🔐 SECURE LEASE AND MONETIZATION PROGRAMS

1. What Is a Secure Lease?

A secure lease is a legally binding lease agreement that has:

• A long-term duration (10–30 years).
• A creditworthy tenant (e.g government, banks, large corporations)
• A predictable and enforceable income stream.

2. What Is Lease Monetization?

Lease monetization is converting the future lease income into present-day capital. It involves leveraging the lease to access funds through:

• Collateral-based loans
• Sale or assignment of receivables
• Issuance and monetization of financial instruments (e.g SBLC, BG)

3. How Secure Lease Monetization Programs Work

🔄 Standard Process Flow:

1. Asset Holder. owns property leased to a prime tenant. (e.g Government).
2. Lease is packaged as collateral.
3. A bank. or financial institution, issues an instrument. (e.g SBLC).
4. A monetizer or investor provides capital in exchange for the instrument.
5. The cash proceeds are paid to the asset holder or used in an investment program.

4. Instruments Typically Used

• Standby Letter of Credit (SBLC)
• Bank Guarantee (BG)
• Promissory Notes or Lease Bonds

These instruments must be bank-issued, verifiable, and often MT760-transmitted via SWIFT for authenticity.

5. Requirements for Participation

• Legally valid, long-term lease agreement.
• Asset ownership proof.
• Lease appraisal and valuation.
• Clear title and legal compliance.

6. Potential Applications

• Raising capital for expansion or reinvestment.
• Infrastructure and real estate project financing.
• Entry into Private Placement Programs (PPPs).

7. Benefits

• Unlocks capital without selling the asset.
• Can be structured as non-recourse financing.
• Preserves long-term income rights.

8. Risks & Red Flags

• High scam risk in this space — many fraudulent operators.
• Avoid any program that:
  • Demands high upfront fees without transparency.
  • Promises guaranteed high returns.
  • Lacks a regulated financial institution or proof of funds.
• Always require:
  • Third-party due diligence
  • Independent legal and financial review

✅ Due Diligence Checklist:

🔄 Example Structure:

1. A company owns a building leased to the U.S. government for 20 years.
2. They use the lease contract as security.
3. A bank or monetizer issues a Standby Letter of Credit (SBLC) based on the lease.
4. That SBLC is monetized into cash, which the owner can use.
5. Optionally, the monetized funds enter a PPP for returns.

✅ Key Features of Secure Lease Monetization Programs:

• Based on verified and rated lease contracts.
• Requires due diligence, appraisal, and underwriting.
• Can be non-recourse, meaning the borrower isn’t personally liable.
• Often done off-market and via private financial channels.

⚠️ Risks and Red Flags:

• Many scams exist claiming to offer “secure lease monetization.”
• Legitimate programs require:
  • Real leases with creditworthy tenants.
  • Proof of ownership.
  • Legal and financial review.
• Be cautious of:
  • Promises of “guaranteed returns.”
  • Upfront fees without clear structure.
  • Unregulated intermediaries.