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Related group exposure
Borrowers linked by ownership and their exposure totalled in one view.
Financial Services / Limit and Collateral Management
Limit and collateral management software that flags a breach before the drawdown
Exposure spread across three systems is exposure nobody can total before money moves. Agnotic Technologies builds limit and collateral management software that adds every facility up to the related group, checks it against approved and legal limits, and keeps collateral values, liens and covenants current.
Hierarchy
Facility to related group
Register
Collateral, liens, values
Alerts
Before a limit is breached
Trusted by global innovators
Industry Overview
What is limit and collateral management software?
Limit and collateral management software keeps a lender's credit exposure inside approved limits and its collateral current. Agnotic Technologies builds it as a services engagement: a limit hierarchy from facility to related group, legal lending limit checks, a collateral register with valuations and haircuts, lien tracking, revaluation and covenant monitoring, and alerts before a breach.
Industry Challenges
Why do limit breaches surface after the money has moved?
Credit policy is usually clear. The gaps are in the data and the timing of the checks.
Loans to companies under common control sit under different customer numbers, so the group exposure is never added up.
The legal lending limit is checked at approval, but not again when a line is drawn months later.
Collateral values come from an appraisal or statement that is two quarters old, and nobody is told when it goes stale.
A financing statement lapses because the continuation date lived in a paralegal's calendar.
Haircuts and eligibility rules are applied by hand in a spreadsheet, differently by each analyst.
Covenant certificates arrive by email and are read late, so a breach is found at the annual review.
Limit hierarchy
Which limit levels does the software check, and what happens on a breach?
Our original element for this page: the limit hierarchy we build, from the single facility up to the legal lending limit. Each level names what counts toward it, where the data comes from and the action the software takes. Thresholds and approvers come from your credit policy.
| Limit level | What counts toward it | Data source | Action on breach |
|---|---|---|---|
| Facility | Outstanding balance, undrawn commitment and pending drawdowns on one facility | Loan servicing system | Block the drawdown and route it to the relationship manager |
| Obligor | All facilities, guarantees and derivative exposure to one borrower | Servicing, trade finance and treasury systems | Hold new credit until a credit officer approves an exception |
| Related group | Exposure to borrowers tied by common control, direct benefit or financial interdependence | Ownership and group data held in the limit system | Flag for review and recalculate group headroom |
| Industry or country | Total exposure to one sector or one country of risk | Classification codes on each obligor | Report to the portfolio committee and require approval above the cap |
| Collateral-based limit | Loan balance against eligible collateral value after haircuts | Collateral register and valuation feeds | Margin call or cure task, with a deadline tracked to closure |
| Legal lending limit | Loans to one borrower, after combination rules, against capital and surplus | Limit engine with the capital figure from finance | Hard stop; only a documented exception path your counsel has approved |
Our Approach
How do we design a limit and collateral platform?
Three design rules carry most of the weight on these builds.
Check at every event, not only at approval
Drawdowns, new guarantees, collateral revaluations and changes in group structure all trigger a fresh check, so headroom is current when it matters.
Keep policy as configuration
Limit levels, haircuts, eligibility rules and approvers live in versioned tables your credit team owns, so a policy change is a reviewed edit, not a code release.
Record every exception
An approved breach stores the approver, the reason, the expiry date and the cure plan, and comes back to the approver when it expires.
Capabilities
What do our limit and collateral management services cover?
We build exposure, limits and collateral. Risk-based pricing and expected loss maths are covered on our commercial loan pricing software page, and payment processing on our loan servicing software page.
Limit hierarchy
Facility, obligor, related group, sector and country limits held in one tree, each with its owner and approval history.
Exposure aggregation
Balances, commitments and contingent exposure collected from each source system and totalled up the hierarchy.
Legal lending limit engine
Loans to one borrower combined under your charter's rules and checked against the current capital and surplus figure.
Collateral register
Each asset with its type, owner, location, value, valuation date and the facilities it secures.
Eligibility and haircuts
Rules from your credit policy applied the same way every time, with the rule version stored against each result.
Lien and UCC tracking
Financing statements, filing offices, lapse dates and continuation windows, with tasks raised before a filing lapses.
Revaluation and covenant monitoring
Valuations due by asset type, borrowing base certificates and covenant tests, with alerts when a value or test goes stale or fails.
Breach and exception workflow
Holds, approvals, cure tasks and expiry reminders, logged from the first alert to closure.
How It Works
How does one drawdown get checked against every limit?
The path a drawdown request takes before the funds move. Each step is logged with the data it used.
Request arrives
The servicing or online banking system sends the drawdown with facility, amount and value date.
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1
Exposure is refreshed
Current balances, commitments and pending items are pulled for the obligor and every member of its group.
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2
Collateral is valued
Eligible collateral is taken at its latest value after haircuts; stale values are flagged rather than used silently.
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3
Limits are tested up the hierarchy
Facility, obligor, group, concentration and legal lending limits are checked in order, and the first breach stops the chain.
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4
Decision is returned
Approve, hold for approval or reject, with the headroom left at each level and the reason, sent back to the calling system.
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5
Engineering Stack
Data, rules and integration behind the platform
Chosen so every check can be replayed later with the same inputs.
Data
PostgreSQL for limits, exposure and collateralEvent store for drawdown and revaluation historyData warehouse for portfolio reporting
Rules
Versioned limit and haircut tablesCombination rules per charterCovenant test definitions
Integration
REST APIs for real-time checksMessage queue for exposure updatesFile feeds for valuations and market prices
Platform and security
SSO and role-based accessMaker and checker on policy editsAudit loggingEncryption in transit and at rest
Measured Impact
What should credit risk see each morning?
The views we build for credit officers and the portfolio committee.
Headroom
Room left at each limit level
By obligor, group and concentration bucket.
Near limit
Exposures close to a limit
Within the warning band your policy sets.
Lapsing
Liens near their lapse date
Financing statements inside their continuation window.
Stale
Valuations past due
Collateral whose value is older than its revaluation rule allows.
Use Cases
Where do lenders usually start?
First releases we scope, each one checkable against a real portfolio.
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Legal lending limit check
Loans to one borrower combined and checked at every drawdown.
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Collateral register
One register replacing spreadsheets, with valuation due dates.
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UCC lapse tracking
Financing statements loaded with lapse dates and continuation tasks.
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Covenant monitoring
Borrowing base certificates and covenant tests read and tested on arrival.
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Limit and collateral management for startups
A fintech or specialty lender's first limit engine and register, sized for one product and ready for more.
Integrations
Which systems does limit and collateral software connect to?
It reads exposure from these systems and answers their limit checks.
Accounts and capital
Core banking system
New facilities
Loan origination system
Balances and drawdowns
Loan servicing system
Derivative exposure
Treasury and trading
Collateral values
Valuation and appraisal feeds
Securities prices
Market data
Lien status
UCC search and filing services
Security agreements
Document management
What we check
What should each collateral record hold?
We build the collateral register around these fields, because a breach review or an examiner's question usually starts with one asset and works outward.
Identity
- Asset type and description
- Owner and grantor
- Location or custodian
- Facilities it secures and the priority of each
Value
- Current value, source and valuation date
- Next revaluation due date by asset type
- Haircut and eligibility rule applied, with version
Legal
- Security agreement and its date
- Financing statement, filing office and file number
- Lapse date and continuation window
- Perfection method where filing does not apply
Monitoring
- Insurance on the asset and its expiry
- Covenants that depend on the asset
- Open exceptions and cure tasks
Compliance-First Development Services Backed by Global Standards
We build secure, scalable products designed for privacy, interoperability, and regulatory readiness from day one across every sector we serve.
Service Organization Control 2
Verified controls for security, availability, and confidentiality of enterprise data systems.
Information Security Management
Adhering to the international gold standard for managing information security risks.
Our Edge
Why Global Leaders Choose Us
We combine deep technical expertise with industry-specific knowledge to deliver solutions that aren't just functional, but transformational.
Enterprise-Grade Security
We implement rigorous security protocols and compliance standards (HIPAA, GDPR, SOC2) across all industrial solutions to protect sensitive data.
High-Performance Scaling
Our architectures are built to handle massive data loads and user bases, keeping performance steady whether you're serving ten or ten million.
Accelerated Time-to-Market
Using our suite of internal tools and proven frameworks, we cut setup work so your first release reaches users sooner.
Embedded AI Integration
Beyond simple wrappers, we build deep-learning integrations and predictive analytics directly into the core of your industry-specific workflows.
Engagement Model
How does a limit and collateral engagement run?
We start with one portfolio and the limit levels that matter most. We agree a fixed first release on the scoping call.
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Scoping call
Charter, limit policy, collateral types, revaluation sources and the systems that hold exposure.
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Policy to rules
Limit levels, combination rules, haircuts and approvers written as tables your credit team signs off.
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Fixed-scope first release
Exposure aggregation and limit checks live for one portfolio, run in parallel with current reports.
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Collateral and liens
The register, revaluation schedule and lien tracking added on the same data model.
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Support through policy changes
New limits, rules and feeds handled under agreed change control.
Facts and sources
Which rules shape limit and collateral software?
Short facts we design around, each linked to its primary source. 12 CFR Part 32 applies to national banks and federal savings associations; state-chartered lenders follow their own limit rules, and Article 9 is adopted state by state, so your counsel confirms what applies.
A national bank's or savings association's total outstanding loans to one borrower may not exceed 15 percent of capital and surplus, plus an added 10 percent if the excess is fully secured by readily marketable collateral that is perfected and has a current market value at all times of at least 100 percent of that excess.
Source: 12 CFR 32.3(a) (eCFR)Loans to separate borrowers are aggregated as a common enterprise when the borrowers are related through common control and substantial financial interdependence exists, which is deemed to exist when 50 percent or more of one borrower's gross receipts or gross expenditures come from transactions with the other.
Source: 12 CFR 32.5(c)(2) (eCFR)A loan within the legal lending limit when made becomes nonconforming, not a violation, if collateral relied on for a lending limit exception declines in value, and the bank must bring it back into conformity within 30 calendar days unless extraordinary circumstances prevent it.
Source: 12 CFR 32.6(a)(2) and (c) (eCFR)Uniform Commercial Code Article 9 governs secured transactions, meaning credit secured by personal property, and each state maintains an office for filing financing statements that publicly disclose security interests.
Source: Uniform Law Commission, Uniform Commercial Code, Article 9, Secured Transactions
Voice of success
We don't just build products; we forge lasting partnerships. See how we've helped industry leaders transform their vision into technical reality.
“I can clearly see how Agnotic has a unique way of handling end-to-end development. They are always active on quick chat and provide support quickly.”
Aaron Phelan
Founder, Benchmark
“Agnotic combines deep technical expertise with strong domain knowledge. They understand the business context, anticipate challenges, and make collaboration smooth and effective.”
John Pasmore
Founder, Latimer
“Agnotic is the best technical team we evaluated. Their engineering excellence made our work dramatically easier and allowed us to stay focused on what matters most for maternal care outcomes. They took full ownership of the technical execution, and we are always happy to continue working together.”
Kim Smith
Founder, My Lauren
Related pages
Related lending and credit services
This page covers limits, exposure and collateral. These pages cover the lending work around them.
Commercial loan pricing software
Risk-based pricing and the expected loss inputs collateral feeds.
Loan servicing software
Payments, statements and payoff after the loan funds.
Loan origination software
Applications, underwriting and approval before the facility exists.
Credit risk scoring software
Scoring models and the data behind each credit decision.
Lending analytics
Portfolio reporting across originations, performance and risk.
More in Financial Services
More Financial Services Solutions
Explore other production-grade engineering platforms we deliver across financial services.
Cross-Industry Reach
The Same Engineering Patterns, Across Other Industries
The technical patterns behind this platform translate naturally into adjacent verticals.
Frequently Asked Questions
It combines loans to one borrower under your charter's combination rules, applies any exception the collateral supports, and compares the total with the current capital and surplus figure from finance. The check runs at every drawdown and when capital or collateral values change, not only at approval.
Ownership, control and guarantee links are held in the limit system as relationships, and your credit team confirms each group. Exposure then rolls up automatically, and a change in ownership triggers a fresh check of the whole group.
No. Haircuts, eligibility and advance rates come from your credit policy and your regulator's rules. We build them as versioned tables your credit team owns, so the software applies them consistently and records which version was used.
Each financing statement is stored with its filing office, file number and lapse date. The software opens a continuation task inside the window your counsel sets and escalates it if nobody files, so a lapse becomes visible weeks before it happens.
We do not publish a calculator, because the useful answer depends on your portfolio. On the scoping call we size the build from your facility hierarchy, the collateral types you take and the sources you revalue them from.
The number of source systems holding exposure, how many limit levels and charters you run, the collateral types and valuation feeds, the lien volume to load and whether checks must run in real time at drawdown. We agree these before giving any estimate.
Yes. A young lender usually needs obligor limits, a simple collateral register and concentration reporting first. We build those on a data model that can take group limits and lien tracking as the book grows.
Industries