PROCEDURE TO LEASE A FINANCIAL INSTRUMENT AGAINST POF / CD

In view of the difficulties that some of our customers meet to follow the procedure for the leasing of financial instruments to the purposes of TRADING or as collateral to their credit lines, one of the providers with whom we are working, has pointed out the following proposal which give to the borrower the possibility to pay the leasing fees by bank backed (signed per aval by an acceptable bank) promissory notes against a proof of funds (POF/CD). Lender decided to work with cash backed CD because is the only way to grants the traders that the funds are blocked having CD the maturity date of one year from the issuing date.
1. Leasing of the instrument:
a. Borrower should submit the application form to lease a financial instrument with standard procedure. You already are familiar with that procedure which remains unchanged step by step, but for leasing fees payment (refer to point c.) and for return of the leased instrument (refer to point b.) because when the borrower apply for an instrument with payment of fees by bank backed promissory note to be discounted by the provider company, the lender, instead of sending the instrument to the borrower bank, will send it to the bank of the provider who will discount the promissory notes (as third party).
b. As the provider will supply to the borrower a POF using certificate of deposit cash backed (attachment 1) and Safekeeping Certificates of Deposit (attachment 2), two different agreements will be issued i.e.:
- leasing agreement between the LENDER and the BORROWER
- discounting bank instrument agreement, between the PROVIDER and the BORROWER, which will bear all references to the leasing agreement.
Of course, this procedure will avoid both due diligence and borrower bank engagement to return the instrument to the lender at the instrument maturity date, because it will be the provider bank that takes this engagement.
c. In the application form, you have to cross the OPTION “to receive the proof of funds (POF) instead of the instrument” . In that case, borrower must arrange for the payment of leasing fees by bank backed promissory notes (attachment 3) which expiring dates will be negotiated.
d. As a formality, necessary to comply with leasing agreement terms and conditions, the Lender will authorize the receiving bank - which in that case is the bank of the provider - to encumber or pledge the instrument against an official letter, signing by two bank officers, undertaking the obligation to return the instrument 15 days before his maturity date unencumbered and free of liens.
e. BORROWER must agree and confirm that certificate of deposit remains on deposit and cannot be collected.
2. Discount of the Bank Instrument:
An agreement will be signed between the provider company (third party) - willing and capable to exchange leased financial instrument against a “PROOF OF FUNDS / CD” - and the company who has leased the instrument (borrower). The POF/CD will be issued for the sum equal to 90% of instrument face value.
3. Proof of Funds (POF/CD):
POF/CD can be utilized to enter in a Trading Program (which can give very high profits) , as collateral of a credit line, etc.
4. Pre advice request:
The Lender is ready, willing and able to organize the delivery of a pre advice swift MT999 and MT 799 - neither from European nor from U.S. banks for non solicitation regulations - to the Borrower’s designated bank, after the payment to a lender designated clearing account of an amount of EUR 150,000.00 covering the banking expenses to organize the delivery of the pre advise swift. Swift transmission will be:
• MT999 direct to borrower designated bank, only if banks do not have same correspondent.
• MT799 direct to issuing bank correspondent in the Country where is located the borrower bank, for final delivery to the borrower bank,
This money will be refunded after successfully closing the transaction. the borrower has the right also to deduct it from the service fees total amount.

Procedure step-by-step:
1. CLIENTS SUBMIT A SIMPLE APPLICATION (SEE POINT 1.C) TO REQUEST THE LEASING OF AN INSTRUMENT SELECTED FROM OUR LIST.
2. APPLICATION FORM MUST BE COMPLETED WITH A DETAILED DESCRIPTION OF THE PROJECT (OR PURPOSE FOR WHICH THE BANK INSTRUMENT IS BEING LEASED) AND THE PASSPORT COPY OF THE AUTHORIZED SIGNATORY.
3. THE CONTRACT WILL BE SENT FOR SIGNATURE, AND IN THE SAME TIME THE BORROWER WILL RECEIVE AN INVOICE FOR THE EXPENSES DUE TO PERMIT TO COVER THE CALL OPTION EXPENSES TO RESERVE THE BANK INSTRUMENT, AMOUNTING TO:
FOR INSTRUMENTS WITH A FACE VALUE:
• UP TO 499 M. THE SETTLEMENT FEE IS EURO 20,000
• FROM 500 M. TO 999 M. THE SETTLEMENT FEE IS EURO 25,000
• FOR INSTRUMENTS ABOVE 1 B. THE SETTLEMENT FEE IS EURO 30,000.
PLEASE NOTE THAT IT IS IN EURO NO MATTER WHAT CURRENCY THE INSTRUMENT IS IN.
(THIS MONEY WILL BE REFUNDED AFTER SUCCESSFULLY CLOSING OF THE TRANSACTION. THE BORROWER HAS THE RIGHT ALSO TO DEDUCT THE ABOVE MENTIONED AMOUNT FROM THE SERVICE FEES TOTAL AMOUNT).
4. AFTER RECEIPT OF ALL DOCUMENTS SIGNED AND OF THE DEPOSIT OF THE SUM ABOVE DESCRIBED, THE LENDER WILL PROVIDE FOR A PROFORMA INVOICE WITH ALL DETAILS OF THE BANK INSTRUMENT, CORPORATE DEED OF ASSIGNMENT, EUROCLEAR AND CLEARSTREAM PRINTOUT, BLOOMBERG OR SECURITY CARD OF THE STOCK EXCHANGE MARKET WHERE THE INSTRUMENT IS QUOTED .
5. AFTER VERIFICATION, THE BORROWER MUST PROVIDE FOR LEASING FEES PAYMENTS (PROMISSORY NOTES SIGNED PER AVAL BY AN ACCEPTABLE BANK ), NOT LATER THAN 20 DAYS FROM DATE OF PROFORMA INVOICE (POINT 4). PROMISSORY NOTES EXPIRING DATES MUST BE AGREED WITH THE LENDER
6. WHEN PROMISSORY NOTES ARE READY AND SIGNED PER AVAL BY BORROWER BANK, BORROWER MUST SEND THEM FOR APPROVAL BY E-MAIL TO THE LENDER. AFTER LENDER BANK APPROVAL OF THE AVAL SIGNATURES, THE BORROWER WILL RECEIVE BY E-MAIL THE INSTRUCTION WITH ADDRESS WHERE TO SEND ORIGINAL PROMISSORY NOTES.
7. ON RECEIPT OF ORIGINAL PROMISSORY NOTES, THE PROCEDURE TO LEASE THE INSTRUMENT, DISCOUNT IT AND SUPPLY YOU THE POF/CD WILL START.
10. WITHIN 10 BANKING DAYS PROVIDER WILL INSTRUCT HIS BANK TO ISSUE THE CERTIFICATE OF DEPOSIT FOR THE SUM EQUAL TO 90% OF INSTRUMENT FACE VALUE. BORROWER MUST AGREE AND CONFIRM THAT CERTIFICATE OF DEPOSIT REMAINS ON DEPOSIT AND CANNOT BE T4RANSFERRED OR WITHDRAWN.

For further details, please contact ROBERT VEKICH on USA No: +1 612 877 2016 or SYED JAMALUDDIN on CELL No: +49-1747061641 (GERMANY)