SBLC / BG Lease Transaction Procedure (100M to 2B)

We are currently seeking an SBLC transaction that aligns closely with the procedure outlined below. These points are non-negotiable and based on extensive past experience:

Provider Must Go First

We will not go first under any circumstance.





SBLC / BG Lease Transaction Procedure (Procedure)

1. The Lessee submits the completed and signed DOA to the Provider only after presenting the DOA to the Lessee’s bank and obtaining the bank’s written consent confirming that it agrees with the transaction procedures. The signed DOA is a binding commitment to the procedures; otherwise Article 12 shall apply for non-compliance.

2. After successful due diligence, the Provider signs and returns the DOA to the Lessee.

3. Upon receipt of the Provider-signed DOA, the Lessee’s bank shall, within five (5) banking days, issue a SWIFT MT799 to the Provider’s bank confirming that the Lessee’s bank is willing and able to receive a leased BG/SBLC of the agreed amount. The Lessee shall provide the Provider with a copy of the SWIFT for tracking.

4. Upon receipt of the Lessee’s MT799, the Provider’s bank shall, within two (2) banking days, issue a pre-advice via SWIFT MT799 to the Lessee’s receiving bank. The Provider shall provide the Lessee with a copy of the SWIFT for tracking.

5. Upon receipt of the Provider’s MT799 pre-advice, the Lessee shall, within three (3) banking days, issue a Bank Payment Undertaking (BPU) via SWIFT MT799 to the Provider’s nominated bank in the amount of 8% + 2% of the total face value. The Lessee shall provide the Provider with a copy of the SWIFT for tracking.

6. Upon receipt and bank verification of the BPU, the Provider’s bank shall issue the SWIFT MT760 SBLC to the Lessee’s bank. The Provider shall provide the Lessee with a copy of the SWIFT for tracking.

7. Upon receipt, verification, and authentication of the SWIFT MT760 SBLC, the Lessee’s bank shall release full payment within five (5) banking days to the Provider and intermediaries via unconditional SWIFT MT103.

If the Lessee fails to pay the leasing fees and brokers’ commissions within five (5) banking days following confirmation of the MT760 BG/SBLC in the Lessee’s bank account, the Lessor shall instruct the issuing bank to file a claim on the BG/SBLC, mandating the Lessee’s bank to return the MT760 to the issuing bank.

8. Within seven (7) banking days of the Provider and intermediaries receiving the agreed payment, the Provider’s issuing bank shall deliver the original hard-copy SBLC to the Lessee’s bank via bank-bonded courier.

9. All subsequent tranches shall follow the same procedures until the total required amount has been delivered in full.

10. Any unauthorized bank calls, probes, communications, improper solicitation, or disclosure involving any of the banks participating in this transaction shall result in immediate cancellation of the transaction, and the violating party shall bear the full cost of damages.

11. Before signing the contract, both the Lessee and the Provider must obtain assurance from their respective banks confirming that the banks agree with the contractual sections that apply to them.

12. After signing the contract, both parties are obligated to complete the transaction.
For non-compliance, a penalty of EUR 500,000 (Five Hundred Thousand Euros) shall be paid by the party in breach, allocated 50% to the non-breaching principal (Lessee or Provider) and 50% to the intermediaries.