www.bg-sblc.com

TRANSACTION DESCRIPTION:

1.         Instrument:                 Bank Guarantee (BG) / Standby Letter of Credit (SBLC)

2.         Total Face Value:       Minimum Euro/$ 1,000,000 (One Million to Fifty Billion)

3.         Issuing Bank:              Barclays Bank London, HSBC London, Deutsche Bank Frankfurtor as advised

4.         Age:                            One Year and One Day (With the option contract, of Rolls and Extension)

5.         Lease Fee:                   Based on the Face Value of SBLC Plus (8% + 2% + 2%) Commission, plus all rolls, extensions and additions thereafter.

            Purchase Fee:              Based on the Face Value of SBLC plus (37% + 2% + 2%) Commission, plus all rolls, extentions and additions thereafter.

6.         Delivery:                     Bank to Bank Swift MT799 and/or MT760

7.         Payment:                     MT103

8.         Hard Copy:                 By Bank Bonded Courier within 7 banking days after delivery of Swift.

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TRANSACTION PROCEDURE:

• Provider’s side sends DOA for buyer to complete in full with supporting Coporate Undertaking letter and verfiable RWA buyer’s bank letter confirming the buyer has financial capacity and the bank is ready to issue bank undertaking of the required amount.

In the event of non-performance (including delays or delivery of Bank Undertaking or any payment demand) to pay to the Provider and to the respective Consultants 1.0% for provider and 0.5% for involved consultants (one and a half percent) of the face value of instrument. Timing is adhered to from both parties in the transaction.

• Receiver sends back completed documents as requested.

• After successful verfication of agreement, (at Provider’s discretion) coporate undertaking and RWA from buyer’s bank, from Provider’s own due diligence and satisfaction, the Provider executes in the DOA in full, signs and initials advised Deed of Agreement, which thereby automatically becomes a full commercial recourse contract to be lodged by both partiesfor initiation of the Swift Transmission.

The Receiver provides a corporate letter of undertaking confirming they have set aside commission fees of 1.0% for sell side and 1.0% for buy side consultants (total Two Percent of face value) of the face value () of the SBLC requested. 

• Within three (3) working days after the Receiver receives contract documents, the Receiver will send by direct Bank Undertaking Swift MT799 10% (Ten percent) of the face value into the Provider’s designated bank coordinates for the receiving of the Bank Undertaking MT799.

 

• Within Five (5) banking days after confirmation and acceptance of receipt of the Bank Undertaking from the receiver of the SBLC via Swift MT799 in Provider’s bank account, the Provider will deliver the SBLC via Bank to Bank confirmation MT799 followed by MT760 to the Receiver’s banker including the hard copy of the BG/SBLC via bank bonded courier in Seven (7) banking days.

• Receiver paysfees of 8% by Swift MT103 to the Provider (Providers designated bank account) and 2% consultants commission fees (Consultants designated accounts) of total BG / SBLC Face Value by wire transfer within Three-Ten (3-10) banking days upon delivery, confirmation and verification of SBLC by MT760 in the Receiver’s nominated account and SBLC hard copy in the Receiver’s nominated bank.

• Provider confirms upon receipt of full payment is made by MT103, of fees of 8% to the Provider and 2% Consultant fees, the Bank Undertaking will be cancelled immediately and returned to Receiver’s bank.

• Any unauthorized calls made by any party or its representatives, lawyers to probe or communication in an improper way to bank(s) in this transaction shall be prohibited and contract terminated.

* Should the Receiver default to pay the buyout fees to the Provider and Consultants commission fees as agreed within ten (10) banking days of confirmation of BG MT760 in Receiver's bank account, the Provider will instruct the issuing bank to put a claim on the BG/SBLC thereby forcing the Receiver's bankers to return the BG / SBLC MT760 to the issuing Bank.

* Any delay in or failure of performance by either party of their respective obligations under this agreement they shall pay 1% face value as penalty plus 0.5% fees for consultants.

Kind Regards,