Standby Letter of Credit Loan - StandbyLetterofCreditLoan.com

Forgivable, Non-Recourse, No Repayment, No Interest
Via Private Funding Group
Seeking financial instruments (BG, MTN, CD, T-BILLS, T-STRIPS, T-BONDS from top 25 banks and Royal Bank of Canada. No Chinese or Asian Banks.

General Overview

• The client transfers their financial instrument (BG, MTN, CD, T-BILLS, T-STRIPS, T-BONDS etc.) to a private group banking with JP Morgan to be used by the private group for 90 banking days. The client’s instrument is returned to the client unencumbered within 15 banking days of the end of the 90 banking day “usage period”.
• The client will receive a non-recourse, no interest, no repayment forgivable “loan” based on a LTV percentage of the face value of the transferred financial instrument.
• Depending on the size of the financial instrument and the strength of the financial instrument and issuing bank, the client will receive cash payments of anywhere from net 50% to net 80% of the face value of the instrument in anywhere between 2-5 tranches sent 2-3 banking days apart after the first tranche.
• Strong instruments from the most solid banks typically return somewhere in the gross 80%, net 70% to gross 90%, net 80% range.
• The client is free to re-enter the program up to two more times with the same instrument.

Specific Details/Procedures:

Below are the specific details and procedures for the 90 banking day loan:

1. The client submits a copy of the front and back of BOTH the financial instrument AND the Title Page for the financial instrument. If the funds are in a cash account or CD, then 3 months of bank statements are required.
2. The client submits the CIS and a color copy of the client’s passport. If very wealthy clients are uncomfortable sending the CIS and PP via their intermediary, in special circumstances with special permission (granted AFTER the private funding group has examined the financial instrument details from Step #1 above), the CIS and PP may be submitted directly to the monetization group.
3. The private funding group will then review the submitted documents from Step #1 and #2 above.
4. The private funding group will decide on the Loan to Value (LTV) percentage that they are willing to provide to the client, based on the strength of the financial instrument (instrument type, financial institution, etc.)
5. The private funding group will determine both the timing of the tranches and the number of payment tranches. These tranches will, when combined, total the LTV assigned for the instrument. Typically, the first tranche is sent within four banking days of the delivery of the financial instrument and typically there are 2-5 tranches (depending on instrument size, etc.). Additional tranches are normally sequentially delivered 2-3 banking days apart.
6. The private funding group issues a contract to the client with all details and commitments.
7. If necessary, the client may engage the private funding group with questions for further clarification of the contract details. Once the contract is acceptable to the client, the client executes the contract and returns it to the private funding group.
8. The client sends the financial instrument to the JP Morgan bank account of the private funding group via DTC/ EuroClear FREE DELIVERY.
9. The first of the 2-5 loan tranches is sent out with the subsequent loan tranches sent out as per above in Step # 5.
10. At the end of the 90 banking day contract term, the client’s financial instrument will be transferred back to the client, fully unencumbered. This process may take around 15 banking days to complete.
11. If the remaining time on the financial instrument is sufficient, the client may re-enter the arrangement another two times with the same instrument.
12. Fees: There are a total of 15% Lender Fees. There is a 1% intermediary Consultant fee available for distribution which will be lodged inside the contract as a part of the 15% overall fees charged to the client (the 15% difference between the gross and net return).
13. Private Banking Group will review the submitted instrument file. Client will have a confirmation of acceptance within 24-72 hours.

Please make sure the client sends a copy of the front and back of both the instrument and the Title Page. The funding group requires these documents, as there are so many fraudulent documents in circulation. If the Title Page is not received, the funding group will not look at the balance of the paperwork.

Call (310) 878-2318 or use the form on the right to contact us.

Last Updated on Sunday, 13 November 2011 19:35