Guarantee services are provided by BOCOM in response to applicant’s request for guarantees, in the forms of letters of guarantee, letters of guarantee undertaking, guarantee contracts and standby letters of credit, in order to fulfill the applicant’s contractual obligations.
Types of guarantees
Guarantees provided by BOCOM include: loan guarantee, overdraft guarantee, lease guarantee, compensation trade guarantee, payment guarantee, incoming material processing guarantee, tariff guarantee, bail guarantee, tender guarantee, contract performance guarantee, prepayment guarantee, quality maintenance guarantee, retention fund guarantee, Shipment against bank guarantee and standby letter of credit.
(1) Meet the basic criteria for working capital loans required by BOCOM;
(2) Has a corresponding scope of business operations;
(3) Can provide the required counter guarantee, and for foreign-invested enterprises (equity joint venture, cooperative joint venture, foreign wholly-owned enterprise), they have to provide documents on counter guarantee in relation to implementation of the requirements on the investment ratio from the domestic and foreign parties;
(4) Guarantees for basic infrastructure and technology improvement projects must fulfill BOCOM’s criteria for project loans;
(5) Guarantee applications for overseas creditors must comply with the state’s foreign exchange regulations.
(1) Provides application for credit limit guarantee, together with basic documents to support applications for working capital loans as required by BOCOM, with information about the performance of the operations under guaranty over the past two years;
(2) For guarantee services catering to contracted engineering projects and some of the trade projects, applicants must also provide: tender document; proof of success tender; quality certification for contracted projects, related contractual documents and forms of guarantee correspondences;
(3) For guarantee services catering to fixed assets and technology improvement projects, the applicant is also required to provide: general transaction agreement; project feasibility reports and legally-valid documents on the approval; project evaluation reports; information on the various parties related to the guarantee and content of the guarantee documents;
(4) For guarantee services catering to import and export projects by sea freight, the applicant is also required to provide: general transaction agreement, legally-valid documents on the approval of the transaction and forms of guarantee correspondences;
(5) Upon its review and approval, BOCOM will sign with the applicant a deed of guaranty and counter guarantee contract (security contract and pledge contract), and issues letter of guarantee for the applicant.