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CHEQUE DISCOUNTING PROGRAM EXPLAINED

Dear Gentlemen For your better understanding about discounting of post-dated cheques, please be advised that discounting of post-dated cheques is not a rocket science at all. Following is the simple way to understand this form of financing: Step 1: The cheque issuer / client issues a post-dated corporate cheque (no individual cheques accepted); Step 2: The said post-dated cheque is authenticated by a SWIFT MT199/MT999 confirming that the said cheque has been issued by the owner of the bank account in whose name the cheque book was issued (see specimen of one such SWIFT MESSAGE); Step 3: The original cheque along with two specific letters (authorization/endorsement) are issued by the cheque issuer and sent to our German office address as soon as the COMMODITIES INVESTMENT AGREEMENT has been signed; Step 4: The original cheque is kept as a collateral to be presented for clearance/payment on its due date of maturity; Step 5: A bank instrument (such as BANK GUARANTEE or SBLC or CERTIFIED TIME DRAFT or any BOND) of similar value is sold out/monetized to obtain funds from the monetizer/underwriters; Step 6: The monetized funds are paid to the cheque issuer directly by the Pay Master nominated by the monetizer. Pay Masters are appointed by the monetizer and in different transactions, there are different pay masters; Henceforth, there is nothing so complicated in this type of funding. The only area where we specialize is that we have monetizers who in turn have several bank instruments. They use these bank instruments to settle the cheque issuer. The settlement is normally @85% while the balance is for the monetizer out of which certain portion is paid to the intermediaries / brokers. The cheque is sent for clearance on date of maturity and the monetizer collects 100%. Now, regarding the MT199/MT999, most banks do not issue them and rather demand deposit of 100% cash in the account which is practically impossible otherwise why would anybody issue a post-dated cheque. Indeed, issuance of post-dated cheque is for bridge financing on the part of the cheque issuer who wants to use the monetized funds for one year (till his own cheque must be cleared on its date of maturity). We have many banks which can issue such MT199/MT999 SWIFT messages on our request against certain charges (normally $15000 fixed for all amounts). We certainly do not insist clients to allow us to arrange the MT199/MT999. We want clients to issue MT199/MT999 from their own banks. However, in cases where clients are not able to issue MT199/MT999 from their own banks, we can provide this service against proper invoice. Please do not hesitate to ask any question if something needs to be clarified. SYED JAMALUDDIN ARGO WEALTH MANAGEMENT LLC USA ARGO INTERNATIONAL GMBH GERMANY TEL +49 17632440017 www.argointernationalusa.blogspot.com

Cheque Discounting Program of ARGO WEALTH MANAGEMENT LLC