Due to issues concerning loss of fees, we have come to an agreement with our providers that all fees be paid directly to issuing bank. In light of this, see below new transaction procedures. Lease fee and purchase fee, remain the same. Issuing bank is Royal Bank of Scotland. Transaction is bank to bank
1) The Receiver sends letter of intent (LOI) to Provider. The LOI should contain copies of Receiver’s passport, Company’s resolution and Client’s Information Sheet (CIS), Company Registration and IMFPA.
2) The Provider countersigns this LOI and returns to Receiver with Provider’s company signatory’s passport, and this LOI automatically becomes a full commercial non- recourse contract. Both parties shall lodge the executed contract to their respective banks.
3) Within 3 working days the Receiver will provide bank statement not more than a week old, signed by two bank officers showing availability of funds to pay fees
4) After receipt of bank statement provider will issue a signed and sealed Corporate Refund Recourse Undertaking to the Receiver guarantying to refund Receiver all the cost incurred by Receiver for the bank administrative charges.
5) No later than two days after receipt of signed and sealed Corporate Refund Recourse Undertaking, receiver will wire 2% face value (security deposit) via MT103/direct wire into SBLC ISSUING bank account
6) Within Three (3) banking days after confirmation of receipt of 2% security deposit in SBLC ISSUING account, the Provider will deliver the BG via bank confirmation of swift MT760 to the Receiver's bankers including the hard copy of the SBLC via bank bonded courier in Seven (7) banking days.
7)The Receiver pays the Provider the complete 6% lease price and the brokers their commission fees not later than 7 banking days after the SBLC hard copy is received and confirmed at the Receiver's bank. Should Receiver default to pay the lease price to the Provider and the brokers’ commission fees as agreed after 7 banking days of confirmation of SBLC MT760 in Receiver's bank account, The Provider will instruct the issuing bank to put a claim on the SBLC thereby forcing the Receiver's bankers to return the SBLC MT760 to the issuing Bank