Certificate of Deposit (CD)

certificate deposit

DEFINITION

A certificate of deposit is a certificate issued by a bank to a person depositing money for a specified length of time at a specified rate of interest.  It is a short- or medium-term, interest-bearing, FDIC-insured debt instrument offered by banks and savings and loans.

CDs are low risk, low return investments, and are also known as “time deposits”, because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from three months to six years.  However, CDs offer higher rates of return than most comparable investments, in exchange for tying up invested money for the duration of the certificate’s maturity. Money removed before maturity is subject to a penalty.

WE OFFER ASSISTANCE:

Leasing a CD is fairly simple as funds are not paid up front.

We can put a CD for you on DTCC only. Once the instrument is placed on screen and verified by your banker, the placement fee is to be paid within 48 hours. The instrument will be issued for a term of one year and one day with a leasing fee of 10% which will be due within 60 days after placement of the instrument on screen.

Our CD’s as specified and agreed upon by contract, are assigned in an individual or corporate name, and are primarily used for provision of a project, commercial endeavours, and balance sheet and credit enhancement. All instruments are AAA rated from Top World Banks.

The CD’s can be used for collateral purposes and allow lending.

As Borrower, you will be assigned a quoted Bank Instrument from a major international bank, assigned directly in your name. Your instrument is placed on DTC with a one year and one day timetable.

Transactions are from a minimum amount of 10,000,000.00 USD or EUR.

The Bank Instrument must be returned unencumbered to the Lender 15 days prior to its maturity date or purchase it. It is possible to extend the lending period for another five years (yearly cost remains the one of first year) with 15 pre-advice days.

The CD’s are available on DTC and have bank to bank Telex (MT799 form) confirmation they are cash backed with depository receipt.

We provide CD’s in one year increments with low up front cost and structured payments.

Client gets DTC information to verify the instrument when set up fee is escrowed.

A set up fee gets the CD started and live for the first 60 days. Payment for the balance of the annual fee of approximately 10 % is due within 60 days.

Lease CD Procedures

1) Provide proof of funds in the amount of the placement fee based and submit along with CIS and Passport.
2) After due diligence, you will go into contract stipulating terms and conditions and also state the name of the beneficiary that is to be listed.
3) After contract, CD will be placed on DTC screen.
4) After client’s banker, trader or lender has authenticated and verified the instrument, the client has within 48 hours to pay placement fee. During this period, the CD is NOT to be blocked
5) After placement fee has been successfully paid, you then have within 60 days to pay leasing fee.

Contact Us about Lines of Credit which we can help arrange against CD at approximately 80% LTV.