PROCEDURES:

THIS DOCUMENT IS ACCEPTED ONLY WITH FACULTY OF DIVISION AND SUBSTITUTION

1. BENEFICIARY SUBMITS LOI TOGETHER WITH COMPLIANCE DOCUMENTS:

• CLIENT INFORMATION SHEET (CIS).
• STATEMENT OF NON-SOLICITATION OF FUNDS.
• RESOLUTION OF THE BOARD OF DIRECTORS.
• IRREVOCABLE FEE PROTECTION AGREEMENT COVERING ALL IDENTIFIED BENEFICIARIES FOR
BOTH SIDES.
• CLEAR COLOR COPY OF THE BENEFICIARY SIGNATORY’S PASSPORT.
• CERTIFICATE OF INCORPORATION.
• APPROVED VERBIAGE OF SBLC ENDORSED BY TWO BENEFICIARY BANK OFFICERS.
• CREDIT LINE / BANK FACILITY APPROVAL LETTER FROM THE BANK / BANK STATEMENT.

2. AFTER SUCCESSFUL DUE DILIGENCE, PROVIDER COUNTERSIGNS THE LOI. AND BOTH PARTIES SHALL LODGE THE LOI PACKAGE
TO THEIR RESPECTIVE BANKS. THE SIGNED LOI/DEED OF AGREEMENT BECOMES A LEGALLY BINDING CONTRACT BETWEEN THE
PARTIES.
3. BENEFICIARY WILL OPEN AN ESCROW ACCOUNT JOINTLY WITH THE PROVIDER AND DEPOSIT THE BANKING FEES (35% FROM
THE FACE VALUE OF THE INSTRUMENT), THIS ACCOUNT SHALL RECEIVE THE SBLC AND BANKING FACILITY . PROVIDER WILL HAVE
SIGNATURE AND CONTROL ON THE ACCOUNT WITH EQUALS TO HIS INTEREST RATE OF SBLC PROVIDING (35%) FROM THE FACE
VALUE OF THE SBLC.
4. A/ PROVIDER WILL SEND MT799 AND WITHIN TWO (2) BANKING DAYS OF RECEIVING THE PRE-ADVISE BY SWIFT MT-799 FROM
THE PROVIDER’S,
B/ BENEFICIARY BANK WILL ISSUE IBPU TO BENEFICIARY DESIGNATED BANK ACCOUNT (ESCROW ACCOUNT) AND FURNISH COPY
OF IBPU COVERING PRINCIPAL PAYMENT AMOUNT LOAN TO VALUE (LTV).
C/ BENEFICIARY WILL TRANSFER (5%) DEPENDS ON THE AGREEMENT, FROM THE (35%) OF BANKING FEE CHARGES TO PROVIDER
DESIGNATED BANK ACCOUNT AND FURNISH COPY OF TRANSFER. THEN THE REST AMOUNT SHALL COVERED IMMEDIATE UPON
RECEIVE THE SBLC BY MT760.
D/ BENEFICIARY INFORM ISSUING BANK BY SWIFT MT799 (RWA TO RECEIVE THE SBLC) TO DELIVER MT760 ELECTRONICALLY OF
THE SBLC TO BENEFICIARY BANK AND FURNISH COPY.
E/ PROVIDER WILL SEND THE SBLC BY SWIFT MT760.
5. WITHIN ONE (1) BANKING DAY, BENEFICIARY BANK WILL VERIFY THE MT760 WITH THE ISSUING BANK.
6. WITHIN FIVE (5) BANKING DAYS AFTER POSITIVE CONFIRMATION FROM ISSUING BANK, BENEFICIARY BANK WILL PAY BY SWIFT
MT103/WIRE TRANSFER SAME DAY VALUE, THE AGREED PRICE TO PROVIDER DESIGNATED BANK ACCOUNT AND
CONCURRENTLY PAYS THE AGREED FEE TO THE RESPECTIVE CONSULTANTS’ PAYMASTERS OF BOTH SIDES. COURTESY COPY OF
THE COMMISSION PAYMENTS SHALL BE SENT TO THE CONSULTANTS.
7. NO HARD COPIES OF THE SBLC WILL BE DELIVERED AS IT IS ELECTRONICALLY DELIVERED ALREADY BY SWIFT MT-760.
8. ALL SUBSEQUENT TRANCHES WILL BE BASED ON THE SAME PROCEDURE, UNTIL THE AGREED AMOUNT OF THE CONTRACT IS
COMPLETED, OR THE COLLATERAL OR FUNDS BECOME EXHAUSTED.
9. ANY UNAUTHORIZED BANK CALLS, PROBES OR COMMUNICATIONS, OR AN IMPROPER SOLICITATION OR DISCLOSURE
INVOLVING ANY OF THE BANKS OR THIRD PARTY CONCERNED IN THIS TRANSACTION WILL RESULT TO IMMEDIATE
CANCELLATION OF THIS TRANSACTION AND SUBJECT THE VIOLATING PARTY TO DAMAGES.
10. SHOULD BENEFICIARY DEFAULT TO PAY THE AGREED PRICE TO PROVIDER AND THE INTERMEDIARIES FEES AS AGREED ON THIS
CONTRACT WITHIN THE ALLOWED NUMBER OF DAYS ON AUTHENTICATION OF THE SWIFT MT760, PROVIDER SHALL INSTRUCT
THE SBLC ISSUING BANK TO PUT A CLAIM ON THE SBLC, THEREBY FORCING THE BENEFICIARY BANK TO RETURN THE SBLC
ELECTRONIC COPY TO THE ISSUING BANK AND BENEFICIARY PAYS PROVIDER, THE AGREED PENALTY CHARGE WITHIN THE
AGREED PERIOD.
11. THE BENEFIT OF THE SBLC TO SERVE AS A COLLATERAL TO SECURE CREDIT LINE/BANK FACILITY, TO FUND THE OWN PROJECTS
OF THE BENEFICIARY. PROVIDER WILL PUT A CLAIM ON THE SBLC 15 DAYS BEFORE MATURITY TO CANCEL IT. IN CASE THE
BENEFICIARY NEED TO EXTEND THE SBLC FOR A PERIOD OF 2-5 YEARS EXTRA, THE INTEREST RATE WILL BE 5% PER YEAR.