Product Name

Financing Guarantee

Product Description

Financing Guarantee is a written undertaking issued by Bank of China at the request of the borrower to the lender, guaranteeing that the borrower will fulfill the obligation to repay the borrowed fund.

Category

Financing guarantee include: loan guarantee, overdraft guarantee, securities issuance guarantee, and credit line guarantee.

Functions

Facilitate the applicants to get the financing support.

Features

1.Solve the problem of mutual mistrust between both parties of a transaction.With good reputation, Bank of China involves in the transaction and acts as a guarantor to ensure the smooth transaction by providing guarantee for the parties.

2.Enhance the borrower's credibility and facilitate its financing.

3.Reduce the financing cost.

4.Indemnify the damaged party and penalize the defaulting party.Indemnify the damaged party and penalize the defaulting party in case of breach of contract to avoid and reduce the contract breaching activities, thus saving the time and expenses arising from litigation or arbitration.

Eligible Applicants

The key industrial and commercial customers supported by Bank of China

Application Requirements

1.The applicant shall hold a business license of a legal person that has passed the annual inspection or other valid certificates which can fully prove its operation and scope of business.

2.The applicant shall have a credit line at Bank of China, or pay full margin, or full guarantee acceptable to Bank of China.

Procedure

I.Application for letter of guarantee

1.The applicant fills out an application form.

2.The applicant pays margin or has the relevant credit line.

3.The applicant submits primary documents related to the contract.

4.The applicant submits other documents necessary for issuance of a letter of guarantee as required by Bank of China.

II.Verification and issuance of letter of guarantee

1.Bank of China verifies the customer's qualification, underlying transaction and relevant documents.

2.Bank of China confirms the customer's margin or credit line.

3.Bank of China verifies the written application and form of letter of guarantee.

4.Bank of China issues the letter of guarantee.

Gentle Reminders

1.Amendment to letter of guarantee: On 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 against 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 the guarantee issuing bank verifies the claim documents and confirms that they are in compliance with the claim clauses under the guarantee.