Bank deposit receipt (SKR) is a form of guarantee in the event of insolvency of the buyer. The principal (the seller) gives to another person (the buyer) the goods or other assets under the trust receipt, reserving the right to property. Trust receipt is usually a commitment of the principal to insure the goods in favor of the principal and the obligation in the event of sale of the goods to a third party to transfer the proceeds to the principal.
With the help of bank deposit receipt, sometimes called as a certificate of custody, confirmed in the bank for safe custody of any material assets (jewelry, gold, cash). The bank may also confirm the presence of values by SWIFT 799. In some cases, such as if the SKR in precious metals become banking tool for alternative financing of the projects as collateral.
SKR is not just a financial tool, but with SKR it is confirmed the presence of collateral in the bank vault. SKR Issuer accepts responsibility to be legally responsible guardian of wealth.
Examples of SKR, which can be monetized:
1.SKR – for works of art
2.SKR – for Gold and Precious Metals
3.SKR – for natural resources
4.SKR – for antiques
5.SKR - for certificated securities
Issuer SKR, in case if this bank is the owner of the asset (the bank only had assets) and, therefore, must return the asset of the owner on request.
Who can get SKR? Getting SKR is possible as for juridical as for individuals.
SKR owner can monetize this tool as SBLC, LC, BG and bonds and use the funds as an alternative source of funding for projects. Majority of the issued SKR can be confirmed via SWIFT however, some may require additional MT 760 simultaneously with the transfer of funds in the transaction.
SKR monetization is the process of converting the financial instrument into the instrument of financing. SKR monetization is possible only if the asset is free from other commitments. The next important aspect is the possibility of SWIFT MT 760 confirmation - it can provide all the banking institutions, which are connected to the SWIFT.
Term storage is usually a standard 1 year and 1 day, unless otherwise is agreed in the contract.
Issuance of guarantees and loans secured by SKR is often used to finance projects without collateral, in the event that you need to save confidentiality the source of funding.
The funding mechanism with using SKR is close to the mechanism of the loan back-to-back, when the loan can be granted by the bank of any organization poses bail of the deposit.
It is important to note that even with a warranty or guarantee, the borrower company must comply with the rules of loan taken in the global banking practice, as follows:
1. To be registered in the country, the level of business risk of which is a minimum, for example, the UK, Switzerland – that is in the same country where there are headquarters of the world's largest banks.
2. To have sufficient own paid-up capital and meet the general criteria of creditworthiness and ability to pay, taken at the bank.
3. To have business plan of using the tools developed in accordance with international standards.