The Sovereign Program - Placing Funds/Instruments Under Bank Adminstrative Hold

We have received a number of requests for additional information regarding the Program's "administrative hold" feature. It's not surprising. After all, trading against cash funds/instruments placed under administrative hold is a novel procedure. Something clients (and intermediaries) may not have heard of before - let alone have any familiarity with. At least, not in the context of private placement opportunities. Recall that the Sovereign Program is a high-ranking Trade Program that operates at a much higher level than conventional trade programs. There is no Trade Group! Clients are not required to move their assets (cash funds/instruments). The client's assets are not blocked. No credit lines are raised against them. All clients are required to do is instruct their bank to place their assets on "administrative hold" for the term of the Program. This "administrative hold" provision, it should be said, is another of the unique and pioneering features of the Sovereign Program. Just one more exciting attribute of this outstanding private placement opportunity. And make no mistake about it: We are the only ones on the planet able to trade against assets placed on administrative hold. And the procedure - well, it is simplicity itself! Here's what you need to know: 1) After contracts are executed, the client instructs his bank to place his funds/instruments under bank "administrative hold" for a period of one (1) year and one (1) month and to confirm the same to the Program Bank via SWIFT. How the administrative hold is arranged is up to the client's bank. The client and his bank officer can work that out together. Frankly, what they do - and how they do it - makes no difference to us. And is really none of our concern. Typically, though, the client's bank just puts a "hold" against the client's account on their internal bank screen, which means the client is unable to withdraw his funds/instruments from his account without clearing it first with the bank officer in charge. It is just that simple! 2) Once the placement of the clients funds/instruments under administrative hold is properly verified to the Program Bank, the job is done. That's it. We don't contact the client's bank at all; there is no on-going verification, "pinging" of accounts, phone calls/faxes to the bank - or anything like that. 3) We do not take control of the client's account in any way. The client's assets are not blocked. We do not arrange credit lines against the client's assets. All that happens is the client's bank places the client's assets under administrative hold as described above. We then trade against the bank administrative hold. 4) While the client's funds/instruments are under bank administrative hold, the client cannot use his funds/instruments for any purpose. The client, though, prior to putting his funds/instruments on administrative hold, may purchase a Certificate of Deposit or other interest-bearing instrument. And if he does so, the client will receive interest payments, as normal, during the period of the Program. 5) The client can cancel the administrative hold at any time - and for any reason. Or for no reason at all. The client simply instructs his bank to release his cash funds/instruments; his bank will then withdraw the administrative hold on his account. Takes five minutes. The client does not require our permission or approval to do so. In fact, there is no requirement that the client even notify the Program! The client's actions, of course, though, would be in violation of the contract and would operate to terminate the client's participation in the Program. ====