Collateral Management
COLLATERAL MANAGEMENT IN BRIEF
A tripartite agreement between a debtor, a creditor and a Collateral Manager setting out, inter alia, the obligations of the Collateral Manager which usually include Undertakings to hold the relevant assets to the order of the creditor and to regularly inspect and report to the creditor on those assets.
PROLATY’s collateral management solutions reduce operating risk by ensuring that stored commodities remain under safe custody and comply with contractual requirements.
Using our collateral management services assures you of the availability and quantity of the goods worldwide and therefore minimizes the threat of financial loss. A collateral management agreement (CMA) with PROLATY allows you to acquire clear legal title as owner or pledgee, by virtue of having possession of the commodities.
We act as the custodian of the goods, taking continuous and exclusive possession of them until they are sold or exported. We hold the commodities in a PROLATY warehouse, in an independent storage facility that we use under contract, or in the producer’s premises that have been leased to us. Depending on local laws, we are able to issue documents of title or non-negotiable receipts for the goods under our exclusive possession and control.