The morons and the flakes who unfortunately have nothing of value to contribute to this forum may attempt to divert your attention from the core fundamental issues of an offshore financial transaction with thier garbage postings, false allegations and defamatory comments. But ignoring them for the nuisance they are the real question does raise a fundamental issue.

Let’s say you have moved the money in the anticipation of closing on a collateral transaction and the collateral doesn't show up; or the money is available pending only the bank having to verify the authenticity and validity of the collateral or if the collateral does show up, it is not as it was represented to be, so what do you do?

The smart thing would be to bring in a professional who knows what they are doing and knows how to make a deal happen and can look at the deal from the banks perspective.

A recent example, a $ 10 million LC, the party representing that they controlled the LC wanted to first have the bank endorse a corporate pay order guaranteeing that they would be paid their fee stating that until the collateral is delivered, the bank would not be at risk.

The banks position is, let’s confirm the validity of the collateral and then we have no problem endorsing the pay order. The party said no, they wanted their endorsement of the guarantee first before they would allow a confirmation of the collateral as opposed to the settlement of the transaction using the collateral. This raises the question as to why do they want a bank endorsement first instead of simply accepting the corporate pay order which would state that upon confirmation of the validity and the passing of a compliance review the bank will endorse the pay order or otherwise confirm payment as instructed will be made after delivery has taken place and settlement has occurred?, if as they say; the bank is not at risk unless the collateral is delivered. What’s the difference? The effect is the same, no delivery, no payment.

However from the bank’s perspective they would be giving their endorsement which is a specific recognition to a document relating to a transaction to which they have not yet confirmed its validity and which may not be compliant, that’s the difference.

Our process begins with a confidentiality agreement so that we can know with whom we are dealing with so we can be responsive to the needs of the parties.

This post is for information purposes only and is not an offering of securities and is subject to the disclaimer at www.voy.com/20577/

We are more than happy to discuss with you your particular situation especially if you are stuck in a transaction that is going nowhere or has some problems where we might be able to come up with a solution. Please feel free to contact Mayer Etkin at 206-723-9353 or send an email to capsol@comcast.net