CREATIVE FUNDING SOLUTIONS FOR INTERNATIONAL PROJECT DEVELOPING AND INVESTING
OF LENDING GUIDELINES AND PROCEDURES
Our Bank Instruments, as specified and agreed upon by contract/agreement, are assigned in personal or corporate name and are primarily used for provision of a project, commercial endeavors, balance sheet and credit enhancement. The Bank Instrument is made available as an enhancement instrument only.
Applicant/Borrower may assign the rights to use the Instrument. However, ownership will not be transferred. Borrower is not permitted to sell or pledge the Instrument. If Applicant/Borrower wishes to sell/pledge the Instrument, arrangements can be made with the banks congruent with banking rules and regulations during any time of the validity of the Bank Instrument.
If Applicant/Borrower intends to use the borrowed instrument as collateral, Borrower’s Bank must undertake, by Swift, the irrevocable commitment to return the Instrument unencumbered, free and clear of any debts or claim.
We offer the following options in conjunction with our Bank Instrument leasing program:
- Application for Lending without Pre-Advice (with option to receive the POF/CD as per separate procedure)
- Application for Lending with Pre-Advice (with option to receive the POF/CD as per separate procedure)
Borrower may only contract to lease one instrument at a time. Upon successful completion of first leasing transaction Borrower may contract to lease another instrument.
As Borrower, you will be assigned a quoted Bank Instrument from a major international bank, assigned directly into your name.
Applicants must be professionals who are familiar with how to use such an instrument. We do not educate or provide any advise as to how one can incorporate such a financial confirmation into his financial plans.
- TOTAL AMOUNT/AVAILABILITY
Minimum/Maximum: Transactions from a minimum amount of 10,000,000.00 USD or EUR are acceptable immediately, subject to approval of the Applicant/Borrower, availability of Applicant/Borrower funds, and on a first come first serve basis. For instruments having lower face value amount, it is requested the unconditional payment of the service fees be made by Swift wire transfer.
- TYPE OF INSTRUMENT AND RETURN OF INSTRUMENT TO LENDER
Depending on availability, the Bank Instrument/Collateral being offered is in the form of Certificate of Debt and can be an MTN, BOND, NOTE, CD or TREASURY BILL. Applicant/Borrower must return the Bank Instrument unencumbered to the Lender 15 days prior to its maturity date or purchase it. It is possible to extend the Lending period for another five years (yearly cost remains the one of first year) with 15 Pre-Advice days.
- TREASURY BILL TRANSACTIONS
TREASURY BILL transactions must be for a minimum amount of USD 200,000,000 and maximum of USD 1 Billion unless specially negotiated.
Lender will not arrange for the call option but the Lending Agreement will foresee the Pre-Advice, to the same conditions of other Bank Instruments as per point 6. below.
Payment of lending fees for T-Bills, if it is made by promissory notes, cost of bank charges for PN discount must be added to the Lending fees (as of today approximately 5.00%)
Credit Enhancement Bank Instrument is available at …% of face value lending fee PLUS 2% of Face value intermediaries fees (as per ATTACHMENT 1), for the duration of 1 Year. (365 days)
All contract changes after initial lending contract is issued will cost a fee of USD 8,000.
All call option, reservation, administrative, Pre-Advice, and extension fees will be paid to designated dispersal agency prior to submittal to Lender. These fees are fully refunded upon successful transaction.
- PRE-ADVICE REQUEST
The Lender is ready, willing and able to organize the delivery of a Pre-Advice Swift MT999 or MT 799 – (This will not be sent from a US or European bank for non-solicitation regulations) – to the Borrower’s designated bank, after the payment to a lender designated clearing account in the amount of USD 160,000 for delivery of Bank Instrument –OR- USD 275,000 for delivery of POF/CD, (If interested in POF/CD please speak to your provider agent) to cover the banking expenses of the bank that will organize the delivery of the Pre-Advice Swift. Swift transmission will be:
- MT999 direct to Borrower designated bank, only if banks do not have same correspondent.
- MT799 direct to issuing bank correspondent in the Country where the Borrower bank is located, for final delivery to the Borrower bank.
- Pre-Advice can also be sent through certified email at a cost of USD 85,000.
This money will be refunded after successfully closing the transaction or Borrower has the right to deduct the above mentioned amounts from the service fees total amount.
- COMMENCEMENT OF LENDING TRANSACTION
First, a full application Package is to be received by a Ready Willing & Able (RWA) Borrower.
A Ready Willing & Able (RWA) Borrower is a Registered Corporation, which must be ready to send the following Documents:
- Lending Application Forms with copy of the signatory passport
- Signed, 2% of face value, facilitator’s irrevocable master fee protection agreement (IMFPA)
- Project Executive Summary’s letter. (2 pages maximum)
- Signed Guidelines & Procedures Acknowledgement Letter
- Signed Request for Lending & Non Solicitation Letter
- Signed ICC NCND Agreement
- Copy of the Corporation Certificate of Registration.
Second, (After application approval) the Lending Agreement will be sent for signature along with the invoice. One invoice will cover the call option, reservation, and administrative fee. See below for appropriate amount:
FOR INSTRUMENTS WITH A FACE VALUE OF:
UP TO 499 MILLION, THE SETTLEMENT FEE IS USD 72,000
FROM 500 MILLION TO 999 MILLION, THE SETTLEMENT FEE IS USD 80,000
FOR INSTRUMENTS ABOVE 1 BILLION, THE SETTLEMENT FEE IS USD 88,000
FEES ARE ALWAYS PAYABLE IN USD, NO MATTER THE DENOMINATION OF THE INSTRUMENT
This money will be refunded after successfully closing the transaction or Borrower has the right to deduct the above mentioned amounts from the service fees total amount.
receiving a Pre-Advice of invoice with all details of the Bank Instrument, Corporate Deed of Assignment, Bond Power if requested, confirmation of Euroclear, printout of Clearstream, Bloomberg or Security Card of the Stock Exchange where the instrument is quoted, issuing program prospectus of the bank when available, in order to permit the designated Borrower’s Bank Officer to check and authenticate the instrument.
b) The designated Lender’s bank simultaneously will send a confirmation of his RWA to deliver the above mentioned Bank Instrument. This confirmation will be sent directly to the Borrower’s designated bank by Swift MT999 or by SWIFT MT799 through an official correspondent bank of the Borrower’s bank. The Lender’s Bank Officer will exercise the necessary due diligence function by a certified banking email and the Borrower’s bank will confirm his RWA to receive the above mentioned instrument to close the transaction and his awareness about the transaction by Swift. Every instrument is scree-able in Euroclear, Clearstream or Bloomberg systems.
- DELIVERY OF DOCUMENTS WHEN NO PRE-ADVICE IS FORESEEN IN THE AGREEMENT
After signing the Agreement and upon completion of the wire transfer of the above mentioned amount, within 48 hours, the LENDER will reserve the tranche of the above mentioned banking instruments by the Clearing and Settlement Company (Lending Manager). Followed by the Borrower receiving a Pre-Advice of invoice with all details of the Bank Instrument, Corporate Deed of Assignment, Bond Power if requested, confirmation of Euroclear, printout of Clearstream, Bloomberg or Security Card of the Stock Exchange where the instrument is quoted, issuing program prospectus of the bank when available, in order to permit the designated Borrower’s Bank Officer to check and authenticate the instrument.
- PAYMENT OF FEES
The Borrower must provide proof of payment for service and lending fees, no later than 20 calendar days from Pre-Advice of Pro-forma Invoice date, made through one of following documents which contents cannot be amended:
- Conditioned ICPO (irrevocable corporate pay order) endorsed by Borrower’s bank (attachment 2) or
- Bank Backed Promissory Notes (attachment 3), which expiration dates will be negotiated between the parties, (having the endorsement per avail of an acceptable bank) or
- Conditioned Swift MT103 or MT700 (attachments 4 and 5)
No other payment terms and conditions, no deductions from any profits that Applicant/Borrower expects in the future or from a loan, are acceptable.
Lenders are not willing to evaluate joint venture arrangements or change any of these conditions.
If POF/CD is requested: Applicant/Borrower must pay the Lending fees by a bank backed promissory note (which expiration date will be negotiated between the parties) to be discounted by a provider bank against delivery of a proof of funds certification (this option must be declared in the application
- DELIVERY OF DOCUMENTS WHEN PRE-ADVICE IS REQUESTED
a) After signing the Agreement and upon completion of the wire transfer of the above mentioned amount, within 48 hours, the LENDER will reserve the tranche of the above mentioned banking instruments by the Clearing and Settlement Company (Lending Manager). Followed by the Borrower
form as it foresees issuance of two agreements (Lending and discounting agreements). If interested in obtaining POF/CD please ask your leasing agent for procedures and details.
Payment of Lending fees for T-Bills, if made by promissory notes, then cost of bank charges for PN discount must be added to the Lending Fees (as of today approximately 5.00%…Note that this extra 5% amount can be adjusted at any time based on market condition or bank adjusting the charges for discounting PN’s)
THE FOLLOWING DRAFTS ARE THE
ONLY ACCEPTABLE TEXT FOR LENDING FEES
ICPO – SAMPLE OF ONLY ACCEPTABLE TEXT FOR LENDING FEES
ON CLIENT FULL LETTERHEAD
(Complete with address, phone, fax, e-mail)
(NAME OF THE BORROWER’S BANK)
Name / Title of Bank Officer(s) ID [two officers]
To the lender:…………AS PER PRO-FORMA INVOICE
We hereby present our Irrevocable, Assignable, Transferable and Callable Cash Backed Bank Pay Order in your favor, in the amount of EUR/USD…. for the Bank Instrument herein described. The herein listed Bank Instrument shall be returned unencumbered via SWIFT to the Lender fifteen days prior to maturity. The payment of the herein funds represents the Lending fees payable to the Lender under Transaction code …… and dated day of 2008 We hereby confirm that the funds are good, clean and cleared funds of non-criminal origin and are from a legal source.
This Irrevocable Bank Pay Order is a binding fully performed due bill and is immediately callable on for Cash payment upon receipt of the SWIFT MT 760 delivery of the Bank Instrument to the Client’s Bank Account specified herein.
TYPE OF INSTRUMENT ISSUING BANK ADDRESS CURRENCY MATURITY DATE ISIN NUMBER FACE VALUE
This Irrevocable, Assignable, Transferable and Callable Bank Pay Order is valid for twenty
(20) International banking days from day of ______ , 2008 and until __ day of _____ , 2008
This is an operative Bank Instrument and is subject to the uniform commercial code as it
relates to Bank credit instruments.
For and on behalf of the Borrower:
Managing Director –
Bank Officers Bank Officers
<<Bank’s Seal>> <<Bank’s Seal>>
Promissory Notes – SAMPLE OF ACCEPTABLE FORMAT
PROMISSORY NOTE MUST BE FOR MAXIMUM FIVE MILLION EACH
MT103 – SAMPLE OF ONLY ACCEPTABLE TEXT
- GLOBAL MASTER SECURITY LENDING AND BORROWING AGREEMENT
G.M.S.L.A. is valid for 30 calendar days from issuing date. The contractual documentation is negotiated in line with Applicant/Borrower’s specific requirements. Once the parties have duly executed a Contract/Agreement, the Lender Authorized Representative is the only legal and authorized entity allowed to handle the Lending transaction, to receive the documents, and to maintain communication with the Provider.
When Bank-to-Bank communication is established, between the Borrower’s Bank(s) and the Provider’s Bank, whether for Pre-Advice transfer or for the Instrument transfer, the Bank Officer(s) will be the only entities to communicate and close.
- BANK COMMUNICATION
Issuing and Receiving banks will not communicate and will not deal directly with each other unless the principal of the transaction has given permission in writing. There shall be total freedom of communication between Bank Officers at all times when permission is granted.
The Borrower’s Banks must be banks which are listed in the International Bankers Almanac.
If Borrower’s bank is not registered/listed in the Swift system as required, the Borrower must introduce a Closing Bank(s), which will have full knowledge of the Lending transaction of the Client/Borrower, for the receipt of the Pre-Advice and any further bank-to-bank communication, with a bank that is internationally recognized and registered within the Bankers Almanac.
- KNOWLEDGE AND AWARENESS OF THE BANKERS
The Bank Officer(s) of the Borrower, provided that the Borrower’s closing bank is qualified as per the above, must be fully aware and knowledgeable of the ongoing Lending transaction.
This means that at any specific time when a Bank-to-Bank communication will be established, between the Borrower’s Bank(s) and the Provider’s Bank, whether for Pre-Advice transfer or for the Instrument transfer, the Bank Officer(s) of the Borrower’s closing bank will be in a position to fully approve the receipt of the Instrument in favor of the Borrower, as well as in the position to confirm payment for this Instrument AND guarantee to give back the original Bank Instrument to the issuing bank 15 days before his maturity date unencumbered and free of liens by Swift.
- EXPENSES FOR EXTENSION
The Borrower has the possibility to extend the duration of the contract. After written request is submitted, (before agreement expiration date) Borrower receives an agreement amendment to extent contract and an invoice for USD 20,000.00.
Borrower will then receive (After extension fee is paid) a 30 contract extension starting from the expiration date of the original contract.
Extension fees will be refunded after successfully closing the transaction. The Borrower has the right to deduct it from the service fees total amount.
LENDING PROCEDURES SUMMARY ►►►►►►►►
1- CLIENT SENDS APPLICATION REQUESTING THE LENDING OF AN INSTRUMENT AND WILL RECEIVE ONE INSTRUMENT’S COORDINATES TO COMPLETE APPLICATION PACKAGE.
EVERY REQUEST FOR OUR LENDING SERVICE MUST BE ACCOMPANIED BY ALL NEEDED DOCUMENTS AS PER LENDER REQUEST OR APPLICATION WILL NOT BE TAKEN INTO CONSIDERATION.
2- The contract will be sent for signature. AT this time the Borrower will have already paid an invoice for the expenses due to cover the call option, ADMINISTRATIVE and reservation FEES amounting to:
FOR INSTRUMENTS WITH A FACE VALUE:
UP TO 499 M. THE SETTLEMENT FEE IS USD 72,000
FROM 500 M. TO 999 M. THE SETTLEMENT FEE IS USD 80,000
FOR INSTRUMENTS ABOVE 1 B. THE SETTLEMENT FEE IS USD 88,000
If Pre-Advice IS REQUESTED THE COST WILL BE USD 160,000 for delivery of Bank Instrument –OR- USD 272,000 for delivery of POF/CD TO ALLOW DELIVERY BY SWIFT.
PLEASE NOTE THAT IT IS IN USD NO MATTER WHAT CURRENCY THE INSTRUMENT IS IN.
THIS MONEY WILL BE REFUNDED AFTER SUCCESSFULLY CLOSING THE TRANSACTION OR BORROWER HAS THE RIGHT TO DEDUCT THE ABOVE MENTIONED AMOUNT FROM THE SERVICE FEES TOTAL AMOUNT.
3- AFTER RECEIPT OF ALL SIGNED DOCUMENTS AND OF THE DEPOSIT OF THE SUM ABOVE, THE LENDER WILL PROVIDE A PRO FORMA INVOICE WITH ALL DETAILS OF THE BANK INSTRUMENT, CORPORATE DEED OF ASSIGNMENT, EUROCLEAR AND CLEARSTREAM PRINTOUT, BLOOMBERG OR SECURITY CHART OF THE STOCK EXCHANGE MARKET WHERE THE INSTRUMENT IS QUOTED, TO PERMIT THE BORROWER’S BANKERS TO VERIFY. AFTER VERIFICATION, THE BORROWER MUST PROVIDE FOR CONDITIONAL PAYMENTS AS DESCRIBED BELOW:
ICPO (IRREVOCABLE CORPORATE PAY ORDER) ENDORSED BY BORROWER’S BANK OR BANK BACKED PROMISSORY NOTES (HAVING THE ENDORSEMENT PER AVAL OF AN ACCEPTABLE BANK) or CONDITIONED SWIFT MT 103 OR MT 700
NOT LATER THAN 20 CALENDAR DAYS FROM DATE OF PRO FORMA INVOICE (POINT 4).
bank HAS TO confirm that BORROWER has the funds TO PAY LENDING % price PLUS the 2% FACILITATORS FEES.
4- THE BORROWER MAY ASK FOR A 30 DAY EXTENSION OF THE CONTRACT BY A SIMPLE REQUEST SENT TO THE LENDER BEFORE CONTRACT EXPIRATION DATE FOR THE SUM OF USD 20,000. THE 30 DAY EXTENSION BEGINS ON THE EXPIRATION DATE OF THE ORIGINAL CONTRACT. THIS MONEY WILL BE REFUNDED AFTER SUCCESSFULLY CLOSING THE TRANSACTION OR BORROWER HAS THE RIGHT TO DEDUCT THE ABOVE MENTIONED AMOUNT FROM THE SERVICE FEES TOTAL AMOUNT.
5- AFTER RECEIPT OF THE CONDITIONAL PAYMENT, THE LENDER WILL DO THE NORMAL DUE DILIGENCE USING THEIR BANKERS OR THE APPOINTED ESCROW AGENT/MERCHANT BANKERS (by certified email communications). AFTER SUCCESSFUL DUE DILIGENCE, THE BANK INSTRUMENT WILL BE TRANSFERRED BY SWIFT MT760 (ATTACHMENT 6) TO THE DESIGNATED ACCOUNT OF THE BORROWER, TRANSFERRING WITH IT ALL RIGHTS TO USE IT.
6- AFTER RECEIPT, AUTHENTICATION AND VERIFICATION OF THE INSTRUMENT, BORROWER’S BANK HAS 8 HOURS TIME TO UNBLOCK THE LENDING FEES CONDITIONAL PAYMENT.
7- 15 DAYS PRIOR TO MATURITY, THE BORROWER’S BANK MUST RETURN THE INSTRUMENT BY SWIFT TO THE LENDER’S BANK, UNENCUMBERED AND FREE OF LIENS.
This is the end of the transaction.
SEE Lending Transaction WORK Flow TO FOLLOW:
APPLICATION & AGREEMENTS STAGE
PROCESSING & Due Diligence STAGE
THESE GUIDELINES & FLOW CHART ARE FOR INFORMATION ONLY AND CAN BE CHANGE AT ANY TIME OR IN CASE BY CASE BASIS
SAMPLE OF INSTRUMENT DELIVERY MT760 (Bank Guarantee BG)
NOTE: The cost of ALL related refundable fees (the Call Option, Pre-advice, etc, etc, etc…) must be covered by the client prior to Corporate Pro-Forma Invoice and Delivery of the Instrument Agreement is EXECUTED. Procedures may change on case by case bases and/or without previous advice, no deductions from any profits that Borrower expects in the future or from a loan are acceptable neither for Lending service fees.
The facilities detailed in this form are not subject to the provisions of the United Kingdom Financial Services Act 1986 or any amendment thereto (“the act”). The facilities are specifically exempted from the act by way of note 5 to clause 13b of part I of the act. We are not registered as a financial adviser under the act and we do not offer any form of investment advice nor provide nor sell any form of investment or security as defined within the act. The announcement on these pages does not constitute an offer or an invitation to purchase any securities. Our financial service is provided strictly against payment of an attorney’s funding/arrangement fee. We do not enter into any joint venture or participate in your business. The release of the fee is not conditional upon the success or otherwise of the investment strategy to be employed by the applicant.
This material contains exclusively information. Nothing received from Our Financial Institution now and in the future should be construed as an offer solicitation or recommendation to buy or sell any investment or to engage in any other transaction. This information and any received from Our Financial Institution in the future does not constitute an offer, solicitation or recommendation to buy or to sell any securities for investment, nor an offer, solicitation or recommendation of any other kind. The information is given solely for educational – and informational purposes, requested by you (the party to whom the information is transmitted), exclusively for the personal use of the recipient.
All information and opinion contained on the site is provided without any warranty of any kind, either express or implied, to the fullest extent permissible pursuant to applicable law. All information and opinion is provided to assist prospective investors in making their own decisions without any guarantees as to accuracy, reliability or completeness. The information provided now and received from Our Financial Institution in the future does not contain investment-, legal-, accounting-, tax- or other advice or opinion and should not be relied upon for any specific investment or other purposes. A competent professional should always be consulted before utilizing any information existing now and received from Our Financial Institution in the future.
You must keep the information strictly confidential and you are not allowed to make the information available to others without written consent from Our Financial Institution
The above-mentioned details are for information purposes only and not to be considered a Solicitation of Funds or to Sell Securities or other commodities.
We reserve the right to accept or reject all form of Documentation incomplete or unprofessional email communication.
ACKNOWLEDGED AND APPROVED BY THE BORROWER (WITH 6 ATTACHMENTS):
Please remember that Cash Flow Specialists, Inc. is entitled to commissions on all transactions. This document came in Saturday August 8, 2009 from Chet D, a prominent New York City Underwriter with may years experience in alternative project funding.
Cash Flow Specialists, Inc. is a full service finder, funding source, intermediary, and business consultancy located in the San Francisco Bay Area. Founded July 1, 1999 we have served hundreds of entrepreneurs, established businesses, start-ups, and others obtain working capital and fund projects globally.
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