Configure and Create Collaterals

Before credit contracts can be issued with collateral-backed terms, the Collateral Service must be configured to define the types of collateral you accept and the data required for each. This configuration ensures clarity for legal registration, risk analysis, and contractual enforcement across your lending ecosystem.

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Step 1: Define Collateral Types

Begin by defining the high-level Collateral Types your credit institution accepts. These are broad classifications such as:

• CASH – Liquid holdings such as deposits, safes, or accounts

• IMMOVABLE – Real estate assets like houses or apartments

Each type requires a:

• Code: A machine-readable identifier (e.g., CASH)

• Value: A user-friendly display label (e.g., Cash)

These types will be available in the product and contract definition screens, ensuring consistency in downstream logic.

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Step 2: Define Subtypes (Optional but Recommended)

Each Collateral Type can have one or more Subtypes to provide further classification. For instance:

Type	Subtype Code	Subtype Value
CASH	VAULT	Bank vault
IMMOVABLE	APARTMENT	Apartment
IMMOVABLE	HOUSE	House

This additional granularity allows better matching of collateral requirements to product criteria.

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Step 3: Add Collateral Fields

Each Type or Subtype can include structured Collateral Fields that must be collected during creation. Fields can include:

• LOCATION (for cash):

  • Options: Vault, Bank account, Home safe, Cookie jar, Under mattress

• HOUSE NR (for real estate):

  • Data Type: Number

  • Required: Yes

These fields help with valuation, risk grading, and mortgage registry integration.

Tip: Always mark fields required if they are mandatory for regulatory or contractual validation.

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Step 4: Create Collateral Records

Once the service is configured, go to Collaterals under Contracts and:

1. Select the Type and Subtype

2. Enter required metadata fields

3. Define any linked mortgage details, such as:

   • Collateral register number

   • Mortgage priority

   • Start/end dates

   • Preceding priority amounts

This ensures full legal traceability and completeness for contract generation.

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Example Setup

Collateral Type: IMMOVABLE

• Subtype: HOUSE

• Field: House nr = 12

• Mortgage Priority: 1st lien

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By predefining collateral structures, you ensure consistency across all credit products, reduce the risk of invalid data entry, and enable automation of valuation and approval logic in contract workflows.