How Banking Instrument and Hard Asset Lending Programs Work

Lending programs were developed to assist clients with either financial instruments (BGs, MTNs, LOCs, CMOs, Insurance Wraps, Treasury Notes, Stock Portfolios and other financial assets) or hard assets (emeralds, rubies, diamonds, gold, silver, water piping isotopes, iridium, gold dust, real estate and other assets) to free up an extremely frozen, long term asset into immediate cash enabling higher return, short term investments.

First, the client usually will obtain a Memorandum of Understanding (MOU) that details the lending process. If acceptable, the client provides all pertinent and necessary documentation validating ownership, authentication and value for initial review along with the Bank guarantee provider. signed MOU. Additional documents may be required, so please treat all lender asks with a time-is-of-the-essence emergency. Upon review of asset quality, the Loan Agreement is presented to client for review and end. The loan review period is about three to five (3 to 5) business days with a total loan process time of approximately 30 days till day of funding.

Instrument General Process: If approved, usually the instrument will be purchased and held, or held and blocked, for the Lender’s benefit for the period of one (1) year. The client has the choice to “Repurchase” the instrument at its Full Fair Market Value on the day the Repurchase agreement was Fully Transacted. Upon receiving the block on the instrument, the financial institution will cord transfer to the bank the loan proceeds. Depending on the quality of the instrument, the advance contrary to the face value averages 60 to 70 percent (60 to 80%), but is as high as 70 seven and a half percent (87. 5%) for larger loans up to 50B.

Hard Asset General Process: If approved, usually the client prefers a top-notch rated American or European bank that understands asset lending for their specific asset (HSBC is preferred) that is agreeable to both parties. The bank will create a Loan or SBLC for 1 / 2 (50%) of the assets current evaluated value. The bank might have to have the assets to be used in the bank or remain in the holding depository they are currently located — this is solely the preference of the Consumer’s bank. The LC/SBLC will be selected in the Clients name in favor of the financial institution. Upon receiving the LC/SBLC, the financial institution will mirror the LC/SBLC amount with a cord transfer to the bank.

The key thing to remember when presenting your asset to the bank is the incoming cord. The bank gains an asset at 50% LTV by creating a LOC triggering a mirrored incoming cord transfer with blocked funds that remain in the bank. A lenders dream come true — a no risk loan!

Since this service was made as an expeditious manner for clients to place hard assets into short term, higher containing programs, lenders choose the majority — if not all — of the loan proceeds go towards investments. However, they understand that litigant may have an immediate capital requirement, so most allow up to 20% of the loaned total be sent out to the client with 80% or more dedicated to investing.

Lender simple interest rates average from twelve and half percent to twenty percent (12. 5 to 20%) depending on the asset and loan amount. The higher the loan amount, the bottom the interest rate with a 50M minimum and a 50B maximum. Principle with interest is given back within a payment at the end of the twelve month loan period.

This lending program allows clients to obtain cash contrary to the flat asset within just days while they also simultaneously organize high yield investment programs. The loan review and trade complying process take about 10 days for a simultaneous closing for both transactions.

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