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Product Name
Quality/Maintenance Guarantee
Product Description
It is the written document issued to the owner or the buyer from Bank of China to guarantee that applicant will fulfill contract obligation in the warranty period or maintenance period, at the request of construction contractor or supplier.
Product Functions
It is applicable for the situation that the owner or the buyer requires the contractor or the supplier to fulfill warranty or maintenance obligations as contracted when construction, supply and installation contracts enter into the warranty period or maintenance period. It is the guarantee for normally fulfilling contract obligation.
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. Guarantee fulfillment of contractual obligations, as well as quality of the subject matter of contract.
3. Reduce capital occupation due to cash margin payment.
4. Improve market competitiveness of construction contractor or supplier, and accelerate returns of accounts receivable.
Eligible Applicants
1. Contractors involved in construction contracts;
2. Suppliers involved in material procurement projects;
3. Sellers involved in shipbuilding contracts.
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 the qualification to engage in relevant business (such as qualification of contracting foreign projects, construction qualification of building enterprise.);
3. 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 letter of guarantee;
4. Bank of China issues the letter of guarantee.
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