Bank Instrument Selling Details
MTN and BG Procedures
1. Buyer submits the following:
a) Letter of Intent
b) Fee Protection Agreement
c) Client Information Sheet
d) Corporate Resolution (only if the Buyer is a Corporation)
e) Color, Full-Page Image of Passport of signatory.
f) Proof of Funds is required (Bank Commitment Letter or Bank Tear Sheet or Bank Statement or Bank Proof of Funds Letter or some other form of Proof of Funds that is acceptable to the Seller.). The Seller will not accept LOI without some form of POF.
g) Non-Solicitation Letter
2. Upon verification and satisfactory due diligence, Seller will then communicate directly with the buyer via e-mail to confirm buyer’s readiness and return countersigned Letter of Intent (LOI) to Buyer which now becomes MOU between Buyer and Seller. Buyer and Seller will interact with each other directly from this point forward.
3. Within 72 Hours (3 banking days) of receipt of countersigned LOI/MOU, Buyer’s bank will send to the Seller’s bank Conditional SWIFT MT 103 Field 23.
4. PLEASE NOTE: IF THE CONDITIONAL SWIFT MT 103 FIELD 23 IS NOT RECEIVED BY THE SELLER’S BANK WITHIN 72 HOURS (3 BANKING DAYS) OF THE SELLER COUNTERSIGNING THE LOI/MOU, THEN THIS AGREEMENT BECOMES AUTOMATICALLY NULL AND VOID.
5. Seller’s bank will respond confirming its receipt and acceptance of the Conditional SWIFT MT 103 Field 23 which is to purchase and deliver the Medium Term Notes (MTNs) as described above.
6. Buyer must send a copy of the Conditional SWIFT MT 103 Field 23 immediately to the Seller’s e-mail. This copy of swift transmission is mandatory as it confirms the Buyer’s transmission sent to Seller’s bank.
7. After verification and authentication of the Conditional SWIFT MT 103 Field 23, the Seller will then issue the Corporate Invoice. The Corporate Invoice will include Full particulars of the instrument but not limited to Cusip, ISIN Numbers, Copy of the Instrument, Bond Power and all necessary information required for authentication and validation of the Medium Term Notes (MTNs).
8. The Seller will then request the Issuing Bank to issue the Medium Term Notes (MTNs) via SWIFT MT 760 to the Buyer’s receiving bank.
9. Upon successful receipt, verification and authentication of the SWIFT MT 760, and acceptance of the Medium Term Notes (MTNs), the Buyer’s bank will release the Conditional Field 23 to unconditionally transfer the funds to the Seller’s bank within eight (8) banking hours.
10. DVP Settlement Procedures shall follow to settle the invoice. The transaction will be completed or the tranching schedule continued according to the LOI/MOU.
11. The transactions will be continuous according to the agreed upon tranching schedule until the contract is consummated.
MTN Selling/Buying Option
Our MTN provider is not the conventional provider; the provider operates from the ledgers from the top 25 banks; they are authorized to sell paper from these Banks. They will either trade it or sell it directly to your client and they are THE TITLE HOLDER of the paper. The Provider offers a WIDE range in invoice price (i.e. between 40-85%).
To begin the process, your client simply fills out the "REQUEST FOR MTNS" document and include the CIS, passport and POF.
PROOF OF FUNDS
The provider has to make sure new buyers can pay for the the paper and not leave it on screen. No Bank to Bank POF will be accepted, so please don't ask!!!! Either a tearsheet or bank statement. There is no chain!! I am direct and I have no time to shop your client's POF. The provider needs the tearsheet to validate the price the client is asking then he can arrange the option right from the bank's ledger.
CONDITIONS
1. Make sure the buyer OWNS HIS OWN MONEY. He may say he is the signatory but his name may not be on the transaction bank account- THAT WILL NOT WORK!!!!
HOW THE CLIENT IS PROTECTED AGAINST NON-PERFORMING
1. Client must be willing to issue a MT103/23 to secure the transaction. The MT103/23 SUBJECTS the provider to delivering the instrument to the buyer's coordinates or Euroclear BEFORE payment. The client pays for the paper only AFTER it's VERIFIED!
2. As you well know, the MT103/23 is conditional swift for the delivery of the instrument; if the provider delivers the instrument that is not TOP 25 AA rated and at the right price, the client can decline to take it down. If the provider issues the paper and the client does not take it down, then the provider draws it back. Now, if the client takes it down and does not pay, then the provider will call the MT103.
This is the best way to buy paper because the client is also protected against non-performing!!!
Closing Procedures
1. Client submits POF (bank statement or tearsheet), color Passport, CIS, and simple request for mtns. Provider will call client within 48 hrs for discussion.
2. If they want to proceed, the Provider will send a sales agreement (with corp invoice) including isins and bond power; client signs agreement with full bank coordinates and delivers same.
3. Seller will confirm and send by courier the executed agreement, making this a binding Agreement between the parties and lodge the executed agreement with the respective Banks. Client /Buyers’ bank shall cause to issue in favor of provider a SWIFT MT103/23 within three banking days.
Client can settle however they want as long as we have the posted 103/23 or SBLC for the first tranch or whatever they are going to tranch per day, or per week, the MT103/23 is not touched because it is subject to the delivery of the mtns to the buyer's bank coordinates and the client can settle however they want.
4. Both Parties agree and confirm that the amount of the payment that provider will receive in percentage is defined as totaling ____% from the face value of the Medium Term note.
Upon satisfactory verification of the Conditional SWIFT 103/23, Provider will instruct the Providers’ bank to issue and deliver the Medium Term Notes via SWIFT MT760 to clients designated receiving bank coordinates with three (3) banking days.
5. Upon Client’s complete verification and authentication of the Medium Term Notes, clients’ paying bank will release and affect the payment to the Providers’ designated bank account within eight (8) banking hours.
This means the buyer will receive a contract, they can accept or decline; they can validate the instrument and take it down. If the buyer takes down the instrument and does not pay, the seller will call the 103/23 and cancel the contract
6. The hard copy will be delivered to the Clients bank via courier within seven (7) banking days. Subsequent tranches will follow the above procedure and delivered as per the agreed tranche schedule.
1. Buyer submits the following:
a) Letter of Intent
b) Fee Protection Agreement
c) Client Information Sheet
d) Corporate Resolution (only if the Buyer is a Corporation)
e) Color, Full-Page Image of Passport of signatory.
f) Proof of Funds is required (Bank Commitment Letter or Bank Tear Sheet or Bank Statement or Bank Proof of Funds Letter or some other form of Proof of Funds that is acceptable to the Seller.). The Seller will not accept LOI without some form of POF.
g) Non-Solicitation Letter
2. Upon verification and satisfactory due diligence, Seller will then communicate directly with the buyer via e-mail to confirm buyer’s readiness and return countersigned Letter of Intent (LOI) to Buyer which now becomes MOU between Buyer and Seller. Buyer and Seller will interact with each other directly from this point forward.
3. Within 72 Hours (3 banking days) of receipt of countersigned LOI/MOU, Buyer’s bank will send to the Seller’s bank Conditional SWIFT MT 103 Field 23.
4. PLEASE NOTE: IF THE CONDITIONAL SWIFT MT 103 FIELD 23 IS NOT RECEIVED BY THE SELLER’S BANK WITHIN 72 HOURS (3 BANKING DAYS) OF THE SELLER COUNTERSIGNING THE LOI/MOU, THEN THIS AGREEMENT BECOMES AUTOMATICALLY NULL AND VOID.
5. Seller’s bank will respond confirming its receipt and acceptance of the Conditional SWIFT MT 103 Field 23 which is to purchase and deliver the Medium Term Notes (MTNs) as described above.
6. Buyer must send a copy of the Conditional SWIFT MT 103 Field 23 immediately to the Seller’s e-mail. This copy of swift transmission is mandatory as it confirms the Buyer’s transmission sent to Seller’s bank.
7. After verification and authentication of the Conditional SWIFT MT 103 Field 23, the Seller will then issue the Corporate Invoice. The Corporate Invoice will include Full particulars of the instrument but not limited to Cusip, ISIN Numbers, Copy of the Instrument, Bond Power and all necessary information required for authentication and validation of the Medium Term Notes (MTNs).
8. The Seller will then request the Issuing Bank to issue the Medium Term Notes (MTNs) via SWIFT MT 760 to the Buyer’s receiving bank.
9. Upon successful receipt, verification and authentication of the SWIFT MT 760, and acceptance of the Medium Term Notes (MTNs), the Buyer’s bank will release the Conditional Field 23 to unconditionally transfer the funds to the Seller’s bank within eight (8) banking hours.
10. DVP Settlement Procedures shall follow to settle the invoice. The transaction will be completed or the tranching schedule continued according to the LOI/MOU.
11. The transactions will be continuous according to the agreed upon tranching schedule until the contract is consummated.
MTN Selling/Buying Option
Our MTN provider is not the conventional provider; the provider operates from the ledgers from the top 25 banks; they are authorized to sell paper from these Banks. They will either trade it or sell it directly to your client and they are THE TITLE HOLDER of the paper. The Provider offers a WIDE range in invoice price (i.e. between 40-85%).
To begin the process, your client simply fills out the "REQUEST FOR MTNS" document and include the CIS, passport and POF.
PROOF OF FUNDS
The provider has to make sure new buyers can pay for the the paper and not leave it on screen. No Bank to Bank POF will be accepted, so please don't ask!!!! Either a tearsheet or bank statement. There is no chain!! I am direct and I have no time to shop your client's POF. The provider needs the tearsheet to validate the price the client is asking then he can arrange the option right from the bank's ledger.
CONDITIONS
1. Make sure the buyer OWNS HIS OWN MONEY. He may say he is the signatory but his name may not be on the transaction bank account- THAT WILL NOT WORK!!!!
HOW THE CLIENT IS PROTECTED AGAINST NON-PERFORMING
1. Client must be willing to issue a MT103/23 to secure the transaction. The MT103/23 SUBJECTS the provider to delivering the instrument to the buyer's coordinates or Euroclear BEFORE payment. The client pays for the paper only AFTER it's VERIFIED!
2. As you well know, the MT103/23 is conditional swift for the delivery of the instrument; if the provider delivers the instrument that is not TOP 25 AA rated and at the right price, the client can decline to take it down. If the provider issues the paper and the client does not take it down, then the provider draws it back. Now, if the client takes it down and does not pay, then the provider will call the MT103.
This is the best way to buy paper because the client is also protected against non-performing!!!
Closing Procedures
1. Client submits POF (bank statement or tearsheet), color Passport, CIS, and simple request for mtns. Provider will call client within 48 hrs for discussion.
2. If they want to proceed, the Provider will send a sales agreement (with corp invoice) including isins and bond power; client signs agreement with full bank coordinates and delivers same.
3. Seller will confirm and send by courier the executed agreement, making this a binding Agreement between the parties and lodge the executed agreement with the respective Banks. Client /Buyers’ bank shall cause to issue in favor of provider a SWIFT MT103/23 within three banking days.
Client can settle however they want as long as we have the posted 103/23 or SBLC for the first tranch or whatever they are going to tranch per day, or per week, the MT103/23 is not touched because it is subject to the delivery of the mtns to the buyer's bank coordinates and the client can settle however they want.
4. Both Parties agree and confirm that the amount of the payment that provider will receive in percentage is defined as totaling ____% from the face value of the Medium Term note.
Upon satisfactory verification of the Conditional SWIFT 103/23, Provider will instruct the Providers’ bank to issue and deliver the Medium Term Notes via SWIFT MT760 to clients designated receiving bank coordinates with three (3) banking days.
5. Upon Client’s complete verification and authentication of the Medium Term Notes, clients’ paying bank will release and affect the payment to the Providers’ designated bank account within eight (8) banking hours.
This means the buyer will receive a contract, they can accept or decline; they can validate the instrument and take it down. If the buyer takes down the instrument and does not pay, the seller will call the 103/23 and cancel the contract
6. The hard copy will be delivered to the Clients bank via courier within seven (7) banking days. Subsequent tranches will follow the above procedure and delivered as per the agreed tranche schedule.