SKR/BG/SCR Issuing Against Property
Regarding issuing SKR/BG/SCR of clients I need the following documents:-
Brief Details About SKR/BG:-
There is a particular routing to be followed when a SKR/BG is put up for trade. Hardly any intermediary knows the "how" of placing an SKR/BG into a PPP. I know this for a fact having interacted with quite a few of them. Since they don't know they mis-advise owners regarding possible returns, which in turn leads to a "no result" situation.
A couple of examples of the several SKR's/BG's I have dealt with and did not go through. Case 1: the owner could not provide a MT799; Case 2: The owner wanted money up front before giving an acceptance letter; Case 3: the owner went shopping around, so no one was willing to deal with his SKR/BG.
An SKR/BG trade can go through if, (1) an MT799[+MT 760] can be provided ( with FBR), (2) the chain of intermediaries is small, and (3) the owner doesn't have unrealistic expectations.
We employ the same due diligence trades do when confirming and affriming a bank instrument. We confirm ownership, non-lease status and that it is lien free.This is preliminary. Then when the bank sends our swift in the language it will state of non-criminal origin with full bank responsibility etc.
Now having stated this a SKR or BG or Bond or any other instrument is only of value "if" the bank places its own assets behind it ie (FBR)..... This is why people are running around in circles with FRN Boxes, Brazilian and Venzuelan bonds as well as other "valueless" instruments because no bank including the issuing bank will confirm with FBR ownership and value. So "if" you have a gymshoe and a bank is willing to confirm its value is 100M with FBR it can be monetized from the bank's "confiming swift" and the proceeds taken into trade.
It is not the instrument that the trader concerns himself with it is the ability to establish a line of credit against it which starts with the custodial or issuing bank's confirmations via swift. No confirming swift no creditline. If the instrument is in some lawyer's safe, some large vault or was issued by a non-rated instittution it cannot be used for anything outside a bathroom.
DOCUMENTS CHECK LIST:-
Identity Proof & Address Proof(Property Holders).
Borrower’s Company Info(such as ROC,Certificate of Incorporation,Pan Card Photo Copy,Article of Memorandum,Last 6/12 Months Current A/c Statement of Company,Income Tax Paper of past 3 years along with Profit &
Loss Details.,Vat Registration Certificate.)
•All Professional Licenses held by the company including ISO Certification.
•Company’s Provisional Balance Sheet.
•Company’s Unaudited Balance Sheet of Current FY.
•Company’s Projected Balance Sheet.
•List of works in hand,works under pipeline & works executed in last 3years.
•Detailed Project Report & Projected Financials with cash flow-fund flow statements and break even analysis.
•Project Presentation.
Property Deeds of Property Holder at present.
Affidavit of Non-Encumbrance.
Govt Recognized Valuer Valuation Report(Must not be 12months older of today’s date) with full details.
Gold Search Report if any.
Search Certificate from High Court Advocate.
Board Resolution Copy.
Sales/VAT Tax Registration Certificates.
•CMA Data (5yrs).
•Bank Statements and statement of OD/CC limits of company in any bank.
•Details of other business activities held by the directors of the
company (Mandatory)*.
•List of major clients.
•Full set of land related documents like Deeds Copy-POA Copy if
any-EC[35 Years]-Tax Receipt[Last 5 Years], Mutation Papers, Valuation-Search & Legal
Certificate etc.
I need the following to proceed further:
Authorisation Letter For Issuing The Bank Instrument & Discounting or Monetizing The Same-must be notarised in 100rs stamp paper.(format attached).
Authorisation For Verification-True Copy(must be notarised).
Legal Opinion From High Court/Bank Approved Lawyer.
Affidavit of Non-Encumbrance.
Letter Of Confirmation(must be notarised in client's letter head).
After getting all the documents it will take 25-35 banking days to raise BG/SKR/SCR against the property.
I am furnishing the step by step process for issuing the BG/SKR/SCR.
STEP 1:-
CLIENTS NEEDS TO SUBMIT PHOTOCOPY OF ALL NEEDED DOCUMENTS,ANY VERBIAGE OF MT799 AS PER CLIENT REQUIREMENT[I have attached SWIFT MT 799/760 Formats] ALONG WITH THE CONSULTANCY CHARGES.WE WILL GET APPROVAL FROM THE BANK[SWIFT]
STEP 2:-
FPA WILL BE SIGNED ALONG. AS PER MY BANKER'S,BANKERS UNDERTABLE CHARGES CLIENTS NEEDS TO PAY THEM IN ANY OF MY SAID DESIGNATED BANK ACCOUNT.FPA CHARGES TO BE DEPOSITED WHEN I WILL CONFIRM THE CLIENTS.
STEP 3:-
SEARCH & VERIFICATION WILL BE DONE OF THE COLLATERAL/PROPERTY (after the full submission of documents).CLIENT NEEDS TO OPEN CURRENT A/C[we will assist] IN HIS/HER COMPANY NAME[OPENING AMOUNT OF CURRENT A/C WILL BE 1LAC] AND DEPOSIT 1.75%-3%+0.25%-0.40%[CAN BE CONFIRMED AFTER BANKERS SEE THE FULL PAPERS] .WE WILL HANDLE THE NEW ACCOUNT AS WE NEED TO DEPOSIT THE CHARGES[UNDERTABLE EXCLUDED] TO BANK OFFICIALS TIME BY TIME.
STEP 4:-
ON THE DAY OF DISBURSEMENT OF BANK INSTRUMENTS, CHARGES WILL BE DEDUCTED ON THAT SAME DAY ITSELF AS PER AGREEMENT MOU & FPA.
"Necessary charges must be borne by the clients after sending the documents.
The authorisation letter must be notarised"
Brief Details About SKR/BG:-
There is a particular routing to be followed when a SKR/BG is put up for trade. Hardly any intermediary knows the "how" of placing an SKR/BG into a PPP. I know this for a fact having interacted with quite a few of them. Since they don't know they mis-advise owners regarding possible returns, which in turn leads to a "no result" situation.
A couple of examples of the several SKR's/BG's I have dealt with and did not go through. Case 1: the owner could not provide a MT799; Case 2: The owner wanted money up front before giving an acceptance letter; Case 3: the owner went shopping around, so no one was willing to deal with his SKR/BG.
An SKR/BG trade can go through if, (1) an MT799[+MT 760] can be provided ( with FBR), (2) the chain of intermediaries is small, and (3) the owner doesn't have unrealistic expectations.
We employ the same due diligence trades do when confirming and affriming a bank instrument. We confirm ownership, non-lease status and that it is lien free.This is preliminary. Then when the bank sends our swift in the language it will state of non-criminal origin with full bank responsibility etc.
Now having stated this a SKR or BG or Bond or any other instrument is only of value "if" the bank places its own assets behind it ie (FBR)..... This is why people are running around in circles with FRN Boxes, Brazilian and Venzuelan bonds as well as other "valueless" instruments because no bank including the issuing bank will confirm with FBR ownership and value. So "if" you have a gymshoe and a bank is willing to confirm its value is 100M with FBR it can be monetized from the bank's "confiming swift" and the proceeds taken into trade.
It is not the instrument that the trader concerns himself with it is the ability to establish a line of credit against it which starts with the custodial or issuing bank's confirmations via swift. No confirming swift no creditline. If the instrument is in some lawyer's safe, some large vault or was issued by a non-rated instittution it cannot be used for anything outside a bathroom.
DOCUMENTS CHECK LIST:-
Identity Proof & Address Proof(Property Holders).
Borrower’s Company Info(such as ROC,Certificate of Incorporation,Pan Card Photo Copy,Article of Memorandum,Last 6/12 Months Current A/c Statement of Company,Income Tax Paper of past 3 years along with Profit &
Loss Details.,Vat Registration Certificate.)
•All Professional Licenses held by the company including ISO Certification.
•Company’s Provisional Balance Sheet.
•Company’s Unaudited Balance Sheet of Current FY.
•Company’s Projected Balance Sheet.
•List of works in hand,works under pipeline & works executed in last 3years.
•Detailed Project Report & Projected Financials with cash flow-fund flow statements and break even analysis.
•Project Presentation.
Property Deeds of Property Holder at present.
Affidavit of Non-Encumbrance.
Govt Recognized Valuer Valuation Report(Must not be 12months older of today’s date) with full details.
Gold Search Report if any.
Search Certificate from High Court Advocate.
Board Resolution Copy.
Sales/VAT Tax Registration Certificates.
•CMA Data (5yrs).
•Bank Statements and statement of OD/CC limits of company in any bank.
•Details of other business activities held by the directors of the
company (Mandatory)*.
•List of major clients.
•Full set of land related documents like Deeds Copy-POA Copy if
any-EC[35 Years]-Tax Receipt[Last 5 Years], Mutation Papers, Valuation-Search & Legal
Certificate etc.
I need the following to proceed further:
Authorisation Letter For Issuing The Bank Instrument & Discounting or Monetizing The Same-must be notarised in 100rs stamp paper.(format attached).
Authorisation For Verification-True Copy(must be notarised).
Legal Opinion From High Court/Bank Approved Lawyer.
Affidavit of Non-Encumbrance.
Letter Of Confirmation(must be notarised in client's letter head).
After getting all the documents it will take 25-35 banking days to raise BG/SKR/SCR against the property.
I am furnishing the step by step process for issuing the BG/SKR/SCR.
STEP 1:-
CLIENTS NEEDS TO SUBMIT PHOTOCOPY OF ALL NEEDED DOCUMENTS,ANY VERBIAGE OF MT799 AS PER CLIENT REQUIREMENT[I have attached SWIFT MT 799/760 Formats] ALONG WITH THE CONSULTANCY CHARGES.WE WILL GET APPROVAL FROM THE BANK[SWIFT]
STEP 2:-
FPA WILL BE SIGNED ALONG. AS PER MY BANKER'S,BANKERS UNDERTABLE CHARGES CLIENTS NEEDS TO PAY THEM IN ANY OF MY SAID DESIGNATED BANK ACCOUNT.FPA CHARGES TO BE DEPOSITED WHEN I WILL CONFIRM THE CLIENTS.
STEP 3:-
SEARCH & VERIFICATION WILL BE DONE OF THE COLLATERAL/PROPERTY (after the full submission of documents).CLIENT NEEDS TO OPEN CURRENT A/C[we will assist] IN HIS/HER COMPANY NAME[OPENING AMOUNT OF CURRENT A/C WILL BE 1LAC] AND DEPOSIT 1.75%-3%+0.25%-0.40%[CAN BE CONFIRMED AFTER BANKERS SEE THE FULL PAPERS] .WE WILL HANDLE THE NEW ACCOUNT AS WE NEED TO DEPOSIT THE CHARGES[UNDERTABLE EXCLUDED] TO BANK OFFICIALS TIME BY TIME.
STEP 4:-
ON THE DAY OF DISBURSEMENT OF BANK INSTRUMENTS, CHARGES WILL BE DEDUCTED ON THAT SAME DAY ITSELF AS PER AGREEMENT MOU & FPA.
"Necessary charges must be borne by the clients after sending the documents.
The authorisation letter must be notarised"