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

SAP Term: external collateral agreement

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: A collateral agreement maintained and owned by another bank that is different from the one using SAP Collateral Management.

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• Key Concepts: 
  An external collateral agreement is a contract between two parties that outlines the terms of a loan or other financial transaction. It is used to secure the loan or transaction by providing collateral, such as real estate, stocks, bonds, or other assets. In SAP's FS-CMS Collateral Management System, external collateral agreements are used to manage the risk associated with a loan or transaction. 
  
  How to use it: 
  In SAP's FS-CMS Collateral Management System, external collateral agreements are used to define the terms of a loan or transaction and to manage the risk associated with it. The system allows users to create and manage external collateral agreements, as well as monitor and report on their status. The system also provides tools for managing collateral and calculating risk. 
  
  Tips & Tricks: 
  When creating an external collateral agreement in SAP's FS-CMS Collateral Management System, it is important to ensure that all of the terms of the agreement are clearly defined and understood by both parties. Additionally, it is important to ensure that all of the necessary information is included in the agreement, such as the type of collateral being provided and any restrictions on its use. 
  
  Related Information: 
  For more information on SAP's FS-CMS Collateral Management System and how to use it, please refer to the official documentation available on SAP's website. Additionally, there are many online resources available that provide detailed information on how to create and manage external collateral agreements in SAP's FS-CMS Collateral Management System.