Collateral Management Agreements

Collateral Management Agreements

Alex Stewart Agriculture provide highly specialized Collateral Management Agreements and Warrants services in Brazil and Malaysia. Alex Stewart Armazens Gerais coordinates its CMA/Warrants and Auditing operations from Ribeiro Preto, Sao Paolo, Brazil. Core business services range from full auditing of farm produce including pre-project credit ratings with financial institutions and also working closely with producers to provide crop monitoring, classification, weigh-bridge control, warehouse storage and produce insurance. Alex Stewart follows strict legal and financial procedures and it is important that operations staff consist of fully qualified accountants, lawyers and agronomists who are all trained and experienced in aspects of the agriculture supply chain.

CMA AND WARRANTS SERVICES

Crop monitoring - Full technical consultation and advice for farmers and producers including seed choice, planting, fertilisation, crop monitoring, harvest, quality control, classification, storage and transportation logistics from warehouse to ship side, GAFTA or FOSFA approved loading and discharge supervIsion and inspection for end buyers.

Stock monitoring – CMA quantity will be logged into a stock book, daily release quantity will be verified against the release note and the stock book. Reports and updates will be sent by email to the relevant parties on the next working day.

Warehouse security – padlocks installed on every door of the warehouse that will be attended by minimum of 1 inspector 24 hours/day. Only authorized personnel shall enter the warehouse.

Goods release – will be upon official written instruction from Alex Stewart and with written approval of receiver/creditor through an official release order. We will also monitor release and ensure safe passage of goods from CMA cargo to Non CMA Cargo by: - a) bagging cargo b) bulk delivery over weighbridge.

At load port – Upon the official signing of legal collateral management agreements between the creditor and depositor and any appointment of Alex Stewart inspector to certify loading supervision and cargo quantity and quality, the cargo is under due care of creditor and depositor.

At discharge – Alex Stewart will carry out the inspection to determine the Bill of Lading and the quantity at load port. All weighed goods would be stored at the approved warehouse facility under close custody of ASA.

CMA pledge – upon completion of discharge operations, Alex Stewart would pledge the CMA quantity based on actual weight figures and would take full effect by the issue a non-negotiable warehouse receipt endorsed by an authorized signatory in favour of the receiver.