BANK INSTRUMENT DESCRIPTION - [Contact Me For The Complete LOI To Fill Out]

 

INSTRUMENT: STAND-BY LETTER OF CREDIT (SBLC), ICC 758/600 FORMAT, CASH BACKED

TYPE: OPERATIVE, IRREVOCABLE, ASSIGNABLE, TRANSFERRABLE AND CONFIRMED

TERM: ONE YEAR AND ONE DAY

ISSUING BANK: Deutsche Bank (CAN WORK WITH OTHER TOP BANKS)

CONTRACT AMOUNT:  1 to 50 BILLION EUROS, WITH ROLLS AND EXTENSIONS

FIRST TRANCHE: TBD HUNDRED MILLION EUROS

CURRENCY: EURO

FUNDING RATE: 42% (can vary up or down)+2% to consultants

COMMISSION FEES: 2.00% (TWO PER CENT) WHICH SHALL BE PAID IN ACCORDANCE WITH THE IMFPA

PAYMENT: BY UNCONDITIONAL MT103 OR WIRE TRANSFER/TT

DELIVERY MODE: SWIFT MT760 & ORIGINAL HARD COPY BY BANK BONDED COURIER

NO UPFRONT FEES!

TRANSACTION PROCEDURES:

 

1 PARTY B SUBMITS TO PARTY A THIS SIGNED AGREEMENT, TOGETHER WITH FULL BANKING COORDINATES, CLIENT INFORMATION SHEET, COMPANY REGISTRATION, CORPORATE RESOLUTION, COPY OF THE SIGNATORY’S PASSPORT, IRREVOCABLE MASTER FEE PROTECTION AGREEMENT, AND ALSO AN AUTHORIZATION TO VERIFY FUNDS (ATV) HAS TO BE WITH YOUR PACKAGE. Also, as you should know, it is a very standard practice to have ANY type of submission contain a current POF for 100M Euros or more that has been issued in the last five banking days, BCL, RWA from bank, or a screen snapshot showing all of the deposit details, account numbers, etc. These are standard requests from compliance and the trader. With some type of evidence of funds we can certainly proceed to contract and a bank to bank closing.

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2 AFTER COMPLETING DUE DILIGENCE, PARTY A COUNTERSIGNS THIS AGREEMENT WITHIN 48 HOURS AND RETURNS IT TO PARTY B, ALONG WITH PARTY A’S FULL BANKING CO-ORDINATES, CLIENT INFORMATION SHEET AND SIGNATORY’S PASSPORT COPY AND IT THUS BECOMES A FULL RECOURSE COMMERCIAL CONTRACT. BOTH PARTIES SHALL LODGE THIS AGREEMENT WITH THEIR RESPECTIVE BANKS.

 

3 APPROXIMATELY WITHIN THREE (3) BANKING DAYS PARTY A’S BANK WILL SEND RWA SWIFT MT199/799 TO PARTY B’S BANK (APPENDIX B). SWIFT COPY WILL BE SENT TO PARTY B’S EMAIL FOR TRACKING.

 

4 APPROXIMATELY WITHIN THREE (3) BANKING DAYS UPON THE RECEIPT OF THE MT-199/799 RWA/PRE-ADVICE, PARTY B’S BANK SHALL ACKNOWLEDGE AND CONFIRM THE ACCEPTANCE OF THE MT199/799 PRE-ADVICE AND SENDS RWA FOR ACKNOWLEDGEMENT VIA MT199/799 TO PARTY A’S BANK. THE SWIFT COPY WILL BE SENT TO PARTY A’S BANK FOR TRACKING.

 

5 APPROXIMATELY WITHIN THREE (3) BANKING DAYS UPON RECEIPT OF RWA VIA MT199/799 FROM PARTY B’S BANK, PARTY A’S BANK WILL SEND PRE-ADVICE VIA SWIFT MT799 TO PARTY B’S BANK. THE SWIFT COPY WILL BE SENT TO PARTY B’S EMAIL FOR TRACKING.

 

6 APPROXIMATELY WITHIN THREE (3) BANKING DAYS UPON RECEIPT OF PRE-ADVICE VIA MT799 FROM PARTY A’S BANK, PARTY B’S BANK WILL TRANSMIT BY SWIFT MT799 (EXHIBIT A) BANK PAYMENT UNDERTAKING OF 42 % +2% OF FACE VALUE TO PARTY A’S BANK. THE SWIFT COPY WILL BE SENT TO PARTY A’S EMAIL FOR TRACKING.

 

7 APPROXIMATELY WITHIN THREE (3) BANKING DAYS OF CONFIRMATION OF MT799 BPU, PARTY A’S ISSUING BANK THEN ISSUES AND SENDS THE SBLC VIA SWIFT MT760 PER (APPENDIX D) TO PARTY B’S DESIGNATED RECEIVING BANK ACCOUNT. PARTY A SHALL PROVIDE A COPY OF SAID MT-760 TO PARTY B.

 

8 APPROXIMATELY WITHIN SEVEN (7) BANKING DAYS OF RECEIPT OF THE ABOVE MT760 SBLC, PARTY B’S PAYING BANK SHALL PAY 45% OF FACE VALUE OF EACH TRANCHE VIA MT 103 TO PARTY A’S DESIGNATED BANK ACCOUNT AND SIMULTANEOUSLY PAY CONSULTANTS’ COMMISSIONS (2% OF FACE VALUE) AS PER THE IRREVOCABLE MASTER FEE PROTECTION AGREEMENT.

 

9 APPROX...WITHIN SEVEN (7) BANKING DAYS OF RECEIPT OF THE AGREED PAYMENTS, PARTY A’S BANK SHALL SEND SBLC HARD COPY ORIGINAL TO PARTY B’S DESIGNATED RECEIVING BANK VIA BANK BONDED COURIER.

 

10 ALL SUBSEQUENT TRANCHES WILL BE BASED ON THE SAME PROCEDURES OR AGREED BY BOTH PARTIES, UNTIL COLLATERAL OR FUNDS BECOME EXHAUSTED.