CASH COLLATERAL FOR YOUR LOAN, The 114% LENDING PROGRAM

We are very proud to introduce this 114% Lending Program. Having spent many years developing and improving it, we now have the perfect project financing program.

The general overview of this 2-loan-program's procedure is as follows (this is just an overview and it is not prepared for "Bank Presentation", see our "WARNING" message below):
  1. Cash is wired into a financial institution. All funds are brought into the depository escrow via the international banking wire system i.e. S.W.I.F.T  being Legal, Clean and Cleared funds (bank to bank).
  2. This cash is used to purchase a Specially Structured 10 year CD, or any other available Bank Note with an annual coupon rate of 7.2%
  3. Loan 1 is created in the amount of 100% of the cd purchase at an annual interest rate of 5.4%
  4. Loan 2 is created in the amount of 14% of the cd purchase at an annual interest rate of 5.4% (total loan of 114% of CD purchase)
  5. Cash Provider immediately receives 50% of loan 1 proceeds
  6. Bank immediately receives 10 years of prepaid interest of loan one, proceeds coming from the balance of loan 1, and the remaining amount from loan 2. This has the effect of exhausting loan one proceeds, and leaving a balance still available out of loan 2 for the company's use.
  7. The Bank pays to Provider 52% (which equates to a partial payment of 5.2% interest, over 10 years, of the cd - in this scenario, that would leave 2% of the cd coupon payment, over 10 years, still to be paid) of total cd value out of the 10 year of prepaid interest that Bank receives. Using these percentages, bank net cash position at time zero is 2% of initial CD amount. Loan 1 interest is satisfied, and principle of loan 1 is secured by CD at time 0. At time 0, what remains is loan 2, which is secured over time by the by balance owed by the bank of the 2% annual interest coupon, of the cd amount, for 10 years.
ILLUSTRATION
(Hypothetical scenario)
Initial Transaction Amount
 $  100,000,000







Loan 1 Loan 2 Provider Bank
Incoming wire from domestic brokerage firm, funds confirmed prior to transaction

     $  100,000,000  
Purchase 10 year CD at 7.20%
     $ (100,000,000)  $ 100,000,000
Loan 114% of CD at 5.40%
 $ 100,000,000  $ 14,000,000     (114,000,000)
Provider receives 50% of Deposit from Loan 1

 $ (50,000,000)  $                -    $    50,000,000  
Bank receives 10 years prepaid loan interest on Loan 1 as follows @ time zero

 $ (50,000,000)  $ (4,000,000)    $   54,000,000
Bank prepays provider 10 years of cd interest at time zero at an interest rate of 5.20%
     $    52,000,000  $ (52,000,000)
 

       
Provider has received 102% of initial depoeit

     $  102,000,000  
Loan 1 proceeds exhausted

 $                  -        
Loan 2 proceeds reduced to

   $ 10,000,000    
CD interest rate to be paid 2.00%













Banks position after initial transaction






Bank has issued loan 1





 $ 100,000,000
Bank has issued loan 2 unsecured





 $   14,000,000
Bank is assigned cd which satisfies loan 1




 $ 100,000,000
Bank receives prepaid interest on loan 1




 $   54,000,000
Bank has prepaid 5.2% (of the 7.2% interest on cd) at time 0




 $ (52,000,000)
Bank net cash position at time 0




 $     2,000,000
Bank Profit based upon present value of income stream discounted





CD
using a discount rate equal to cd interest rate 7.20% $3,054,651



Interest of







of



Loan 2  Loan 2   Loan 2 2.00%



Accrued  Principle Loan 2 Total  Assigned 


YEAR
 Interest Payment Balance Payment Due to Bank
Loan 2 is satisfied by the income stream of the balance of the 2% interest on cd
0      $    14,000,000    


1 $756,000 $1,092,450 $12,907,550 ($1,848,450)  $     2,000,000
2 $697,008 $1,151,442 $11,756,107 ($1,848,450)  $     2,000,000
3 $634,830 $1,213,620 $10,542,487 ($1,848,450)  $     2,000,000
4 $569,294 $1,279,156 $9,263,331 ($1,848,450)  $     2,000,000
5 $500,220 $1,348,230 $7,915,101 ($1,848,450)  $     2,000,000
6 $427,415 $1,421,035 $6,494,066 ($1,848,450)  $     2,000,000
7 $350,680 $1,497,771 $4,996,295 ($1,848,450)  $     2,000,000
8 $269,800 $1,578,650 $3,417,645 ($1,848,450)  $     2,000,000
9 $184,553 $1,663,897 $1,753,748 ($1,848,450)  $     2,000,000
10 $94,702 $1,753,748 $0 ($1,848,450)  $     2,000,000













Differnential

Present

of cd Bank 
Value of

interest Net
Income Stream

assignment  Cash  Total Discount rate 

vs loan position Bank  of Present 

payment due at time 0 receipt 7.20% Value
0    $   2,000,000  $      2,000,000 $2,000,000 $3,054,651
1 $151,550    $         151,550 $141,371  
2 $151,550    $         151,550 $131,876  
3 $151,550    $         151,550 $123,019  
4 $151,550    $         151,550 $114,756  
5 $151,550    $         151,550 $107,049  
6 $151,550    $         151,550 $99,859  
7 $151,550    $         151,550 $93,152  
8 $151,550    $         151,550 $86,895  
9 $151,550    $         151,550 $81,059  
10 $151,550    $         151,550 $75,615  









 $      3,515,498

Advantages
To The Project:
  • Fast Closing. Normally the negotiations between the bank and The Fund Provider to reach the comfort level of the bank, by modifying some of the terms and/or the final figures, take 2-3 days and the closing is achieved on the 4th day. 
  • You will not have to service your debt. You will not have to pay back the principal or the interest on your loan, ever. 
  • Your project will be debt free.
  • You will have full control of your loan.
To The Lending Bank

As per illustrated example above:
  • No Currency risk.
  • They get the interest on the US$100MM loan paid all upfront at closing, a total of $54MM.
  • Than Bank makes an instant $2MM.
  • They make 2 loans, fully collateralized, without any risk whatsoever :   The US$100MM loan is collatealrized with cash, and the US$14MM loan is collateralized with their own paper. There is just no better security offered to a bank than this.
  • They have the use of the US$100MM that we deposit for 10 years to do with it as they wish.
  • They are securing the payment of the US$14MM loan (principal and interest) from the proceeds of their own paper.
  • They are in an absolute “NO LOSE” position.
  • They are adding the US$100MM to their investment portfolio.
  • They do not have to rely on the success of the project to service the debt.
PROCEDURE

1)   Present your project’s Executive Summary or Business Plan to your bank or a bank of your choice. 

2)   Ask the banker to review it and see if a loan can be arranged for your project. 

3)   If the bank rejects your loan application for whatever reason, ask the banker the following question or similar: 
       “Would you consider arranging the loan for my project if I provide 100% CASH collateral to the bank for this transaction?”. 

4)   If the banker indicates that he would be interested, advise the banker that a presentation will be provided to him, for his consideration. 

5)   We will prepare you to explain this program in detail and perform your own presentaion to the banker with facts, figures and mechanism. 

6)   Following step "5" above, you may explain to the banker the program or have us make the presentation to your banker. 

7)   Following our personal presentation and during that meeting, the closing of your loan should take place. The Fund Provider’s clean and clear funds will be wire-transferred  from his major bank to your bank and from your bank to your project. 
COST

Consultation Fee of US$2,500

When you decide to continue with our program, this fee will be payable together with the signing of our "Client Agreement". This fee will include the processing of your application, preparation for a bank presentation, consultation and communication costs.

Personal Presentation:

If you decide to have us meet with your banker and make the presentation and/or meet at your bank for the closing, you will be required to invite our team of 2 or 3 at your own expense. Such expenses will include- but not be limited to- airfare, hotel, ground transportation and the group daily retainer fees.

WARNING  ...  WARNING  ...  WARNING

Remember:
This Is Generic &  Not Ready For Bank Presentation. 
This Is Presented To You For Introduction Purposes Only. 
DO NOT attempt or be tempted to present any of this information to your bank. 
Extraordinary large figures have a tendency to overwhelm most conservative bankers. If you try to explain the Presentation yourself before our preparation, you will NOTsucceed and you will loose that bank as your potential lending bank. We ask you to do steps 1 to 4 as explained in the “Procedure” above and to leave the rest to us.
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