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Some factual information on Bank Guarantees, Medium Term Notes, and gold transactions, etc.
There is no such thing as a "Mandate".
Something can be mandated, but not someone.
The only way that a Corporation can pass authority to someone (regardless if they are an Officer of the Corporation,
or any outsider), is via a duly issued and authorized Corporate Resolution, signed by the Secretary of the Board and containing
the seal of the Corporation, or the signature of a Notary Public.
So, when someone tells you that they are the client/Seller's "Mandate", all this really means is that they
are the introducer/intermediary closest to the client/Seller, and they have no or any authority to do anything.
Banks operating in the Western Banking World do not perform "undertakings" for their depositors/clients, as
this would be a violation of Banking rules and regulations.
Banks are not going to endorse the financial obligations of the client.
Banks do not endorse Fee Agreements or Payment Orders or guarantee the safe return on an instrument/asset that is the
subject of hypothecation.
Banks are only allowed to act upon the owned assets of their depositors, and only based on the assets that are in that
client's account at that bank.
United States Banks do NOT issue MTNs or BGs.
United States Banks cannot send or receive a BG.
United States Banks do NOT issue SWIFT MT 760 against Cash Funds.
Securities Houses/Firms are Members of Euroclear and DTCC
Banks and Securities Houses do NOT contract to sell instruments.
The terms "FED Program", "FED Trader", "FED ID Numbers", "FED Pool", and "Licensed
Trader" are all just intermediary/introducer-created terms, and have no meaning and none of these entities exist.
The following assets are NOT assets for hypothecation, unless the client has already obtained a Financial Guarantee Bond,
from a "A" Rated, or better insurance company:
Precious Metals Concentrates
Uncut Stones
Timber
In-Ground Mines: - Copper, Coal, Oil and Gas
Real Estate
Land
Non-Rated Bonds, etc.
Certain Bonds and Stocks are acceptable for hypothecation, but only if they are on Euroclear and are rated by one of the
acceptable Rating Services, (Moody's, Standard & Poor Fitch).
Just because the Term Sheet says that they are rated, does not mean that they are rated.We need to see the Bond on Moody's/Standard
& Poor’s, and then we know that it is rated
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