1. Instrument: Bank Guarantee (BG) or Standby Letter of Credit (SBLC)
2. Total Face Value: BUYER FACE VALUE( 1M – 20M ) 25.000.00 (USD/EURO)
3. Issuing Bank: HSBC BANK HONGKONG
4. Age: One Year and One Day (With the option of Rolls and Extension)
5. Leasing Fee: 6% + 2%
6. Delivery: Bank to Bank Swift MT799 and/or MT760
7. Payment: MT103
8. Hard Copy: By Bank Bonded Courier within 7banking days after delivery of Swift.
1. Lessor and Lessee execute, sign and initial this Deed of Agreement, which thereby automatically becomes a full commercial recourse contract to be lodged by both parties for initiation of Swift Transmission.
2. Within three (3) banking days after both parties sign the Agreement, Lessor Legal Department willissue a Notarised signed and sealed Corporate Refund Recourse Undertaking duly to the Lessee guarantying to refund to the Lessee all cost incurred by Lessee as the transmission/administrative charges for the transmission of Pre-Advice via Swift MT799 or BG/SBLC via Swift MT760 or both after due execution of the contract and in case of failure on the Lessor’s side the Notarised signed and sealed Corporate Refund Recourse Undertaking guarantees that the Lessor refunds completely the transmission/administrative fees in addition to a the penalty for failure of performance being 1% of the total face value of BG/SBLC.
3. Within three (3) working days after the Lessee receives contract documents including the invoice and refund undertaking from the Lessor, the Lessee will make payment by direct wire transfer into the Lessor’s provided bank coordinates. Receiver will reply with an RWA EMAIL COMMUNICATIONS free message to the sending bank. The receiving of the bank transmission/administrative charges the bank transmission/administrative fees for the Pre-Advice via Swift MT799 or BG/SBLC via Swift MT760 or both as the case maybe in the amount of Euro/USD 25.000.00.
4. Within two (2) banking days after confirmation of receipt of payment of the bank transmission/administrative fees charges for the BG/SBLC via Swift MT760 or Pre-Advice via Swift MT799 or both in Lessor’s bank account, the Lessor will deliver the Pre-Advice or BG/SBLC via Bank to Bank confirmation of Swift MT799 or MT760 to the Lessee’s banker including the hard copy of the BG/SBLC via bank bonded courier in Seven (7) banking days.
5 Lessee sends out leasing fees by Swift MT103 to the Lessor deducting the initially paid bank transmission/administrative fees and the brokers their commission fees 2% of total Face Value by wire transfer within thirty (30) days upon delivery, confirmation and verification of BG/SBLC by MT760 in the Lessee’s nominated account and BG/SBLC hard copy in the Lessee’s nominated bank.
6. Should the Lessee not deduct the bank transmission/administrative charges from leasing fees paid, the Lessor shall refund bank charges to Lessee by direct wire transfer within three (3) banking days upon payment of the leasing fees.
7.Any unauthorized calls by any party or its representative lawyers to probes or communication in an improper way to bank(s) in this transaction shall be prohibited and contract terminated.8. All subsequent tranches will be based on the same procedures until collateral or funds become exhausted.
DESCRIPTION OF INSTRUMENT:
Instruments: BANK GUARANTEE (BG), STANDBY LETTER OF CREDIT (SBLC)CASH-BACKED
Term: ONE (1) YEAR AND ONE (1) DAY
Issuing Bank: Top Prime Banks
Currency: EUROPEAN UNION CURRENCY – EURO (EUR)
Contract Amount: EUR XXX, XXX, XXX.XX (XXXXXX EUROS)
Lease rate: 6% OF FACE VALUE OF EACH BG/SBLC + COMMISSIONS
Coupon Rate: ZERO PERCENT (0.00%) COUPONS
Commission: TWO PERCENT (2%) OF FACE VALUE
First Tranche of Instrument: EUR/USD XXX, XXX, XXX (XXXXXXXXX EUROS/USD)
Subsequent Tranches: TO BE MUTUALLY AGREED UPON, AS PER SCHEDULE OF DELIVERY
Settlement: BY SWIFTMT-103
Delivery: SWIFT MT-760, WITH HARD COPY TO BE DELIVERED VIA
- Lessee sends Deed of Agreement (DOA) to the Provider attached with copies of Signatory´s passport and Client Information Sheet (CIS).
- Provider within two (2) international banking days, countersigns DOA and returns it to Lessee with details of BG/SBLC Issuing Bank, After Signing Both Parties the DOA becomes automatically a full endorsed contract, which Lessee shall lodge with his bank respectively.
- After Signing the DOA and Initial agreements on the terms and conditions of the offer,the provider will make direct communication with the client and will fix a meeting schedule.
- The client/Receiver need to meet at providers place (United Kingdom) and rest of the procedures as mentioned below will be completed on table.
- After meeting Provider issue a Refundable undertaking to guarantee the payment for the swift transmission reservation cost (MT799/MT760) and provider send copy to lessee.
- Lessee, within two (2) international banking days, instruct his Bank to send swift transmission reservation cost by wire transfer to the provider receiving bank coordinates, which copy of transfer slip will be also provided to provider via e-mail for verification.
- Within three (3) banking days after received above bank swift transmission reservation cost, Provider would issue to Lessee’s designated bank account with full bank responsibility, a pre-adviceMT799 via swift stating capability of delivery of the BG/SBLC by swiftMT760. (Provider shall provide a copy of said MT99 pre-advice to Lessee for tracing)
- Within two (2) banking days Provider then issue and sends the BG/SBLC via swift MT760 to Lessee’s designated bank account. (Provider shall provide a copy of Swift MT760 to Lessee for tracing).
- Lessee’s bank verifies, and pays forthe BG/SBLC within Five (5) banking days, and additionally pays out the 2%consultancy commissions per agreement.
- Provider bank, within three (3) banking days of receipt of full Invoice payment, sends the hard copy original BG/SBLC to Lessee’s Bank by bank-bonded courier.