procedure | guidelines | compliance

Procedure and Guidelines

A Clear and Secure Path to Leasing Financial Instruments

Steps with a yellow background must be completed before the Call Option deadline.
Application Form
Lending Agreement
Call Option
Conditional Payment Leasing Fee
Due Diligence
(RWA Bank)

Assignment of the Bank Instrument
Structured, Compliant, and Transparent

At AOL INC. LTD, we provide corporate clients with a structured and institutionally compliant framework for leasing seasoned bank  instruments—specifically Bonds, Medium-Term Notes (MTNs)— or cash backed bank instrument - specifically BG or SBLC - for credit enhancement, balance sheet optimization, and project-based financial structuring.

To ensure maximum clarity and transparency, we have codified our operations within a standard procedure fully aligned with international financial law and ISO 15022 standards. For a complete overview of terms, drafts, and operational steps, we invite you to request our official document:
“Guidelines and Procedure to Borrow a Bank Instrument - Ver. 2025-1".

Initial Steps of the Procedure

The process begins when a prospective Borrower formally requests to lease a financial instrument of a specific face value—typically expressed in EUR or USD. Based on this request, AOL INC. LTD provides a list of Bonds and MTNs currently outstanding on the secondary market, selected from a pool of rated, seasoned instruments with available tranches matching the requested amount.

The client then reviews the availability and selects the instrument that best suits their financial or project needs.

The Application Form

Once the instrument has been selected, the Borrower completes and signs an Application Form, providing:

  • Corporate and legal identity
  • Authorized signatory documentation
  • Intended receiving and paying  banks details
  • Purpose and requested amount

This Application Form serves as the formal request necessary to proceed to the next step in the process.

Issuance of the Lending Agreement (GMSLA)

Upon receipt of the completed Application Form, AOL INC. LTD prepares and issues the Lending Agreement, also referred to as the Global Master Securities Lending Agreement (GMSLA).

This contract outlines the instrument details, the terms of the lease, the applicable leasing fee, and the Call Option fee—the latter being a refundable or deductible cost required to reserve the instrument on the secondary market.

The Call Option fee is not an upfront cost in the conventional sense: it is a recoverable operational expense, either:

  • deducted immediately from the payment of the leasing fee (within the 20-day period that follows), or
  • refunded in full upon successful completion of the assignment and payment process.

This ensures that the Borrower retains full economic control and does not incur net cost if the transaction is properly completed.

Validity and Non-Obligation Clauses

The Lending Agreement is not binding unless signed. If it is not signed within 30 calendar days, it automatically expires and is deemed null and void with no obligation for the Borrower.

Even if the Lending Agreement is signed, but the Call Option fee is not paid within 7 calendar days of signing, the agreement again becomes void without any penalty, legal exposure, or cost to the client.

This grace period provides the Borrower with full flexibility to finalize internal compliance or institutional readiness without incurring liabilities.
Protection and Transparency

This procedural design ensures that:

  • Clients have access to high-value financial instruments in a risk-controlled environment.
  • All pre-leasing expenses, including Call Option fees, are either deducted or fully refunded.
  • No agreement becomes operative unless both parties proceed to execution and funding.
  • Borrowers are under no obligation unless they sign and act upon the Lending Agreement.
Request the Full Procedure Document

The full “Guidelines and Procedure to Borrow a Bank Instrument – Rel. 2025-1” includes:

  • A step-by-step breakdown of the entire process
  • Draft templates for conditional leasing fee payment
  • Draft templates for MT-760 assignement
  • Explanations of escrow structures, pre-advice mechanisms, and optional performance bonds

To receive your personalized instrument availability list and begin the process, please contact us directly or through an authorized intermediary.

We are committed to providing a process that is clear, secure, fully contract-based, and in line with the expectations of institutional clients and regulated financial operators.

AOL INC. LTD – Financial Instruments Leasing. Structured. Compliant. Global.

Important Notice
AOL INC. LTD does not offer investment advice, trading services, or monetize leased instruments. Our activity is strictly limited to the leasing of financial instruments, and we operate under contractual frameworks only.