Use for issuing terms to client when monetizing a Bank Guarantee

1. Requestor (Client):
Address:
Represented By:
Position:
Phone:
Email:
Category:
Transaction:
Issuing Institution:
Loan to Value: (LTV)
Face Value (FV):
Monetized Value (MV)
Processing Fees:
Fee Status:
Compliance Fee: 1.00%
Short Term
Funding/Investment:
Basic Requirements/Steps:
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Indemnification
Acceptance
Date / Signature
XYZ CORP
This document shall expire on 00/00/20______ if not returned to _______________ by 5:00
EST.
Definitions
"Business Day"
"Currency"
"Funds"
CREATE AND MONETIZE
The program you are offered is a non-recourse loan and is understood by all parties that __________________________ will utilize the value of the
instrument to develop a self liquidating (sinking fund) that will leave XYZ CORP with a zero balance due.
Means a day on which the Federal Reserve of the United States is not required or authorized to remain closed.
All references to any type of currency value shall be understood as U S Currency unless otherwise clearly stated.
All parties agree this term encompasses only funds that are clean and cleared funds of a non-criminal origin from a legal source and that the exchange of such funds does not create any
violation of U S or International Law.
Client shall review, sign and return this Term Sheet before it expires, it will not be reissued.
DATE
_______________ and Client review final draft of contract for accuracy, maximum 2 business days to complete.
Client must acknowledge the term sheet generally covers the more important aspects of a deal, without going into every minor detail and contingency covered by the binding contract,
therefore, the contract shall be the superior document.
XYZ CORP and any partner, associate, and/or client of XYZ CORP shall indemnify and hold ____________________________________ harmless for any and all loss,
damage, liability, claims, demands, detriments, costs, charges and expenses (including attorney's fees) and causes of action of whatsoever character arising out of or in
any way connected with the use of the instrument provided by _________________________________________ to XYZ CORP.
By signing and dating the Client is agreeing to all the Terms and Conditions set forth in this Term Sheet. The Client understands the Term Sheet does not constitute a
completed agreement and will be required to sign additional documents. Additionally the Client agrees they have had sufficient time to consult with legal council
and/or other professional advisors prior to signing this document.
_______________ shall deliver instrument to Client's designated bank in accordance with contractual agreement.
_______________ shall deduct the "Compliance Fee" from the MV of the instrument prior to delivering the funds.
_______________ and Client sign the contract before it expires. Each party shall have 1 business day to complete, no extensions for any cause.
The following is provided as a general overview of the process for obtaining the instrument.
Contract prepared based on the Term Sheet and minor modifications agreed to by _______________.
OF MV DUE FROM CLIENT AT TIME OF MONETIZATION
TERMS AND CONDITIONS
Client wires "Processing Fee" to _______________ designated bank account in 1 business day, no extensions for any cause. NOTE: If funds are being sent from a non-
US Bank it is the client's responsibility to clear/preplan for all obstacles. Any delay will cancel the term sheet.
_______________ shall monetize the instrument in 15 business days and deliver the MV funds to the Client's designated bank account.
BANK GUARANTEE (BG) PROGRAM TERM SHEET # _______________ FOR XYZ CORP
XYZ CORP
FINANCIAL INSTRUMENT: TYPE: BG
Note: All banking information shall be included with the contractual documents and shall be provided only between principals and only as necessary.
DUE AT SIGNING OF CONTRACT