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Name
Re-issuance of Letter of Guarantee
Introduction
Upon receipt of a letter of guarantee from a foreign bank, the customer designates Bank of China Rotterdam Branch as the reissuing bank to issue different forms of letter of guarantee with the customer as the beneficiary. The re-issuance of letter of guarantee enables to better protect the customer's interests, prevent relevant business risks and make enquiries and claims more convenient and easier.
Features
1. Acquire guarantee from local bank to eliminate the cross-border communication barriers;
2. Avoid credit risks of foreign banks;
3. Prevent foreign exchange rate risks to certain extent.
Charges
The charges are subject to the charging principle and rate stipulated in the relevant rules of Bank of China Rotterdam Branch.
Applicant Qualifications
1. Domestic and foreign correspondent banks have established correspondent relationship with Bank of China Rotterdam Branch;
2. The issuing bank of the letter of guarantee shall maintain good credit standing without any bad record;
3. The applicant shall have a trustworthy business background that is in compliance with Bank of China Rotterdam Branch's requirements;
4. The applicant shall provide a completed letter of counter-guarantee with clear instruction which covers Bank of China's interests.
Procedure
1. The correspondent bank or the affiliated bank submits an application;
2. Bank of China Rotterdam Branch reviews the documents and issues the letter of guarantee;
3. Charge guarantee fees；
4. Amend the letter of guarantee;
5. Make compensation for the letter of guarantee or cancels the letter of guarantee.
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