Monitoring & Inspection

Under this arrangement, the Bank appoints a collateral manager to monitor and inspect the physical and where required, the documentary handling of the Goods. The collateral manager provides these services for the account of the Bank and the role of collateral manager is solely one of logistical monitoring and inspection.

Under Stock Monitoring and Inspection, the client or third party storer, furnishes to ACE Global Depository without charge access to its Storage Facility as may be required by the Bank for the purposes of performing the designated supervision services.

ACE Global Depository documentation (Monitoring and Inspection Agreement) clearly establishes the role of ACE Global Depository in the Agreement as solely one of logistical monitoring and inspection, in the sense that ACE Global Depository shall is not responsible or liable for the condition, quality, management or control of the Goods.

However, if it is required for ACE Global Depository to be responsible or liable for the condition, quality, and management or control of the Goods, then the parties must agree that ACE Global Depository will be required to adopt the more appropriate Collateral Control Agreement (Field Warehousing/ Collateral Management) and not operate under a simple Monitoring and Inspection Agreement.

As part of our Stock Monitoring and Inspection Service, ACE GLOBAL Depository provides an extensive range of inspection services; Sampling, Analysis/Testing of Quality, Quantity and Weight, Packaging & labelling Verification, and the Control of Loading/Unloading Operations. Our Expert staff inspects thousands of tons of commodities shipped worldwide each year.

  • A lender secures its interest in the goods and perfects the pledge through ACE Global Depository via:
  • Accurate reporting and accounting by ACE Global Depository of all movements and balances;
  • ACE Global Depository’s continuous presence (where agreed to by borrower) at location
  • ACE Global Depository provides the lender with accurate and reconciled reporting on all movements and conditions of goods stored.
  • From the Borrower’s perspective, Inspection and timely reporting provided ACE Global Depository ensures a least costly method of enabling a business to obtain credit and to carry on productive operations that would otherwise be impossible to do.
  • In any loan application that is considered by the Bank, there are a number of pre-loan considerations which must be taken into account by the Bank prior to agreeing to grant a credit facility to its client. Know Your Client’s Client (KYCC) due diligence has to be conducted and certain decisions have to be taken such as:
  • The maximum amount of credit to be made available against Borrower’s stock.
  • The percentage of the advance to be made against the value of the stock.
  • The pricing system in valuing the stock (i.e. Borrowers cost, sales price less percentage, etc.)
  • The frequency with which reporting on the borrowing base would be required and the nature of the documentation to be presented by ACE Global Depository on a periodic basis.
  • The release mechanism prior to the goods being released by ACE Global Depository to the borrower / relevant off taker.
  • Sampling
  • Sampling in accordance with contractual methods or international standards i.e. GAFTA, FOSFA, ISO.
  • Analysis / Testing for quality
  • According to international and recognized standards and methods
  • We can arrange analysis/testing of samples from outside reputable independent laboratories.
  • Quantity and Weight
  • Packaging & Labelling Verification
  • Control of Loading/Unloading Operations
  • Physical Analysis
  • Chemical Analysis
  • Heavy Metals
  • Pesticides Residues
  • Microbiological Analysis
  • Mycotoxins
  • Random Weight Checks
  • Weighbridge Weighing
  • Tally of bags during loading/unloading.
  • Tare Weight
  • Pre and Post draft surveys (for bulk shipments)
  • Assessment of packages to meet Labelling, packing and marking requirements to minimize the risk of rejection at destination
  • Visual inspection of cargo spaces of containers and Vessel’s holds to check if they are free from odour, foreign matter, previous cargo residues and/or pest infestation and fit to load the intended cargo.
  • Round the clock attendance at Port and warehouses during the operations.
  • Time Log
  • Statement of Facts

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