A written document issued by the customer to the owner of a project contract or the buyer of a commodity transaction to ensure that the applicant strictly performs the contract or supply contract。
Product function
To ensure the normal performance of contractual obligations and the sound quality of the subject matter of the contract;Solve the problem of mutual distrust between the parties to the contract and reduce the pressure of funds。
Product characteristics
1.Solve the problem of mutual distrust。Banks rely on their own good reputation to intervene in the transaction as a guarantor, provide guarantee for the parties, and promote the smooth execution of the transaction。
2.Guarantee of performance of contractual obligations。Ensure the normal performance of the contract and the good quality of the subject matter of the contract。
3.Compensation to the injured party and punishment to the breaching party in case of breach of contract。When a contract is breached, it can compensate the aggrieved party and punish the breaching party by executing the letter of guarantee, so as to avoid and reduce the frequent occurrence of breaches under the contract, and avoid the trouble and expense of litigation or arbitration caused by resolving disputes。
Related expenses
Performance guarantee fees shall be charged in accordance with the charging principles and rates determined by relevant regulations of our bank. Foreign currency guarantee fees shall be charged in accordance with the RMB guarantee。
Applicable customer
1.The contractor in the contracted project;
2.Supplier in material procurement project。
Application conditions
1.Having a legal person's business license or other valid documents that have been inspected annually to prove the legality and scope of its business;
2.Have a loan card;
3.Have an account opening license and open a settlement account with our bank;
4.Having the qualification to engage in the corresponding business (such as foreign contracting qualification, construction enterprise construction qualification, etc.);
5.Have a line of credit with us or pay a full margin or provide a full amount of insurance acceptable to us。
Handling process
1. Application for letter of Guarantee
1.The applicant fills in the letter of guarantee application or the letter of guarantee contract;
2.The applicant submits a security deposit or other counter-security;
3.The applicant submits basic materials related to the contract;
4.The applicant shall submit other necessary materials required by the bank for the issuance of the guarantee。
2. Review and issue of letter of guarantee
1.The bank shall review the customer qualification, basic transaction and related materials;
2.The bank implements the collateral of the customer's margin or credit line;
3.The bank reviews the written application and the form of the letter of guarantee;
4.Guarantee issued。
Warm reminder
1.Guarantee modification: Modify the terms of the guarantee according to the needs of the guaranteed and the beneficiary, such as extending the validity period of the guarantee。
2.Letter of guarantee payment/compensation: Once the beneficiary claims occur within the validity period of the letter of guarantee, the applicant shall be notified in time, and the guarantee bank shall fulfill the payment obligation after reviewing the claim documents and confirming that they comply with the requirements of the claim terms of the letter of guarantee。