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Real financing!

Phone in Moscow: +7 (495)720 02 82

Headquarters:Moscow-city, Testovskaya str 10, BC North tower, office 256

MAIN DEFNITIONS
     • COLLATERAL – type of security where the creditor (security holder) has the right, if the debtor fails to fulfill its obligation, to receive satisfaction prior to other creditors at the expense of the pledged property of the person having such right (pledger).
     • PLEDGER – person owning  the collateral or possessing it for business use. The Pledger and the debtor may be different persons.
     • PLEDGOR – creditor under an obligation secured by such property or right.

TYPES OF SECURITY
       • Property security
             o Pledge of real estate and other fixed assets
             o Inventory
             o Liquid goods
             o Securities
             o Accounts receivable
             o Other assets (a certificate of a company’s pledged property and a list of property offered as security together with copies of title documents to be provided)
       • Pledge of future cash flows
       • Damages – an amount the debtor must pay to the creditor in case of failure to perform or inadequate performance of obligations
       • Surety – a guarantee of fulfillment of the debtor’s obligations by another person. Such other person may be a third company, owners or managers of the company (a guarantor’s letter of confirmation is to be provided; if the surety is a a third company, in addition to the letter its financial reports are to be provided. )
       • Bank guarantee (counter-guarantee) – a bank’s guarantee of fulfillment of the debtor’s obligations
       • Guarantee of an insurance company
       • Confirmed guarantees of state and municipal funds having limits with authorized banks
       • Guarantee of reverse purchase of property by the supplier
       • Bills of exchange issued by acceptable banks, major budget organizations and companies avalized by reliable Russian banks
       • Funds for coverage of lease payment guarantees
       • Forward contracts for supply of finished goods where the volume is not less than and the price is not more than those determined at the time of entering into relevant contracts, confirmed by authorized banks
       • Export proceeds under export contracts in authorized banks
       • Target accounts opened with banks to cover lease payment guarantees (funds on these accounts are released as debts under lease agreements are repaid or partially credited as payments)
       • Non-property security
             o Company’s reputation as a whole
             o Reputation in relations with the bank
             o Company’s competitive advantages
             o Recognizable trade mark
             o Implemented high technologies
             o Quality of labor organization
             o Competitive products
             o Company development or separate project documents (for example, investment project business plans).
The most common type of security in the RF is property security: real estate, equipment, securities, deposits, goods in warehouse and in stock.

SECURITY
Pursuant to requirements of the  Central Bank of the RF loans are subdivided into:
       • Secured credits – credits, where security is provided in accordance with the requirements.
       • Under-secured credits – credits where security does not meet at least one of the determined requirements.
       • Unsecured credits – credits where there is no security or security does not meet established requirements.
Main requirements to collateral
       • The market value of security should be sufficient to compensate to the bank the principal, interest and possible costs related to sale of security (min 130%).
       • Legal documents (the borrower’s right to security) should be executed in such a way that the time required for sale of security in case of failure to repay the loan does not exceed 150 days.
       • Security should be liquid, and the bank may require the client to provide information about possible ways of selling security.
Regulatory acts regulating security relations – articles 334 – 358 of the CC of the RF (Law of the RF dated May 29, 1992 2872-1 “On security”.