| Collateral management
services are one method of securing a loan with physical
commodities. To that effect, a collateral management
agreement is formed between the financing party, the
borrowing party or the owner of the commodities and
FLL, as collateral administrator. FLL collateral management
services consist in receiving physical commodities into
storage and retaining control over the said commodities
until such time as FLL is instructed by the financing
party to release them in accordance with the terms of
the agreement.
*Collateral Management provides greater flexibility
for import and export trade.
*Collateral Management has become an essential part
of a financial institutions’ framework for risk
and regulatory compliance.
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