Bonding

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Overview

This section will discuss setting up and release of an appointee's bond record, and producing the bordereau for each appointee.

Setting up bond records

Bordereau records are a vital part of any insolvency case and CCH Insolvency helps the Insolvency Practitioner and staff manage the process with a minimum of fuss but with maximum information available and enables ease of review and bond amendment.

Note

When an Appointee is added to a case a Bond record is created by default in the application. The Bordereau module simply needs to be run to ascertain the correct premium and Bond records to ensure compliance requirements are not breached.

1.    Click Financials > Bordereau.  ‘Blank’ bonds for each Appointee added during the Job Set up phase should appear in the Bordereau window.

Bond1.png

2.    To access the Appointee’s Bond record double click on the line corresponding to their name (the spy glass drill down pointer appears).  Alternatively right click on the Appointee’s name line and choose ‘Add Bond’ from the drop-down menu.  The following window appears:

Bond2.png

3.    The Appointee selected should populate the Appointee field, the Insurer / Underwriter reference should automatically populate the corresponding fields, the effective date should show the start date of the job and the total asset value entered using the Asset tab.  In the event that the Insurer/Ref information does not automatically populate the Insurer can be selected from the drop-down menu and the Underwriter reference can be manually entered.

You may wish to review the user setup and static data entries in order that these entries automatically populate in the future.

4.    A window similar to the following should be visible:

Bond3.png

5.    Review / amend the bondable asset values by clicking on the blue Asset Value: hyperlink.  The following window appears:

Bond4.png

Note

The amount bondable is the Net value of assets available to unsecured creditors AFTER security (fixed/floating) has been deducted and including prescribed parts.  The higher of ERV and SOA ERV must also be bonded and the asset value column correspondingly populates with the appropriate figure upon which the bond will be based.

6.    Bordereau values must be reviewed monthly and any amendments included in the Bordereau return for the month under review for submission to the Insurer by the 14th of the following month.  To review asset values select a new As At Date from the drop-down menu (or other date entry methods introduce elsewhere) and notice that the Update Asset Values button changes from ‘greyed out’ to blue permitting the application to update the value of the assets.

7.    Click Update Asset Values and the following Confirm Action warning appears:

Bond5.png

8.    Click OK and the asset values displayed in the asset columns are updated with movements since the last review, if any have occurred the Asset Value field is updated with the revised total.

9.    To preview/print a summary of the revised Asset Values for the permanent file, click Print.

10.    Click OK to return to the main Add Bond window (as in step 4 above) but with (any) updated asset value displayed.

Bond6.png

11.    Click Add button at the bottom of Bond Activity area and the Bond Action window appears:

Bond7.png

12.    The Action Type should have defaulted to “New Appointment” and the Bond Rate field should correspond to the revised asset value as at 8 above.

13.    The Premium payable for the chosen Bond rate band from your office’s premium tables should automatically populate from the values in “Static Data”.

14.    Enter ‘t’ for today’s date as date Bond submitted.  Your screen should look similar to that shown below:

Bond8.png

Click OK.

15.    The main Bond entry window re-appears showing the selected Bond rate and premium as follows:

Bond9.png

16.    When satisfied the details are correct click OK to return to the main Bordereau tab window with the selected bond details showing as follows:

Bond10.png

17.    Click on the second Appointee and repeat steps 11 - 15 above to return to step 15 with the second Appointee added as in the following window:

Bond11.png

Note

Each Appointee in the Bordereau Bond window appears in a different colour depending on the bonding status as a quick visual aid to the bonding state.  Red indicates under-bonded, green over-bonded and grey (as in 16 above) indicates that the bonding level is correct.

Reviewing and producing the bordereau

The Self Certification report is produced by an Appointee across all of his/her jobs.  The report is therefore independent of a specific job and must be accessed from the Practices area to the Main menu bar to the left of the Insolvency window.

1.    Click the Practices tab and a list of available practices appears in the Search Results window.

2.    Select the appropriate practice (or office) from the list.  Double clicking opens the Practice window as follows:

BondReturn1.png

3.    Select the Bordereau tab and the list of all Appointees and jobs appears with the previously introduced colour visual status indicator.

BondReturn2.png

Tip

The Appointees can be sorted into Appointee order by clicking on the Appointee header at the top of this column.  Other columns can be similarly sorted by clicking on the header.

4.    Click on the Reports button to display the Bordereau Report Wizard and select the Self Certification Report.

BondReturn3.png

5.    Click the Next button and select an Appointee and a date range similar to the following window:

BondReturn4.png

6.    Click Next and preview the Self Certification Report in the window.

7.    Click Finish to close Report Wizard.

Finalising the bond

1.    The process to end a bond and obtain a final release is the same as for Setting up a Bond, steps 10-14 (above).  Select the Final Release radio button instead of Increase and enter the dates of release and date submitted of your choice.  You should be presented with a window similar to the following:

Release1.png

2.    Click OK and you are returned to the main Bond window as follows:

Release2.png

Note

RELEASED has now been added to Bond Value From and the Bond Activity area shows Final Release.

3.    You will receive a warning to ensure the appointee is also retired.

Release3.png

This is dealt with in steps 5 and 6 below.

4.    Click OK and the window returns to the Bordereau tab showing the Bond selected for release marked with the date of release in the status column.  You should see a window similar to the following:

Release4.png

Note

An Appointee cannot be retired when there is an active Bordereau.

5.    Go to General > Appointment tab.  Double click on Appointee with the active bordereau and the following window appears:

Release5.png

6.    Enter a chosen retirement date and select OK.  The following non critical warning appears prompting for the Final Release process above to be initiated on any joint appointee.

Release6.png

7.    If the retirement date is entered before releasing the bond, the following error message will be shown:

Release7.png

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