1. Lessee signs and submit the fully filled Deed of Agreement (DOA) to the Provider or Provider’s authorized mandate via email.
2. Provider conducts due diligence and if satisfactory, the provider countersigns the Financial instrument (BG/SBLC) contract/Deed of Agreement (DOA) on its letter head and returns to the Buyer which thereby automatically becomes a full commercial recourse contract to be lodged by both parties for initiation of Swift Transmission.
The provider shall send COUNTERSIGNED DOA, INVOICE for swift transmission charges and a REFUND GUARANTEE LETTER endorsed by the issuing bank and delivered directly to the lessee by the provider; Upon receipt and acknowledgement of these documents by lessee the DOA shall then be rendered as a full recourse contract.
3. Simultaneously, the provider will instruct his bank officer to send a READY, WILLING AND ABLE (RWA) LETTER to the lessee’s bank officer confirming the Provider’s capability to raise the Financial Instrument (Bank Guarantee/Standby Letter of Credit) in question which will be sent via bank to bank secured email or bank secured fax (Depending on the preference of the buyer).
4. Within two (2) banking days after delivery of the DOA, INVOICE, REFUND GUARANTEE LETTER AND RWA LETTER, lessee shall make payment for the swift transmission and contract handling charges and provide wire transfer copy to provider via email.
5.Within two (2) banking days after confirmation of the above payment, provider ‘s bank shall deliver MT799 to lessee’s bank and copy sent to lessee via email.
6. Within two (2) banking days after confirmation of receipt of MT799, provider’s bank shall deliver the instrument in question to lessee’s bank via MT760 and copy sent to lessee via email
7.Within ten (10) banking days after confirmation of receipt of MT760 , the lessee shall remit SIX (6) PERCENT lease rate to the Provider’s designated bank coordinates, and additionally pays out the TWO (2) PERCENT agent fees/commissions, in accordance to the IRREVOCABLE MASTER FEE PROTECTION AGREEMENT (the “IMFPA”).
8. Within five (5) banking days after confirmation of the payments by Provider and all intermediaries as per IMFPA, Provider’s bank shall deliver the INSTRUMENT HARD COPY to lessee’s bank via bank bonded courier.
9. All subsequent tranches will be based on the same procedures until the face value becomes exhausted.
Should lessee default to pay the lease fee and intermediaries’ commissions within twenty (20) banking days after receipt of MT760 of the BG/SBLC, provider will instruct the issuing bank to put a claim on the financial instrument (BG/SBLC) thereby forcing the lessee’s bankers to return the financial instrument (BG/SBLC) MT760 to the issuing bank and lessee will be liable for damages in the amount of 5% of the face value of the financial instrument (BG/SBLC) in question.
Neither party may assign or transfer this agreement without express written consent of the other party.