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Typical SBLC/BG/MTN Buy Procedures*

Instrument: BG (Bank Guarantee), MTN (Medium Term Note) STAND BY credit (SBLC)*
o *NOTE: CASH-BACK & Lease BG / SBLC procedures require escrowed funds to
complete the transaction.
Term: One (1) year and one (1) DAY (Or as agreed)
Issuing Bank: Top 25 Bans & Rated AAA
Age: FRESH CUT, Seasoned (BG/MTN)
o NOTE: FRESH CUT Instruments do not have ISIPs or CUSIPs.
Currency: Euro
Amount of contract: 10 M MIN-MAX 5Bil Euro
Price: on request
Cost:
o Purchase: % of Face Amount + Min. 2% (Two Percent of Face Amount ) - 1% and 1%
BUYER & SELLER side Commission
o Lease: on request (between 8% to 14% of face amount of the instrument)
Payment:
o Purchase: BY SWIFT MT-103
o Lease: Escrow. Cost/Payment must be deposited to Issuer designated License and
Bonded Escrow Agent Escrow approved by Client in advance of deposit.
Instrument Delivery: SWIFT MT 760 / courier within seven (7) business days after receipt of
payment.

Procedures:

Purchase:
o Buyer submits the following documents:
Letter of Intent (LOI) to the Seller, including details of the company
Passport Copy
Receiving bank banking coordinates
Proof of Funds demonstrating liquid funds available to purchase the requested
instrument (Bank Statement within 3 days old, Tear Sheet, MT799)

Lease (All Services except Instrument Purchase Follow the Instrument Lease Document and
Escrow Closing Procedures)
o Buyer executes the following documents:
Request for Services
CIS Customer Information Sheet including details of the company, copy of
passport and, transaction and receiving bank coordinates.
Proof of Funds demonstrating liquid funds available to escrow cost of service
(Bank Statement within 3 days old, Verification of Deposit on bank letterhead)
Memorandum of Understanding
Escrow Agent and Escrow Instructions (cost of service must be escrowed
following the approval/execution of escrow agent/escrow instructions).
Important Note regarding escrow: Buyers who cannot follow the instructions
outlined above or who are incapable of providing proof of funds at engagement
are discouraged requesting services. Deviation from the prescribed
Issuer/Investor procedures is discouraged.

Buy Procedures

Procedures Contd

Purchased Instrument Closing Procedures:


o Seller executes the LOI and returns it to the buyer with detailed information about the
financial instrument and it automatically becomes a complete LOI commercial contract.
o Within two (2) banking days Seller's bank sends BG/Bank Instrument Pre-Advice via
SWIFT MT-799 in the Buyer's bank
o Within two (2) business days after receipt of the preliminary consultation on SWIFT MT799, the Buyer instructs his bank to send SWIFT MT-799 with confirmation of acceptance
of financial instruments and guarantees payment to the Buyer after verification MT760
within 5 (five) bank days.
o Seller's bank sends the BG/Bank Instrument by SWIFT MT-760 in the Buyer's bank.
o Buyer's bank checks and verifies the received BG/Bank Instrument through the SWIFT
MT-760 and send the payment via SWIFT MT-103 to the Seller within 5 (five) days from
the international banking, and at the same time pays 1% of the nominal value of each
tranche, as payment for consulting services / commissions, in accordance with the
Agreement Irrevocable Master Fee Protection and method of payment is an integral part
of this agreement.
o Seller's Bank within seven (7) international banking days from receipt of full payment of
the invoice, send hard copy of the original BG/Bank Instrument to Buyers bank by
bonded courier.

Leased Instrument Closing Procedures:


o Issuer executes MOU and returns it to the buyer with detailed information about the
financial instrument and it automatically becomes a complete commercial contract.
o Buyer approves then executes Issuer Agreement/Escrow Agent and Escrow instructions.
o Within two (2) banking days buyer deposits Lease Fee into Escrow
o Within two (2) business days after receipt of the preliminary consultation on SWIFT MT799, the Buyer instructs his bank to send SWIFT MT-799 with confirmation of acceptance
of financial instruments and guarantees payment to the Buyer after verification MT760
within 5 (five) bank days.
o Seller's bank sends the BG/Bank Instrument by SWIFT MT-760 in the Buyer's bank.
o Buyer's bank checks and verifies the received BG/Bank Instrument through the SWIFT
MT-760.
o Within three (3) banking days after Buyers bank confirmation, authentication of BG/Bank
Instrument Escrow releases consulting services / commissions, in accordance with the
Escrow Agreement
o Seller's Bank within seven (7) international banking days from receipt of full payment of
the invoice, send hard copy of the original BG/Bank Instrument to Buyers bank by
bonded courier.

Buy Procedures