On September 1st, 2008, OMIC commenced Collateral Management Services (CMS) in the Asian region, in order to provide our clients (Banks, Cargo Owners) with an opportunity to expand their business, provision of a finance service by the Bank and receipt of a loan by the Cargo Owners, guaranteed by the product kept as collateral in the warehouse. OMIC assures our clients of a professional service to make secure their commodities and products with a guarantee by Professional Indemnity Insurance covered by an International Insurance Company, as a safety net for the clients.
Collateral management services is a service to secure and monitor the product offered as collateral, and is kept in storage under a loan agreement between the Cargo Owner and the financier (Bank) by a third party inspection agency like OMIC (called the Collateral Manager) nominated by the financier. The agreement amongst the parties (Bank, Cargo Owner and Collateral Manager) is known as a "Collateral Management Agreement (CMA)".
OMIC can provide Collateral Management Services for various commodities, including agricultural and industrial products in the following Asian countries.
- Request a loan from the Bank based on their product to be kept in a certain warehouse.
- Set up a loan agreement under the conditions of a Collateral Management Agreement among the 3 parties (Bank, Cargo Owner, OMIC).
- Request OMIC to secure/ensure quantity and quality (if required) of the product in the warehouse under the Collateral Management Agreement.
- Provide OMIC with a suitable environment for performing its duty in coordination with the parties concerned, such as warehouse owner, supplier or transportation company, etc.
- OMIC maintains its own staff to ensure/keep track of quality and quantity of the product in the warehouse.
- Issue Warehouse Receipt by the order of the Bank for the account of the Cargo Owner.
- Provide a loan to the Cargo Owner based on the product in the warehouse.
- Ensure that the cargo is under the custody of OMIC, who reports updated quality and quantity of the cargo kept in the warehouse.
- Arrange to deliver, stow and load the product entering and leaving the warehouse under the supervision of OMIC.
- Cargo Owner will be responsible for settlement of OMIC's fees.
Advantages of a CMA
Advantage for the Bank
Advantage for the owner of the product
For details, please contact.