Just to give everyone an idea on how easy it is to get big funding fast, look at the following deal:
STATEMENT OF CONFIDENTIALITY:
The information contained in this document is proprietary. Any sharing of this information with any third parties without the express written consent of @#$ Capital Group is strictly
prohibited.
By viewing this document you agree to the above terms and conditions.
Project Funding through Certificate of Deposit (CD) Program - Cost $675,000 USD LENDER issues a Term Sheet to the borrower, guaranteeing that LENDER will fund their project through the bank CD program. A $100M leased CD will provide approximately $150M in financing from our proprietary investor group. In the event a Borrower is looking to borrow a sum over $150M multiple CD's can be secured. LENDER will syndicate the investor group under LENDER's name. The interest rate is 1.5% to 2.5% over one year LIBOR, up to 60 months and up to five points for the lender and broker. Interest reserve and fees are added to the loan amount.
To qualify for funding with this CD program, the borrower must prove to LENDER that the loan can be paid back or the debt be serviced by the projects income. Once the Term Sheet is signed the process is initiated by wiring the required funds to a USA bonded escrow company for the securing of a bank CD.
Once the CD is secured with the $675K, the CD will be posted on 123.com for viewing. LENDER is now the title holder of the CD.
This CD is lienable and callable, which means when assigned to the investor as beneficiary, the investor now has a $100M leased instrument which the investor can cash in should something happen to the project or the loan. LENDER is responsible to the bank should the investor claim on the CD. The syndicated lending group now has first lien position in the project along with additional collateral being the CD. LENDER will return the $675,000 to the borrower within 7 banking days after the CD closes escrow with affiliated syndicated investor or investors. This process normally takes between 45-60 days.
LENDER shall pay all additional costs and expenses incurred in connection with a Commitment and the preparation for and the closing of the Loan. LENDER will be responsible for the following expected costs: site visits, travel, lodging, car rental, internal underwriting and processing charges, including overnight mail services, underwriting resources and personnel, legal expenses, and for third party report engagements—and any contingency or collateral commitment expenses that may ensue. LENDER will be reimbursed for these costs at loan closing by borrower. Borrower will be furnished at closing an itemized list of third party costs at escrow. LENDER will then complete any due diligence left on the file and issue loan documents within 45-120 days after the signed term sheet is returned to LENDER. After the loan documents are signed and returned to LENDER we will then close escrow and disburse funds in accordance with the detailed use of funds schedule. If the loan does not close for any reason, LENDER will reimburse all fees and issue a denial letter explaining why the project was not funded.
NOTE: Should this program no longer become available, LENDER reserves the right, in its sole discretion, to utilize the Collateral Commitment Fee to secure any AAA rated Bank Security to assist in funding the projects pursuant to the terms and conditions set forth herein. Said securities may include additional Bank Certificates of Deposit, United States Treasuries or Bank Guarantees.
Does any of this sound familiar?
The above came to me from a BC agent for a US company. The name of the company and the related website were changed by me to protect (sic) their identity.
Take a look at some of the duties and responsibilities of the Lender, the fees payable and so forth. Is this a case of deja vu?
