This No Upfront Fee, Bank to Bank procedure is possible if your Bank agrees to send 1. BCL along with LOI by email first on its Letterhead signed by 2 Bank Officers showing capability of the client to pay BG cost,     

2. To initiate same BCL by MT799 first after we sign Contract,

3. We would never initiate any RWA MT799 first.

Regards,

Hussain Khan, M. A., Tokyo

http://www.bg-sblc.com

81-8081840562

Any authentic bank document is OK. Suppose you are a Provider. You cannot blindly sign all LOIs that come to you, You have to know the capability of the client before signing any Contract with him.

Secondly we require a commitment from client bank that it is ready to send POF by MT799, if Provider countersigns Contract and provides his banking information in that Contract. Client capability and bank commitment to send POF by MT799 are required in bank document or BCL.

RECEIVER SENDS TO PROVIDER COMPLETELYFILLED AND SIGNED THIS MOU AND CIS ALONG WITH ALL POSSIBLE BANK EVIDENCE SUCH AS MONTHLY ACCOUNT STATEMENT, ACCOUNT CONFIRMATION LETTER ON BANK LETTERHEAD SIGNED BY TWO BANK OFFICERS REQUIRED FOR DD.

 

TEAR SHEET / OR / POF AS PER EXHIBIT A BELOW / OR / BCL / OR / RWA LETTER FROM RECEIVER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“EXHIBIT A”

SAMPLE MT 799 POF LETTER

(Text may vary in substance but the essential undertaking must be maintained)

 

 

From:

 

 

To:

Name of Bank:

Address of Bank:

Swift Code:

Account Name:

Account Number:

 

We, Bank, with address at........., on behalf of................, with address ..............and represented by............, confirm our client has funds  ...........  USD to meet up the contract signed.

He is Ready, Willing and Able to furfile  the terms  and condition of  the  contract . We confirm that our client has  sufficient cash funds with us to close  the  contrack . Our client’s account is as follows:-.

 

Account Name:

Account Number:

 

 

 

 

For And On Behalf Of:  Bank, .

                                                                                            

Name of Officer:                                                                                                                   Name of Officer:

Title:                                                                                                                                                              Title:

Pin:                                                                                                                                                                Pin

 

 
 

 DESCRIPTION OF INSTRUMENT

 

1.

INSTRUMENT TYPE

BG/SBLC

 

2.

TOTAL FACE VALUE

AMOUNTS IN EITHER - USD/EUR 500MN with R & E TO 50BN EUROS

MINIMUM AMOUNT IS 50M

 

3.

ISSUING BANK

TBD

 

4.

LEASING FEE

10% OF FULL FACE VALUE + 3% COMMISSION TO BE SHARED AS SPECIFIED HERE BELOW.

 

 

SALE FEE

44% OF FULL FACE VALUE + 3% COMMISSION TO BE SHARED AS SPECIFIED HERE BELOW.

 

5.

PAYMENT

AFTER DOA IS SIGNED, SENDS SIGNED DOA IN PDF  FORM, RECEIVER ISSUESIRREVOCABLE CONDITIONAL BANK PAY ORDER (ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL)) FOR 44% OF FULL FACE VALUE + 3% COMMISSION.

MT799 AND MT760 WILL BE ISSUED TO RECEIVERS DESIGNATED ACCOUNT IMMEDIATELY AFTER PROVIDER’S CONFIRMATION OF THE ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL).

PROVIDER SENDS SWIFT COPIES OF THE MT799 AND MT760 TO THE RECEIVER.

RECEIVER RELEASES THE ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL) FOR THE BENEFIT OF THE PROVIDER.

 

8

HARD COPY

BONDED COURIER WITHIN 7 BANKING DAYS.

 

 

PROCEDURES:

 

1.    RECEIVER SENDS TO PROVIDER COMPLETELYFILLED AND SIGNED THIS MOU AND CIS ALONG WITH ALL POSSIBLE BANK EVIDENCE SUCH AS MONTHLY ACCOUNT STATEMENT, ACCOUNT CONFIRMATION LETTER ON BANK LETTERHEAD SIGNED BY TWO BANK OFFICERS REQUIRED FOR DD. 

 

2.    ONCE DD IS SUCESSFUL, PROVIDER AND RECEIVER SIGN THE DEED OF AGREEMENT WHICH THEREBY AUTOMATICALLY BECOMES A FULL RECOURSE COMMERCIAL CONTRACT AFTER RECEIVER’S APPLICATION HAS BEEN ACCEPTED BY THE PROVIDER.

 

3.    WITHIN THREE BANKING DAYS RECEIVER ISSUES POF VIA 799 TO PROVIDER ASSIGNED BANK AND SEND SWIFT COPY FOR PROVIDER TRACING.

 

4.    WITHIN THREE BANKING DAYS AFTER MT799 POF IS CONFIRMED BY PROVIDER’S BANK; PROVIDER ISSUING BANK WILL SEND MT799 PRE-ADVICE TO RECEIVER’S BANK AND SEND SWIFT COPY FOR RECEIVER TRACING

 

5.    WITHIN THREE BANKING DAYS AFTER MT799 PRE-ADVICE IS CONFIRMED BY RECEIVERS BANK; RECEIVER ISSUE A CONDITIONAL ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL) FOR 44% OF FULL FACE VALUE + 3% COMMISSION.

 

6.    WITHIN THREE BANKING DAYS AFTER CONDITIONAL ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL)IS CONFIRMED BY PROVIDERS BANK; PROVIDER ISSUING BANK WILL SEND THE BG/SBLC BY MT-760.TO RECEIVERS BANK AND SEND SWIFT COPY FOR RECEIVER TRACING

 

7.    THE RECEIVER’S BANK RECEIVES, CONFIRMS AND VERIFIES THE MT760 (BG/SBLC);THE RECEIVER'S BANK THEN RELEASES THE ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL) FOR THE BENEFIT OF THE PROVIDER WITHIN TWO BANKING DAYS.

 

8.    PROVIDER THEN PAYS THE RESPECT 1% COMMISSION ON SELLER’S SIDE AND THE 2% COMMISSION OF RECEIVERS SIDE TO THE RESPECTIVE BROKERS/AGENTS.

(SHOULD RECEIVER DEFAULT TO RELEASE THE ICBPO / MT799 PAYMENT UNDERTAKING (CONDITIONAL) WITHIN TWO BANKING DAYS AFTER RECEIPT OF SWIFT MT-760, PROVIDER SHALL INSTRUCT THE ISSUING BANK TO PUT A CLAIM ON THE BG/SBLC THEREBY FORCING THE RECEIVER'S BANKERS TO RETURN THE SWIFT MT-760 (BG/SBLC) TO THE ISSUING BANK.)

 

9.    WITHIN SEVEN BANKING DAYS AFTER RECEIVING ALL FEES; HARD COPY WILL BE SENT TO RECEIVER BANK BY BANK-BONDED COURIER.

 

10. THIS DEED OF AGREEMENT IS A FULL RECOURSE COMMERCIAL COMMITMENT GOVERNED BY THE LAW OF THE JURISDICTION THAT BOTH PARTIES RESIDE AND STANDARDS UNDER ICC REGULATION.