The following information is designed for potential lenders to become more familiar with our Courtesy Deposit Program. Many of the particulars are applicable to all FDIC, NCUSIF, CDIC or SPIC institutions, some are not. Non-USA financial Institutions should contact us directly for unique procedural details.
The Courtesy Deposit Program is very simple. We arrange deposits to be made at financial institutions worldwide, specifically Jumbo CD's ($100,000). These deposits can not be encumbered, pledged, put in jeopardy, used as collateralized any loan, or used to guarantee any loan situation. No funds can or will be deposited into any financial institution client's account. Only the institution will have access to the funds used to purchase the Jumbo CD's at the institution.
Our Courtesy Deposits are not considerd "Brokered Deposits" because the financial institution does not pay for them. They do however act like "Brokered Deposits". Our Courtesy Deposits are ERISA compliant funds and easily verifiable. All deposits remain at your financial institution for 12 months. The Courtsy Deposits can be renewed for an additional 12 month periods if our clients instruct us to do so.
We advise our clients to attach our Courtesy Deposits to thier financing packages in increments of one and half times the dollar amount they are seeking. However, we have worked with some lenders that require the borrower to arrange eight to ten times the amount of financing they are seeking in Courtesy Deposits. The dealing are always negotiated between our client and the financial institution. obviously the negotiated terms must work for our client and their project.
Once our client has engaged us we communicate via telephone directly with the financial institution's representative familiar with the client's transaction. We confirm the non-encumbering conditions as well as interest rate we will earn on the Courtesy Deposits. Then we move the Courtesy Deposits into the financial institution via wire transfer typically in $100,000 increments until the total amount is sent. At the completion of all wire transfers High Rises LLC and/or its affiliates will send a letter, via fax and regular mail to the financial institution representative indentifying each Courtesy Deposit made and stating within the letter "The courtesy Deposits were arranged by High Rises, LLC and or its affiliates at the request of our "clients name"