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Collateral Management

The apps.collateral module tracks physical or financial assets securing loans, including lien filings and valuations.

Collateral Items

Types

Type Type-Specific Metadata (JSONB)
real_estate Property address, APN, property type, occupancy
vehicle VIN, make, model, year, mileage
equipment Serial number, manufacturer, model, condition
jewelry Description, certification
securities Ticker, shares, account
cash Account type, institution
other Free-form metadata

Core Fields

Field Description
loan FK to the secured loan
collateral_type Type of collateral (see above)
description Free-text description
estimated_value Current estimated value (MoneyField)
status pledged, released, liquidated, or seized
meta_data JSONB for type-specific fields

The estimated_value field is updated automatically when a new valuation is recorded.

Liens

Lien filings record the legal claim against collateral items:

Lien Fields

Field Description
collateral_item FK to the collateral item
lien_position Priority (1st, 2nd, 3rd, etc.)
filing_type UCC-1, mortgage, security agreement, title lien
filing_number Official filing number
filing_date Date filed
filing_jurisdiction Where filed (state, county)
expiration_date When the filing expires
status Current lien status

Lien Lifecycle

active → continued → terminated
   │         │
   │         └──→ amended
   └──→ released
Status Description
active Lien is currently in effect
continued Filing renewed before expiration
amended Filing terms modified
terminated Lien formally terminated
released Lien released (e.g., on loan payoff)

Lien Expiration Monitoring

A daily Celery task checks for liens expiring within 180 days and generates alerts. This prevents UCC filings from lapsing unnoticed.

Auto-Release on Payoff

When a loan transitions to paid_off, all associated liens are automatically released.

Valuations

Multiple valuation records can be maintained per collateral item to track value changes over time:

Field Description
collateral_item FK to the collateral item
valuation_type Type of valuation (see below)
value Appraised/estimated value (MoneyField)
valuation_date Date of valuation
appraiser Name of appraiser or source

Valuation Types

Type Description
appraisal Professional appraisal
market Market value estimate
book Book value
liquidation Forced sale value
BPO Broker price opinion
AVM Automated valuation model
NADA NADA guide value (vehicles)
KBB Kelley Blue Book value (vehicles)

When a new valuation is recorded, the collateral item's estimated_value is updated to the most recent valuation amount.

Liquidation

After a loan defaults, collateral may be liquidated:

  1. Collateral status changes to liquidated
  2. Liquidation proceeds recorded
  3. Deficiency balance computed: outstanding loan balance minus liquidation proceeds
  4. GL entries posted for the proceeds
  5. If deficiency remains, it may be pursued through collections or written off

See Also