Owned Blocked Funds Monetization

Service and Instrument Description

Complete Recourse & Non-Recourse Loan Monetization of Owned Blocked Funds for Project Funding

Exeter Group never requires clients to pay upfront fees for monetization and is only compensated upon project completion. This contractual agreement ensures transparency and security for our clients.

Using Owned Blocked Funds, we can provide monetization services and offer loans through strategic negotiations with a U.S.-based attorney-trustee office. These loans often require minimal repayment, and if payments are necessary, they are at a low rate. Clients receive funds from an attorney trust IOLTA federal bank account with a legal opinion, ensuring seamless fund release without complications from local banks.

Monetization Details

Bank SWIFT: Blocked Funds are delivered to the Bank via SWIFT MT760.
Source Requirements: Blocked Funds must originate from one of the world’s Top 100 Banks, with a minimum value of $10 million USD, GBP, or EUR, and a maximum of $500 million.
Contract Obligation: The monetizer must switch the issuing bank at least 15 days before the Blocked Funds’ expiration.

Monetization Loan-to-Value (LTV):

65% Rated Bank – Non-Recourse Loan Blocked Funds Monetization: This loan does not require repayment.
80% Rated Bank – Recourse Loan Blocked Funds Monetization: This loan has an interest rate of 2% to 7.5% per annum and a term of up to 10 years.

Note: A 5% commission is paid on all loans.

Processing Time:

Monetization typically takes two weeks after completing paperwork or one week after SWIFT delivery of the instrument.

Loan Disbursement Schedule:

The loan is disbursed over 12 months.
Three weeks after MT-760 authentication, 20% of the loan will be disbursed.
An additional 20% will be disbursed one month after the initial disbursement.
The remaining 60% will be divided and disbursed monthly over the next 10 months.

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SWIFT Closing Process

After both parties sign the contract, the client directs their institution to send SWIFT MT760 to the monetizer’s bank.
Once the SWIFT MT760 is received, the monetizer has one week to provide the recourse or non-recourse loan based on the agreed Loan-to-Value (LTV).
Blocked Funds must be returned no later than 15 days before the contract’s one-year anniversary.

Documents Required

Blocked Funds RWA Letter (Download below).
Complete the Blocked Funds Instrument Monetization Application and email it to: [email protected].
Complete the Non-Recourse or Recourse Loan Agreement and email it to: [email protected].

Compliance Standards

Accepted: Blocked Funds must be delivered via SWIFT MT760 and originate from a Rated Bank.
Rejected: Any instruments from the Forbidden Assets and Financial Instrument Providers List will not be accepted.

Important Information

All timelines are calculated in banking days; weekends and holidays are excluded.
Exeter Group’s monetization services are non-negotiable, and procedures cannot be altered.
We do not issue RWA or BCL letters. These tactics are often used by clients seeking to shop for bank instruments. Exeter Group will not engage in such practices.

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