PURCHASED SBLC/BG - NO UPFRONT FEE - 42%+2%

  • Minimum Instrument Value = 100 Million USD/€
  • Minimum Tranche Size = 100 Million USD/€

Transaction Procedure:

  1. RECEIVER submits to PROVIDER this signed Deed of Agreement (DOA), together with Client Information Sheet, (CIS), Corporate Board Resolution, Signatory’s Passport Copy, Corporate Registration, and IMFPA.
  2. Within 1-3 banking days PROVIDER countersigns the Deed of Agreement, which thereby automatically becomes a full recourse commercial contract and both Parties lodge the DOA with their respective Banks.
  3. Within 1-3 banking days RECEIVER Bank will issue MT-199 to PROVIDER'S coordinate bank account to confirming that they are Ready, Willing and Able to receive the SBLC.
  4. Within 1-3 banking days PROVIDER’s bank will reply by MT-199 confirming that they are Ready, Willing and Able to issue the STAND BY LETTER OF CREDIT (SBLC).
  5. Within 1-3 banking days RECEIVER Bank will issue MT 799 proof of funds to PROVIDER'S coordinate bank account to confirming that they are Ready, Willing and Able to receive the SBLC.
  6. Within 1-3 banking days PROVIDER’s Issuing bank will reply by MT-799 Pre-Advice (Exhibit A) confirming that they are Ready, Willing and Able to issue the STAND BY LETTER OF CREDIT (SBLC) as per agreed verbiage (Exhibit B).
  7. On receipt, authentication, and confirmation of the PROVIDER’S pre-advice to the bank of the RECEIVER, the PROVIDER will issue SBLC via SWIFT MT-760, and the PROVIDER'S bank will send the hard copies of the SBLC to the RECEIVER'S bank by bank-bonded courier.
  8. RECEIVER’S bank affects the payment within (15) Banking days to PROVIDER'S nominated bank account by unconditional SWIFT  MT-103 and simultaneously pays 2%  Consultancy fees as per details stated in the IMFPA.
  9. Transactions and their settlement will continue according to above-noted procedures and pre-agreed tranche schedule until contracted collateral instruments are fully delivered.

Should RECEIVER default to pay the fees to the PROVIDER and commission to the Consultants as agreed in this DOA within the allowed number of days after receipt of SBLC via SWIFT-760 the PROVIDER shall instruct the Issuing Bank to put a claim on the SBLC thereby forcing the Receiver's Bank to return the SBLC to the issuing Bank.

REQUESTING THE DOA

  1. The Receiver’s paying bank must be acceptable to the Provider. Top rated quality banks are accepted and all paying banks must be approved by the Provider prior to issuing the DOA. >>CHECK IF CLIENT'S  BANK IS ACCEPTABLE<< (This link will take you to a short questionaire which will provide the answers needed in issuing the DOA.)
  2. Provider will accept payment by pre-approved active line of credit from approved paying bank. Credit provider and his paying bank must be approved by the Provider prior to issuing the DOA.
  3. We always request some evidence of financial capability to pay for the instrument prior to issuing the DOA.
  4. If the paying bank is approved, we will send a DOA to be completed by the Client.
  5. If the Client returns a fully completed acceptable DOA, the Provider will countersign the DOA.

This is a “No Upfront Fee Procedure”. The Provider is taking all the risk. Therefore no changes to the procedure or the pre-screening requirements are possible.




This page is current. Wednesday-21-October-2020

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