Owned Bank Draft Monetization

Service and Instrument Description:

Recourse & Non-Recourse Loan Monetization of Owned Bank Drafts for Project Funding

At Exeter Group, we never require upfront fees for monetization services. We are compensated only upon the successful completion of a project, as contractually agreed with our clients.

Using an Owned Bank Draft, we facilitate loan monetization through careful negotiations with a USA-based attorney-trustee office. These loans often require little to no repayment, and if payments are required, they come with low rates. Funds are disbursed from an attorney trust IOLTA federal bank account, accompanied by a legal opinion, ensuring seamless fund release with local banks.

Monetization Process

For each Bank Draft, the following monetization method applies:

Bank SWIFT:

The Bank Draft is delivered via SWIFT MT110.
Bank Drafts must originate from a World Top 100 Bank.
Minimum amount: $10 million (or equivalent in GBP/EUR).
Maximum amount: $500 million.

Important:
The Monetizer must switch the owned and issuing bank at least 15 days before the Bank Draft expires, as stipulated in our contracts.

Monetization Loan-to-Value (LTV):

Non-Recourse Loan (65% LTV):
- Monetization of a Rated Bank Draft.
- No repayment required.
Recourse Loan (80% LTV):
- Monetization of a Rated Bank Draft.
- Interest: 2% to 7.5% per annum.
- Loan term: Up to 10 years.

Additional Notes:

A 5% commission is paid on all loans.
To combat fraudulent Bank Draft applications, all submissions must include the business card of the bank officer who issued the draft. This verification step ensures authenticity before forwarding the application to bank compliance for monetization.

Timeline:

Monetization can take up to two weeks after paperwork completion or one week following SWIFT delivery of the instrument.

Loan Disbursement Schedule:

The loan is disbursed over 12 months.
Upon MT110 authentication:
- 3 weeks later: 20% of the loan disbursed.
- 1 month after the initial disbursement: An additional 20% is disbursed.
- Remaining 60%: Distributed monthly over the next 10 months.

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SWIFT Closing Process

Once the contract is signed by both parties, the client instructs their financial institution to send a SWIFT MT110 to the monetizer’s bank.

Upon receiving the SWIFT MT110, the monetizer has one week to issue the non-recourse loan based on the agreed Loan-to-Value (LTV).

The Bank Draft must be returned at least 15 days before the contract’s one-year anniversary.

Documents Required:

Bank Instrument Monetization Application (Download below).
Complete the application and email it to: [email protected].

Compliance Standards:

Accepted: The Bank Draft must be delivered via SWIFT and originate from a Rated Bank.
Rejected: Any submission involving assets or providers listed on the Forbidden Assets and Financial Instrument Providers List.

Important Information:

All timelines refer to banking days, excluding weekends and holidays.
Our bank instrument monetization procedures are non-negotiable, with no alterations to processes or terms.
RWA or BCL letters are not issued. Such letters are typically used by clients to shop for bank instruments. This practice is strictly prohibited under Exeter Group’s name.

Recourse Loan Disbursement Example (100 Million Euros)

Bank instrument face value: €100,000,000.00
Recourse loan disbursement (80%): €80,000,000.00
Loan commission fees (5%): €4,000,000.00

Total Loan Disbursement: €76,000,000.00

Example of Recourse Loan Disbursement Schedule:

Non-Recourse Loan Disbursements Example (100 Million Euros):

Bank instrument face value: €100,000,000.00
Recourse Loan disbursement (65%): €65,000,000.00
Loan commission fees (5%): €3,250,000.00

Total Loan Disbursement: €61,750,000.00