Hypothecation of Bank Instruments & Private, Managed Buy-Sell

Posted in the Banking Forum

Michael Hunt

AOL

#1 Jun 27, 2008
PLEASE READ THIS DOCUMENT VERY CAREFULLY AND SHARE IT ONLY WITH YOUR CLIENTS THAT QUALIFY.
THE VERY FIRST REQUIREMENT, BEFORE WE WILL COMMIT TO HYPOTHECATION OF ANY INSTRUMENT AND/OR ASSET IS THAT WE MUST RECEIVE A COPY OF THE
INSTRUMENT AND A COPY OF THE SKR OR ACCOUNT STATEMENT. IF YOU CANNOT PROVIDE A COPY OF THE INSTRUMENT AND A COPY OF THE SKR, THEN, PLEASE, DO NOT BRING THE CLIENT FORWARD.
THIS OPPORTUNITY INCLUDES PHASE I - THE HYPOTHECATION OF SAID FINANCIAL INSTRUMENTS/ASSETS AND, PHASE II - THE ENHANCEMENT OF THE NET LOAN PROCEEDS FROM THE HYPOTHECATION.
THIS OPPORTUNITY IS ONLY PROVIDED AS A TURN-KEY OFFERING. WE WILL PERFORM THE HYPOTHECATION OF THE INSTRUMENTS/ASSETS; FACILITATE THE ACCOUNTS AT THE DESIGNATED SECURITIES HOUSE/BANK; AND, PROVIDE THE ENHANCEMENT (TRADING) OPPORTUNITY. ACCORDINGLY, THIS OPPORTUNITY IS NOT AVAILABLE
UNLESS BOTH PHASES ARE INCLUDED.
PRESUMPTIONS FOR THIS TRANSACTION:
• WE PRESUME THAT THE CLIENT HAS AN ACCEPTABLE BANK INSTRUMENT, OTHER FINANCIAL INSTRUMENT OR OTHER ACCEPTANCE ASSETS THAT ARE OWNED FREE AND CLEAR AND THAT ARE CURRENTLY ON DEPOSIT AT A MAJOR BANK OR SECURITIES HOUSE IN SAFEKEEPING. FURTHER, THAT THE CLIENT CAN AND THIS IS A PRIVATE OFFER FOR HYPOTHECATION AND ENHANCEMENT OF CERTAIN FINANCIAL INSTRUMENTS WHICH ARE OWNED FREE AND CLEAR. THIS IS NOT A SOLICITATION FOR FUNDS OR AN OFFER TO BUY OR SELL ANY ASSETS OR INSTRUMENTS. ALL PARTIES ACKNOWLEDGE THAT THE PARTY PREPARING THIS OFFER IS NOT A LICENSED SECURITIES DEALER OR BROKER.
(SEE PART 2)
Michael Hunt

AOL

#2 Jun 27, 2008
HYPOTHECATION AND ENHANCEMENT OF CERTAIN FINANCIAL INSTRUMENTS/ASSETS GENERAL PROCEDURES EFFECTIVE JUNE 27, 2008 WILL, AFTER THE AGREEMENT IS SIGNED, MOVE THE INSTRUMENT INTO A
DESIGNATED FUNDING BANK/SECURITIES HOUSE WHERE IT WILL REMAIN IN SAFEKEEPING TO THE BENEFIT OF THE FUNDING PARTY FOR THE DURATION OF THE HYPOTHECATION PERIOD.
• WE PRESUME THAT BOTH THE INSTRUMENT AND THE OWNER OF THE INSTRUMENT ARE ACCEPTABLE TO OUR FUNDING PARTNER. IF EITHER IS NOT ACCEPTABLE, THIS HYPOTHECATION CANNOT OCCUR.
• WE WILL ONLY CONTRACT WITH THE ACTUAL, LEGAL AND BENEFICIAL OWNER OF THE INSTRUMENT/ASSET FOR THE HYPOTHECATION AND ENHANCEMENT OF THE INSTRUMENT/ASSET. AN ASSIGNMENT DOES NOT QUALIFY. JOINT VENTURES DO NOT QUALIFY. THE FOLLOWING ARE THE TESTS TO VALIDATE OWNERSHIP:
GENERAL PROCEDURES:
1. CLIENT/OWNER ISSUES AND SENDS THE FOLLOWING DOCUMENTS TO US (DOCUMENT WILL BE PROVIDED):
• LETTER OF INTENT (WILL BE PROVIDED)
• CONFIRMATION OF FINANCIAL INSTRUMENT/ASSET, INCLUDING COPY OF THE INSTRUMENT AND THE SKR - ISSUED BY THE SAFEKEEPING BANK OR
2. WE WILL THEN ENTER INTO THE COOPERATION AND PROFIT ALLOCATION THIS IS A PRIVATE OFFER FOR HYPOTHECATION AND ENHANCEMENT OF CERTAIN FINANCIAL INSTRUMENTS WHICH ARE OWNED FREE AND CLEAR. THIS IS NOT A SOLICITATION FOR FUNDS OR AN OFFER TO BUY OR SELL ANY ASSETS OR INSTRUMENTS.
(SEE PART 3)
Michael Hunt

AOL

#3 Jun 27, 2008
• LEASED INSTRUMENTS CANNOT BE USED FOR HYPOTHECATION UNLESS THE LESSEE/CLIENT HAS FULL CONTROL AND AUTHORITY OVER THE INSTRUMENT
AND THE LESSOR WILL ALLOW THE INSTRUMENT TO MOVE TO THE FUNDING LOCATION, WITHOUT ANY CONTINGENCES BEING PLACED ON THE INSTRUMENT OR ON THE FUNDING SOURCE. NO BANK OR PROVIDER WILL ACCEPT AN UNDERTAKING ON BEHALF OF THE LESSEE TO PAY THE LESSOR’S FEES OR TO ASSURE THE RETURN OF THE INSTRUMENT TO THE LESSOR. THESE OBLIGATIONS ARE STRICTLY BETWEEN THE LESSOR AND THE LESSEE.
1. THE OWNER MUST BE THE PARTY THAT IS NAMED AS THE BENEFICIARY ON THE BANK SAFEKEEPING RECEIPT OR SECURITIES HOUSE STATEMENT FOR THE INSTRUMENT/ASSET; AND,
2. THE OWNER MUST BE THE PARTY THAT THE ACCOUNT OFFICER AT THE SAFEKEEPING BANK/SECURITIES HOUSE RECOGNIZES AND ACKNOWLEDGES AS THE OWNER; AND,
3. IF THE INSTRUMENT IS ON EUROCLEAR, THE OWNER MUST BE THE REGISTERED OWNER ON EUROCLEAR.
SECURITIES HOUSE (WILL BE PROVIDED). WITHOUT THESE BANK DOCUMENTS, WE WILL NOT MOVE FORWARD.
• CONFIDENTIAL CLIENT INFORMATION SHEET (WILL BE PROVIDED)
• SWORN AFFIDAVIT OF ASSET OWNER (WILL BE PROVIDED)
• ENLARGED COPY OF THE SIGNATORY’S PASSPORT
• CLIENT’S CORPORATE RESOLUTION – PREPARED IN CLIENT’S FORMAT AUTHORIZING THE TRANSACTION, USE OF INSTRUMENT/ASSET AND DESIGNATING THE SIGNATORY FOR CLIENT
• LIST OF PROJECTS THAT WILL BE FUNDED WITH THE NET EARNINGS (CLIENT MUST DEPLOY 70% OF THE NET EARNINGS FOR PROJECT FUNDING)
AGREEMENT WITH THE CLIENT.
(SEE PART 4)
Michael Hunt

AOL

#4 Jun 27, 2008
3. CLIENT/OWNER ISSUE CORPORATE RESOLUTION APPOINTING ONE OF US AS THE DIRECTOR, FINANCIAL INVESTMENTS, OF CLIENT’S CORPORATION AND
EMPOWERING APPOINTEE TO ACT ON BEHALF OF CLIENT CORPORATION (FORMAT TO FOLLOW) FOR THIS TRANSACTION, WITH THE AUTHORITY TO HYPOTHECATE THE INSTRUMENT/ASSET ON BEHALF OF THE CORPORATION AND TO PLACE THE PROCEEDS IN OUR PRIVATE, MANAGED BUY/SELL TRANSACTIONS. IF THE OWNER IS NOT AN ENTITY, BUT AN INDIVIDUAL, THEN THIS EMPOWERMENT WILL BE VIA A POWER OF ATTORNEY.
PHASE I – HYPOTHECATION:
1. CLIENT MUST INSTRUCT THEIR CURRENT REPOSITORY BANK TO SEND THE FINANCIAL INSTRUMENT, ON A BANK-TO-BANK TO THE ACCOUNT ESTABLISHED AT THE FUNDING BANK/SECURITIES HOUSE. IF THE INSTRUMENT IS ON EUROCLEAR, THE DELIVERY MUST BE VIA A “EUROCLEAR FREE DELIVERY”. IF THE INSTRUMENT
IS NOT ON EUROCLEAR, THE DELIVERY MUST BE VIA A “SWIFT MT 760 OR SWIFT MT 710”, BASED ON THE NATURE OF THE INSTRUMENT. FURTHER, THE CLIENT’S BANK OR SECURITIES HOUSE MUST BE PREPARED TO CONFIRM THEIR SENDING OF THE INSTRUMENT. IF THE CLIENT IS USING A NON-INSTRUMENT ASSET, SUCH AS GOLD BULLION (AU), THEN WE WILL MAKE SPECIAL ARRANGEMENTS FOR THE SECURING OF THE ASSETS DURING THE HYPOTHECATION PERIOD.
2. UPON RECEIPT, VALIDATION AND AUTHENTICATION OF THE FINANCIAL INSTRUMENT, BY THE FUNDING BANK, WE WILL FACILITATE THE HYPOTHECATION OF THE INSTRUMENT/ASSET. SUCH HYPOTHECATION WILL REQUIRE THE ISSUANCE OF A DEED OF ASSIGNMENT OF THE FINANCIAL INSTRUMENT/ASSET TO THE FUNDING
SOURCE FOR PERIOD OF ONE (1) YEAR AND ONE (1) WEEK.
3. AFTER OFFSETS FOR THE LOAN FEES AND COSTS, THE BROKERS’ FEES, AND THE CLIENT’S PRE-TRADE DISTRIBUTION (IF ANY), THE NET PROCEEDS OF THE
HYPOTHECATION WILL BE PLACED IN THE CLIENT’S ACCOUNT AT THE DESIGNATED FINANCIAL INSTITUTION WHERE THE FUNDS WILL BE USED FOR THE PURPOSE OF
THE ENHANCEMENT TRANSACTIONS (PHASE II).
4. PRIOR TO COMMENCING THE BUY/SELL TRANSACTION, WE WILL PERFORM A SPECIAL SHORT-TERM TRADE TO RAMP THE NET PROCEEDS BACK UP TO THE FACE
VALUE OF THE INSTRUMENT/ASSET, ALLOWING US TO TRADE ON THE FULL VALUE OF THE INSTRUMENT. NOTE: THIS MAY NOT BE POSSIBLE IN ALL SITUATIONS,
BASED ON THE LOAN-TO-VALUE PROVIDED.
(SEE PART 5)
Michael Hunt

AOL

#5 Jun 27, 2008
(FINAL PART)

5. THE NET PROCEEDS MUST REMAIN IN THE ACCOUNT DURING THE ENHANCEMENT TRANSACTION PERIODS (PHASE II).
6. PROVISION WILL BE MADE TO ALLOCATE AN AMOUNT OF THE PROFITS INTO A SINKING FUND TO ASSURE THAT THERE ARE FUNDS FOR THE RECAPTURE OF THE
INSTRUMENT/ASSET AT THE CONCLUSION OF THE HYPOTHECATION PERIOD.
THIS IS A PRIVATE OFFER FOR HYPOTHECATION AND ENHANCEMENT OF CERTAIN FINANCIAL INSTRUMENTS WHICH ARE OWNED FREE AND CLEAR. THIS IS NOT A SOLICITATION FOR FUNDS OR AN OFFER TO BUY OR SELL ANY ASSETS OR INSTRUMENTS. ALL PARTIES ACKNOWLEDGE THAT THE PARTY PREPARING THIS OFFER IS NOT A LICENSED SECURITIES DEALER OR BROKER. 7. THE FINAL CALCULATIONS AND DISTRIBUTIONS OF FUNDS FROM THE HYPOTHECATION ARE SUBJECT TO THE VALIDATION, AUTHENTICATION AND EVALUATION OF THE FINANCIAL INSTRUMENT/ASSET, THE OFFERED LOAN TO VALUE, THE CURRENT INTEREST RATES; AND THE CURRENT FEES AND COSTS.
PHASE II – ENHANCEMENT TRANSACTION:
WE WILL PROVIDE THE CLIENT WITH THE DETAILS OF THE ENHANCEMENT TRANSACTIONS BASED ON THE AMOUNT OF THE NET HYPOTHECATION FUNDS.
THE AUTHORS OF THIS DOCUMENT. PLEASE DO NOT CONFUSE THIS OFFERING WITH OFFERINGS FROM OTHERS.
CONCLUSION PROCEDURES:
1. AT THE CONCLUSION OF ALL OF THE ENHANCEMENT TRANSACTIONS, THE CLIENT HAS THE SOLE RESPONSIBILITY OF REPAYMENT OF THE LOAN AMOUNT TO THE FUNDING SOURCE, WHEREUPON, THE FINANCIAL INSTRUMENTS WILL BE RELEASED BACK TO THE CLIENT. THE FUNDS IN THE SINKING FUND ARE UTILIZED TO REPAY THE LOAN AND RETRIEVE THE INSTRUMENT/ASSET FROM THE FUNDING SOURCE.
2. AT THE CONCLUSION OF ALL OF THE ENHANCEMENT TRANSACTIONS, FUNDS EQUAL TO THE NET PROCEEDS WILL BECOME THE PROPERTY OF THE CLIENT.
THIS IS A UNIQUE OPPORTUNITY AND IS NOT AVAILABLE FROM ANYONE OTHER THAN US.
SPECIAL NOTES:
FOR THE MOST PART, WE ARE NO LONGER INTERESTED IN ANY THIRD-WORLD INSTRUMENTS AS THE BANKS AND THE CENTRAL BANKS IN THOSE COUNTRIES CONTINUE TO REFUSE TO PERFORM THEIR ROLE. EXAMPLE: NO BANK IN MAINLAND CHINA CAN OR WILL SEND A MT 760 UNTIL AND UNLESS THEY HAVE SPECIFIC PERMISSION, ON A CASE-BY-CASE BASES, FROM THE CENTRAL BANK OF CHINA (NOT EASILY OBTAINED). EXAMPLE: THE CENTRAL BANK OF VENEZUELA (BCV) REFUSES
TO SEND ANY DOCUMENTS AND HAS BEEN THE CAUSE OF SEVERAL FAILED TRANSACTIONS. EXAMPLE: GAZPROMBANK, RUSSIA, HAS ISSUED INSTRUMENTS THAT
TOTAL ABOUT FIVE TIMES THE VALUE OF THEIR ASSETS (A VIOLATION OF THE RULES AND REGULATIONS OF THEIR CENTRAL BANK) AND HAS NOT, SUCCESSFULLY, SENT A SWIFT MT 760 IN SUPPORT OF THE TRANSACTION.
IF YOU HAVE A CLIENT WITH A THIRD-WORLD INSTRUMENT, WE WILL HAVE TO DEAL WITH IT ON A CASE-BY-CASE BASIS, WITHOUT ANY ADVANCED PROMISES.
THIS IS A PRIVATE OFFER FOR HYPOTHECATION AND ENHANCEMENT OF CERTAIN FINANCIAL INSTRUMENTS WHICH ARE OWNED FREE AND CLEAR. THIS IS NOT A SOLICITATION FOR FUNDS OR AN OFFER TO BUY OR SELL ANY ASSETS OR INSTRUMENTS. ALL PARTIES ACKNOWLEDGE THAT THE PARTY PREPARING THIS OFFER IS NOT A LICENSED SECURITIES DEALER OR BROKER.
MICHAEL HUNT
IBCUSALLC at AOL dot COM
Jdurr

Seattle, WA

#6 Aug 21, 2008
I have an owner with a very large inventory o assets that they would like to Hypothecate. Please contact me at bulkreos@clearwire.net
Michael Hunt wrote:
PLEASE READ THIS DOCUMENT VERY CAREFULLY AND SHARE IT ONLY WITH YOUR CLIENTS THAT QUALIFY.
THE VERY FIRST REQUIREMENT, BEFORE WE WILL COMMIT TO HYPOTHECATION OF ANY INSTRUMENT AND/OR ASSET IS THAT WE MUST RECEIVE A COPY OF THE
INSTRUMENT AND A COPY OF THE SKR OR ACCOUNT STATEMENT. IF YOU CANNOT PROVIDE A COPY OF THE INSTRUMENT AND A COPY OF THE SKR, THEN, PLEASE, DO NOT BRING THE CLIENT FORWARD.
THIS OPPORTUNITY INCLUDES PHASE I - THE HYPOTHECATION OF SAID FINANCIAL INSTRUMENTS/ASSETS AND, PHASE II - THE ENHANCEMENT OF THE NET LOAN PROCEEDS FROM THE HYPOTHECATION.
THIS OPPORTUNITY IS ONLY PROVIDED AS A TURN-KEY OFFERING. WE WILL PERFORM THE HYPOTHECATION OF THE INSTRUMENTS/ASSETS; FACILITATE THE ACCOUNTS AT THE DESIGNATED SECURITIES HOUSE/BANK; AND, PROVIDE THE ENHANCEMENT (TRADING) OPPORTUNITY. ACCORDINGLY, THIS OPPORTUNITY IS NOT AVAILABLE
UNLESS BOTH PHASES ARE INCLUDED.
PRESUMPTIONS FOR THIS TRANSACTION:
• WE PRESUME THAT THE CLIENT HAS AN ACCEPTABLE BANK INSTRUMENT, OTHER FINANCIAL INSTRUMENT OR OTHER ACCEPTANCE ASSETS THAT ARE OWNED FREE AND CLEAR AND THAT ARE CURRENTLY ON DEPOSIT AT A MAJOR BANK OR SECURITIES HOUSE IN SAFEKEEPING. FURTHER, THAT THE CLIENT CAN AND THIS IS A PRIVATE OFFER FOR HYPOTHECATION AND ENHANCEMENT OF CERTAIN FINANCIAL INSTRUMENTS WHICH ARE OWNED FREE AND CLEAR. THIS IS NOT A SOLICITATION FOR FUNDS OR AN OFFER TO BUY OR SELL ANY ASSETS OR INSTRUMENTS. ALL PARTIES ACKNOWLEDGE THAT THE PARTY PREPARING THIS OFFER IS NOT A LICENSED SECURITIES DEALER OR BROKER.
(SEE PART 2)

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