BUSINESS CREDIT APPLICATION TEMPLATE

DATE: November 30, 2011

TYPE: Demand Loan AMOUNT $: $2,000,000 PURPOSE & ALLOCATION:

Mr. Newton Bigun, an Engineer by profession is currently Chairman of

Biguns Construction Limited and Chairman/CEO of Biguns Developers Limited. He is seeking to raise funding of $2 million in short term to

purchase the property located at (Address, Volume & Folio) approximately (#) square feet. This property is being purchased in order to build (#) residential apartment units.

The property and the units to be built will be held as collateral for the loan.

GENERAL INFORMATION

NAME OF BUSINESS: Biguns Developers Limited

TAX ID: ADDRESS:

CITY: Timbuktu

COUNTRY:

CONTACT OF BUSINESS: Mr. Newton Bigun

PHONE NUMBERS: 1-000-(Office)

EMAIL: newton bigun @ biguns dot net TYPE OF BUSINESS: Construction

IN BUSINESS SINCE: 1990

LEGAL FORM UNDER WHICH BUSINESS OPERATES

CORPORATION PARTNERSHIP PROPRIETORSHIP NAME OF PARENT COMPANY: N/A

IN BUSINESS SINCE: N/A

PERSON RESPONSIBLE FOR BUSINESS TRANSACTIONS:

NAME: Newton Bigun TITLE: Mr.

ADDRESS:

PHONE: 1-000- (cell)

EMAIL: newton bigun @ biguns dot net

PERSON RESPONSIBLE FOR BUSINESS TRANSACTIONS

NAME: TITLE: Mr.

ADDRESS:

PHONE: 1-000-

EMAIL:

BANK REFERENCES

INSTITUTION:

ACCOUNT TYPE: Business & Personal (Checking & Savings)

CONTACT: TITLE: Mr.

ADDRESS:

CITY: Timbuktu

COUNTRY:

PHONE:

EMAIL:

INSTITUTION:

ACCOUNT TYPE: Business & Personal (Checking & Savings)

CONTACT: TITLE: Ms.

ADDRESS:

CITY: Timbuktu

COUNTRY:

PHONE: EMAIL:

FINANCIAL INFORMATION (‘MILLIONS’)

Company Name - Bigun Developers Limited

Year

Assets NCA Turnover

Net Income CA CL

2006 2007

2008 2009

Current ratio

2006 3.92 2007 7.95

2008 5.36 2009 4.30

Profit Margin

2006 32.46 2007 -44.44 2008 2650.0

2009 -4.17

ROA 2006 64.66

2007 -11.58 2008 15.32

2009 -0.86

LEGAL INFORMATION

HAVE YOU OR YOUR OFFICERS OR AFFILIATES EVER FILED A

PETITION IN BANKRUPTCY? YES NO

NOTES: N/A

IS YOUR COMPANY SUBJECT TO ANY LITIGATION? YES NO

NOTES:

LEGAL RISK ASSESSMENT:

SECURITY ANALYSIS:

As security for the $2,000,000 facility the following are being offered:

1. First Mortgage (in registrable form) over residential property at

(Address, Volume/Folio). 2. Hypothecation over Investment Account i.n.o ______________.

Available $200,000.

DOCUMENTATION ANALYSIS CO CM Ops

Credit Application/Client Loan Application Letter

Certificate of Incorporation

Articles and Memorandum of Incorporation

Copy of Tax Registration Certificate

Financial Statements

Personal Financial Statement

Draft Audited Accounts (2007)

Audited Accounts (2005, 2006)

In-House Accounts (2007 - 2009)

Business Plan & cash Flow

Copy of Surveyors ID report

Copy of Real Estate Title (Address,

Volume/Folio) Being Used as Security

Valuation Report (Address, Volume/Folio)

Letter of Authorization to use Title as security

Proof of Insurance (Address, Volume/Folio)

Copy of Discharge of Mortgage (Address,

Volume/Folio)

Copy of Certificate of Good Standing

(Company)

SIGNED DOCUMENTS

Promissory Note

Mortgage By Way of Guarantee

Hypothecation Agreement

Assignment of Property Insurance

Assignment of Life Insurance

Indemnity

RECOMMENDATION:

Negative Assessment

1. The company’s deteriorating financial position and the ongoing

recession…local and overseas which could further negatively impact

the construction industry;

2. The illiquid nature of the real estate being offered as security and the

continued impaired economic conditions;

3. The lack of audited accounts…

4. The ongoing devaluation of the local currency which forces up the cost

inputs and ultimately the price of housing units…

5. Change in Government and Government policy which could negatively

affect demand for real estate.

Positive Assessment

It’s recommended the facility be established based on:

1. Bank’s relationship with the Directors of Biguns;

2. Adequacy of Security offered;

3. Despite deteriorating financial position, the company’s past financial

performance and ability to cover payments from cash flow and from

existing construction contracts.

4. The ability of the “main principal” to provide ongoing financial support

from other professional contracts with prominent individuals, large

corporate and government agencies.

TERMS:

The recommended terms are:

Principal: $2,000,000

Interest Rate: % pa

Rate of Interest: Reviewable Quarterly

Term: Six (6) months Interest Payment: Monthly

Principal Payment: Periodic Lump sum

Fee (Flat Upfront): 1/2%

CREDIT APPROVAL:

________________________ _____________________ ____________

CREDIT OFFICER CREDIT MANAGER DATE