The security may be transferred in full ownership of the debtor to the creditor, against the debtor`s obligation to return the same amount of guarantee or the same amount of cash at the maturity of the liability. In this case, the creditor may reuse these guarantees (depending on the previously negotiated agreement) as collateral in other transactions. If the guarantee is received in the form of cash, the creditor will naturally invest it, as he usually accepts the debtor`s remuneration in this case. Collateral management has many different functions. One of these functions is credit enhancement, where a borrower is able to obtain more affordable credit rates. Aspects of portfolio risk, risk management, capital adequacy, compliance with legislation and operational risk and asset management are also included in many collateral management situations. A balance sheet technique is another frequently used facet of collateral management, used to maximize the bank`s resources, ensure that asset hedging rules are followed, and seek additional capital from loans on surplus assets. Several sub-categories such as collateral arbitration, collateral outsourcing, three-party buyback contracts and credit risk assessment are just some of the tasks that are dealt with in collateral management.  A CMA instructs a warranty manager to maintain, store and control the warehouses until the goods are exported and the borrower has repaid their debts. The dominant form of guarantees is cash and government bonds. According to ISDA, liquidity accounts for approximately 82% of the guarantees received and 83% of the guarantees provided in 2009, which is broadly in line with last year`s results. Government securities account for less than 10% of the guarantees received and 14% of the guarantees provided this year, which corresponds to the end of 2008.
 Other types of warranties are less used. Technological advances are also helping to improve the way collateral handles raw materials in warehouses. Margin Calls refers to the flow of collateral exchanged at each stock revaluation. In order to avoid unnecessary expenses, a threshold below which trade does not take place is set. With regard to central banks, their refinancing operations and related guarantees are clearly reassessed by the central bank itself. While a CMA has many advantages, industry experts also warn that agreements will not do “good” bad business, and lenders still have to do their homework before entering into a transaction to minimize the risk of fraud, stolen shares or defaults. “In order for the products to be eligible collateral for the RRC, the guarantee agreement must meet a number of conditions, including that it must be legally effective and enforceable in all relevant legal systems and that the bank financing the transaction must prevail over all other lenders over the products produced,” he said. The rules for managing guarantees are then generally defined in a bilateral agreement (legal agreement) signed by both parties before the start of negotiations. The agreement contains a number of elements that are specified below: the types of assets transferred as collateral, the rules for assessing these assets, the thresholds for marginal appeals, the possibility of reusing the collateral received (“rehypothecation”), etc. “It is a management function. Think of the warehouse manager in the country, who receives $1,000 a month for fertilizers worth literally millions of dollars.