Procedure

LENDING PROCEDURE: SUMMARY OF TERMS AND CONDITIONS

  • BORROWER SENT A SIMPLE APPLICATION TO REQUEST THE LEASING OF THE INSTRUMENT INCLUDING A DETAILED DESCRIPTION OF THE PROJECT, OR PURPOSE FOR WHICH THE BANK INSTRUMENT IS BEING BORROWED AND SIGNATORY PASSPORT COPY.
  • LENDING AGREEMENT CAN BE ISSUED FOR ONE ONLY INSTRUMENT (OR TRANCHE) AND BORROWER CAN HAVE ONE AGREEMENT AT A TIME. ONCE FIRST AGREEMENT HAS BEEN PERFORMED, LENDER CAN ACCEPT ANOTHER APPLICATION FORM FOR ANOTHER INSTRUMENT
  • UPON ACCEPTANCE OF APPLICATION FORM, LENDER WILL SEND LENDING AGREEMENT WHICH SHOULD BE RETURNED SIGNED BY BORROWER TOGETHER WIRE COPY FOR THE AMOUNT STATED ON INVOICE (COVERING CALL OPTION, ADMINISTRATIVE AND RESERVATION COSTS) ATTACHED TO LENDING AGREEMENT.
  • AFTER CALL OPTION, LENDER WILL SEND THEIR CORPORATE PRE-ADVICE PRO- FORMA INVOICE WITH ALL DETAILS OF THE BANK INSTRUMENT, BLOOMBERG, EUROCLEAR AND CLEARSTREAM PRINTOUT, SECURITY CARD OF THE STOCK EXCHANGE MARKET WHERE THE INSTRUMENT IS QUOTED, TO PERMIT THE BORROWER’S BANKERS TO VERIFY BANK INSTRUMENT.
  • AFTER VERIFICATION, BORROWER MUST PROVIDE FOR SERVICE FEES PAYMENT AS PER TERMS OFFERED BY LENDER (DRAFTS OF ALLOWED PAYMENT TERMS ARE ATTACHED TO LENDING AGREEMENT) NOT LATER THAN 20 DAYS FROM DATE OF CORPORATE PRO-FORMA INVOICE. BORROWERS HAVE THE POSSIBILITY TO  EXTEND THE DURATION OF THE CONTRACT FOR FURTHER 30 DAYS PERIOD WHICH BEGINS ON THE FIRST DAY THIS AGREEMENT EXPIRES.
  • AFTER RECEIPT OF THE CONDITIONAL PAYMENT AND SUCCESSFULLY DUE DILIGENCE, LENDER WILL PURCHASE BANK INSTRUMENT AND TRANSFER IT BY SWIFT MT 760 TO THE BORROWER DESIGNATED BANK ACCOUNT, TRANSFERRING ALSO ALL THE RIGHT TO USE IT. THE CONDITIONED PAYMENT WILL BE AT THAT TIME UNBLOCKED.
  • 15 DAYS BEFORE MATURITY DATE OF BANK INSTRUMENT, BORROWER’S BANK MUST RETURN BACK THE INSTRUMENT BY SWIFT TO THE LENDER’S BANK UNENCUMBERED AND FREE OF LIENS.

AT THIS STAGE LENDER HAVE PROVIDED THE COMPLETE SERVICE APPLICANTS/BORROWERS HAVE ORDERED. THIS IS THE END OF THE TRANSACTION.