ON LESSEE’S LETTERHEAD
Transcript of ON LESSEE’S LETTERHEAD
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ON LESSEE’S LETTERHEAD
LETTER OF REQUEST
Date : , 2014 To : Tel. + , Fax: + . (The Provider / Collaborator / Facilitator of Bank Instrument) Subject : LETTER OF REQEST TO LEASE FINANCIAL INSTRUMENT
I, Mr. ................................................, holder of ................... passport No.: ................... authorized signatory for .................................................. (Hereinafter referred as “The Borrower” or “The Buyer”) hereby confirm with full corporate and legal responsibilities, under penalty of perjury of law that, we are ready, willing and able to lease the following bank instrument, subject to the terms and conditions described below with good, clean, clear unencumbered funds of non-criminal origin. Description of instrument: 1. Instrument Bank Guarantee (BG) or Standby Letter of Credit (SBLC) (Appendix A and B) 2. Total Face Value EUR 500,000,000.00 (EUR Five Hundred Million only) with extensions up
to a total of EUR 6 Billion in 12 tranches of EUR 500M 3. First Tranche EUR 500,000,000.00 (or above) 4. Issuing Bank Deutsche Bank, Barclays Bank, HSBC, Standard Chartered Bank or rated by
S&P “AA” or Better 5. Duration One year + 1 day 6. Leasing price 10%-12% of face value + 2% Commissions 7. Delivery SWIFT MT760 8. Payment By MT103/23, ICBPO or Bank Letter of Payment Undertaking (BPU), PBG, PLC, 9. Hard copy Bonded Courier within 7 banking days. I hereby acknowledge that the total service fee to borrow the above instrument is the sum of the leasing fee agreeable at 10-12% + 2%. This payment shall be settled after successful receipt, verification and authentication of the instrument by the Lessee’s designated bank. I hereby agree to sign and seal a Master Security Lending & Borrowing Agreement after execution of this Letter of Request as to execute the transaction. I hereby affirm that, we have discussed the terms and conditions of this transaction with our bank and that the designated bank is prepared to receive the Instrument and to facilitate this transaction. It is further confirmed that the bank is capable of transferring funds abroad via SWIFT.
To issue the instrument, XXX-XXXXXX reserves a credit line at the signing of our final contract. Whereas the cost of said credit line is borne by XXX-XXXXXX, we agree to deposit an amount in escrow at HKTC to ensure coverage of XXX-XXXXXX’s expense should we later default in closing the MSLB Agreement. The escrow amount will be returned to us in the case of XXX-XXXXXX’s default on our mutually signed MSLB Agreement within 15 days after such default in delivering the instrument as per contract. The escrow amount to be deposited is commensurate with the face value of the sought instrument as follows: USD/EUR 30,000 for an instrument up to USD/EUR 30 million USD/EUR 50,000 for an instrument of USD/EUR 50 million USD/EUR 100,000 for an instrument of USD/EUR 100 million USD/EUR 200,000 for an instrument of USD/EUR 200 million
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The Hong Kong Trust Company (HKTC) documents will be attached to the LOR countersigned by XXX-XXXXXX.
A/C Name : XXX-XXXXXX (will be informed soon after this LoR has been signed) Bank : (will be informed soon after this LoR has been signed) Bank Address : (will be informed soon after this LoR has been signed) Bank swift code: (will be informed soon after this LoR has been signed) Bank Tel. : + (will be informed soon after this LoR has been signed) Bank Account : (will be informed soon after this LoR has been signed)
ACCEPTED PROCEDURE AND TERMS BY LESSEE AS FOLLOWS:
1. Borrower shall sign this Letter of Request, which shall become a formal request for the lease bank instrument prior to sign a Master Security Lending and Borrowing Agreement between both parties. This Letter of Request is accompanied by a Proof of Funds in the form of a Bank comfort letter or a tear sheet.
2. The Provider issues a conditional RWA to deliver the lease instrument upon which the Borrower
immediately deposits a refundable security amount of EUR xxx,000.00 (Credit Line Reservation) in escrow
with an independent Escrow company in Hong Kong. The escrow amount remains in place with the
escrow company until completion of the extensions
3. Within Three (3) Day of receiving said CRF, the Provider will send a Master Security Lending and Borrowing Agreement to the Borrower for execution of said lease bank instrument.
4. Upon signing of the Master Security Lending and Borrowing Agreement by Borrower and Provider, The
Borrower arranges its bank to issue MT103/23 or ICBPO via Swift to Provider’s designated bank.
5. Upon receipt and verification of said MT103/23 / ICBPO sent from Borrower’s bank, Provider arranges his issuing bank to issue MT760 BG via Swift to Lessee’s bank within Seven (7) days.
6. After verification and receipt of MT760 BG via Swift from Provider’s issuing bank, Borrower’s bank
effect payment to issuing bank within Forty-Eight (48) hours.
7. Transaction completed
Should Borrower default to pay the charge and fee said above, to the Provider after 7 international banking days of confirmation of BG MT760 in Borrower’s bank account, Provider will instruct the issuing bank to put a claim on the BG thereby forcing the Borrower’s bankers to return the BG MT760 to the issuing Bank. I hereby consent and agree to arrange for the Provider to contact the Borrower’s Bank in order to verify and
authenticate the MT103/23 or ICBPO or Bank Letter of Payment Undertaking prior to the MT760 SWIFT delivery
of the Instrument to the Lessee’s bank. I further confirm that I will instruct the bank to return the instrument to Provider’s bank at our costs, free, clear and unencumbered not later than fifteen (15) days prior to maturity. The Borrower agrees to pay the full face value of the instrument to Provider without protest in case of bank’s failure to return the instrument on time. We will use the financial instrument for the following legal business purpose. The executive summary of the business project can be made available.
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For and on behalf of Mr. .............................................. Title: .......................................... Passport No.: .......................... Date : ........................... 2014
Description of the Bank Instrument Instrument: BG 458 Issuing Bank: Deutsche Bank, Barclays Bank, HSBC, Standard Chartered Bank or
rated by S&P “AA” or Better Coupon: Zero coupon interest. Age: New Issue/One year Total Contract Amount: EUR 500,000,000.00 (EUR Five Hundred Million only) with extensions up
to a total of EUR 6 Billion in 12 tranches of EUR 500M First Tranche: EUR 500,000,000.00 or above
(In words: Five Hundred Million EUR only) Mode of Transaction: MT-760 Mode of Payment: Wire Transfer Mode of Delivery: SWIFT MT-760 Validation and Authentication by the Receiving Bank AGREED AND ACCEPTED BY THE BORROWER For and on behalf of Signatory Full Name: Mr Title: Address. Nationality Passport Date of Issuance Date of Expiration: E-mail
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CLIENT INFORMATION SHEET
Per Articles 2-5 of the Due Diligence Convention, Federal Banking Commission Circular of 12/98 on the prevention of money laundering, & Article 305 of the Swiss Criminal Code, this information will be supplied to one or more international money-center bank officers only (no middlemen) for the verification of identity & activities of the Client, & the nature and origin of the funds to be utilized. All parties are legally obligated to maintain professional secrecy & take all appropriate precautions to protect the confidentiality of this information. This obligation shall remain in full force & effect at all times.
Account Signatory/Title
Passport/Country
Issued/Expiry
Birth Date/Birthplace
Residence Address
Home Phone/Fax
Signatory Mobile
Signatory Email
Signatory Skype
Business Name
Business Mailing Address
Business Phone/Fax
Reg. No./Jurisdiction
Business Activity
Attorney Name/Firm
Attorney Address
Attorney Phone/Fax
Bank [to acquaint bank officer]
Bank Address
Bank Officer
Bank Phone/Fax
Account Holder Name
ABA No./SWIFT Code
Origin of Funds
Account Holder has held this account for over 3 years Yes No
If No, previous bank/branch
Amount Available
Funds are clear, unencumbered & free of any liens Yes No
I have full discretion to purchase upon satisfactory terms Yes No
ACTIVE CONSULTANTS
Consultant Next to Client
Phone/Email
Other Active Consultants
LANGUAGE
Client Language(s) English
Translator N/A
Translator Phone/Email
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Affirmation: I hereby swear under penalty of perjury the information provided herein is true and accurate. I control said assets, and I am signatory on the bank account noted above and I have full authority to execute all contracts and agreements relating to the private-placement of the aforesaid bank instrument. The funds are in full compliance with the anti-money laundering policies set forth by the Financial Action Task Force (FATF) June 2001.
……………………………………………… DATE: XX XXXX 2014
ACCOUNT HOLDER SIGNATORY
Name : Title : Passport/Country : Issued/Expiry :
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PASSPORT
PHOTO PAGE
Please check to see that it looks good
It must be Nice & Clear.
Make sure that All of Your Face
is Fully and Clearly Shown.
For and on behalf of:
By: _______________________ Signature
Signatories full Name:
Title:
Nationality:
Passport Number (Country):
Date of Issuance: Date of Expiration:
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Appendix A
BANK GUARANTEE VERBIAGE (No. 458) (Via MT760)
(Specimen copy – Final verbiage as per issuing bank standard ICC format)
Name of Issuing Bank : Barclays, HSBC, Standard Chartered Bank OR rated by S&P “AA”
or Better
Issuing Bank address :
Bank SWIFT Code :
Bank Officer :
Bank Guarantee Number :
Name of Advising Bank :
Bank SWIFT Code :
Attention Bank Officer :
Beneficiary :
Address :
Currency : EUR
Amount : EUR 300,000,000.00
Issuing Date :
Maturity Date :
WE, THE UNDERSIGNED, BARCLAYS BANK, LOCATED AT , UK, HEREBY ISSUE OUR
IRREVOCABLE, UNCONDITIONAL, TRANFERABLE, DIVISIBLE, AND WITHOUT PROTEST OR NOTIFICATION, PROMISE TO PAY AGAINST THIS BANK GUARANTEE TO THE ORDER OF ............................................ THE
BEARER OR HOLDER THEREOF, AT MATURITY, THE SUM OF EUR ,000,000.00 (USD / EUR MILLIONS ONLY) IN THE LAWFUL CURRENCY OF THE USD / EUR, UPON PRESENTATION AND SURRENDER OF THIS BANK
GUARANTEE AT ANY OF THE COUNTERS OF HSBC, LOCATED AT , UK.
SUCH PAYMENT SHALL BE MADE WITHOUT SET-OFF AND FREE AND CLEAR OF ANY DEDUCTIONS, CHARGES,
FEES, OR WITHHOLDING OF ANY NATURE PRESENTLY OR IN THE FUTURE IMPOSED, LEVIED, COLLECTED, WITHHELD OR ASSESSED BY THE GOVERNMENT OF COUNTRY OF ISSUE OR ANY POLITICAL SUBDIVISION OR AUTHORITY AND THEREOF OR THEREIN. THIS BANK GUARANTEE IS DIVISIBLE, ASSIGNABLE AND TRANSFERABLE WITHOUT PRESENTATION OF IT TO US AND WITHOUT THE PAYMENT OF ANY TRANSFER FEE OR CHARGES.
THIS BANK GUARANTEE IS GOVERNED BY THE UNIFORM CUSTOMS AND PRACTICE FOR BANK GUARANTEE AS SET FORTH BY THE INTERNATIONAL CHAMBER OF COMMERCE, UNIFORM RULES FOR DEMAND GUARANTEES, (ICC PUBLICATION NO. 458). THIS BANK GUARANTEE IS A FULLY PERFORMED AND OPERATIVE INSTRUMENT THAT CAN BE CONFIRMED AND VERIFIED BANK-TO-BANK BY SWIFT. NO MAIL CONFIRMATION WILL FOLLOW.
SINCERELY FOR AND ON BEHALF OF
___________________________ ____________________________
BANK OFFICER BANK OFFICER
NOTE: THE TEXT OF THE BG MAY VARY FROM BANK TO BANK BUT NOT IN ITS SUBSTANCE. IF SENT BY SWIFT, THIS INSTRUMENT WILL NOT BEAR BANK OFFICER SIGNATURES.
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Appendix B
Barclays, HSBC Text SBLC MT760:
S.W.I.F.T. BB (NO)
BEGINNING OF MESSAGE
Min/Session/ISN
Own Address :
Input Message Type : MT760 AUTHENTICATED FORMAT
Send To :
Input Time :
MIN :
Prority/Cosol Period :
1. /BASIC READER:
2. /APPLICATION READER:
INPUT/OUTPUT IDENTIFIER 0 MESSAGE TYPE: 760
OUTPUT DATE: OUTPUT TIME: MESSAGE PRIORITY
3. /TEXT
20 TRANSACTION REFERENCE Number”
21 RELATED REFERENCE:
79 /NARATIVE:
STANDBY LETTER OF CREDIT
SBLC NO. :
ISSUER : Barclays, HSBC, Standard Chartered Bank
UK or HK or Singapore
CURRENCY : EUR
AMOUNT : EUR ,000,000.00 (USD / EUR MILLION ONLY )
DATE OF ISSUE : XXXX2013
DATE OF MATURITY : XXXX2014
APPLICANT :
BENERICIARY :
ADDRESS :
WE HEREBY ISSUE THIS IRREVOCABLE STANDBY LETTER OF CREDIT NO._________________ IN YOUR
FAVOUR FOR ACCOUNT OF _______________________________________________________________________
(THE OBLIGOR) UP TO AGGREGATE AMOUNT OF UUR MILLION (USD / EUR ,000,000.00) ONLY
AVAILABLE BY YOUR SIGNED STATEMENT CERTIFYING THAT THE AMOUNT THERE UNDER REPRESENTS
AND COVERS THE UNPAID INDEBTEDNESS AND INTEREST, PENALTY AND RELEVANT BANKING
CHARGES THEREON DUE TO YOURSELVES ARISING FROM YOUR GRANTING XXXXX CREDIT FACILITY TO
THE OBLIGOR.
YOUR SIGNED STATEMENT MUST BEAR THE CLAUSE “ DRAWN UNDER STANDBY LETTER OF CREDIT
NO: ________________________ .
YOUR SIGNED STATEMENT DEMAND ON US SHALL CONSTITUTE A DRAFT DRAWN ON US BY YOU
PAYABLE IN UNITED STATES DOLLAR FOR AN AMOUT CALCULATED AT THE RELEVANT BUYING RATE
OF USD/EURXXX QUOTED BY YOUR BANK ON THE DATE OF YOUR CLAIMING OF DRAWING. IF THE
AMOUNT OF THIS STANDBY LETTER OF CREDIT IS NOT SUFFICIENT TO SATISFY YOUR CLAIMS DUE TO
THE EXCHANGE RATE FLUCTUATION BETWEEN USD AND XXX. WE HEREBY AGREE TO INCREASE THE
AMOUNT OF THIS STANDBY LETTER OF CREDIT ACCORDINGLY, UPON RECEIPT OF YOUR CLAIM. WE
SHALL PAY TO YOU NOT LATER THAN 7 BANKING DAYS AFTER RECEIVING YOUR SIGNED STATEMENT
DEMAND.
THIS STANDBY LETTER OF CREDIT IS VALID UNTIL XXXX2014 AND EFFECTIVE FROM XXXX2013 AT OUR
COUNTER, ____________________________________________________________AND WILL BECOME NULL AND
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VOID AUTOMATICALLY AFTER THE AFORESAJD EXPIRY DATE. THE RETURN OF THIS STANDBY LETTER
OF CREDIT BEING UNNECESSARY FOR ITS CANCELLATION, CLAIMS, HEREUNDER, IF ANY MUST BE
RECEIVED BY US PRIOR TO THE EXPIRY DATE OF THIS STANDBY LETTER OF CREDIT.
THIS STANDBY LETTER OF CREDIT SHALL BE CONSTRUED AND GOVERNED ACCORDING WITH THE LAWS
OF THE UNITED KINGDOM.
THIS STANDBY LETTER OF CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR
DOCUMENTARY CREDITS (2007 REVISIONS) ICC PUBLICATIONS NO. 600.
FOR AND ON BEHALF OF
MAC: Authentication Code
PN _______________
CHK: Check Sum
__________________
CON: OHT Condensed output
TRN: Transaction Reference Code Number
111111111111/SBLC/BB- /V-60
COR: Corresponding Input Message Sequence Number
111111111111
PCC:F:PC Connect: First Copy Of The Message
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Appendix C
The Draft of the Irrevocable Conditional Bank Pay Order (ICBPO).
Sample Text of Swift MT-103 Field 23
Date: To: Bank Name: Bank Address: Bank swift code: Bank Officer: Bank Account Number: Bank Account Name: From: Bank Name Bank Address: Account Name: Account No.: Bank Officer Name: Swift Code: Tel. No. (Direct): Fax Number: Transaction Code: We, (name of the issuing bank) on behalf of our client, ………………, hereby present our Conditional, Irrevocable, Assignable, Transferable and Callable cash-backed SWIFT wire transfer in your favor for the account of your client, ………………………………………………. holding an account number: ……………., for an amount of USD / EUR ………… Million (……………….. Million USD / EUR). This Conditional Irrevocable SWIFT is a binding payment commitment by us and we hereby undertake to wire transfer the said amount to you in favor of your client, upon complete execution of the signed AGREEMENT/Transaction Code:………………… This Conditional, Irrevocable, Divisible, Assignable, Transferable, Callable cash-backed SWIFT wire transfer is valid for 30 banking days from the ….th day of ………, 2013 and until the ……th day of …………., 2013. This is an operative bank instrument and is subject to the Uniform Commercial Code as it relates to bank credit instruments.
(ELECTRONIC SIGNATURES OF TWO BANK OPFFICERS WITH NAMES & TITLES)
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Appendix D
On Bank Letterhead
Bank Letter of Payment Undertaking
RE: BANK GUARANTEE OR STANDBY LETTER OF CREDIT REF TRANSACTIION CODE________ We, XXXXXXX Bank, on behalf of our customer, LIMITED, with bank account number ……………………, in reference to Transaction Code: ……………………….. hereto give our irrevocable, divisible, assignable, transferable, and callable payment undertaking, with full banking responsibility, for the full payment of 00,000.00 ( XXXXX MILLION XXXXXx THOUSAND USD / EUR ONLY To the account of your customer, [Full Name of provider], account number: ……………………….. .
This undertaking is irrevocable, divisible, assignable, transferable, and callable in your favor for a period of fifteen (15) international banking days from the date hereof and shall be renewable after the first tranche of the transaction identified by the above mentioned Transaction Code. The undertaking for the payment is unconditional, irrevocable, and without protest, subject to the conditions that we shall have received the Bank Instrument by Swift MT-760 protocol, and that we shall have successfully authenticated and verified the contents of this Swift MT-760 in a period not to exceed FOURTY EIGHT international banking hours after receipt of the Bank Instrument by Swift MT-760. The stated amount of 00,000.00 USD / EUR shall be remitted under full bank responsibility and without delay via the SWIFT wire system without any deductions, fees, levies, or taxes of any kind or nature. For and on behalf of: [NAME OF SENDING/PAYER BANK] [BANK OFFICER NAME, TITLE, CODE] [BANK OFFICER NAME, TITLE, CODE]
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Appendix E
PAYMENT GUARANTEE
FOR ISSUANCE OF A STANDBY LETTER OF CREDIT / BANK GUARANTEE / LETTER OF CREDIT
SWIFT FORMAT MT 760
FROM: BANK SWIFT NO
TO: BANK, LTD., .
SWIFT:
Field 27: 1/1
Field 20: (Number of Bank Guarantee)
Field 23: ISSUE
Field 30: (Date )
Field 77C: (Text)
BY ORDER OF MESSRS. XXXXX XXXXXX CORP., , WE XXXXXXXXX BANK OF XXXXXX BRANCH;
XXXXX ROAD; XXXX CITY; XXXXXXX ( ISSUING BANK OF THIS PAYMENT GUARANTEE ) HEREWITH
IRREVOCABLY ENGAGE OURSELVES TO PAY THE AMOUNT OF USD XXXXXXXX TO PAN-GLOBAL
, ACCOUNT NO: WITH YOURSELVES –XXXXXXXXXXX BANK, – VIA
BANK LTD. , INDICATING THE STANDBY LETTER OF CREDIT / BANK GUARANTEE /
LETTER OF CREDIT NUMBER AS WELL AS OUR GUARANTEE NUMBER, IMMEDIATELY AFTER RECEIPT
OF BANK LTD. , SWIFT CLAIM FOR PAYMENT OF THE AMOUNT OF USD XXXXXXXX,
CONFIRMING THAT THE STANDBY LETTER OF CREDIT / BANK GUARANTEE / LETTER OF CREDIT BY
ORDER OF XXXXXXXXXXXXXXXXXXXXXXXXXX., IN FAVOUR OF XXXXXXXXXXXXXXXXX (
BENEFICIARY OF THE STANDBY LETTER OF CREDIT / BANK GUARANTEE / LETTER OF CREDIT ) , IN THE
AMOUNT OF USD XXX 000,00 HAS BEEN ISSUED BY XXXXXXXXXXXXXXXX BANK ( ISSUING BANK OF
THE STANDBY LETTER OF CREDIT / BANK GUARANTEE / LETTER OF CREDIT ) BY SWIFT TO US.
THIS BANK GURANTEE IS TRANSFERABLE, BANK LTD., IS ALLOWED TO TRANSFER THIS
BANK GURANTEE TO XXXXXXXX BANK ( ISSUING BANK OF THE STANDBY LETTER OF CREDIT / BANK
GUARANTEE / LETTER OF CREDIT ) WILL BE ALLOWED TO MAKE THE SWIFT CLAIM FOR PAYMENT
MENTIONED ABOVE.