Collateral Management


Collateral Management

A system of controlling and managing the receipt and containment of physical commodities, in order to secure a financial loan

OILLAB’s Collateral Management Services consist in receiving physical commodities into storage and retaining control over them until such time as we are instructed by the financier involved to release them in accordance with the terms of the agreement.  Legal control of the storage facilities is secured through the execution of a lease agreement with the owner of the facilities.  As a package we also offer sampling and analysis of goods in storage. Upon request, additional services such as insurance of the goods in storage are available.

 

OILLAB ensure that the quantity and/or quality of goods in store or ship comply with contractual requirements.

 

OILLAB’s services will ensure that, the specific requirements of the credit institution(s) is met with.

Collateral Management Agreements (CMA)


A CMA allows  to secure a loan using physical commodities as collateral. It is a three-party agreement among the product owner/borrowing party, OILLAB (the collateral manager) and a credit institution. Under a CMA, OILLAB acts as the custodian of commodities until the requirements of the financial institution is met with. We control the delivery of goods to and from our site. OILLAB takes continuous possession and responsibility for cargo while it is in storage. OILLAB guarantee the cargo’s weight upon delivery.

 

OILLAB’s CMA services together with its core expertise of Inspection, Testing and Certification services provide banks/financiers opportunities to perform its lending functions while OILLAB secures the goods.