801-878-9946 What is a Verification of Deposit (VOD)?
Is the Proof of Funds program considered renting assets or creating a sub-account for the client?
How is it the consumer can get 6 months of statements if they just subscribed to the money market fund?
What is a SWIFT MT999 confirmation?
What is a SWIFT MT799 confirmation?
What is a SWIFT MT760 confirmation?
Can other types of SWIFT messages be utilized with our POF accounts?
What are the minimum and maximum amounts available?
How long can the account can be kept open for Proof of Funds uses?
What happens to the Underwriting Fee if the account is not opened?
How is my Arrangement Fee protected?
Can I pay the Arrangement Fee after the account has been opened?
What is a Verification of Deposit (VOD)?
It is a document requested by a lender and signed by a borrower's financial institution that verifies the balances of the borrower's financial accounts.
View VOD Example
Is the Proof of Funds program considered renting assets or creating a sub-account for the client?
No, it is neither. The client’s interest in the hedge fund’s assets from which the account is opened is perfected through the subscription of restricted, redeemable preferred stock. The money market account that is opened is then secured through a note that is retired when the account is closed and the stock is redeemed.
How is it the client can get 6 months of statements if they just subscribed to the money market fund?
The subscription allows perfection of the client’s interest in the assets for the legal allowable accrual period, which is six (6) months.
What does the SWIFT MT999 option provide?
An account with the SWIFT MT999 capability allows bank-to-bank SWIFT electronic verification for Proof of Funds in the account, with no further comment. This is a more appropriate SWIFT message for a simple Proof of Funds communication than a SWIFT MT799, because it is part of the Common Group of SWIFT formats providing a General Free Format for SWIFT messaging There is a $10 million minimum account size for this SWIFT wire communication. Additional costs apply.
View MT999 Example
What does the SWIFT MT799 option provide?
An account with the SWIFT MT799 capability allows bank-to-bank SWIFT electronic verification for Proof of Funds in the account, with no further comment. Normally, a SWIFT MT799 is used as a prelude to a follow-up SWIFT message such as an MT760 because they are both part of the Category 7 Documentary Credits and Guarantees SWIFT format category. There is a $10 million minimum account size for this SWIFT wire communication. Additional costs apply.
View MT799 Example
What does the SWIFT MT760 option provide?
An account with the SWIFT MT760 capability allows bank-to-bank SWIFT electronic verification of the account, and will include a blocked funds provision. There is no other bank guarantee provision available in the SWIFT instructions. $100 million minimum account size.
View MT760 Example
Can other types of SWIFT messages be utilized with our POF accounts?
No. Only SWIFT MT999, MT799 and MT760 message formats con be used with the POF account we arrange in a domestic or European bank. Additional costs apply dependent upon the message type.
What are the minimum and maximum amounts available?
The minimum account size is $ 100,000 and the maximum account size is $2 billion. Larger accounts can be syndicated up to $5 billion.
How long can the account can be kept open for Proof of Funds uses?
We have 30, 60 and 90 day terms available. The account can be renewed for additional terms upon mutual agreement, often at discounted rates.
What happens to the Underwriting Fee if the account is not opened?
If, in the unlikely event, we fail to open the Proof of Funds account under the provisions of the Term Sheet and the Principal Agreement, 100% of the fee is promptly refunded.
How is my Arrangement Fee protected?
The Arrangement Fee is deposited in a Trust Account with a licensed third-party Escrow Agent and the Fee is not released until the Bank confirms the account has been opened. In the unlikely event the account is not opened, the Arrangement Fee is returned by the Escrow Agent.
Can I pay the Arrangement Fee after the account has been opened?
No, the Arrangement Fee must be placed in an Escrow Trust Account before the Proof of Funds account is opened due to the significant costs incurred to open the account.
