Field Warehousing and Storage Services

Field Warehousing and storage is essentially a method whereby a borrower’s trading assets are used as security at the borrower’s own premises for a loan. This is because of the control over those assets taken by a credit support company to act as a custodian of the goods on behalf of the lender: Field Warehousing is therefore a security device which enables the borrower to deliver to the lender legally valid documents of the title and to grant a possessively pledge of goods stored in the borrower's own plant, mill, refinery or warehouse.

Collateral Management Services

In cases where the goods to be pledged by the customer are already stored with an independent warehousing company, it is possible for a Field Warehouse to be set up. For this purpose an Agency Agreement is entered between the warehousing company and ACE whereby it agrees to act on behalf of ACE, in holding the pledged goods. Under its provisions the warehousing company undertakes to hold the goods solely to the order of ACE: ACE in exchange pays the warehousing company its charges. The effective control of the Field Warehouse remains with ACE: thus, ACE attorns to the Bank in respect of consignments of goods being taken into the Field Warehouse and authorizes release of goods in accordance with the bank’s instructions.

ACE Collateral Management Services provide the banker with on-site physical and legal control of inventory stocks, which are pledged as the operator's collateral. ACE Collateral Management Services are designed to allow continuing relations with marginal or troubled operators, while retaining the flexibility to provide protection to the trader in the event of unanticipated increases in the operator's requirement for further funding. By having ACE Collateral Management Services to control and secure the pledge over the operator's inventory, the trader can customize the terms of its loan to support the operator's specific needs. Under Collateral Management, a Warehouse or Silo operator will use its own warehouses and clients will deliver commodities for storage in such warehouses / silos.