How is bank gurantee issued by bank ?

BG FOR LEASING-

1.

The Lessee submits this LOI/Contract with full banking coordinates client’s information Sheet (Addendum ‘A’), Corporate Board Resolution (Addendum ‘B’), Fee Protection Agreement (Addendum ‘C’) and Clear color copy of the Lessee’s Signatories Passport;
2.

The Lessor signs this LOI/Contract providing Lessor’s full banking coordinates and returns it to the Lessee. The LOI/Contract upon being signed and returned by the Lessor to the Lessee shall then become a formal legally binding Contract between both parties;
3.

After signing and returning of this LOI/Contract, both parties shall lodge the LOI/Contract with their respective banks;
4.

Within Three (3) International banking days the Lessee shall officially inform the Lessor by E-Mail/Fax the “Window Time” to send “S.W.I.F.T. MT-199” to the Lessor’s Bank. The Lessors will advise their own bank the readiness to receive the MT-199 (Addendum ‘D’) at the appointed “Window Time”” the Lessee shall cause its Bank to SWIFT the verifiable MT-199 without delay;
5.

Lessor’s Bank will verify Authenticate and validate the received Funding Instrument MT-199 Within Three (3) banking days, Lessor’s bank will issue a SWIFT Pre-advice message (Addendum ‘E’) to Lessee’s Bank confirming that Lessor’s Bank is RWA to deliver a BANK GUARANTEE (Addendum ‘F’) in the attached text to the Lessee, providing that Lessee’s Bank will issue a SWIFT MT-103/23 to settle account;
6.

Within three (3) Banking days, Lessee’s Bank will send the Swift MT-103/23 (Addendum ‘G’) to the Lessor’s bank for the first tranche payment;
7.

Within three (3) banking days, upon successful verification, Lessor’s bank will transmit the Bank Guarantee Instrument via SWIFT MT760 to Lessee’s Bank containing CUSIP Registration Numbers, Custodial Safe Keeping Receipt Numbers, ISIN Numbers, Term, Text of Instruments, Denominations, Name(s) of Issuing Banks(s), Date of Issue, Date of Maturity, Access Code and all pertinent data necessary for the Lessee’s Bank to authenticate and validate the data of the Instrument via Euroclear or DTC including a guarantee from the Lessor’s Bank to deliver the Instruments;
8.

Lessee’s Bank will authenticate and validate the Bank Guarantee Instrument and confirm satisfaction to Lessor’s Bank marking the conclusion of the delivery of the first tranche. Lessee’s bank shall within Eight (8) International Banking Hours release full payment to Lessor’s designated bank via Fed-Wire or according to the MT-103;
9.

Within Eight (8) International Banking Hours after receipt of clear funds, Lessor’s Bank will electronically deliver the Bank Guarantee and deliver hard copy Bank Guarantee Instruments within Seven (7) International banking days to the Lessee or his bank as specified in the funding instrument;
10.

Simultaneously the Lessee shall effect payment to all the intermediaries according to the Master Fee Protection Agreement without delay or holding. The Master Fee Protection Agreement with this Transaction code and date shall be made an integral part of this LOI/Contract as an attachment;
11.

The above procedures shall be repeated for subsequent tranches.

BG FOR DISCOUNTING-

1.

The buyer submits this LOI with full banking co-ordinates, Corporate profile (CIS), a clear color copy of the Buyer signatory’s passport and a Proof of Fund for purchasing of the said Bank Guarantee;
2.

The Seller signs this LOI/Contract upon successful probe of Proof of Fund of Buyer party and provides Seller’s full banking coordinates and returns it to the Buyer. The LOI/Contract upon being signed and returned by the Seller to the Buyer shall then become a formal legally binding Contract between both parties;
3.

After signing and returning of this LOI/Contract, both parties shall lodge the LOI/Contract with their respective banks;
4.

Seller’s Bank will SWIFT the full text Pre-Advice of the Bank Instrument to Buyer’s bank. Upon Buyer’s Bank successful verification and authentication of the Pre-advice, Within three (3) working days, Buyer will instruct his funding bank to swift ICBPOs in the form of MT103-Field 23 for Seller’s Bank verification and authentication;
5.

Upon Seller’s Bank successful verification and authentication of the MT103/23, Seller’s Bank will swift a certified Corporate Invoice to Buyer’s Bank containing: CUSIP/Registration Numbers, Custodial Safekeeping Receipt Numbers, ISIN Numbers, term, text of instruments, denominations, name(s) of issuing bank(s), date of issue, date of maturity, access code and all pertinent data necessary for the Buyer’s Bank to authenticate and validate the data of the invoiced instrument via swift MT760;
6.

Upon the successful verification and authentication of the said Invoice, the Buyer’s Bank will release the fund to the Seller’s designated account within eight (8) banking hours;
7.

Upon Seller’s Bank receipt of the fund, Seller Bank will deliver the hard copy of BG to the buyer’s designated bank by bank courier within seven (7) banking days;
8.

Simultaneously, the BUYER shall effect payment to all the intermediaries according to the Master Fee Protection Agreement (MFPA) without delay or withholding. A MFPA with this Transaction Code and date shall be made an integral part of this LOI/Contract;
9.

The above procedures shall be repeated for subsequent tranches.