NON RECOURSE LOAN – AGAINST THE CASH FUNDS AND FINANCIAL INSTRUMENTS
The Trust which is lending is very wealthy and very serious. The
money being lent to the clients comes from the Trust and is sent through a Bank.
A MT799 and MT 760 will be required for the transaction from a major agreed Bank (top 50 banks). The Bank
will have to be a bank that the Trust agreed to use. They will want information
from Standard and Poor, Moody's etc. Financial are also good to show the worth of the bank.
A legal opinion Letter should be attached. ( will provide you the format) with the signed and completed Contract
by the Borrower. The Trust must first approve the bank being used. If they do not approve there is no deal.
The Trust must review and approve all paperwork. If they find anything
wrong there will be no deal. The Trust and the bank will send out final paperwork to client for the handling of the MT799
and MT760.
The funding will occur within 20 Banking Days after the receipt of the MT 760.
The loan will be based on the MT 760 value not the face/market value of the Collateral being used.
The Loan will be 90% of the MT 760 value.
We will get you paid 70% initially and 20% will be paid when the
Loan matures. Also when the loan matures the Collateral will be released without encumbrances and the Loan principal and interest
will be paid off by the Lender. The 20% will be returned with interest after 12 months.
There is no repayment of any loan--the 20% is used to erase the loan.
The deal parameters, the collateral and the Bank sending the MT 760/ Guarantee Letter must be agreed to upfront.
Meaning the BG issuing bank and the beneficiary must be able to provide this at the time of beginning the transaction.
The Contracts are sent to the Borrower (B). The B completes their portion and return it to the Lender (L) along
with the Letter of Opinion from their Law Firm.
The L completes the Contract and identifies any items that are incomplete, that should be completed before the
L signs the Contract.
The L sends the Contract to the B and the Transaction commences at that date. The Transaction as stated in the
Contract will be transacted on a Bank to Bank basis only.
BG must be deposited in the bank account of the owner of the BG and or in case of sale of BG in the name of
beneficiary for bank to bank confirmation thro MT 799 and MT 760.
STANDARD LOAN TRANSACTION
This deal will provide the B 90% of the MT 760 value.
The payments are made in 2 tranches viz: 70% upfront and 20% when the loan matures, 12th month from
the date of loan disbursal. Also when the Loan matures the Loan principal and interest is paid off by the L and any collateral
is released free and clear to the B. The maximum time line is as follows in Banking Days ( BD) after the Contract is signed
by both parties:
MT 760 must be issued within 10 BD from the signing of the Contract by both parties.
Within the 10 BD above normally a MT 799 is sent by the B’s Bank which is replied by a MT 199 by the L’s
Bank which indicates that the L has the funds etc. as per the Contract available in the Bank.
The initial payment of 70% will be made by the L within 20 BD from the receipt of the MT 760. The 20% will be
paid to the L by the B when the Loan Matures.
The BG is blocked by the bank for 12 months. The BG is then
returned to the client with no encumbrances. At that same time the 20%, is returned
back to the client as well. Remember this starts off being a 90% loan.
