LCPI : preliminary underwriter for Lender, relationship with and provider of the SBLC
ACI : affiliated partner and representative for LCPI
COLLATERAL : Primary collateral for funding project will be the project itself, with Lender taking a 1st lien position on the property / land, secondary form of collateral will be a financial instrument such as a BG, CD, SBLC, Bond, and or cash
COMMITMENT FEE : A Commitment Fee (this fee is based on .10% of the annual loan disbursement plus $25,000) is required at the time of execution of the Commitment Letter. This fee is used for further due diligence on the project including a site visit
COMMITMENT LETTER : A commitment from the Lender to fund project according to the terms agreed upon in the Term Sheet. Once a Commitment Letter has been issued to a project, Lender has blocked funds for funding of the project
ESCROW AGENT : **The agent(s) in control of the Escrow account(s) which the Commitment Fees are held in, 2) the Issuance Fees for the SBLC are held in, 3) the loan proceeds are held in
LEGAL : *The Lender’s legal agent, issuing the Term Sheet, Commitment Letter, Final Loan Documents, servicing agent, agent to approval monthly draws, draw disbursing agent
LENDER : *Funding Source for project
LOAN FEES : Total loan fees for funding is 6%. This is all inclusive of all parties mentioned in this summary and does not include any Broker’s / Agent’s on the Developer’s / Project side of the transaction
POF : Proof Of Funds – letter from financial institution or financial statement for banking institution showing the ability to move forward should Lender issue a Commitment to fund
POP : Proof Of Product - A note from a seller's bank to a buyer's that the product offered is available.
SBLC : Stand By Letter of Credit - Face Value must be 50% of the annual loan disbursement, Term is for either 1-year or 5–years, and Cost is 15% (1-year) of face value or 30% (5-year) of face value
SBLC PROVIDER : An individual, group of investors or Fund that will supply a SBLC for lease, to be used as secondary collateral in funding project
SECURITY INSTRUMENT : BG, CD, SBLC, or Bond. Whichever instrument is to be used, it must first be approved by the Lender
SERVICING AGENT : The agent / entity which the payments for repayment of the note are paid to
TERM SHEET : Document issued to the project developer(s) / borrower(s), once the project has been underwritten, show casing the terms and preliminary conditions associated with funding of the project
UNDERWRITING : Data extracted from the Executive Summary, Pro Forma’s, Appraisals, Entitlements, or any other source, is inputted into Argus to determine the projects strengths and weaknesses, ultimately determining if it meets the Lenders lending criteria
UNDERWRITER : This task is shared by LCPI & the Lender’s Legal department
ES : Executive Summary
LOI : Letter of interest
BG : Bank guarantee
FCO : Full corporate offer
NDA : Non disclosure agreement
NCND : Non circumvent non disclosure agreement
LC : Letter of credit
PPP : Private Placement platform
MT760 A Swift MT760 (MT means Money Transfer) 760 is a blocked funds instrument. Your issuing bank will submit a bank to bank message stating that they have blocked funds for a particular time frame specifically for the beneficiary of a receiving bank. Those funds are now an asset of the Beneficiary bank account. From there they can be entered into a trade platform, used for purchasing certain items or commodities, and sometimes used for a line of credit.
MT799 MT799 is a simple text message, sent bank to bank. This is used for a bank to bank proof of funds, only. The MT799 is not a form of payment and it is not a bank undertaking or promise to pay. It is simply a bank to bank confirmation of the funds on deposit, nothing more.
MT103 The MT 103 is a specific message format used mainly for transferring moneys between customers of different banks or other similar financial institutions (ie credit card operators)
Advance Payment Bond A bond issued by a surety company, or a standby letter of credit issued by a bank, on behalf of an exporter, the purpose of which is to refund a buyer for his advance payment of merchandise, if the exporter fails to fulfil his obligations.
Performance Bond A performance bond is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor.
