Working with Financial Instruments
Overview
A financial instrument is a form of collateral, such as a surety bond, certificate of deposit, corporate guarantee, letter of credit, deposit account, insurance policy, or other funding mechanism, that can be drawn upon when needed.
Each instrument can allocate a portion of its total value to specific cost estimates. These allocated portions are known as financial responsibility coverage amounts.
Creating a Financial Instrument Record
To create a financial instrument, navigate to the Instruments tab of the related financial assurance record and click the Add Instrument button.
Then, add the instrument data. The table below defines each field on this page.
Multiple financial instruments can be added to satisfy the financial assurance total.
Field | Description | Notes |
|---|---|---|
Instrument Type | The form of collateral. | Options include surety bond, certificate of deposit, corporate guarantee, letter of credit, deposit account, and mortgage of real estate. |
Instrument Number | An identifier specific to the selected instrument type. | This may be a check number, account number, mortgage or loan number, or other financial reference number. |
Issued By | The issuer of the instrument. |
|
Provided By | The provider of the instrument. |
|
Trustee | The person responsible for overseeing and managing the instrument. |
|
Amount | The instrument value. | This must match the sum of the coverage amounts (see below). |
Coverage Amounts | The financial responsibility coverage details, including liability type and total coverage amount. | Information in this field may vary by program area. |
Effective Date | The date when the financial instrument coverage begins. |
|
Expired Date | The date when the financial instrument coverage ends. |
|
Release Date | The date when the financial instrument was issued. |
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Comments | Notes about the financial instrument. |
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