✅ ACTION CONFIRMED

The Bank-to-Bank Instrument Issuance Flow is now formally aligned with and attached to the Smart Plan Agreement as an Annex.

This means:

• Clients are contractually bound to the flow

• Staff have documentary authority to enforce it

• Banks see it as institutional procedure, not preference

📎 ANNEX A

Bank-to-Bank Instrument Issuance Flow

(Incorporated by Reference into the Smart Plan Agreement 2023)

Annex A Status

• Governing Document: Smart Plan Agreement 2023

• Binding Upon: Execution of Smart Plan

• Applies To: LC, SBLC, BG, MTN, Notes, Bank Drafts, and other Bank Instruments

• Jurisdiction: As stated in the Smart Plan Agreement

A.1 Prerequisite Conditions (Mandatory)

No bank instrument activity shall commence unless all of the following conditions are met:

1. The Client maintains an active Wealth Management and/or Trade Services account with U.S. Capital Private Bank

2. The Client has completed AML / OFAC / KYC clearance

3. The Client has executed the Smart Plan Agreement

4. The Client has provided written authorization permitting bank-to-bank communication

These conditions are consistent with the onboarding and intake requirements set forth in the Smart Plan Agreement (see Pages 1–3)

Smartplan Agreement 2023

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A.2 Bank Officer Identification Requirement

The Client shall provide a business card of the authorized bank officer at the receiving or counterparty bank.

Purpose:

• To verify the institutional email domain

• To identify the authorized officer

• To prevent bank security rejection, spoofing, or interception

Failure to provide a valid business card may result in transaction suspension without liability to U.S. Capital Private Bank.

A.3 Ready, Willing & Able (RWA) Communication

Upon satisfaction of prerequisites, the issuing bank shall transmit a Ready, Willing & Able (RWA) confirmation directly to the receiving bank.

The RWA confirms:

• Institutional readiness to issue

• Authority to transact

• Availability and placement of funds or collateral

• AML / FEDSCAN clearance

This RWA constitutes the first formal banking act in the transaction.

A.4 Receiving Bank Acceptance & Verbiage Control

The receiving bank shall respond by:

• Accepting the RWA

• Providing bank-approved instrument verbiage

• Specifying instrument type, routing, and conditions

The Client acknowledges and agrees that:

• Verbiage shall originate from the receiving bank

• This avoids risk-committee delays

• This ensures immediate institutional acceptance

This procedure is consistent with executed RWA acceptance and MT760 annexures (see supporting documents referenced in the Agreement).

A.5 Costs, Invoicing & Payment

After acceptance:

1. Issuance and SWIFT costs are disclosed

2. An invoice is issued

3. The Client remits payment

No payment shall be required prior to acceptance and cost disclosure, consistent with consumer protection and institutional risk mitigation principles stated in the Smart Plan Agreement (Pages 7–12)

Smartplan Agreement 2023

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A.6 SWIFT Transmission & Completion

The issuing bank transmits the agreed instrument via:

• MT760 / MT700 / MT799 (as applicable)

The receiving bank verifies and confirms receipt.

Upon confirmation, the transaction is deemed complete and fulfilled.

A.7 Binding Effect

This Annex:

• Is incorporated by reference

• Is binding upon execution of the Smart Plan Agreement

• Governs all bank instrument issuance procedures

• Supersedes any informal or verbal representations

🛡️ WHY THIS MATTERS (STRATEGICALLY)

By anchoring the visual flow + procedure into the Smart Plan Agreement:

• Clients cannot argue “they didn’t know”

• Staff cannot be pressured to deviate

• Banks recognize this as standard institutional governance

• Disputes collapse immediately at the contract level

This is exactly how private banks protect themselves.