After you provide us with the Picture Information, so long as your film or television production meets our then-current prerequisites, we will first ask you to submit Proof of Funds (POF). Proof of funds (POF) typically takes the form of a short summary describing each financier and investor that has committed to advance production funds, the amount of and, if applicable, any pre-conditions (e.g., script or cast approval, completing pre-sales) to any funding commitments, together with a fully-signed copy of a term-sheet, commitment letter or funding agreement. We do not require all production funds to be on deposit. We simply want proof that you have secured the funding commitments needed to fully cover the budgeted costs of production.
Once POF is accepted, our Production Department will request copies of the approved screenplay or teleplay(s), budget, cash flow schedule, shooting schedule, post-production calendar and locations (shooting and post-production) for your film or television production.
Next, you will need to furnish the Production Information to our Production Department and the Legal Information to our Business Affairs Department for our review and approval.
If we approve your submission for underwriting, our Business Affairs department will prepare and negotiate the Completion Guaranty, the Completion Agreement and related documents including the Director’s Undertaking, Completion Guarantor’s Power of Attorney, Producer’s Power of Attorney and Copyright Mortgage and Assignment. You will also need to furnish (or have your insurance broker-agent furnish) proof that you have obtained the Basic Insurance Coverages. The legal counsel representing each of your financiers and investors will typically prepare their Funding Agreements and collateral assignments. The legal counsel representing the principal financier or investor in your production will typically prepare related documents including the Interparty Agreements, Intercreditor Agreements, Notices of Assignment, Letters of Credit, Laboratory Control Agreements and Deposit Account Control Agreements. If a collection account will be opened, then the legal counsel for the collection agency usually prepares the Collection Account Management Agreement.
Throughout principal photography and post-production, you will need to regularly provide us with copies of daily call sheets, daily wrap reports, daily production reports, cost reports (weekly during principal photography and monthly during post-production), and notices of availability or delivery to distributors until your production has been completed and fully delivered. Other reports or notices may be required upon request.