Collateral Management is a schemed bundle of credit facility fortress services, based on legally enforceable agreements that border on possessory and non-possessory title or mortgage management through monitoring, supervision, warehousing, lien reporting and endorsement of assigned credit line related economic floating stock (except fungible), process, document, inventory, machinery outturning line – vehicle/vessel etc by an agency party to the agreement, whose responsibilities hold on paid collaterage due by the assignee or principal on the approved rate and account of the assignor, to the order and interest of the assignee or principal on IMPEX, merchandising, transit, locational and allied projects.


The efficiency of collateral management agency is based on the structure and timeliness of instruments and responses (STIR) that revolve on commodity-type products, incipient demand and learning relationship.


  • Warehouse is nominated and approved by the Bank.
  • Warrant/Instrument in use is per Bank selected services and related rate of charges per month or part thereof.
  • Warrant is noted to the interest of Bank on quantity received.
  • Veritable Collateral Management Human Capital that guarantees the desired Operational Value is built on Bona Fide Occupational Qualification (BFOQ) and Leap Frogging Pay Demand System.
  • Stock is released to the order of the Bank..
  • Rating System = R.a.k (Rate all kinds) i.e. irrespective of type/value of stock; per out-let.
  • The Collateral Management Services are forsooth, formidable Fortress for the Bank in Trade Finance.
  • The Assignor provides All Risks Insurance on the premises, property (stock) and personnel (3 Ps) or (PSP).
  • Responsibility is based on Collaterage Due.
  • The Bank is the principal of the Collateral Management Agent.


Result and achievement of the collateral management scheme draw much from the due diligence process mechanism of the assignee or principal – its agents and privies. Hence, the inquisitive and pragmatic dictum of who is working for who in any credit administration calls for loop feed points (LFPs) as a second domain diligence. However, collateral management is run on set rules and guidelines that do not yield to modus vivendi, rather through mandate, invokes circumvallation measures and alerts principal or assignee of observed deviation and desiderata to in turn, respond in line with subsisting agreement. Each agreement provides for "jus distrahendi" while collateral management agent's "holding responsibilities" ingratiate with assignee or principal. Hence, the efficacy of the collateral agreement.


  • Collateral management is a main function amongst others in TASAL's portfolio of services.
  • Ab-initio the board was founded on security.
  • TASAL management insists on set standards, which can only be improved upon commodity-type products, incipient demand and learning relationship.
  • TASAL field warehouse at Amuwo Odofin Scheme, Lagos.
  • TASAL recognizes and promotes the piggyback (mother henning) marketing schemes that play out in the Collateral Management Tripartite Projection.
  • TASAL ingratiates with the principal interests as paramount.
  • TASAL rates for these services are based on "can-afford requirements" for unwavering loyalty to the client (Bank). The principal (Bank) is therefore given a superior position over other parties in the relationship any time TASAL is involved.
  • TASAL projects a symbolic relationship between the bank and itself.
  • Collateral management bundled services, attend to trade finance' latent demand, thence to the incipient one.
  • Assignor's insurance shall include guarantee policy amongst specific necessary others noted to the interest of the bank as first party beneficiary.


TRIPARTITE COLLATERAL WAREHOUSING AGREEMENT (CWA) – The Bank appoints a Warehousing Company to hold and supervise in/out of the goods and issue to the Bank, Warehouse Warrant showing and describing the stock balance held to the order of the Bank at any particular time. This is an outright take-over and lock-up.  Release of stock to the Depositor is only against Bank written instructions.  No Special Monitor required.

TRIPARTITE COLLATERAL MORTGAGE WAREHOUSING AGREEMENT (CMWA) -   A Mortgage, that is used in securing a Promissory Note pledged as Collateral for a Principal Obligation is by this arrangement, held in warehouse that becomes void upon payment or performance according to the stipulated terms.  A Disposition Warrant or Warehouse Receipt is issued to the Mortgagee upon receipt into warehouse and invalidate upon delivery.  It can be close-end, closed or open-end Mortgage.  It is an outright lock-up that requires no special monitor.


This as the name implies, is not a collateral holding, bonded or any other third party protective mortgage service.  It is rather, of self-decision to hand over ones property, wares or stock  to a professional bailee referred to here as a warehouser by the property owner referred to as a bailor for a particular purpose and for a period and service fee known as warehouseage.

TRIPARTITE JOINT LOCK STOCK SUPERVISION AGREEMENT (JLSA) – To supervise and report each category of goods assigned to the Bank and issue Periodic Supervision Reports to the Bank.  This requires joint locking of warehouse by TASAL and the Company (Assignor).  Stock collection/release is against Bank written instruction.  A Monitor is stationed.

TRIPARTITE NON-LOCK STOCK SUPERVISION AGREEMENT (NLSA) – To supervise and report each category of goods assigned to the Bank and issue Periodic traffic led Supervision Reports to the Bank.  This requires neither non-locking nor co-locking of warehouse by TASAL with the Company (Assignor).  Inward/Outward traffic is against Bank written instructions.  A Monitor is stationed.

 TRIPARTITE JOINT LOCK MONITORING AGREEMENT (JLMA) – To physically take stock, monitor and report the position to the Bank per agreed period.  This takes joint locking of the Stock by TASAL and the Company (Assignor). Under this arrangement, stock collection does not need bank written authority.  Rather, minimum stock level is given by the Bank at commencement.  A. Monitor is stationed.

TRIPARTITE NON- LOCK MONITORING AGREEMENT (NLMA) – To monitor and report stock positions/levels to the Bank per agreed period.  This takes neither non-locking nor co-locking of the Warehouse by TASAL. Stock collection does not need bank written authority.  Rather, minimum stock level is given by the Bank at commencement.  A Monitor is stationed.

TRIPARTITE INLAND TRANSIT MONITORING AGREEMENT - To control and supervise the movement of goods from point of loading to destination point as may be directed by the Bank.  Outturn Report is thereafter issued to the Bank. This service empowers/facilitates payment domiciliation arrangements to the Bank.  

TRIPARTITE INVENTORY REPORTING AGENCY AGREEMENT (IRA) – To note and report INVENTORY Levels to the Bank without locking nor co-locking of Stock held. Rather, stock levels are reported to the Bank on agreed periods with attention to a given minimum level.  An Inventory Reporter makes agreed periodic calls at the warehouse with due caution to avoid psychological encumbrance.  Classified/Multiple Party rates for this product are also available on downward graduated basis of 4 – 9, 10 – 16, 17 – 20 & 21 – rest number of parties in same locality/same Bank.


Same  as No. 8  but  in  the  coastal  waterways and internal airspace with its peculiarities for wet and

bulk  cargo  on  sea  and  sensitive/security cargo by air going crafts and barges/helicopters with

suitable  (Cabotage)  Insurance  Policy  typically  in   place.  Note is taken of   the two Cabotage

Subsidiary  Regulations  of  25th  June  2006,  Lagos  as  Cabotage  (Bareboat  Registration) and

(Detention  of   Ships) Regulations  2006  on  Official  Gazette No. 43, Vol. 93, Government Notice

No. 29.   See Pages 18 and 22 for operational instruments.


Same as Nos. 8 and 9 above but from Nigerian Sea Ports to the Land Locked States based on the provisions of UNCLOS 3 of 1982, Arts 124-132; then Transire Manifests and GIT Insurance with the required geographical limit clause.


Provision of INLAND TRANSIT MONITORING and OUTTURN REPORTING for both DRY and WET cargo in Trucks and Tankers for Government, Banks, Projects etc. is available.  The services cover Local and Foreign Transit as well as Marine and Lighterage. (Product Procedural Sheet is available on request).


    1. The service functions in the area of confirming actual Landing and Position of consignments (Container, General Cargo – Sea/Airfreights).


  • It determines, reconciles documents and records with the Bank on the ACTUAL situation at the port thereby securing the Bank’s effect.  That is where Documents and Records held by a Bank are of no CONSEQUENCE to the clearing and delivery of consignment with a Bank.   Facility.  (Product Procedural Sheet is available on request.


    EVACUATION OR REMOVAL SERVICES for all classes of goods in three categories of:

1)    Total Evacuation or Removal Order

The evacuator or removalist provides all necessary Labour, handles packing and dismantling; of stock and installations, packaging and palletizing, provision of suitably claused insurance and transportation to the principal’s (evacuee’s) given destination.        

2)    Average Evacuation or Removal Order

Here, the removalist receives detailed schedule of packed items, package/palletize, assigns Marks and Numbers and transports same with evacuee’s Insurance to  given destination.

3)    Line Evacuation or Removal Order

The Evacuator or Removalist moves already packaged, palletized or crated and packed/associated property items to a given destination. Loading/Off-Loading Labour and Insurance are provided by the evacuee. Collaterage covers only Drayage and Monitorage.

(Detailed Procedure and Rate of Charges are available on request).


  1. a) Direct Appointment of Clearing Agents by Banks for imports funded by them will enable “Delivery to the Bank’s Order” by Bank appointed Agents (clearing charges can be negotiated between the Bank or the consignee and the Clearing Agents appointed by the bank).
  2. b) Participatory or Supervisory Agency applies where an importer insists and ‘credit terms’ (agreement) allow for his own clearing arrangements, Bank then calls in a Protective Agent for participatory or Supervisory functions that should ensure delivery to the Bank’s chosen destination/warehouse.

The participatory/supervisory clearing is in 3 categories depending on Bank’s level of comfort over each account.  Each of these three categories requires the use of Approbation Note:

  1. i) On-Line Import Protective Agency (OLIPA): Under this arrangement original shipping documents are jointly endorsed by the Bank and Consignee to the order of the OLIPA.
  2. ii) Liner Import Protective Agency (LIPA): In this arrangement only original Bills of Lading are endorsed to the ‘order of the LIPA by the Bank only.

iii)    Inventory Import Protective Agency (IIPA): This category requires neither endorsement nor co-endorsement of any original document to the ‘Order’ of IIPA.  Rather, photocopies are required.

This product (IPA) ensures a First Party Possession Position for the Bank. It puts the bank at a superior position over and above other parties by having the Stock Report as Found to Contain (FTC) instead of Said to Contain (STC), that would have been in otherwise situation.

Product Procedural details available on request).  


  1. a) Export Protective Agency Service is rendered outrightly by an Exporter Bank direct-appointed Agent or participatorily with the Exporter’s appointed Agent if the (the Exporter) insists on having his own Agents or Agency on board and the credit terms so permit.  The PROTECTIVE AGENTS here will circumspectly, DOCUMENT and CLAUSE Bills of Lading to enable the Exporter Bank have control over the Shipment, its Delivery and Proceeds.
  2. b)       House Bill of Lading, the Gullible System Fortress (GSF) is put to use on the order of the

Exporter Bank to circumvallate the identified gullible but important market.  The cargo manifest and at times, Ocean Bill of Lading, specify its existence and adherence.  It can also be used to check the menace of oligopsonic price discrimination against Bank interest.

  1. Warranting of Exportable Cargo in a Bank chosen Warehouse and Land Tanks (Wet cargo) is also available. TASAL warrants are presently attracting 80 – 100% offshore pre-payments in the situation of Red Clause Credits.   In the case of hinterland port or feeder vessel operation, Receipt for Shipment Bill of Lading is put into use.  Product Procedural Sheet is available on request.


To monitor the pumping, mounding and selling of sand quantity; impoldering and ascertainment of polder  M2 and reporting of same to the Bank per agreed period.  This does not require locking nor co-locking of site of operation, rather the Collateral Management Company shall be given access to the sand dredging, pumping, mounding, selling and polder sites (excluding ergs or areg and alluvion) at all reasonable/agreed times of business.  Ownership/Economic value of Sand stock and Reclaimed land (excluding dunes and alluviums or via), starts and remains exclusively with the Bank upon Collateral Manager’s issuance of Daily Stock Sold Report (DSSR), Measured Cubicled Mound Report (MCMR) and Reclaimed land   (RCL).   A Monitor is stationed for the DSSRs, MCMR and RCL through intermittent SMSing and Daily Outturn Reporting respectively.  That is to say that Economic Sand Quantity (ESQ) is limited to DSSRs and MCMR while Reclaimed land is per ascertained polder M2.  


Hypotheca is an advanced form of contract of pledge or Collateral Management in which only the property in a thing is assigned to the creditor while the debtor is allowed to remain in possession.  Hence,  Mortgagees,  Lessors  or  Banks   that  finance   amphibious  vehicles  (excluding  Hunter

Killers) like Dredger, Rig etc that create Hypotheca engage above service to check among others, incidence of Drift-Stuff that converts to Riparian Owner and thence to the issue of Prio-appropriation Right Doctrine, Riparian-Right Doctrine, Riparian Right Simplum, Common of Piscary and Distress Damage Feasant typically possible for Riparian/Pasturage Proprietors or Communities.  The Hypotheca Monitoring Agent’s inputs on lease agreement ensure presence of certain circumvallation clauses like the Dredging-Delay Rental Clause, Detention of craft clause etc; and exclusion of the characters of Rehypothecation, Bottomry, Respondentia Bond etc.  Instrument of service revolves around the citizens, indigenes and autochtons of the Riparian/pasturage  Area as required in article 32 of the United Nations Declaration of 29th June, 2006 adopted on September 13, 2007 by the General Assembly on the Rights of Indigenous Peoples which encourages asseveration instead of assimilation as basis of co-existence.   The Monitoring agent of the Bank is expressly introduced To All Whom It May Concern at commencement and subsequent times found necessary.  Source of Exercitorial Power is for inter-alias, barratry, carefully decided and expressed subject to Bank’s chosen position; Lessor, Mortgagee etc that further decide the Exercitor.  A Note is taken of the animal Act of 1971 and “Levant and couchant” on cattle common of pasture and 14 days Jus Distrahendi.  

Please note that this has nothing to do with letter of marque/lettre de course for privateers/corsairs.


A leveraged lease which is a collateral for the loan through which the lessor acquired the Leased Asset and that provides the lender’s only recourse for non-payment of the debt calls for a Quadrilateral Chattel Paper which in turn shows both a monetary obligation and security interest in a lease of specific goods.  It can be Electronic or Tangible Chattel Paper.  It takes so many of Hypotheca features but the basic characteristic is a security interest in specific goods arising from a monetary obligation.  The parties here are the Lender, Lessor (Borrower), Lessee (End User) and Monitor (Collateral Manager).


This involves the monitoring of stock transformation process from raw material point to finished product point.  Three stages are involved: Raw Material, Production (Work In Progress) and Finished Product.  This requires outright locking or joint locking at the Raw Material and Finished Product Points. Expected production output is given to determine production variance.  A Specialized Monitor is stationed.


This service is required for ex-ship/air craft-tackle protection of Bank exposure on Ship/Air Craft Load Import Finance:

  1. Direct Husbanding Appointment allows the protective Agent to handle the discharge function exclusively to the order of the Bank but on approved account of the receiver on either Fios, Fas or Free Out Service of Voyage Charter.
  2. Discharge supervisory or Participatory Service is provided to protect Bank exposure if receiver uses his own Agent or Agency as may be allowed by the credit terms.  Operation can be on Fios, Fas, Free Out or Liner Service with a Quadripartite Approbation Note duly executed by all parties including the Liner Service Agent to ensure no let or hindrance.    


TASAL offers the mid party statutorily required endorsement of negotiable instruments and confirmations where necessary.  This is subject to party’s specific request arising from National Credit Policy Guidelines.


A one off Inventory taking and Reporting function that may be commissioned by a principal on Stock, Material or Wares of interest for Collateral or Accounting purposes.  Three categories of: Stock at Hand, Brought forward and Carried forward are ascertained through enumeration, extrapolation and notational formulae or equations where necessary


A financier’s interest in material usage for Turnkey and other locational projects calls for Material Movement Supervision (MMS) function that would ensure accurate reporting of material Inflow, Application and Balance that most times assist in determining Economic Order Quantity (EOQ) of such materials for future project of same nature and size.

                                                                                                                                                                                                                                           QUADRIPARTITE WET CARGO MONITORING AND CUSTODIAL AGREEMENT

This service takes place at the Tank Farm over dedicated Land Tank of interest on Agency or Joint Lock-up basis.  It can be based on Written Release Authority or Stock Traffic Reporting.  If based on the later, it can then be Non-Locking Quadripartite Inventory Reporting Agency (QIRA) with more Frequent Reporting including SMSing Based on Bank position.  The parties here are the Assignor, Bank, Tank Custodian and Agent.    


This is a combination of product 10 and 25 with two additional functions of loading and discharge supervision that make the 4 stage (quadruplex) operation.  This does not relieve Surveyors of their own roles.  That is when Bank wants absolute control of a transaction.  See pages 18 and 22 for instruments of operation   


This is a protective arrangement that takes an independent appointed third party to receive or possess money, document or property referred to as Escrow and thence, referred to an Escrow Agent, Escrowee or Escrow Holder from a first party (Promisor) and releases same to a specified second party ( Promisee) upon his completion of an agreed performance or amount of time.


This is where a definite number of stock is assigned against a credit line or Bank facility (minuend) from which each stock release (subtrahend), sufficiently represents the bank accepted proceed sum, duly received and thence authorised.  It is sometimes, referred to as Dead Stock Administration.  It is more on high technology equipment and government related contracts e.g.  Transformers, High Tension Cables, Iron Beams and Profiles etc.  On the other hand, it is the converse of the conventional stock dynamics of MINUENDUM & AUGENDUM as principals or basis for subtrahendus & addendum as inflectors.  That is the simple arithmetic effects of ADDEND on AUGEND and SUBTRAHEND on MINUEND.   Whereas, Minuend turns Augend on receipt of inflector-addend, while Augend turns Minuend on receipt of inflector - subtrahend.  That is to say, two elements in two cloths each, resulting in four  possible appearances of two each.