What is collateral right in SAP FS-CMS - Collateral Management System?

SAP Term: collateral right

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: The calculated maximum value of a collateral agreement that can be used for transactions.

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• Key Concepts: 
  Collateral right is a legal right that a lender has over a borrower’s assets in the event of default. In the context of SAP’s FS-CMS Collateral Management System, collateral rights are used to secure loans and other financial transactions. The system allows lenders to register and manage their collateral rights, as well as monitor the status of their collateral.
  
  How to use it: 
  The FS-CMS Collateral Management System allows lenders to register and manage their collateral rights. This includes setting up the terms of the loan, such as the amount of collateral required, the type of collateral, and any other conditions that must be met. The system also allows lenders to monitor the status of their collateral, such as whether it has been released or not.
  
  Tips & Tricks: 
  When setting up a loan with collateral rights, it is important to ensure that all parties involved understand the terms of the loan and the associated collateral rights. It is also important to ensure that all parties are aware of any changes in the status of the collateral, such as if it has been released or not.
  
  Related Information: 
  For more information on SAP’s FS-CMS Collateral Management System, please visit https://www.sap.com/products/collateral-management-system.html.