1. Leasing SBLC no up-front fee (10+2%)
Description: Money in client bank account 100%, Client only pay after they receive SBLC
Procedure:
2.TRANSACTION PROCEDURES (10+2%)
- RECEIVER submits to PROVIDER this signed Deed of Agreement (DOA), together with Client Information Sheet, (CIS), Corporate Board Resolution, Signatory’s Passport Copy, Corporate Registration, and IMFPA.
- PROVIDER countersigns the Deed of Agreement, which thereby automatically becomes a full recourse commercial contract and both Parties lodge the DOA with their respective Banks.
- RECEIVER Bank will issue MT-199 to PROVIDER’S coordinate bank account to confirming that they are Ready, Willing and Able to receive the SBLC.
- PROVIDER’s bank will reply by MT-199 confirming that they are Ready, Willing and Able to issue the STAND BY LETTER OF CREDIT (SBLC).
- RECEIVER Bank will issue MT 799 proof of funds to PROVIDER’S coordinate bank account to confirming that they are Ready, Willing and Able to receive the SBLC.
- PROVIDER’s Issuing bank will reply by MT-799 Pre-Advice (Exhibit A) confirming that they are Ready, Willing and Able to issue the STAND BY LETTER OF CREDIT (SBLC) as per agreed verbiage (Exhibit B).
- On receipt, authentication, and confirmation of the PROVIDER’S pre-advice to the bank of the RECEIVER, the PROVIDER will issue SBLC via SWIFT MT-760, and the PROVIDER’S bank will send the hard copies of the SBLC to the RECEIVER’S bank by bank-bonded courier.
- RECEIVER’S bank affects the payment within (15 – 21 ) Banking days to PROVIDER’S nominated bank account by unconditional SWIFT MT-103 and simultaneously pays 2% Consultancy fees as per details stated in the IMFPA.
- Transactions and their settlement will continue according to above-noted procedures and pre-agreed tranche schedule until contracted collateral instruments are fully delivered.
Should RECEIVER default to pay the fees to the PROVIDER and commission to the Consultants as agreed in this DOA within the allowed number of days after receipt of SBLC via SWIFT-760 the PROVIDER shall instruct the Issuing Bank to put a claim on the SBLC thereby forcing the Receiver’s Bank to return the SBLC to the issuing Bank
ALL SWIFT COPIES HAVE TO BE SENT TO THE OTHER PARTY WITHIN 24 HOURS FOR FOLLOWING UP AND TRACKING.
This Deed of Agreement is a full recourse commercial commitment governed by the Laws of the jurisdictions in which both Parties reside and subject to standards under ICC Regulations