We are very excited about presenting you with the investment opportunities, as outlined within this document; and thank you for taking a moment to consider actively participating with us in these Collateralization Portfolios. In realizing the key component with both clients and investors is preservation and protection of investment capital for long term reuse in other markets. We understand the need for some form of assurance, as each participant vest into these cross collateralization funds; all of which are designed to ensure continued opportunities, both within E.F.S. International’s investment markets and our clients and or investors interest as it pertains to your other investment opportunities.

 

As we embrace the reality of integrating these assets, it brings the viability of certain cash equivalents, as implemented through a formalized disbursement structure; it is with this structure that will assist us in accomplishing the collateralization goal to generate the continuous revenue needed to repay all of the investment capital entrusted to us during the investment period. Outlined below are some of the suggested collateralizing instruments for the investor’s capital (there are other alternatives):

 

 

            1). Municipal Bond as a Cash Subordinate:

            Initial request, up to $1 Billion +/-Through the existing Municipality i.e. Lawrence County for the current and future development of Limestone Community this can be prepared, underwritten, and distributed within the first year of the development plan.

 

            2). Creation of our own Municipality:

            Our request would raise; up to 1.5 Billion +/- over the development period.

            Through the Incorporation of the Project area as a City within Lawrence County, thus enabling us to establish / issue our own Municipal Bond and or create our own District on various levels to include the following:

 

                                    A). Water – Sewer District / Bond: Utility

                                    B). Energy / Renewable Energy Bond: Utility            

                                    C). Infrastructure / Development Bond

                                    D). Technology / Entertainment Bond

                        See Footnote [1] See Footnote [2] See Footnote [3]

 

            3). Infrastructure / Development Bond:

            Guaranteed and underwritten by the Federal Government and State of Ohio based on allocation of Federal Funds created / established for the exact same purpose. Initial Request would range from $300 Million or more (See Footnote [4])

 

 

 

 

 

 

Insurance Instrument (s):

            4). Financial Guarantee | Performance Bond:

            Financial Guarantee Bond:

            A non-cancelable indemnity bond, backed by an insurance company, which guarantees that principal and interest will be paid in compliance with the underlying contractual agreement or promissory note. Financial guarantee bonds are used by debt issuers as a way of attracting       investors: The guarantee provides said investors with an additional level of security that the investment will be repaid/obligation will be fulfilled in the event that the securities issuer is unable to do so.

 

            The bond may benefit the principal, by enhancing the principal's credit worthiness thereby lowering the cost of financing. The guarantee "wraps" the security / promissory note with the insurer's indemnity. Because the bond represents an “UNCONDITIONAL   GUARANTEE” of compliance/repayment, a preferred interest rate is often offered.

           

            Performance Bond:

            A performance bond guarantees performance of the terms of a contract. These bonds frequently incorporate payment bonds (labor and materials) and maintenance bonds. Bonding ultimately aims to protect the project owner from financial loss should the contractor fail to perform the contract in accordance with its terms and condition’s.

 

            Underwritten by a “Tier 1” Insurance Company, who will cross collateralize the investment capital with a credit line through one of the Top Five Banks in the World, leaving the principal investment in an interest bearing account over the investment term. Thus creating a residual value and reducing the anticipated taxable gain on the income over the investment period? (Confirm this point with CPA). This will be done for each phase of work to ensure that every phase is completed in accordance to and as outlined within the development agreement. (See Footnote [5])

 

           

            5). Income Producing Commercial Property:

            Use a portion of the investor capital to acquire and build a real estate portfolio, where the annualized income minus, taxes, cost of operation, insurance, etc., would be greater than the   monthly payment disbursed for the portfolio to include investor payments. Wherein, the           cumulative portfolio value increases at an average market rate of return during the investment period. Approximate Portfolio value should range between $500 Million to

            1 Billion, which should generate a minimum, annualized income of $55 Million or more.

 

 

 

 

 

 

 

 

            6). EB-5 Investor Visa Program:

            Under federal law, 10,000 immigrant visas per year are available to qualified individuals seeking permanent resident status on the basis of their engagement in a new commercial enterprise. This visa program is popularly called the EB-5 visa program. If the investment in a new commercial enterprise is made in a Targeted Employment Area (TEA), the required investment is $500,000. A TEA is either a "High Unemployment Area" that has experienced         an unemployment rate of at least 150 percent of the national average rate or a "rural area".    The Goal is $500 Million per development phase from this program (See Footnote [6])

 

 

            7). Interest Bearing Capital Preservation Account:

            Deposit the Monthly Draw Allowance and advance from another instrument like a SBLC, Bond, etc., all of which are collateralized by that phase of work on the project and another asset like a corporate note/ bond / stock, etc.; this is issued in coexistence against a bond, all      of which is repaid through; the projected revenue in the form of taxes base, sales, leasing, or operational revenue from one of the income streams, wherein this is drawn against the future growth based on one and or all of the following five reports:

 

                                                1). Land Use Attorney who identifies by working with the County, State & Government on the effective use, type, and zoning for the      entire project.

 

                                                2). Market / Economic Analysis of the entire project

 

                                                3). Financial Forecasting Analysis in co-existence with an MAI Appraisal

           

                                                4). Traffic Analysis

 

                                                5). Finalizing the Master Plan

             

            8). Cash and /or Asset Backed - Medium Term Note (s) (MTN):

            These instruments are prepared for up to $5 Billion U.S. Dollars, and disbursed through a Top Five (5) Bank, at a processing cost through all of the, highly trained professional’s who specialize in this industry and retained for this task of approximately $8 – 12 Million +/-.  These MTN (s) will be sold on an institutional level at the dictated market rate, within a twelve – fifteen (12-15) month period; where the average time of maturity is Ten (10) years to the issuer. Bare in mind the investors accrued principal and interest will be reimbursed at    the end of the Twelve to Fifteen month period. (See Footnote 4)

 

            9). Stand By Letter of Credit (SBLC) / Bank Guarantee:

            Equivalent to One (1) Years draw value, and issued through a Top 5 Bank, and is prepared as directed according to the terms and conditions by the Governing Institution where it’s drawn upon, in denominations conducive to the exact same.

 

 

 

            The project and its cumulative cash or cash equivalents are demonstrated within the associated reports, analysis, mineral rights, and studies, as prepared by some of the world’s top individuals, firms, and companies are the collateral. The maximum amount that we   would request is ten percent of the development budget. (See Footnote 4) (See Footnote [7])

 

 

            10). Private Placement Memorandum:

            Organize Monthly Corporate Events i.e. Breakfast, Luncheons, Cocktail Parties, and Dinners, for the purpose of educating these representatives on eco-friendly, smart use, affordable housing, mixed-use, developments and raise a minimum of $10 Million ++ in            investment capital per event.

           

            These events maybe sponsored by companies who would like us to use their products for  marketing purposes. However the goal is to gather groups of not less than 5 and not more than 50+/- investors. These Advisors represent:

 

                        1). Pension and Annuity Funds                               2). Union Organization (s)

                        3). Investor Groups (Doctors / Lawyers)                 4). High Net Worth Individuals

                        5). Professional Athletes & Entertainers                    6). Specialized Corporate Interest

 

These collateral recommendations are governed by a time constraint as demonstrated by the investor on their use and placement of funds; and are an industry standard for collateralization. We have a list of companies that are available to assist in the further explanation, demonstration, and use of the aforementioned categories. As questions arise, my contact is 818.732.1580.

Sincerely,

 

 

Reginald Charles

Chairman



[1] This section is underwritten/guaranteed by the Federal Government, issued through the State where the improvements are done.  

[2] There are Matching Funds and or Tax Credits established for certain improvements completed within the Ohio region

[3] The budgets allocated for these bond initiatives are included for your review – see attached referenced documentation

[4] See attached budgets from the government and state agencies

[5] For a list of the proposed Financial Conduits, you can review the Insurance & Banking Research Information we’ve prepared

[6] For further explanation you can request a copy of the EB-5 investor program 

[7] Please refer to our list of Professional’s Consultants who may sit on our Advisory Board with the Board of Directors for this development. 

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