Commercial Bank Paper
Updated: Jul 16
Conditions Precedent for Commercial Bank Paper
On a daily basis we receive requests for Commercial Bank Paper provisioning or monetization. 99% of these requests do not meet conditions precedent. Please only contact us if your request meets these conditions.
1. Leased Paper. Leased Paper cannot be Monetized or Traded by us or anyone we know. We do not consider leased paper as fungible asset. Please do not try and put forward leased paper as a viable asset.
2. Requestor Capacity. In all cases Requestors must prove their own independent capacity to purchase Commercial Bank Paper whether SBLC or MTN. Ways to prove capacity include:
a. Current Proof of Funds (POF);
b. Bank/Banker confirmation of credit facility that is ready to draw down;
c. Proof of Paid invoice;
d. Proof of paid instrument parked in Requestor’s account
3. Instrument Arbitrage. We do not support Requestor’s attempts at Instrument Arbitrage; this is to try and purchase paper with zero or limited capacity and attempt to have a monetizer pay for their instrument within a short time-window. We have NEVER seen this work and we consider this to be bank fraud–because the Requestor must possess their own independent capacity to pay regardless of timing.
4. Beneficial Owners. Applicants for services must be the actual owner and the names must be the same. This of course includes corporate entities. You cannot have one entity pretend it owns another entity’s assets. Make these types of adjustments through the proper Board Resolutions (BR) and then provide all BR and Corporate disclosures as required to support the situation.
5. Joint Venture Requestors. We do not recommend JV structures and JV contracts as Requestors for services. Use the Corporate structure to solve your joint participation challenges.
6. Intermediaries. Our preference is to work directly with Requestors. Intermediaries present your registration information and CIS with current Passport. We cannot and do not provide transaction accounting and intervention services for intermediaries whatsoever.
7. Geo Footprint. Currently we cannot accept paper for monetization or trade from the following:
a. Russian Banks or Russian Nationals
b. Mainland Chinese Banks or Chinese Nationals
c. Brazilian Banks
d. South American Banks