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The custom CVL extension name must exactly match the CVL ID in the data model for them to be associated. If the names do not exactly match, then the Custom CVL will not be associated with the CVL in the model.
You can choose this option if the source of the CVL values is elsewhere than in the data model. In a standard inriver implementation, there are for example two predefined Custom CVL extensions for the CVLs Users and GroupTask. The values of these CVL:s are managed by extensions that get the data from the inriver user list and role list respectively.
When you use the CVLs in your applications you see no difference between a normal CVL and a Custom CVL.
Custom CVLs must not be added to mandatory fields. If the custom CVL extension fails, any mandatory fields relying on the extension will remain empty, and the user won't be able to create the entity.
This approach must not be used and is not supported.
Custom CVL in inriver Control Center
You create the CVL in Control Center and check the property Custom Value List. That tells the system that it should look for a code extension managing the CVL values.