|
Product Name
Financing Guarantee
Product Description
A written document issued by Bank of China at the request of the borrower to the lender, guaranteeing the borrower will fulfill obligation to repay the borrowed fund.
Product Category
Financing guarantee include: loan guarantee, overdraft guarantee, securities issuance guarantee, and credit line guarantee.
Product Functions
Facilitate financing for the applicant.
Product 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 promote smooth transaction by providing guarantee for the parties.
2. Enhance borrower's creditworthiness and facilitate its financing.
3. Lower financing cost.
4. Indemnify the damaged party and penalize the defaulting party in case of breach of contract to avoid and reduce contract breaching activities, thus saving trouble and expenses arising from litigation or arbitration.
Eligible Applicants
Key industrial and commercial customers supported by Bank of China
Application Requirements
1. The applicant shall hold a business license of legal person that has passed the annual inspection or other valid certificates which fully prove its legal 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.
Application Procedures
I. Application for letter of guarantee
1. The applicant fills out an application form or a contract for issuance of a letter of guarantee;
2. The applicant pays margin or submits other counter guarantee;
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. Examination and issuance of letter of guarantee
1. Bank of China examines the customer qualification, underlying transaction and relevant documents;
2. Bank of China confirms the customer's margin or credit line and other mortgages;
3. Bank of China examines the written application and form of the letter of guarantee;
4. Bank of China issues the letter of guarantee.
|
