DEBT
COLLATERAL FINANCIAL INSTRUMENTS - CERTIFICATE OF DEPOSIT, STANDBY LETTERS
OF CREDIT, BANK GUARANTEES, DIRECT PAY LETTERS OF CREDIT - DEBT INSTRUMENTS
Synthetic Leverage,
Land development, land acquisition, bulk portfolios, Proof of Funds,
Default Collateral, Industrial Buildings, Warehouses, Manufactured Home
Communities, Medical Offices, Hospitals, Commercial Retail Buildings,
Office Buildings, Self Storage, Vacation Resorts, Senior Housing, Residential
Homes, Land Development, Casinos, Race Tracks, Land Aquision, Bulk Portfolios,
Investment Platforms, Import, Export, Trade Platforms, Movie Productions,
Music Productions, Large Real Estate Transactions, Affordable Housing
Projects, collateral
loans, collateral mortgage, collateral instruments, collateral movie,
collateral banking, bank instruments, hedging instruments, derivative
instruments, debt instruments, investment instruments, collateral financing,
financial instruments, MT760 Swift Procedure, callable, lienable, transferable,
and assignable financial instruments,
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DEBT
COLLATERAL FINANCIAL INSTRUMENTS
Debt Collateral Instruments for the Great Projects, Land, Movies, and Buildings "TURN OBSTACLES INTO OPPORTUNITIES" |
(866) 898-5882
For More Information Visit: PROOF OF FUNDS, LLC |
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We provide loaned bank debt Instruments that are in the name of
the client and are fully lienable, collateralized, callable, transferable
and assignable that do not require a bank undertaking. These financial
instruments are usually used for large real estate transactions,
business or residential real estate acquisition, land development,
land acquisition, bulk portfolios, movie or music productions,
investment or trade platforms and a number of other applications.
CERTIFICATE OF DEPOSIT - STANDBY LETTERS OF CREDIT - BANK GUARANTEES - DIRECT PAY LETTERS OF CREDIT |
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CERTIFICATE
OF DEPOSIT Financial
Instruments from Letter
of Credit Pricing Inter-Bank
Pricing Debt
Collateral Financing Property Types ARTICLES: What is a Proof Of Funds Document? What is Asset Based Financing? What is a Certificate of Deposit? What are Direct Pay Letters of Credit? What
are Financial Instruments? Glossary of Financial Instrument Terms
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BANK DEBT INSTRUMENT LOAN
PROGRAM We provide our clients "Synthetic Leverage", we strive to stay the leading provider of cash backed callable, lienable, transferable, and assignable financial instruments in the form of CDs (Certificates of Deposit), SBLCs (Standby Bank Letters of Credit), BGs (Bank Guarantees) and DPLCs (Direct Pay Letters of Credit) all of which can be used as default collateral to support underlying transactions, loans & credit facilities. The collateral can be transferred to the clients bank account with either the traditional inter-bank procedures or the new Collateral First via MT 760 SWIFT. The new procedure applies to Standby Letters of Credit, Bank Guarantees and Direct Pay Letters of Credit for 12 month periods only. Certificates of Deposit are not included in the Collateral First via MT 760 SWIFT procedure. Our Products are in the forms of: CD's -
Certificates of Deposit INTER-BANK GREY SCREEN PROCEDURE Contracts are
prepared, reviewed and signed. Monies are released in order to block
the cash, create the instrument, assign the ISIN & CUSIP Numbers
and place the instrument on DTC/Euroclear; all of which will be
done contractually within 15 international banking days. The procedures are simple,
call us at (866)
898-5882 and we will will work with you. 1. Size of Instrument A Typical Transaction is: FILMS
AND MUSIC INDUSTRY DEBT COLLATERAL FINANCING INSTRUMENTS Essentially we are the solution to engage in asset based financing with regard to motion pictures, similar to general accounts receivable, inventory and equipment/product financing. Rather than putting up assets you don't have, we would step in and provide those assets to get financing. From our point of view, the financing of films is similar to general business financing, just in a specialized arena. Asset based financing is a general term whereby a financier accepts as collateral the assets of a company in exchange for financing against items like accounts receivable and inventory. Receivable are among the most liquid of a company's assets followed by inventory. Generally, lenders favor receivables since they self-liquidate in a short period of time. Rather than trying to figure out these receivables it may be easier to use our loaned bank debt Instruments as collateral. Financing companies will accept our loaned bank debt instruments as collateral assets of a production company. The producer must still borrow the money but against those loaned bank debt instruments in order to obtain the funds necessary to produce the movie. To ensure that a film is completed, the producer purchases insurance or secures a bond (completion bond) that guarantees that the lender will be paid in the event that the production is abandoned or suffers cost overruns that threaten the picture's completion. A producer's best scenario is to have the bank loan closed (essentially based upon the loaned bank debt instruments) before film production begins. However, in today's market, bank loans can take significant time to close and fully fund. Delays can be expected, but producers will have the collateral to shop various sources of financing for the lowest rates or quickest financing available. DEBT
COLLATERAL FINANCING INSTRUMENTS FOR PROPERTY TYPES: |
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Pricing for Procedure 1 - Inter-Bank Procedure This
is a cost effective option for clients whom have access to bankers
with high level inter-bank "grey screen" Certificate of Deposit & Standby Letter of Credit Pricing 12 MONTH TERM
60 MONTH TERM
Bank Guarantee Pricing 12 MONTH TERM
60 MONTH TERM
A
required $2,500 documentation drawing fee which is a nonrefundable
deposit will be applied to the fee
for the transaction. Q: Is this first lien position collateral? A: No, this collateral is 2nd lien position default collateral. The beneficiary may participate in any legal financial transaction using the collateral as provided by the directors of finance however the collateral may be used ONLY as collateral for a underlying transaction. Q: Can the collateral be blocked in favor of any nominated credit facility? A: The collateral can be blocked in favor of a financial institution for the benefit of a loan or line of credit for an underlying transaction which has gone through credit, compliance and underwriting whereas the commitment has been received subject only to the presentation of collateral (i.e. SWIFT MT760). THIS IS NOT NEGOTIABLE, WE MUST REVIEW LOAN COMMITMENTS WHICH ARE SUBJECT TO APPROVAL FROM MANAGEMENT. Q: Will the collateral issued for the beneficiary be fully cash backed? A: Yes the collateral (SBLC, Bank Guarantee or Certificate of Deposit) is backed by cash. Q: Will the cash backing the instrument be blockable funds? A: Yes the cash which backs the instruments will be blockable funds. Q: Can the funds that back the instrument be internally blocked and reserved at the issuing institution? A: The funds can be blocked however the request for the blockade must be made by the lending or beneficiary bank Q: Why do you require 4.25% of the face value of the requested instrument to be posted to escrow and released to issue an instrument? A: One of the main reasons we collect this, the issuance fee is a catalyst that assists in weeding out the performers from non performers. Historically there is a strong correlation between clients who cannot pay for the issuance fees and clients who default on either return of the collateral to us, payment of the IPIs, or the loan which they are securing using the collateral we provide as default collateral. On top of the fact we are using it to divert those who plan to run with collateral, we also Debit a credit line, taking that cash to create the respective instrument, and finally register the ISIN and CUSIP numbers with DTC/Euroclear where it can be viewed, confirmed, the block and delivery requested on a bank to bank basis. Q: How is a loaned instrument different than a leased instrument? A: Proof of Funds, LLC loans Bank Debt Instruments that are all callable, lienable, transferable and assignable, which means that can be used as default collateral to support a loan, a credit line, or transaction. The collateral is bank debt instruments that are issued in the clients name for their unrestricted use for the term that the client loans the collateral from POFLLC without a bank undertaking for the return of the collateral or the balance of the fees paid for the use of the collateral. Leased instruments can not typically be used as default collateral, with or without a bank undertaking. Proof of Funds, LLC does not lease bank debt instruments. Q: How am I, the client protected against the loss of the initial 4.25% which I put through escrow for the issuance of the CD, SBLC, BG or DPLC? A: Through the use of an escrow agreement in conjunction with an escrow attorney and in the Agreement for Obtaining the financial instrument (section 5) if Proof of Funds, LLC et al or assigns does not have the financial instrument posted to DTC/Euroclear within 15 international banking days of the receipt of the hard posted funds through escrow, the client will receive the full 4.25% back to which ever coordinates they had come from originally, this amount will include the $2,500 engagement fee. Q: What can these bank debt instruments be used for? A: We issue & deliver bank debt instruments which can be used as default collateral to support credit lines, loans and transactions. For example a real estate acquisition or development may require some additional collateral for the loan or you may take the collateral and get a line of credit against this, using the cash for some type of investment vehicle. Essentially the instrument can be used for any reason why a group or company may need a cash infusion to include but not limited to large real estate acquisition, real estate development, condo development, hotel development, water park or theme park development, sport team acquisition, credit enhancement.... Q: Does Proof of Funds, LLC offer monetizing services or provide liquidity against the collateral they issue? A: No Proof of Funds, LLC does not monetize or provide lines of credit or liquidity against the collateral we issue. We only issue collateral; The primary reason behind this is client's may or may not have a strong project or executive summary for this project with exit strategies to return the collateral or capacity to pay back the loans for which the collateral Proof of Funds, LLC provided was used as default collateral. Banks, Trusts & Private Equity Groups may lend against this collateral, when this happens, the due diligence and project feasibility is underwritten by the banks or investment groups who intend to lend against the collateral on the clients behalf. Q: How do I know if my current bank will lend against this collateral? A: You will need to speak with a banker who understands and has capacity to lend on structured products and bank debt instruments. Many clients take this concept to their retail banker who very typically has no experience in this arena. It is advised a client may request to speak with their banks global custody department or wealth management department. European banks typically are accustomed to this type of collateral lending. Q: Can Proof of Funds, LLC recommend a bank or banker to lend against the collateral you issue? A: Legally, No. Proof of Funds, LLC along with our strategic partners in collateral provision merely provide collateral, for liability reasons we cannot make introductions for clients with banks we are closely working with which may jeopardize the said relationships. Typically the client comes to Proof of Funds, LLC with a banker and transaction already in place, they merely need collateral to extend or increase this loan size, credit line, or other credit facility. Q: What are Proof of Funds, LLC's thresholds for minimum and maximum amounts for instruments which they will issue? A: Proof of Funds, LLC issues bank debt instruments such as Certificates of Deposit, Standby Letters of Credit, Bank Guarantees and Direct Pay Letters of Credit starting at a denomination of Ten Million ("10,000,000.00) US($) or EURO() up through Five Hundred Million ("500,000,000.00) US($) or EURO(). We can also entertain larger transactions which will be done in smaller parts. For example a 1 Billion US($) or EURO() transaction would be completed with the issuance of two 500 Million US($) or EURO() instruments. (2 x 500M or $). Q: Can I put the full fee into escrow for the use of the instrument and go straight to delivery? A: Yes, Proof of Funds, LLC has many clients who have put up the 20% for a 12 Month Certificate of Deposit loan and we follow standard procedures for issuance of the instrument, but since the client has the all of the money in escrow for the full use of the collateral for the loan term, we do not need to create irrevocable payment instructions (Annex C of Agreement for Obtaining a Financial Instrument). We can thus go straight to delivery from DTC/EUROCLEAR to the client's bank. Q: Can I get a list of references for clients whom Proof of Funds, LLC has issued instruments? A: Yes, contact your Agent. We will be happy to provide references whom you may contact at your discretion. Q: Can I talk with a banker at the issuing bank to confirm the instrument? A: No, a client or banker will not speak to a bank officer to view, confirm, request the block or delivery of the instrument. Everything has to be done within the banking system. The system that is used to view, confirm, request the block and delivery of the instruments is DTC/Euroclear Grey Screen. It's important this occurs in the banking system where everything is traceable, trackable, and can be done with full banking authority and is auditable. This alleviates fraud, misappropriation and hypothecation of instruments by anyone else and keeps the instrument safe for who the instrument belongs to for the duration of the loan, our client. However, once the bank confirms there is a banker on the beneficiaries end of the terminal, a banker can request a call in the system. Q: What can I do in the event I do not have access to a banker with high level inter-bank "grey screen" access, can I still get an instrument? A: Yes, the Collateral First via MT760 SWIFT Procedure this procedure is an effective means of taking delivery of the instrument in the event your banker does not have high level access to the inter-bank "grey screen" to enable him/her to view, confirm, request the blockade and delivery of the instruments. |
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