Typical SBLC/BG/MTN Buy Procedures

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Instrument: BG (Bank Guarantee), MTN (Medium Term Note) STAND BY credit (SBLC)*
o *NOTE: CASH-BACK & Lease BG / SBLC procedures require escrowed funds to
complete the transaction.
Term: One (1) year and one (1) DAY (Or as agreed)
Issuing Bank: Top 25 Bans & Rated AAA
Age: FRESH CUT, Seasoned (BG/MTN)
o NOTE: FRESH CUT Instruments do not have ISIP’s or CUSIP’s.
Currency: Euro
Amount of contract: 10 M MIN-MAX 5Bil Euro
Price: on request
Cost:
o Purchase: % of Face Amount + Min. 2% (Two Percent of Face Amount ) - 1% and 1%
BUYER & SELLER side Commission
o Lease: on request (between 8% to 14% of face amount of the instrument)
Payment:
o Purchase: BY SWIFT MT-103
o Lease: Escrow. Cost/Payment must be deposited to Issuer designated License and
Bonded Escrow Agent Escrow approved by Client in advance of deposit.
Instrument Delivery: SWIFT MT 760 / courier within seven (7) business days after receipt of
payment.

Procedures:

Purchase:
o Buyer submits the following documents:
 Letter of Intent (LOI) to the Seller, including details of the company
 Passport Copy
 Receiving bank banking coordinates
 Proof of Funds demonstrating liquid funds available to purchase the requested
instrument (Bank Statement – within 3 days old, Tear Sheet, MT799)

Lease (All Services except Instrument Purchase Follow the Instrument Lease Document and
Escrow Closing Procedures)
o Buyer executes the following documents:
 Request for Services
 CIS – Customer Information Sheet including details of the company, copy of
passport and, transaction and receiving bank coordinates.
 Proof of Funds demonstrating liquid funds available to escrow cost of service
(Bank Statement – within 3 days old, Verification of Deposit on bank letterhead)
 Memorandum of Understanding
 Escrow Agent and Escrow Instructions (cost of service must be escrowed
following the approval/execution of escrow agent/escrow instructions).
 Important Note regarding escrow: Buyers who cannot follow the instructions
outlined above or who are incapable of providing proof of funds at engagement
are discouraged requesting services. Deviation from the prescribed
Issuer/Investor procedures is discouraged.

Buy Procedures

and at the same time pays 1% of the nominal value of each tranche. the Buyer instructs his bank to send SWIFT MT-799 with confirmation of acceptance of financial instruments and guarantees payment to the Buyer after verification MT760 within 5 (five) bank days. o Seller's Bank within seven (7) international banking days from receipt of full payment of the invoice. o Within three (3) banking days after Buyers bank confirmation. authentication of BG/Bank Instrument Escrow releases consulting services / commissions. Buy Procedures . o Within two (2) banking days buyer deposits Lease Fee into Escrow o Within two (2) business days after receipt of the preliminary consultation on SWIFT MT799. o Buyer's bank checks and verifies the received BG/Bank Instrument through the SWIFT MT-760. as payment for consulting services / commissions. send hard copy of the original BG/Bank Instrument to Buyer’s bank by bonded courier.  Leased Instrument Closing Procedures: o Issuer executes MOU and returns it to the buyer with detailed information about the financial instrument and it automatically becomes a complete commercial contract. o Buyer's bank checks and verifies the received BG/Bank Instrument through the SWIFT MT-760 and send the payment via SWIFT MT-103 to the Seller within 5 (five) days from the international banking. o Within two (2) banking days Seller's bank sends BG/Bank Instrument Pre-Advice via SWIFT MT-799 in the Buyer's bank o Within two (2) business days after receipt of the preliminary consultation on SWIFT MT799. o Seller's bank sends the BG/Bank Instrument by SWIFT MT-760 in the Buyer's bank. o Buyer approves then executes Issuer Agreement/Escrow Agent and Escrow instructions.Procedures Cont’d  Purchased Instrument Closing Procedures: o Seller executes the LOI and returns it to the buyer with detailed information about the financial instrument and it automatically becomes a complete LOI commercial contract. in accordance with the Escrow Agreement o Seller's Bank within seven (7) international banking days from receipt of full payment of the invoice. in accordance with the Agreement Irrevocable Master Fee Protection and method of payment is an integral part of this agreement. send hard copy of the original BG/Bank Instrument to Buyer’s bank by bonded courier. o Seller's bank sends the BG/Bank Instrument by SWIFT MT-760 in the Buyer's bank. the Buyer instructs his bank to send SWIFT MT-799 with confirmation of acceptance of financial instruments and guarantees payment to the Buyer after verification MT760 within 5 (five) bank days.