PLEASE MAKE NOTE:

THE Answers TO THE QUESTIONS, BELOW MAY CHANGE AT ANY TIME. 

Q.- What bank instruments do your provider sell?

A.- Standby-Letter of Credit (SBLC) and Bank Guarantee (BG)

Q.-What is the minimum and maximum face value purchase?

A.-The minimum face value purchase is 25 Million 

The maximum face value purchase is 1 Billion

If the buyer wants to buy a face value that exceeds 1 Billion, they can buy in tranches OR once they complete the first tranche, if the transaction goes well and successfully completes, the Provider (Seller) may decide to sell the buyer the remaining amount in full on the second or third tranche depending on the number of tranches required to complete the buyer's request. 

Q.-What type of currency will the Provider sell the SBLC and BG?

A.- USD or Euro

Q.- Does your Provider Lease or Rent bank instruments?

A.- NO. All SBLC & BG bank instruments are for sale only. All of the bank instruments have FULL TITLE BENEFITS.

Q.- Are the bank instruments a Zero-coupon?

A.- NO. The SBLC & BG are TRUE Cash-backed bank instruments with immediate cash drawdown value starting from the first day of issuance.

Q.- Are the SBLC & BG monetizable?

A.- YES.

Q.- Can the bank instruments be traded or placed in an investment program?

A.- YES.

Q.- Can the bank instruments be used to guarantee trade commodity transactions such as Sugar, Fuel Products, Gloves (PPE), etc.?

A.-YES. The bank instruments can be used to support any type of trading business.

Q.- Can the bank instruments be used as collateral for Real Estate, Construction Development, Project Development, etc.?

A.- YES.

Q.- Can the bank instruments (SBLC & BG) be purchased by the Provider and immediately flipped?

A.- YES. As long as the initial buyer is a corporate entity and complies with the policy set by the seller. For more information, please inquire. 

 Q.- What payment method is used to pay for the SBLC or BG?

A.- Our Provider closes the transactions using a (seller initiated) MT799 and MT760 with a BPU (Bank Payment Undertaking) to pay for the SBLC and BG.  This is a Delivery vs. Payment Transaction. The payment is guaranteed to be made by the Receiving Bank by BPU. The payment is due to be paid no later than 4 business days “AFTER” the Buyer has received the SBLC.

Q- Is the SBLC /BG extendable?

A.- Yes, as long as the program is still available and the assets in the bank are still available.

Q- Is the SBLC/BG claimable?

A.- Yes, it is immediately drawable. It has an immediate drawdown value.

Q- Does the Provider provide a GUARANTEE of delivery?  

A.- Yes! …For a guarantee of delivery, please see Exhibit I – MT799

ACCEPTABLE RECEIVING BANKS

Q- What types of banks are acceptable to the Provider as a Receiving Bank?

A.- Banks that are investment grade and have a credit rating of BBB+ or higher with S&P, Moody’s, or Fitch are acceptable banks. Banks that are US-friendly.

Q- Can the Issuing Bank and the Receiving Bank be located or domiciled in the same country?

A.- No. Due to the SWIFT requirements, all Receiving Banks must be outside of the country of the issuing bank.

Q.- Will the Seller accept a Receiving Bank from any country in the world?

A.-NO.

The Receiving Bank MUST be Approved by the Seller (Provider). In addition, the Receiving Bank MUST be located in a different country from the issuing bank.

The Receiving Bank MUST be an investment grade bank and USA Friendly. 

PREPARING to WIRE the INITIAL COST FOR THE SBLC /BG …

With supporting executed documentation from the Trust Attorney, when the INITIAL COST is wired to the Attorney Trust Account, the INITIAL COST is kept in the custody of the Attorney Trust Account, the INITIAL COST is received in the custody of the Trust Attorney and NOT immediately into the Provider’s possession. (The Attorney Trust Account is usually an IOLTA account.) 

The following Commonly Asked Questions (Q&A) will share information about the INITIAL COST, its importance to the creation of the SBLC/BG, and a recourse plan of action for the benefit of the Recipient Client (Buyer) and Provider in the “unlikely” event there is Nonperformance by both parties.

Q- What is the INITIAL COST used to pay for? –

A-    The INITIAL COST is used to pay for the creation of the SBLC/BG which includes some of the following:

• The Cash-backed SBLC Creation 
• MT799 (twice)
• MT760
• Wire Fee
• Bank Undertaking Payment
• Future Undertaking for Payment Fee
• To Receive the Undertaking Fee
• Banking Administration Fees
• Fee to the Trust Attorney as the Initial Cost custodian and professional services

Q- If a provider does not immediately receive the Initial Cost from the Attorney Trust Account, why is the Initial Cost required?

A-     Although the Initial Cost is not released to the Provider until after the MT799 SWIFT is issued to the receiving bank, wiring the payment to the lawyer's Trust account BEFORE the Provider SWIFTS the MT799 is the Recipient Client’s (Buyer) GUARANTEE to the Provider that once the Provider completes the necessary steps to create the SBLC/BG and delivers it to the Receiving Bank (with full legal banking responsibility from the Issuing Bank), the Provider will be reimbursed for the costs that he incurred when creating the SBLC/BG and delivered it to the receiving bank. (Most times, the Attorney Trust Account is an IOLTA account.) 

The final Settlement Fee of 16% +2% Commissions are due no later than 4 business days AFTER the BLC/BG has been delivered to the Receiving bank.

The payment of the Initial Cost step in this process is important in the unlikely event that the Recipient (Client/Buyer) is unable to complete the full 16% Settlement Fee payment after the Provider has created and delivered the SBLC/BG. Payment of the Initial Cost for the SBLC/BG protects the Provider’s investment in the creation and delivery of the SBLC/BG which will allow the Provider to be made whole again, even if the Recipient (Client/Buyer) cannot close the transaction.

Q- What if the Provider has NOT delivered the MT799 but the Recipient (Client/Buyer) has wired the Initial Cost to the Attorney Trust Account? What is the Recipient’s recourse?

A.- There are THREE (3) OPTIONS:

OPTION A. INITIAL COST DEPOSIT TRANSFER) RECOURSE LETTER

(THIS OPTION MAY ONLY BE ISSUED BY SPECIAL REQUEST FROM THE BUYER...AND APROVAL BY THE SELLER. IT IS NOT A PROCEDURE GUARANTEE TO BE ISSUED) - In the context of international trade, the Transaction COMMITMENT LETTER is a crucial document that outlines the terms of a transaction between a provider and a recipient (buyer) client. Accompanying this letter, the provider MIGHT include an INITIAL COST DEPOSIT TRANSFER) RECOURSE LETTER, which serves as an addendum. This addendum, typically on the provider's letterhead and duly signed, stipulates that the Initial Costs will be reimbursed if the MT799, a type of SWIFT message confirming funds for the SBLC or BG, is NOT delivered to the recipient's bank within a specified timeframe written on the INITIAL COST DEPOSIT TRANSFER) RECOURSE- the Addendum to the Transaction COMMITMENT LETTER from the Provider. This mechanism ensures a level of security and trust in the transaction process.

OPTION B. CHECK DEPOSIT

In financial transactions involving an Attorney's Trust Account, the Recipient Client (Buyer) has the option to directly deposit the Initial Cost by check. This method allows for a clear paper trail, as the check can reference specific documents like the Transaction Commitment Letter. This reference is crucial for ensuring that the Provider's obligations, such as delivering the MT799, are fulfilled before the release of funds. It's a secure way to handle transactions, safeguarding both parties' interests.

OPTION C. WIRE TRANSFER THROUGH STOCK BROKERAGE FIRM 

This option involves a specialized process where the Recipient Client (Buyer) may be permitted to wire the Initial Cost through MT799 / MT103, subject to "special notification approval" by the Provider. This transaction is conducted via a stock brokerage house and MUST BE APPROVED BY THE SELLER (PROVIDER) PRIOR TO SENDING THE WIRE. Through this wire method, in a written message, the Buyer has the option to instruct the Trust Attorney to retain the Initial Cost deposit until the Receiving Bank confirms receipt and acceptance of the MT799 SBLC or BG Text. Otherwise, INITIAL COST funds are returned to the depositor. It is crucial for the Buyer to inform Alternative Funding or the Provider prior to executing this type of wire transfer to ensure all parties are aware and consent to the terms.

 RELEASING THE INITIAL COST TO THE PROVIDER, STEP-BY-STEP:

When the Initial Cost is wired to the Attorney Trust Account, it is held in the custody of the Attorney Trust Account (Most times, the Attorney Trust Account will be an IOLTA Account.) until the following happens:

(To review ALL EXHIBITS, please click: internal://0c34e597-2ca4-4fe7-a6cb-1cfbf3b24b4c)

#1) - The Issuing Bank has sent the SWIFT MT799 Text Verbiage with “Full Banking Responsibility for SBLC or BG delivery”.

 (Please see Exhibit I)

#2) - The Receiving Bank has confirmed its receipt, agreeable acceptance of the transaction, and POF with a response to the Issuing Bank via SWIFT MT799 “Reply” (Pls. see Text Exhibit II).

#3.) The Initial Cost that has been held in the custody of the Attorney Trust account, is immediately released to the Provider.

(For INITIAL COST recourse methods, please refer to the above Q&A under Preparing to Wire the INITIAL COST for the SBLC/BG.)

PLEASE MAKE NOTE: The SWIFT MT760 (Pls. see Text Exhibit III) is sent to the Receiving bank. AFTER the MT760 is SWIFT from the ISSUING Bank to the RECEIVING Bank, the Settlement Fee cost of 16% is due NO LATER than 4 Business days AFTER the SBC / BG has been delivered to and received by the Receiving bank. The 2% Commission is also due for payment NO LATER than 4 days AFTER the MT760 has been received by the Buyer. The 2% Commission is Buyer Paid NOT Seller PAID.  

FULL BANKING RESPONSIBILITY-The phrase “with full banking responsibility” in an MT799 message means that the issuing bank is taking full responsibility for the issuance of the SBLC. This phrase is often used to assure the receiving bank that the issuing bank is committed to the transaction and will fulfill its obligations.

Q- Is the Trust Attorney Account an IOLTA account?
A.-Most of the time, Yes! The Buyer can request the Trust Attorney Account to be an IOLTA account if this is their preference.

Q- Is the Trust Attorney Account located in the US?

A.- The Attorney Trust Account and the Attorney can be located in the US. The Provider has his choice of attorneys which include US attorneys. The Buyer can request a US attorney if this is their choice. 

PLEASE MAKE NOTE: As bank regulations change the answers above could also change at any time.