An investor wanting to monetize a hard asset and/or take it into trade must clearly understand and focus on the fact that a trader’s credit lines are not triggered by an Investor’s asset(s) itself. What actually triggers a trader’s credit line is the blocking messaging coming from the Investor’s bank which guarantees (with full banking responsibility) the asset blocking towards the monetization and/or trading bank.

It is not uncommon that a bank is unwilling to assume full responsibility for the securitization of a hard asset that the bank lacks the facilities to reasonably assign a value on the asset. In these situations…the solution is often as simple as obtaining a policy of underwriting that securitizes the assets in order for the bank to stand behind the assets with full banking responsibility. This insurance policy/underwriting contract is also known as an “insurance wrap”. The bank can then stand behind the underwriting/wrap towards the monetization and/or trading bank(s). It’s that simple.

The bottom line is that you need a bank standing behind you, your assets, and any other supporting parties (such as underwriters) …with full banking responsibility. All parties and paperwork have to be professionally synchronized.


  1. Talk to your bank that will be blocking the asset towards a monetization bank. Explore why and/or why not your bank will recognize your assets in regards to the bank standing behind the value of your assets based on known industry respected values.
  2. Knowledge of this current state of the relationship with the custodial and/or blocking banks is critical at this stage to move anything to the next level most efficiently.
  3. If your bank is unwilling to stand behind the desired value…see what underwriting verbiage your bank would be willing to accept so the bank can stand behind the underwriter’s insurance policy rather than standing behind the asset itself.
  4. Contact an underwriter and explain the requirements of the bank. Obtain an invoice for payment from the underwriter that meets the requirements of your bank. Some monetizers can accomodate the payment of the wrap as long as the underwriter has confirmed the grace period/delayed-involcing in writing.
  5. Take the invoice and proposed policy to your bank for approval and confirmation that the bank is ready to stand behind the underwriting as per requirements of the tradegroup for that particular bank.
  6. Arrange payment(s) for any necessary underwriting.


The quality of a compliance package is the key issue and critical factor in achieving successful monetization at the highest LTV.



  1. Copies of proof of ownership of asset(s).
  2. Copies of any paperwork that supports the asset’s authenticity and value such as appraisals, attestations, receipts, and/or other reports.
  3. Any safe-keeping.receipts (SKR)
  4. Copies of paperwork between the investor and his/her bank and/or any underwriting.
  5. Client Information Sheet (CIS) that includes client attorney info.
  6. Letter of Intent (LOI)
  7. Letter of Non-Solicitation
  8. History of the asset.
  9. Attestation Letter from client's attorney/advocate attesting that the attorney has verified the authenticity of the client, the authenticity of the asset, any underwriting, as well as the client's relationship with client's bank.
  10. A list of any intermediaries involved in-between that are mentally-focused on win-win.

(Hint/Tip: Non-solicitation and asset history language can be intelligently worded/included within the LOI to avoid creating multiple documents.)



Add the following documents If the client has projects to be funded:

  1. Business Plan
  2. Financial Pro forma
  3. Certified accounting for funds already spent


1) Gather Submission Data Depends on client and asset
2) Magister Operis due diligence on data 24-72 hours
3) Direct dialog with client to make sure the client is real and ready as well as client’s bank, legal representation, and/or underwriter are ready as required. 15 minutes to 1 hour
4) Intermediaries professionally package themselves for efficient payment. 24 hours
5) Magister Operis packages the data for submission to monetizer 0-4 hours
1) Client’s paperwork is submitted to monetizer. 15 minutes
2) Monetizer does due diligence on data 24-72 hours
3) Magister Operis introduces client to monetizer and arranges conference call 24 hours
4) Monetizer and client have a conversation to get on the same page with each other 15 minutes to 1 hour
5) Attorneys are introduced to each other to draft contracts 30 minutes
5) Monetization lawyer issues draft contract to client for review. 24-72 hours
6) Client signs monetization contract. 10 minutes
7)Client blocks asset as agreed on behalf of monetization bank. 1-72 hours
8) Monetization banker deposits monetization funds into client’s account as per contract. 30 minutes
9) Intermediaries paid as agreed. 15-60 minutes
  *** DURATIONS NOTE:  Please understand that the above time durations are simply educated guesses of what might be reasonable. Actual times will vary due to the quality or lack of quality as well as time constraints of the signatory principals, assets, intermediaries, documentation, legal counselors, custodial institutions, and/or banks. 


Due Diligence: CLICK HERE

Fake Documents/People: CLICK HERE

Magister Operis Workflow: CLICK HERE

General LTV Information: CLICK HERE

Broker Notes: CLICK HERE

Disclaimer: CLICK HERE