it is important to ensure that all of the necessary information regarding the collateral is included in the agreement. This will help to ensure that both parties are aware of their rights and obligations under the agreement. 
  
  Related Information: 
  For more information on backed-up collateral agreements in SAP FS-CMS, please refer to SAP's official documentation on Collateral Management System (https://help.sap.com/viewer/product/FS_CMS/). Additionally, you can find more information on collateral agreements in general by visiting Investopedia (https://www.investopedia.com/terms/c/collateralagreement.asp).