“Features of acceptance of pledge and assessment of specialized equipment” — Denis Marynich for the “Bank credit” magazine
In practice of mortgage work problems occur more often with the adoption of collateral specialized equipment. The collateral specialist has questions about the liquidity of this equipment, the risks of its acceptance as collateral and subsequent sale in case of default situations, how to correctly to determine the market value of specialized equipment.
Denis Marinich, the evaluator of The evaluation department of the "Prime Advice", in collaboration with Alexander Mikhailov (Gazprom) and Pavel Podsekaev (Sberbank) wrote an article for "Bank credit" methodical journal.
Excerpts from the article are given below:
It is necessary to introduce a classification: non-standard equipment, unique equipment, infrastructure equipment for an integrated and systematic approach to the issue of specialized equipment as a subject of collateral.
Working with specialized equipment, it is necessary to analyze its importance for the business owner. If the significance is small, it is advisable to encumber such an object with a pledge only to be able to conduct periodic monitoring of the enterprise's activities.
Taking into account the specifics of the pledged property, the most reasonable is to determine the cost of specialized equipment within the framework of the cost approach, which, as a rule, is the main, and often the only one.
It is necessary to clearly represent the structure of the used (basic) price information for the correct accounting or exclusion of double accounting of costs of delivery, insurance, customs clearance, etc when determining the cost of reproduction (substitution).
The termination of the production of the evaluated equipment, as a rule, indicates its functional obsolescence. Underutilization of individual units, units, sections and shops may be an indirect sign of functional wear.