How to Obtain a Structured Collateral Loan

Lender carefully reviews all submitted projects, through our underwriting and due diligence
departments, to determine whether or not they are likely to qualify for a loan from a
financial institution using CD collateral. If our experts determine that a project can
realistically be financed, Lender will issue a Collateral Commitment Contract, that the
Borrower can show to a funding bank to present the type of collateral offered.
This Commitment Contract assures you that we are committed to provide collateral backing
for your loan once we receive a Term Sheet, agreeing to the terms of the CD Program
structure, from a lending bank or financial institution. This commitment does NOT guarantee
that any particular bank or financial institution will accept your project. Lenderis a collateral
provider corporation, functioning as an “association” of Depositors. It is the Borrower's
responsibility to ensure that their project is professionally prepared to comply with
requirements and criteria.
In most cases, in order to qualify for a loan from a financial institution using the CD collateral
provided, the Borrower must have a current positive cash flow OR be able to provide a
strong level of documentary evidence demonstrating current preparedness to fully
implement the project and the ability to effectively employ the funds provided to generate
adequate cash flow, to service the “interest only” payments on the Loan against the CD
collateral. It is strongly recommended that applicant companies hire a qualified international
financing firm and law firm for expert preparation of effective documentary evidence to
qualify for the loan.
Closing Process for Structured Collateral Loan
After Lender issues a signed, legally valid Collateral Commitment Contract for the project,
and the Borrower also signs the contract, the closing process for the resulting loan
commonly consists of the steps summarized below. (In the majority of cases, the Lending
Bank will also simultaneously function as the Issuing Bank for the CD, such that both roles
are performed by only one bank. For technical accuracy and functional clarity, however, both
terms are used here separately as appropriate.)
1. Lending Bank issues a formal letter of Conditional Approval of the project and intent to finance, in
the form of a “Term Sheet” agreeing to certain specifications of the CD collateral instrument.
Appointed attorney contacts the Lending Bank to confirm the validity of the Conditional Approval.

2. MMI then selects a Depositor who has recently requested to participate in a collateral
enhancement transaction, and facilitates the direct introduction of the Depositor to the Issuing
Bank.

3. Upon the instruction of the Lender, Depositor provides proof of funds directly to Issuing Bank, and
declares the history of the deposit funds and other disclosures required for legal due diligence by
the Issuing Bank.
4. Depositor agrees with Issuing Bank on the mechanics of the collateral instrument and assignment
and registration of its principal and interest certificates.
5. Depositor opens an account at Issuing Bank and deposits the CD purchase funds.
6. Lending Bank calls for a Closing of the financing transaction.
7. Depositor purchases the CD from Lending Bank or provides an “A” rated CD from Issuing Bank
subject to verification by Lending Bank
8. CD principal certificate is pledged to Lending Bank to cover the principal of the Loan.

9. Borrower MUST instruct Lending Bank to transfer closing costs for procurement of collateral to
MMI, and to return the repayment directly to Depositor, at the moment of closing.
10. Issuing / Lending Bank must assign the CD interest coupons to Depositor at the moment of
closing.
11. CD principal certificate becomes pledged property of the Lending Bank to liquidate upon maturity
as full repayment for the principal of the Loan.
It is strongly recommended that Borrower companies hire a qualified international
law firm with experience in structured financing transactions, to represent Borrower
for effective structuring of the loan and implementation of the necessary closing documents.