CONFIDENTIAL AND PROPRIETARY

Purchase Procedures
Standby Letters of Credit (SBLCs)

Date:
Addressed to:

The information contained herein is intended only for the addressee and is in response to your
request for information. It is not an offering of any kind, nor is it a solicitation of funds or a solicitation of
an offer to buy or sell any security.
By your acceptance of this information and any attached documents, you affirm that it is solely
for your own PRIVATE AND CONFIDENTIAL USE ONLY. You also affirm that you are a
knowledgeable, experienced and sophisticated investor; that you make your own investment decisions;
and that you have the requisite funds in your account, legally acquired, to make such an investment.

Description
Price: TBA
Instruments: SBLCs
Currency: Euros (€) or US dollars ($)
Term: One Year and One Day
Issuing Bank: TBA
Settlement Banks: Top banks in the UK and Singapore
Amounts Available: 100M up to 50B Contract (additional contracts available, consecutive or
concurrent)
Procedures
1. Buyer must have a minimum of 50M Euros/USD in an account, or an active credit facility with a
minimum of 50M Euros/USD, in a top 20 bank (preferably banks located in Western Europe, UK,
Canada, USA, Singapore or Hong Kong).
2. Buyer submits the following compliance documents (templates available, if required): (a) Client
Information Sheet (CIS), with the contact information of the person designated to represent the
Buyer (if an entity); (b) Passport; (c) Origin of Funds statement; (d) Letter of Intent; and (e)
preliminary proof of funds.
3. Upon acceptance of the compliance documents, the Buyer’s bank sends a confirming email to the
Buyer, with a cc to the Provider’s secure email address (which will be provided). The confirming
email must include an attached bank confirmation letter, signed by two bank officers, containing
information that confirms the Buyer’s account is in good standing and has a minimum of ___
(Euros or USD) on deposit which is freely transferrable, unencumbered, and without restrictions
(or, if the Buyer is using a credit facility to purchase the SBLCs, the Buyer’s credit facility is
active, in good standing, and is fully collateralized, with a minimum of ___ (Euros or USD)
available to him. This is merely suggested text, as each bank has their own way of doing things.
4. Provider will confirm the bank officer’s IP address. NO CONTACT WILL BE MADE WITH
THE BUYER’S BANK. Also note, IP Address verification will normally be completed within
two hours of the Provider receiving the bank confirmation email from the Buyer’s bank. Once the
e-mail address is verified, the Provider will contact the Buyer immediately to arrange the
purchase and delivery of the SBLCs and a draft contract.

Purchase Procedures – SBLCs Page 1 of 2

5. The Provider purchases the SBLCs, which will be purchased in the Buyer’s name and will
normally be available for delivery within 24-48 hours.
NOTE: THE BUYER DOES NOT SIGN A CONTRACT UNTIL THE SBLCS HAVE
BEEN PURCHASED BY THE PROVIDER, IN THE BUYER’S NAME, AND ARE IN
CUSTODY READY FOR DELIVERY.
6. Provider will contact the Buyer to confirm that the SBLCs have been purchased and are in
custody, ready for delivery. The Provider will then organize the execution, counter-execution, and
delivery of a signed contract between the parties.
7. Upon receiving the signed contract from the Buyer, the Provider will disclose the Provider’s
custodial account details and the contact information of the custodial bank officer. Buyer’s bank
officer can then contact the custodial bank officer via telephone, e-mail or send an MT-799
SWIFT Request for Confirmation that the SBLCs are in custody and have been purchased in the
Buyer’s name.

THE FOLLOWING PROCEDURES APPLY IF THE BUYER AND PROVIDER ARE

8. Buyer’s bank sends a MT-799 Request for Confirmation to the Provider/Titleholder’s bank
requesting an MT-799 RWA confirming that the SBLCs have been purchased in the Buyer’s
name and are in custody at the Provider/Titleholder’s bank and available for purchase/delivery.
9. Provider/Titleholder’s bank replies with an MT-799 SWIFT Confirmation with full bank
responsibility that the SBLCs have been purchased in the Buyer’s name (the Buyer’s Contract
number will be referenced in the MT-799 Confirmation) and are in custody at the
Provider/Titleholder’s bank and ready for purchase and delivery. Upon receipt of an MT-103
SWIFT payment, the SBLCs will be delivered immediately via MT-760 SWIFT into the Buyer’s
account.
NOTE: The Buyer does not send an MT-103 SWIFT payment until he receives
confirmation from his own bank officer that he has confirmed, bank-to-bank, with full bank
responsibility, that the Provider/Titleholder’s bank will deliver the SBLCs as stated in the
MT-799 confirmation SWIFT.

Disclaimer: The information contained herein is believed to be reliable. However, no representation or warranty is
being made as to the completeness or accuracy of such information – such completeness and accuracy to be
confirmed only between the Provider and Buyer, directly.

Purchase Procedures – SBLCs Page 2 of 2