An SMA allows you to monitor a loan with physical raw materials as collateral. This is a tripartite agreement between you (the Product Owner/Borrowing Party), FABER (the Collateral Manager) and your credit institution (The Banks). You can get stock monitoring agreement drafts by calling us directly/emailing. As part of a CMA, FABER acts as an instructor/inspector of your goods until you meet the requirements of the financial institution. We control the delivery of your goods to our website and the final sale/export in accordance with the terms and instructions of the contract. Unlike a DMA, the inspector does not take physical possession or control of the goods and is not responsible for their receipt, storage or safety, nor does it play an active role in their release. However, the inspector monitors the receipt, release and shipment of inventory, compares physical inventory to storage documents, and provides the lender with inventory reports according to an agreed schedule. 6) Storage of financed goods: the goods must be separated and labelled on behalf of the lender. Where segregation is not possible, identification measures should be put in place to ensure that the same products are not financed by several banks.
Initial documentation and records of the storage facility should be compared with physical inventory to ensure that it is authentic and compliant in terms of quantity and storage location. In addition, it would be customary for the borrower to insure the goods against damage or theft and designate the lender as the beneficiary of the losses under the policy. A CMA is a bailout contract and is usually concluded between the borrower, the lender and the inspector (or « collateral manager »). The borrower, as the original lessor of the goods, mortgages the goods to the collateral manager, and the collateral manager acknowledges, as baileee, the transfer of ownership of the goods to the lender (« attornment ») and agrees to hold the goods on behalf of the lender, in accordance with the terms of the CMA. Attornment is essential to ensure that the lender has good security. 2. Inventory control – periodic or on-demand checks An ADM is an agreement between the borrower, the lender and the audit firm, under which the inspector provides monitoring services regarding the goods subject to the ADM. They are often used when a borrower holds the financed inventory on its own premises.
Faber Stock Monitoring Services is a valuable and reliable tool for managing and enabling transactions worldwide. Quantitative and essential assessments for financing fertilizer trade and are effective methods of risk reduction. SMAs are typically used in warehouses already in depot, such as customs warehouses, customs warehouses and Barrower`s Premises warehouses. In cases where the SMAs apply to those who are already on deposit, banks may credit the depositor by requiring FABER`s SMA reports (daily, weekly, etc.) from FABER magazine. In accordance with the Bank`s instructions, FABER visually confirms the presence of large storage quantities according to the dimensions of the storage piles and the congestion factor and/or unit storage quantities, and the theoretical quantities by weight and/or grouped are determined according to the number of beams and the theoretical weight of the part. As part of a stock monitoring agreement (SMA), an inspection entity monitors the stock situation and provides SMA counterparties with daily, weekly or monthly outstanding reports. The difference between SMA and CMA lies in the fact that the associated storage is maintained regularly under faber`s SMA Control / Inspection / Investigation, the duration of which is identified by The Banks. ADM systems are preferred primarily because of the ease of process management and low cost. FABER SMA Daily (Or whatever Duration Required) reports are supported and accompanied by visual images and numerical calculations that reflect the condition of the stored goods. When monitoring stocks, you need to observe the movement, care and condition of traded commodities, wherever they are in the world.
