BG on Gold Certificate Leasing

BANK INSTRUMENT DESCRIPTION: 

INSTRUMENTS: BANK GUARANTEE 

CURRENCY: EURO (€) 

BANK MENU: A, B OR BETTER RATED BANKS 

DENOMINATION: AS TO BE AGREED 

AGE: ONE (1) YEAR AND ONE (1) DAY 

INVOICE PRICE: 12 - 18% OF BANK GUARANTEE’S FULL FACE VALUE DEPENDING ON BANK DEPENDING ON THE ISSUING BANK CLIENT OPTION FOR (SUBJECT TO FINAL CONFIRMATION BY BOTH SIDES) 

GRACE PERIOD 

AGREED AMOUNT SHOULD BE PAYABLE WITH 3 TO 5 DAYS AFTER DELIVERY OF THE BG FOR LEASE VIA MT760 

CONSULTANT FEE: 

5% OF FACE VALUE BG TO BE DIVIDED EQUAL BETWEEN ALL CONSULTANTS TO EACH CONSULTANT DESIGNATED BANK ACCOUNT 

TRANSACTION MODE: DEPOSIT OF 500,000 EURO - IN ESCROW ACCOUNT IN FAVOR OF PROVIDER ONLY TO BE RELEASE AFTER DELIVERY AUTHENTICATED BG VIA MT760 TO CLIENT BANK ACCOUNT

TRANSACTION PROCEDURE: 

A. THE CLIENT SUBMITS LOI / PURCHASE / LEASE AGREEMENT WITH FULL BANKING COORDINATES, CLIENT’S INFORMATION SHEET, CLEAR COLOR COPY OF THE SIGNATORY’S PASSPORT AND Proof of Fund. 

B. THE PROVIDER SHALL VERIFY AND COUNTER-SIGNS IN THE CONTRACT AGREEMENT PROVIDING HIS FULL BANKING COORDINATE WITH NAME OF BANK, SWIFT CODE AND BENEFICIARY AND RETURNS IT TO THE CLIENT AFTER WHICH BOTH PARTIES DEPOSIT IT   

C. WITHIN TWO (2) BANKING DAYS, THE CLIENT DEPOSIT A RETAINER OF 250,000 EUROS INTO AN ESCROW ACCOUNT (AN INTERNATIONAL ESCROW WHITE & CASE LLP VIA THE LONDON OFFICE FOR THE PROVIDER IN THE USA) 250,000 EUROS WHICH IS TO BE RELEASE IN FAVOUR OF THE PROVIDER ONLY AFTER THE DELIVERY OF THE BG VIA MT 760.

D. THE PROVIDER ARRANGES AND CONFIRMS WINDOW TIME WITH HIS BANK OFFICER TO CALL THE CLIENT BANK OFFICER TO CONFIRM CLIENT BANKER ARE READY AND ABLE TO RECEIVE AND FUND SWIFT MT 760 BG. 

E. ALSO CLIENT BANK OFFICER CONFIRMS THE PROVIDER’S CAPABILITY TO ISSUE THE BG. 

F. WITHIN 6 HOURS AFTER BANKS PHONE CALL CONFIRMATION  PROVIDER WILL ISSUE CONFIRMATION OF POSITIVE DUE DILIGENCE ON BUYER. 

G. WITHIN 12 HOURS THE PROVIDER SHALL CAUSE THE ISSUING BANK TO SWIFT BG BY MT 760 TO THE CLIENT BUYER’S DESIGNATED BANK. 

H. WITHIN THREE (3) TO FIVE (5) INTERNATIONAL BANKING DAYS AFTER RECEIPT AND AUTHENTICATION OF BG MT 760, CLIENT WILL VIA SWIFT WIRE TRANSFER THE AGREED FEES FUND TO PROVIDER DESIGNATED BANK. 

I. ALL COMMISSIONS AND FEES TO BE PAID OUT SIMULTANEOUSLY WITH EACH, PAID VIA SWIFT WIRE TRANSFER SAME DAY TRANSFERENCE. 

J. WITHIN SEVEN (7) BANKING DAYS AFTER RECEIVING THE PAYMENTS, PROVIDER CAUSE ISSUING BANK SENDS THE ORIGINAL HARD COPY OF THE BG TO CLIENT BANK BY BANK-BONDED COURIER. 

K. ANY UNAUTHORIZED CALLS BY ANY PARTY OR ITS REPRESENTATIVE LAWYERS TO PROBES OR COMMUNICATION IN AN IMPROPER WAY TO BANK(S) IN THIS TRANSACTION IS PROHIBITED UNLESS AGREED BY CONSULTATION WITH BOTH PROVIDER & CLIENT SIDE. 

L. THIS LETTER OF INTENT IS A FULL RECOURSE COMMERCIAL COMMITMENT GOVERNED BY THE LAW OF THE JURISDICTION THAT BOTH PARTIES RESIDE. THIS Letter Of Intent IS ALSO GOVERNED BY THE STANDARD UNDER ICC REGULATION. 

NOTICE: 

SHOULD CLIENT DEFAULT TO PAY THE INVOICE PRICE TO THE PROVIDER AND THE CONSULTANTS’ COMMISSION FEES AS AGREED WITH IN TIME ALLOTTED AFTER CONFIRMATION OF BG MT760 THE PROVIDER WILL INSTRUCT THE ISSUING BANK TO PUT A CLAIM ON THE BG THEREBY FORCING THE BUYER’S BANKERS TO RETURN THE BG MT760 TO THE ISSUING BANK.