Stored Above Ground Assets

714 views

Published on

Stored Above Ground Assets Article (by Mr. Humphrey)

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
714
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Stored Above Ground Assets

  1. 1. Stored Above Ground Assets Regarding stored above ground assets in general, we do have a Merchants Bank that may be willing to issue an SBLC against the asset, using that asset most likely as SECONDARY collateral (i.e. most lenders will not accept in or above ground assets as primary collateral, as such assets fail the ABL – asset based lending – criteria of “appreciating AND DETERMINABLE value”); providing PRIMARY collateral of AA and AAA quality in order to facilitate lending (by a subsequent and different end lender, of course). In order for the Merchants Bank to become interested in such a situation, the client MUST be willing to MOVE the product upon issuance of an engage- ment agreement to assimilate the primary collateral and subsequently issue the SBLC, into the CUSTODIAL POSSESSION of the Merchants Bank. No exceptions. As with any ABL situation, the exit strategy, as the SBLC will ultimately be encumbered, which is most generally a PROJECT is of prime importance; as the Merchants Bank AND the end lender must be comfortable that the asset holder will be in a position to repay such a loan. We HIGHLTY suggest that the project be underwritten PRIOR to submission to the Merchants Bank and subsequent end lender by a 3rd party INDEPENDENT underwriting firm. We have in our associate such a firm, already familiar with the underwriting criteria of our collateral providers and lenders. Please ask to be sent an addi- tional email regarding same for further information on that strategy. Ovadya Funding Group International, Inc. does NOT sell insurance, is NOT licensed to buy or sell insurance, or to by or sell securities, etc. Furthermore, OFGI is not a professional investment advisor and does NOT give investment advice. Nor, does OFGI give tax or legal advise of any kind. This information is presented for EDUCATIONAL PURPOSES ONLY. Copyright © 2008 Ovadya Funding Group International (317) 876-1207

×