This module processes financial documents referred to import and export trade contracts of the bank clients

The module automates handling of guarantees (issue, change of conditions, receipt) with automatic charging of commissions. The module provides for contracts settlement in form of letter of credit, collection or bank transfer.

All settlements are effected in local or in foreign currencies. SWIFT and TELEX messages referred to trade finance operations are generated.

The system provides for automatic supervision on timely performance of operations, and generation of reminding referred.

The module is designed in compliance with the Uniform Customs and Practices for Documentary Credits (UCPDC) issued by the International Chamber of Commerce.

Guarantees

The module maintains issue of guarantees on security, and receipt of guarantees. Guarantees are accounted separately by each guarantee and by currency types.

Both paid and unpaid guarantees are supported. Generation of credit agreements is possible for uncovered guarantees. Both direct and indirect guarantees are supported.

There are facilities in the module for classification of issued guarantees and generation of allowances.

Interest accrual is provided automatically.

Letters of Credit

The module differentiates between the following terms referred to L/C: revocable / irrevocable, paid / unpaid, confirmed / unconfirmed, export / import, transferable / non-transferable.

When L/C handling the module allows for input of all main terms including L/C opening type (via SWIFT, by mail), L/C execution type (payment on presentation, payment on a deferred basis, acceptance, negotiation) etc.

The module provides for automatic charge of commissions. Commissions can be charged to an applicant, beneficiary, issuing bank, beneficiary bank or executive bank. Commissions can be paid in the form of a fixed amount or as a percentage of the credit amount, with onetime or periodic charging.

The module provides for handling of L/C file by linking it with any kind of referred electronic documents.

Collection

The module ensures acceptance of collection documents and performing of collection operations on a timely basis.

The following conditions can be differed for collections:

• documents against payment
• documents against acceptance

Accounting of contingent liabilities to correspondent banks is provided in case of non-performance by the client of its obligations with respect to amount of payment, date of payment or payment terms.