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Key Business Cannons,
Tips
& Protocols |
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We at Life Enriched have a
spent hundreds of hours studying the ICC's Business
Cannons library and have selected the following KEY Business Cannons,
Business Tips and Businesss Protocols
applicable to the processes we utilize. The
following is a brief summary of the key 'Protocol' we at Life
Enriched utilize to help projects acquire the funding they need.
Please take the time to read through it, so you have a
better understanding about our 'Private Stimulus Program'.
SUMMARY
BUILDING BANK CASH ASSETS BY SERVICING BORROWERS’ NEEDS:
The
purpose of this summary is to assist banks in understanding a simple,
privately backed process that is designed to boost the bank’s
capital position, dramatically increase profits and vigorously
stimulate the economy.
Regardless
of the bank’s size or current financial status, this process can
be implemented quickly and to a degree pre-determined by the bank
itself. This process can literally take the smallest bank in the
country and turn it into the largest in terms of asset size. It
can be used in support of community projects, non-profit organizations,
business expansion or simply to remove all non-performing assets from
the bank’s books in as little as one day, at 100% of the balance
owed.
The process is designed to allow the bank:
1.
To provide loans to borrowers equal to cash deposited with them or with
institutions they designate, further collateralized to at least 240% of
the loan amount.
2.
To immediately receive, for each loan made, an equal value amount of
earned income that can be placed on the bank’s books as a cash
asset.
3. To provide the bank and borrowers safety through the self-liquidation of loans made using this process.
4.
To increase the number of borrowers and the positive impact of the bank
in its community by enabling borrowers with as little as $10,000 USD in
available funds (which can be arranged for them) to engage in
this process.
To
begin, the bank would negotiate with a law firm an agreement to provide
future services to the law firm or one of its affiliates. Every
aspect is explained and negotiated up front. Throughout the
process and the subsequent term of the services agreement the bank
remains in complete control of all funds. Plainly stated, funds
accumulated never leave the bank.
Once
the terms have been negotiated, a cash deposit is made at the bank of
at least $10,000 and added collateral is presented in the form of a
promissory note of 240% or more of the loan amount, which is supported
by verifiable, unencumbered US Treasurys. The bank then loans the
borrower an amount equal to the cash deposit.
Through
separate contractual agreement, the borrower uses the loan proceeds to
pay the law firm for services. The law firm uses these earnings
to acquire a CD from the bank, then the CD is irrevocably assigned to
the bank as payment for services. Thus, the bank’s capital
position is increased by virtue of earned income for services.
This
process is repeated with the loan amount doubled each time, each always
supported by 240% supplemental collateral, until the final loan and
equivalent capitalization amount is reached. As this is all
pre-negotiated, the process itself can be accomplished in one day as
the individual cycles are simply procedural accounting entries.
At the end of the day, the bank has issued 100% safe,
fully-collateralized loans and booked an equivalent amount as earned
income.
Upon
the final transaction cycle being completed, the loan proceeds are
still lodged at the bank and remain there, as do the CDs that have been
irrevocably assigned to the bank. At this time per the
pre-negotiated services contract, the bank is presented with
non-depletion commerce transactions which it may or may not choose to
participate in as presented. Again, the bank is in complete
control of the process and funds never leave the bank.
Non-depletion
commerce is simply defined as transactions where pre-contracted buyers
and sellers are already in place for commodities, financial instruments
or other goods and services. Because the contracts are
pre-negotiated, funds are only used to show capacity and never need to
be spent to complete the transaction.
When
specific non-depletion commerce transactions are executed, profits
derived from each are split 50/50 between the bank and the law
firm. On the bank’s side, 10% of profits are always booked
by the bank as earned income, while 40% are used to pay the principal
and interest of the final loan amount. After the loan has been
satisfied, the entire 50% to the bank is booked as earned income, thus
further increasing the bank’s profits and cash position.
From
the law firm’s side of the ledger, 10% goes into a legal fund to
pay attorneys and other fees and expenses. The remaining 40%
first is applied to fund the underlying project, whether it’s a
non-profit, business expansion, acquisition of non-performing assets,
etc. Once the project is fully funded, these profits are used in
support of other worthwhile projects as determined by the law firm.
Throughout
the entire process the bank’s profitability and capital position
is always increasing. This allows the bank to conduct more
mainstream bank business, thereby benefiting its community and its
depositors through its strong financial standing.
We
look forward to working with banks across the country and around the
world to resolve the current financial crisis while working to prevent
future crises.
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