White Diamond Banking: Treasury & Contracts

Banking Study Hall Introduction

• This is the first banking study hall, focusing on in-depth topics to benefit the community
• The discussion primarily focuses on banking within White Diamond, covering current expenses, transactions, future purchases, and forward motion
• The session will cover how to clean up the non-master file, eliminate power of attorney, and rectify contracts
• Red Ruby recoupment and White Diamond banking overlap, combining speech from both in advanced study halls

Treasury Packet

• Participants should have their treasury packet in order to avoid confusion in the advanced discussions
• There are calls to action and team help to get through phone calls letters and discussions

Brenda's Explanation - Set Off

• Primary contract needs adjustment with the birth certificate to revert to grantor status, with the trust as the trustee
• Contracts are currently incorrect because of trustee actions, now corrected as the grantor and trust relationship is confirmed
• Companies act as trustees bound by trust indentures, tapping into private estates making the grantor the shareholders of their trust
• Dividends sent to shareholders are bills acting as uncertificated securities

Banker's Acceptance Concept

• Utility bill requires a banker's acceptance
• Verifies the amount is correct before sending back to the trustee acting as the paying agent
• Paying agent should apply the interest taken from the birth certificate account to the books, zeroing out the balance which completes the set off

Process Details

• Accepted utility bill should be sent to the company's paying agent, not where indicated on the bill
• Past payments require a recruitment process
• Current contracts are incorrect
• The grantor is incorrectly listed as the payer while the trustee is the manager with the liability

Notice of Novation

• A notice of novation covers the contract flip
• Secured party (proxy nickname) will accept bills
• The paying agent is provided with specific instructions

Trust Indentures Explained

• Companies operate under trust indentures; legal agreements between the bond issuer and the trustee, that outlines the rights to protect the bondholders or the beneficiaries
• Various roles such as transfer agent, registrar collaborate, with transfer agents handling security transfers and the registrar maintains ownership records
• The paying agent facilitates payment distribution

Edgar Database

• The SEC database, Edgar, contains securities information for United States businesses
• Search filings for relevant documents, focusing on trust indentures within annual reports
• Trust indenture outlines the agreement between the cable company (issuer, Comcast) and the Bank of New York (trustee)
• The goal is to identify the paying agent as the recipient of bills

Trust Indenture Example Comcast

• Instructions for paying agents detail responsibilities but may omit payment addresses
• Search for "paying agent" to find relevant reports
• The Bank of New York Mellon London Branch is the paying agent for Comcast
• Notices and demands can be sent to Comcast Corporation at 1500 Market Street, Pennsylvania, attention treasurer

Relevant Code - 15 USC

• Title 15 of the US Code defines indenture as any mortgage, deed of trust, or indenture
• Indenture security means any security issued under an indenture to be qualified i.e. is a security where a registration statement has been filed
• The term paying agent means every person, including any guarantor, obligated to pay the principal

Clarification - Interest & Utilities

• The utility company has already taken the money from our certificate of birth estate as credit
• Accept the coupon to apply that interest to the bill
• This is a double bookkeeping method that ensures all the books are balanced for the estate

Uniform Securitization Scheme

• Under the uniform securitization scheme banks cannot use their own capital to lend
• The grantor gives the bank the money, who in turn put it into their trust company to securitize
• The utilities operate similarly, with the consumer providing verbal consent and that is given to an indentured trustee and it is securitized
• Correct communication with the paying agent allows a shift to quarterly billing
• The estate pays their interest out of that state

Bankers Acceptance

• Reiterate what you said in the trust Agreement
• Accept with proxy stamp and approved amount
• Copy of bill is required
• If there is a coupon this should be done in both sections
• Should be sent to the paying agent

Obligation Questioned

• Auto and homeowner's insurance are generally considered an obligation
• This is questioned
• Obligation if there is financing
• Not if owned outright
• A bond can be written

Principal Clarification

• By proxy name stamp, by our agent signature, for the principal BC name and number stated in the CSA agreement and entitlement order

Nominated Person

• Discussed to have the bank as the trustee, or proxy as trustee to the Bank, which would be on the certificate of trust, flip the power of attorney with the FDIC
• Nominating Person is what they want you to use with the bank to set up the bank account to dig down what a nominee

Payment Discussion

• UCC 3 dash covers payment information
• 602 talks about what payments are
• 603 is tender of payment

Legal Name Clarification

• Discovered that the bursar number doesn't have to be added to the bills accepted for interest because utilities go straight to the state
• However, a non-variation is necessary for the paying agent informing the acceptance

Vocabulary List Location

• Vocabulary is available for both red ruby and white diamond members
• Members of the group confirmed the helpfulness of the documents and information