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Name
Payment Guarantee
Introduction
A written document issued by Bank of China Rotterdam Branch at the request of the customer to the seller to guarantee that the applicant will fulfill the payment obligations under the contract to purchase goods, technology, patent or labor.
Functions
The product provides contract payment protection.
Features
1. It guarantees the performance of the contract. The payment provides contract payment protection to ensure timely payment of purchase money, which is similar to the L/C in merchandise trade settlement.
2. It solves the problem of mutual mistrust between both parties of a contract. With good reputation, Bank of China Rotterdam Branch acts as the guarantor of the payer to promote smooth transaction.
3. Wide application scope. The product can not only be used for merchandise trade, but also for construction projects and fixed assets building projects.
Charges
The charges are subject to the charging principle and rate applied in the relevant rules of Bank of China.
Target Customers
Buyers involved in the sales contracts, and owners involved in construction contract agreements and so on.
Applicant Qualifications
1. The applicant shall have a corporate account in Bank of China Rotterdam Branch;
2. The applicant shall have a credit line in Bank of China, or pay full counter guarantee acceptable to Bank of China or full margin.
Procedure
1. Application for letter of guarantee
(1) The applicant fills out an application form;
(2) The applicant pays margin or submits other counter guarantee;
(3) The applicant submits primary documents related to the business background (such as contracts);
(4) The applicant submits other documents necessary for issuance of a letter of guarantee as required by Bank of China Rotterdam Branch.
2. Verification and issuance of letter of guarantee
(1) Bank of China Rotterdam Branch examines the customer qualification, underlying transaction background and relevant documents;
(2) Bank of China Rotterdam Branch examines the application and form of letter of guarantee for irregularities and incompliance;
(3) Bank of China Rotterdam Branch checks and confirms the customer's credit line, margin or other counter guarantee;
(4) Bank of China Rotterdam Branch issues the letter of guarantee.
Tips
1. Amendment to letter of guarantee: At the request of the guaranteed party and the beneficiary, the clauses under the letter of guarantee can be amended, for example, the validity period can be extended;
2. Payment/compensation of letter of guarantee: If the beneficiary claims compensation within the validity period of the guarantee, the applicant shall be notified in time. The payment shall be made after Bank of China Rotterdam Branch verifies the claim documents and confirms that they are in compliance with the claim clauses under the guarantee.
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