Changes announced by LBMA

The London Bullion Market Association (LMBA) founded in the 17th century and
today the international market place for fixing the daily prices of gold and other
precious metals have agreed ne procedures for !uying"selling gold# The ne
procedures dispense ith unnecessary paperork on $nternet
%eal &eller's of gold ill !e fully aare of ne procedures# This notice is( therefore)
for the !enefit Mandates) *acilitators and $ntermediaries not conversant ith the
changes#
+ithout acceptance of one of the to procedures no gold can) or ill) !e sold in the
holesale market place# $f the method of selling gold does not match either of these
to procedures no transaction can !e consummated##
PROCESS DETAIL BANK-TO-BANK PROCEDURES
This is a extract of procedures comprising an approved five page &ales , -urchase
Agreement for an ./ff Market 0 -rivate Treaty1 contract to Buy and &ell 2old#
1# &eller and Buyer sign this &ales , -urchase Agreement (&-A) in 3 (*our) original
signed editions# -assports of Buyer and &eller to !e attached# To sets have signatures
notari4ed#
5# Buyer and &eller lodge &-A ith their respective !anks#
6# &eller ill instruct &eller's !ank to issue ritten invitation to Buyer to attend a
Ta!le Top Meeting (TTM) in &eller's Bank ith Buyer's Bank /fficer# $nvitation should
include name) position and office num!er of &eller's Bank /fficer) at date and time to !e
mutually agreed#
3# At TTM) &eller ill sho original &afe 7eeping %eceipt (&7%) to Buyer and Buyer's
Bank /fficer and give Buyer authority to verify ith Bonded +arehouse that issued
&7%#
8# At TTM and immediately after -aragraph 3) Buyer's Bank /fficer) on !ehalf of
Buyer) confirm availa!ility of funds to purchase and pay for product offered for sale and
descri!ed in &7%#
9# At TTM and immediately after positive verification of &eller's &7%) Buyer's Bank
/fficer shall issue BA:7 -;%<=A&> /%?>% in an e@uivalent amount to market
valueAAAA#metric tonnes of gold to &eller's Bank in favour of &eller) or as mutually
agreed#
7# At the TTM) or as possi!le thereafter) &eller shall invite Buyer to visit &eller's
Bonded +arehouse in =ong 7ong to verify &7%) accompanying documents and inspect
commodity#
B# +hen -aragraph 7 is completed) Buyer shall invite &eller into Buyer's Bank to
conclude transaction#
C# At meeting in Buyer's Bank) &eller shall transfer onership of AAA#metric tonnes
of commodity ith all related documentation to Buyer in exchange for full payment !y
ledgerDtoDledger of purchase price to &eller's account at Buyer's Bank#
1E# /n same day) Buyer shall instruct Buyer's Bank to immediately transfer
commissions to designated accounts of consultants and intermediaries#
11# ;pon transfer of title and onership !y &eller to Buyer) Buyer ill take delivery of
gold at Bonded +arehouse in =ong 7ong#
15# *urther deliveries of si4e and fre@uency of lifts to !e folloed in accordance ith
the agreed schedule and pursuant to the procedures as set forth herein !eteen Buyer
and &eller until commodity is exhausted#
16# The complete contract @uantity shall !e completed ithin 1 (one) month from
date of first lift#
PROCESS DETAIL FOR ARE!OUSE PROCEDURES
1# &eller and Buyer sign this &ales , -urchase Agreement (&-A) in 3 (four) original
signed documents in a secure location in =ong 7ong) in &eller's !ank or &eller's Layers
/ffice or as mutually agreed) ith a colour copy of the &eller's and Buyer's passports)
each signed !y the respective parties) attached to each of the signed &ales , -urchase
Agreements##
5# +ithin to !anking days after signing &-A) &eller ill issue a ritten invitation to
Buyer to attend Ta!le Top Meeting (TTM) in !onded arehouse in =ong 7ong here
AA## metric tonnes of gold is stored) included in the invitation ill !e the name) title)
telephone num!er and eDmail address of the +arehouse /fficer) the date and time to !e
mutually agreed ithin the next three !anking days# Buyer's Bank /fficer ill contact
+arehouse /fficer and confirm acceptance of Buyer's team including Buyer's Bullion
/fficer to attend TTM in !onded arehouse and confirm funds are availa!le for this
transaction#
6# At TTM) &eller and"or +arehouse /fficer ill sho original safekeeping receipt to
Buyer and his Bullion /fficer for AA# metric tonnes (AA# =undred Metric Tonnes)) and
give the Buyer and his Bullion /fficer authority to verify the &afe 7eeping %eceipt (&7%)
and accompanying documents and inspect the commodity in the arehouse ith the
+arehouse /fficer#
3# At TTM) immediately after satisfaction of -aragraph *our a!ove) the Buyer's
Bullion /fficer) on !ehalf of the Buyer) ill commit funds to purchase and pay for AA##
metric tonnes (AA =undred Metric Tonnes) as descri!ed in &7%) to &eller) the &eller's
+arehouse /fficer and"or &eller's Bank /fficer) at the choice of &eller#
8# +hen -aragraph *our is completed Buyer shall invite &eller to attend a meeting at
Buyer's !ank to conclude the transaction ithin the next !anking day after completion
of TTM#
9# At the meeting descri!ed in -aragraph *ive a!ove) &eller shall transfer onership
of AAA metric tonnes (AAA =undred Metric Tonnes) of commodity ith all
accompanying documentations to Buyer in exchange for full payment of purchase price
less agreed discount to &eller's account at Buyer's Bank#
7# ;pon transfer of title and onership !y &eller to Buyer) Buyer shall take delivery
of A; Metal at !onded arehouse in =ong 7ong#
B# *urther deliveries of si4e and fre@uency of lifts to !e folloed in accordance ith
the agreed schedule and pursuant to procedures as set forth herein !eteen Buyer and
&eller until commodity is fully exhausted#
C# <omplete contract @uantity shall !e completed ithin 1 (/ne month) from date of
first lift#