()()() BANK EVIDENCE REQUIREMENT.pdf ()()() BANK EVIDENCE REQUIREMENT.pdf
Size : 523.423 Kb
Type : pdf

LOI IS NOT ACCEPTABLE WITHOUT ANY BANK EVIDENCE

 MINIMUM AMOUNT FOR LEASE AND FOR PURCHASE IS 50M

Have you shown our Procedure to your bank? Is it agreeable to follow it? Is it ready to send POF by MT799 after our Countersigned Contract? We want answers to these questions on bank letterhead with signatures of 2 officers to proceed with your LOI.

Provider cannot sign a blind Contract without knowing about your capability to pay and about your Bank Policy regarding issuing our required simple POF after we countersign your Contract in the hope of future good response and hopeful good behaviour or policy of your bank. Such blind Contracts without any authentic information about you and about your bank policy, no Provider can sign any Contract based on good promises about your bank policy in future


  1. RECEIVER SENDS TO PROVIDER COMPLETELY FILLED AND SIGNED MOU OR LOI AND CIS ALONG WITH ALL POSSIBLE BANK EVIDENCE SUCH AS MONTHLY ACCOUNT STATEMENT, OR ACCOUNT CONFIRMATION LETTER ON BANK LETTERHEAD SIGNED BY TWO BANK OFFICERS REQUIRED FOR DD
  2. FOLLOWING EXHIBIT “A” CAN ALSO BE ACCEPTABLE IF YOU CAN SEND IT BY MAIL FIRST WITH LOI, IF YOU DO NOT WANT TO SUBMIT ACCOUNT STATEMENT OR ACCOUNT CONFIRMATION LETTER AS REQUIRED ABOVE. IN THAT CASE THE SAME EXHIBIT “A” WILL BE REQUIRED TO BE SENT AGAIN BY MT799 AFTER PROVIDER COUNTERSIGNS YOUR LOI.
  3.  Any Bank can issue following POF based on even credit line approval of the client with its bank. We are not asking that cash is available or not. We are asking client is able to pay or not. If he has Credit Line Approval, his bank can issue POF, based on Credit Line Approval, that client can pay it.

 LOI is not acceptable without any Bank Letter or Account Statement signed by 2 bank Officers on Bank Letterhead.

 After Provider countersigns Contract, following POF is required to be sent by MT799 to get Pre-Advice from the Top Issuing Bank through MT799.

“EXHIBIT A”

SAMPLE MT 799 POF LETTER

(Text may vary in substance but the essential undertaking must be maintained)

 From:

To:

Name of Bank:

Address of Bank:

Swift Code:

Account Name:

Account Number:

 

We, Bank, with address at........., on behalf of................, with address ..............and represented by............, confirm our client has funds  ...........  USD to meet up the contract signed.

He is Ready, Willing and Able to furfile  the terms  and condition of  the  contract . We confirm that our client has  sufficient cash funds with us to close  the  contrack . Our client’s account is as follows:-.

Account Name:

Account Number

For And On Behalf Of:  Bank, .

                                                                       

Name of Officer:                                                                                                    Name of Officer:

Title:                                                                                                                         Title:

Pin:                                                                                                                           Pin 

PROCEDURES:

 RECEIVER SENDS TO PROVIDER COMPLETELY FILLED AND SIGNED THIS MOU AND CIS ALONG WITH ALL POSSIBLE BANK EVIDENCE SUCH AS MONTHLY ACCOUNT STATEMENT, OR ACCOUNT CONFIRMATION LETTER ON BANK LETTERHEAD SIGNED BY TWO BANK OFFICERS REQUIRED FOR DD

 ONCE DD IS SUCESSFUL, PROVIDER AND RECEIVER SIGN THE DEED OF AGREEMENT WHICH THEREBY AUTOMATICALLY BECOMES A FULL RECOURSE COMMERCIAL CONTRACT AFTER RECEIVER’S APPLICATION HAS BEEN ACCEPTED BY THE PROVIDER.

  1. WITHIN THREE BANKING DAYS RECEIVER ISSUES POF VIA 799 TO PROVIDER ASSIGNED BANK AND SEND SWIFT COPY FOR PROVIDER TRACING
  1. WITHIN THREE BANKING DAYS AFTER MT799 POF IS CONFIRMED BY PROVIDERS BANK; PROVIDER ISSUING BANK WILL SEND MT799 PRE-ADVICE TO RECEIVERS BANK AND SEND SWIFT COPY FOR RECEIVER TRACING

 WITHIN THREE BANKING DAYS AFTER MT799 PRE-ADVICE IS CONFIRMED BY RECEIVERS BANK; RECEIVER ISSUE A CONDITIONAL ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL) FOR 10% OF FULL FACE VALUE + 4% COMMISSION.

  1. WITHIN THREE BANKING DAYS AFTER CONDITIONAL ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL) IS CONFIRMED BY PROVIDERS BANK; PROVIDER ISSUING BANK WILL SEND THE BG/SBLC BY MT-760.TO RECEIVERS BANK AND SEND SWIFT COPY FOR RECEIVER TRACING
  1. THE RECEIVER’S BANK RECEIVES, CONFIRMS AND VERIFIES THE MT760 (BG/SBLC);THE RECEIVER'S BANK THEN RELEASES THE ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL) FOR THE BENEFIT OF THE PROVIDER WITHIN TWO BANKING DAYS.
  1. PROVIDER THEN PAYS THE RESPECT 1% COMMISSION ON SELLER’S SIDE AND THE 1% COMMISSION OF RECEIVERS SIDE TO THE RESPECTIVE BROKERS/AGENTS.

(SHOULD RECEIVER DEFAULT TO RELEASE THE ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL) WITHIN TWO BANKING DAYS AFTER RECEIPT OF SWIFT MT-760, PROVIDER SHALL INSTRUCT THE ISSUING BANK TO PUT A CLAIM ON THE BG/SBLC THEREBY FORCING THE RECEIVER'S BANKERS TO RETURN THE SWIFT MT-760 (BG/SBLC) TO THE ISSUING BANK.)

  1. WITHIN SEVEN BANKING DAYS AFTER RECEIVING ALL FEES; HARD COPY WILL BE SENT TO RECEIVER BANK BY BANK-BONDED COURIER.
  1. THIS DEED OF AGREEMENT IS A FULL RECOURSE COMMERCIAL COMMITMENT GOVERNED BY THE LAW OF THE JURISDICTION THAT BOTH PARTIES RESIDE AND STANDARDS UNDER ICC REGULATION.

 

INSTRUMENT TYPE

BG/SBLC

 

TOTAL FACE VALUE

AMOUNTS IN EITHER - USD/EUR MINIMUM 50MN with R & E TO 50BN EUROS

 

1ST TRANCHE

MINIMUM - USD/EUR 50 MILLION

 

ISSUING BANK

TBD

 

SELLING FEE

10% OF FULL FACE VALUE + 4% COMMISSION TO BE SHARED 50-50 AS SPECIFIED HERE BELOW.

 

PAYMENT

AFTER DOA IS SIGNED, SENDS SIGNED DOA IN PDF  FORM, RECEIVER ISSUESIRREVOCABLE CONDITIONAL BANK PAY ORDER (ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL)) FOR 10% OF FULL FACE VALUE + 4% COMMISSION.

MT799 AND MT760 WILL BE ISSUED TO RECEIVERS DESIGNATED ACCOUNT IMMEDIATELY AFTER PROVIDERS CONFIRMATION OF THE ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL).

PROVIDER SENDS SWIFT COPIES OF THE MT799 AND MT760 TO THE RECEIVER.

RECEIVER RELEASES THE ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL) FOR THE BENEFIT OF THE PROVIDER.

 

8

HARD COPY

BONDED COURIER WITHIN 7 BANKING DAYS.

 

 

 


 

PROCEDURES:

 

  1. RECEIVER SENDS TO PROVIDER COMPLETELY FILLED AND SIGNED THIS MOU AND CIS ALONG WITH ALL POSSIBLE BANK EVIDENCE SUCH AS MONTHLY ACCOUNT STATEMENT, OR ACCOUNT CONFIRMATION LETTER ON BANK LETTERHEAD SIGNED BY TWO BANK OFFICERS REQUIRED FOR DD

 

  1. ONCE DD IS SUCESSFUL, PROVIDER AND RECEIVER SIGN THE DEED OF AGREEMENT WHICH THEREBY AUTOMATICALLY BECOMES A FULL RECOURSE COMMERCIAL CONTRACT AFTER RECEIVER’S APPLICATION HAS BEEN ACCEPTED BY THE PROVIDER.

 

  1. WITHIN THREE BANKING DAYS RECEIVER ISSUES POF VIA 799 TO PROVIDER ASSIGNED BANK AND SEND SWIFT COPY FOR PROVIDER TRACING

 

  1. WITHIN THREE BANKING DAYS AFTER MT799 POF IS CONFIRMED BY PROVIDERS BANK; PROVIDER ISSUING BANK WILL SEND MT799 PRE-ADVICE TO RECEIVERS BANK AND SEND SWIFT COPY FOR RECEIVER TRACING

 

  1. WITHIN THREE BANKING DAYS AFTER MT799 PRE-ADVICE IS CONFIRMED BY RECEIVERS BANK; RECEIVER ISSUE A CONDITIONAL ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL) FOR 10% OF FULL FACE VALUE + 4% COMMISSION.

 

  1. WITHIN THREE BANKING DAYS AFTER CONDITIONAL ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL) IS CONFIRMED BY PROVIDERS BANK; PROVIDER ISSUING BANK WILL SEND THE BG/SBLC BY MT-760.TO RECEIVERS BANK AND SEND SWIFT COPY FOR RECEIVER TRACING

 

  1. THE RECEIVER’S BANK RECEIVES, CONFIRMS AND VERIFIES THE MT760 (BG/SBLC);THE RECEIVER'S BANK THEN RELEASES THE ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL) FOR THE BENEFIT OF THE PROVIDER WITHIN TWO BANKING DAYS.

 

  1. PROVIDER THEN PAYS THE RESPECT 1% COMMISSION ON SELLER’S SIDE AND THE 1% COMMISSION OF RECEIVERS SIDE TO THE RESPECTIVE BROKERS/AGENTS.

(SHOULD RECEIVER DEFAULT TO RELEASE THE ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL) WITHIN TWO BANKING DAYS AFTER RECEIPT OF SWIFT MT-760, PROVIDER SHALL INSTRUCT THE ISSUING BANK TO PUT A CLAIM ON THE BG/SBLC THEREBY FORCING THE RECEIVER'S BANKERS TO RETURN THE SWIFT MT-760 (BG/SBLC) TO THE ISSUING BANK.)

 

  1. WITHIN SEVEN BANKING DAYS AFTER RECEIVING ALL FEES; HARD COPY WILL BE SENT TO RECEIVER BANK BY BANK-BONDED COURIER.

 

  1. THIS DEED OF AGREEMENT IS A FULL RECOURSE COMMERCIAL COMMITMENT GOVERNED BY THE LAW OF THE JURISDICTION THAT BOTH PARTIES RESIDE AND STANDARDS UNDER ICC REGULATION.

Please follow our Procedure as available on the following link:

http://www.bg-sblc.com/loi-is-not-acceptable-without-any-bank-evidence.php

It is non-negotiable. No clients suggestion acceptable. It is a Yes or No DOA. Please do not waste your time in making any alternate suggestions for any changes in these Procedures. These are all non-negotiable Procedures.

 No Upfront Fee procedure is available but usually it results in waste of time of all parties. Every client sincerely wants to go ahead but their banks do not cooperate even if they have 100% cash in their accounts.

 Usually most of the banks do not want to initiate MT799 first. They want provider to do that first. Provider cannot do that as it is illegal and is regarded as Solicitation.

 Let those clients first ask their banks if their banks are ready to follow our Procedure.

 However, our Procedures details are given below.

 In the beginning, we do not want it in the name of our bank.

We just want a copy of any Bank Evidence or POF to be BCL issued to the client itself by its own bank showing the capability of the client to pay BG cost. No need of addressing it to the Provider. But it is a must by email FIRST from the client along with the LOI.

 Any Bank can issue POF based on even credit line approval of the client with its bank. We are not asking that cash is available or not. We are asking client is able to pay or not. If he has Credit Line Approval, his bank can issue POF, based on Credit Line Approval, that client can pay it.

Please do not suggest us your desired Procedure. It will be just waste of time. No Issuing bank moves as per Buyer requirements. If Buyer is ready to accept our No Upfront Fee Procedure we can move ahead. We have to follow what Issuing bank requires, not how Buyer or Lessee wants it.

 

He has to send us some Bank Evidence first with LOI addressed to himself on his own bank letterhead to proceed.