LEDGER to LEDGER & BANK to BANK PROCEDURES
TRANSACTION PROCEDURES
Upon accepting this SCO and returning this SCO signed and initialed, together with the LOI and/or CIS, the Draft Sale and Purchase Agreement (DSPA) will be released to the Buyer.
Upon accepting the Draft SPA, both parties complete all necessary information including the transaction bank details. (Appendix-A of the SPA) The SPA will be signed with seal including the IMFPA. A schedule agreement via the Irrevocable Work Order Agreement (IWOA) will be done.
Seller and Buyer shall officially lodge the signed SPA (see General Terms and Conditions (e.) related to SPA Lodging) including IMFPA/IWOA to their transaction bank according to the schedule agreement with the Irrevocable Work Order Agreement (IWOA). Both parties shall execute the transaction according to the following procedures, terms, and conditions, stipulated and agreed to this designated transaction reference number. Confirmation of appointment for the respective Bank Officers, will be made after submitting this agreement to both banks.
The Seller’s Bank Officer (SBO) is to contact the Buyer’s Bank Officer (BBO) with a bank secured call to confirm the Sale and Purchase Agreement (SPA) has been lodged in accordance with the transaction procedure. The terms and conditions are acknowledged during the ongoing transaction indicated by the Transaction Reference Number: to be confirmed in the SPA
The SBO and BBO will discuss and clarify any and all issues and matters, explained verbally between the SBO and BBO that might need clarification for their clients: including the Buyer’s financial ability for the value of (1.5 Billion USD) for this transaction. Additionally the Seller’s legal ownership and ability to sell and transfer the equivalent physical gold bars will be discussed.
Confirmation of the parties is fully accepted and all agree to prove their capability for the completion of this transaction via Ledger-to-Ledger or Bank to Bank basis with Full Bank Responsibility. All due diligence will be performed between Bank Officers.
NOTE: This agreement shall be deemed to have defaulted and be immediately terminated if the BBO fails to receive and return the call of the SBO within Twenty-Four (24) hours.
Verification Clearance the SBO and BBO agree to exchange the proof of funds (POF) and the proof of product (POP) for the first tranche quantity against the Transaction Reference Number: TBA on the specific matter such as:
The BBO shall confirm the availability of funds for (1.5 Billion USD) for the purchase of XXX Metric Tons XXXXXX. Payment with United State Dollars by Ledger-to-Ledger confirmation, with a Bank Confirmation Letter (BCL) and/or another bank qualified option. This will provide irrevocable banking confirmation to the Seller at HSBC-main building, Hong Kong, addressed in the Seller’s name and with the transaction reference number
(Acceptance of verbiage in Appendix-D of the SPA).
Within Three (3) banking hours the SBO shall confirm the first shipment of Gold Bullion bars under the Seller’s name by a Certified copy of the SKR and Ownership confirmation individually stamped by the SBO confirming the gold commodity being sold. The POP confirmation will be delivered upon the successful confirmation of the POF.
NOTE: The payment against ownership transfer can be done at the Seller’s Private Insurance Security Warehouse immediately after the physical inspection of XX Metric Tons together with all documents listed and presented successfully.
The test tranche for SMELTING is accepted for 1.2MT to the Buyer’s appointed refinery location in Hong Kong. The 1.2MT will be secured with *Blocked Funds as is necessary).*1.5 BILLION USD
Where a refinery is contracted to test via smelting, the Blocked Funds requirement is necessary in total for the first shipment of (XX) Metric Tons under the Transaction Reference Number: to be confirmed in the SPA (acceptance of verbiage in Appendix D of the SPA) by Ledger-to-Ledger. Confirmation in case the test tranche is delivered to the Buyer’s appointed refinery for fresh assaying and inspection. This guarantees the first shipment to be sold and covers any damages during the test tranche during physical inspection. Blocked Funds guarantees payment will not be in default.
5. Physical inspection method will be mutually agreed based upon options:,
non-destructive chemical, spectrograph, smelting or fire assay. Visual inspection will be
used to verify the purity, weight, hallmark, age and serial numbers included in all legal
documents listed costs for inspection will be charged to the Buyer’s account.
The Seller’s security team will be present always. The Seller permits the smelting to be conducted by the Buyer’s nominated refinery within Hong Kong for the purposes of assaying and limited to not more than XXX Metric Tons.
The parties will acknowledge and accept either the submitted Assay Report (as per documents list) and/or a newly produced Assay Report by the nominated Refinery. Final signatures of the Buyer and the Seller will be required.