2% Escrow Deposit Procedure at 5+2 for $100M to $10B SBLC
- The Beneficiary will release their bank statement to the Provider showing fund availability to cover the 2% security deposit. The provider release Escrow Agent/Attorney Trust Account information to the Beneficiary for due diligence.
Description of Bank Instrument
1. Instrument: Cash Backed Bank Guarantee (BG) or Standby Letter of Credit (SBLC) ICC 458/500 Format And Latest.
2. Term: : Operative, Irrevocable, Assignable, Callable and Transferable
3. Age: One Year and One Day from date of Issue
4. Issuing Bank:: Barclays Bank, Deutsche Bank, CREDIT SUISSE, UBS OF ZURICH and other AAA Ratings Bank in Western Europe
5. Interest Rate: Zero Coupon
6. Price: : 5% Of Face Value
7. Commission: 2% Of Face Value To Be Shared Between Brokers
8. Currency: USD/Euros
9. Face Value: $100 Million to $10 Billion with Rollover Extension
10: Payment: Telegraphic Transfer Or Wire Transfer (TT/MT103)
11. Hard Copy : Delivery Via Secured Bank Bonded Courier Service
EACH CONTRACT CANNOT EXCEED 10B AND EACH TRANCHE CANNOT EXCEED 500M
4. Issuing Banks: Barclays Bank, Deutsche Bank, Credit Suisse, UBS Zurich and other AAA Ratings Banks
- The Provider and Beneficiary execute, sign and initiate the Deed of Agreement, which thereby automatically becomes a full commercial recourse contract agreement. Beneficiary submits LOI/DOA together with compliance documents such as Client information sheet, Clear color copy of the Beneficiary signatory’s International passport and Certificate of incorporation.
- The Provider, After extensive review and due diligence, the Provider countersigns the DOA and return the copy to the Beneficiary, then both parties shall lodge the document to their respective banks. No conference Call/Email between the bank officers. The Beneficiary will release their bank statement to the Provider showing fund availability to cover the 2% security deposit. The provider release Escrow Agent/Attorney Trust Account information to the Beneficiary for due diligence.
- After successful due diligence, the Beneficiary, sign contract agreement with Provider’s nominated Escrow Agent/Attorney Trust Account, which thereafter automatically becomes a full commercial recourse contract. After receipt of the countersigned agreement from the Escrow Agent/Attorney Trust Account, the Beneficiary will make payment for the 2% of the SBLC Face Value as a security deposit to the Escrow Agent/Attorney Trust Account. The Beneficiary notifies the Provider, within one (1) banking days after successful verification and confirmation from Escrow Agent/Attorney Trust Account, the Provider’s bank will issue MT799 preadvice to Beneficiary bank, follow by MT760 respectively.
- After verification and confirmation of preadvice MT799, the Provider bank shall deliver SWIFT MT760 BG/SBLC to the Beneficiary’s bank for verification and authentication. Within three (3) banking days after verification, confirmation and authentication of Provider's SWIFT MT760 BG/SBLC, the Beneficiary bank shall release by wire transfer 3% lease fee and Escrow Agent/Attorney Trust Account shall release 2% security deposit to the Provider.
- The Beneficiary pay brokers commission fees not later than five (5) banking days after receipt of BG/SBLC hard copy being delivered and received at Beneficiary’s bank. Should Beneficiary default to pay the lease fees to the Provider and the broker's commission fees as agreed within five banking days, Provider will instruct the issuer bank to put a claimed on the BG/SBLC thereby forcing the Beneficiary’s bankers to return the BG/SBLC to the issuing Bank.