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## 2.5 Collor

This topic provides the information about the Collor Method.

On reaching a threshold value, the funds are swept from the child account but leaving behind a balance defined as the Collor.

Child to Parent Scenario

If the child account balance is above the threshold balance amount or equal to the threshold balance amount, the system sweeps the balances from the child account leaving behind the pre-set balance in the child account (Collor). If the child account balance is below the threshold, the system does not execute the sweep instruction.

Parent to Child Scenario

If the child account balance is below the threshold balance, the system does not perform any sweeps under any circumstances even if the parent account is in credit balance. If the child account balance is below zero, the sweeps are performed from parent account to child account to bring child account balance to zero.

If more than one child account is in negative balance, the transfer from the parent account is based on the priority set at the child account (Least numeric is given top priority) and the available balance on the parent account.

The system tries to bring the child account to zero balance if it has a negative balance. If the balance in the parent account is not sufficient to cover the overdraft in the child account, either sweep is not executed or sweep is executed up to the balance available in the parent account.

If more than one child account is in negative balance, the transfer from the parent account is based on the priority set at the child account (Least numeric is given top priority) and the available balance on the parent account.

When sweeping from parent account to child account, the parent account balance cannot go below Zero if the unlimited OD is not selected at the account level. If it is checked, the sweeps can be executed without any limit to cover the child overdrafts till all the child account balances are set to zero.

Parent topic: Cash Concentration Methods