Name    : 
EMail  : 

Subject  : Re: Re: Lease BG

Comments:
: Dear Sir,

:  

: We would like to inform that our company  (acting as BORROWER) is interested in a following transaction:

: The LENDER will lend Securities to BORROWER, and BORROWER will borrow Securities from LENDER in accordance with terms and conditions of the agreement to be signed between parties.

: We are interested in  MTNs or Bank Guarantees with a face value up to 1 B Euro, issued by a bank acceptable to us, for a period of 1 year (with possible extensions).

: We are ready to present our paperwork (LOI, CIS, etc) at any time but only directly to a Lender (owner of the security) ready to accept our proposal and only upon receipt of all details of the bank instrument to be leased as per point 1 of our general conditions.
: Please note: This information shall not be deemed as solicitation of funds or securities.
:  

: Please find enclosed our general conditions:

: 1.     The Lender will provide all details of the bank instrument to be leased (including ISIN number, copy of 3rd page from Euroclear and/or a bank confirmation from the bank where the MTN or BG is currently deposited) in order to permit the Borrower’s bankers to verify the note. In addition the Lender accepts in writing form the general conditions stipulated below.

: 2.     The detailed contract will be sent for signature, approved and signed between parties (timetable and financial conditions included).

: 3.     The Lender will send an MT 799 to Borrower’s designated bank account.

: 4.     The Borrower’s bank accepts to receive the instrument.

: 5.     The Lender will transfer the MTN by SWIFT MT 760 to the designated account, transferring also all rights arising from the ownership of this instrument. On this basis the Borrower will receive all rights to use it in financial transactions. The instrument can be pledged, mortgaged or encumbered by the Borrower but the Borrower is obligated to observe due care when using the bank instrument and shall ensure that the amount of the instrument is covered by reasonable asset, insurance, or same value collateral.

: 6.     Fifteen days before maturity the Borrower’s Bank must return back the instrument by SWIFT to the Lender’s Bank, unencumbered and free of liens or renew the contract for another year with the same terms.

: 7.     The Lender grants the Borrower an exclusive license to use the instrument. The license is transferable to other third parties only after writing information to be sent to the Lender.

: 8.     The Borrower will pay to the Lender the agreed service fees of 15%-25% of the face value of the instrument (depends on the instrument to be leased) for a period of one year (10 monthly payment of 1,5%-2,5% each one, the first payment 3-5 days after receipt of the MT 760 on the Borrower’s account). The Borrower has the possibility to extend the leasing period for up to 5 years.

: 9.     The Borrower will not transfer to the Lender any collateral granting the payment of the service fees or accept any up-front fees before the aforementioned payments (point 8) will start as per schedule above indicated. In the event of failing to remit agreed sums by the Borrower, the Lender may terminate the agreement at any time, by sending a written notice to the Borrower. The Borrower shall return the instrument unencumbered and free of liens immediately.

: 10.  The Borrower may terminate this agreement at any time by sending a written notice to the Lender. The Borrower shall return the instrument unencumbered and free of liens immediately.

:  
: Sincerely yours,